Public Act 100-0465

SB1947 Enrolled LRB100 09675 MLM 19844 b

AN ACT concerning education.

WHEREAS, This Act may be referred to as the Evidence-Based

Funding for Student Success Act; therefore

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Invest

in Kids Act.

Section 5. Definitions. As used in this Act:

"Authorized contribution" means the contribution amount

that is listed on the contribution authorization certificate

issued to the taxpayer.

"Board" means the State Board of Education.

"Contribution" means a donation made by the taxpayer during

the taxable year for providing scholarships as provided in this

Act.

"Custodian" means, with respect to eligible students, an

Illinois resident who is a parent or legal guardian of the

eligible student or students.

"Department" means the Department of Revenue.

"Eligible student" means a child who:

(1) is a member of a household whose federal adjusted

gross income the year before he or she initially receives a

scholarship under this program, as determined by the

Department, does not exceed 300% of the federal poverty

level and, once the child receives a scholarship, does not

exceed 400% of the federal poverty level;

(2) is eligible to attend a public elementary school or

high school in Illinois in the semester immediately

preceding the semester for which he or she first receives a

scholarship or is starting school in Illinois for the first

time when he or she first receives a scholarship; and

(3) resides in Illinois while receiving a scholarship.

"Family member" means a parent, child, or sibling, whether

by whole blood, half blood, or adoption; spouse; or stepchild.

"Focus district" means a school district which has a school

that is either (i) a school that has one or more subgroups in

which the average student performance is at or below the State

average for the lowest 10% of student performance in that

subgroup or (ii) a school with an average graduation rate of

less than 60% and not identified for priority.

"Necessary costs and fees" includes the customary charge

for instruction and use of facilities in general and the

additional fixed fees charged for specified purposes that are

required generally of non-scholarship recipients for each

academic period for which the scholarship applicant actually

enrolls, including costs associated with student assessments,

but does not include fees payable only once and other

contingent deposits that are refundable in whole or in part.

The Board may prescribe, by rules consistent with this Act,

detailed provisions concerning the computation of necessary

costs and fees.

"Scholarship granting organization" means an entity that:

(1) is exempt from taxation under Section 501(c)(3) of

the Internal Revenue Code;

(2) uses at least 95% of the qualified contributions

received during a taxable year for scholarships;

(3) provides scholarships to students according to the

guidelines of this Act;

(4) deposits and holds qualified contributions and any

income derived from qualified contributions in an account

that is separate from the organization's operating fund or

other funds until such qualified contributions or income

are withdrawn for use; and

(5) is approved to issue certificates of receipt.

"Qualified contribution" means the authorized contribution

made by a taxpayer to a scholarship granting organization for

which the taxpayer has received a certificate of receipt from

such organization.

"Qualified school" means a non-public school located in

Illinois and recognized by the Board pursuant to Section

2-3.25o of the School Code.

"Scholarship" means an educational scholarship awarded to

an eligible student to attend a qualified school of their

custodians' choice in an amount not exceeding the necessary

costs and fees to attend that school.

"Taxpayer" means any individual, corporation, partnership,

trust, or other entity subject to the Illinois income tax. For

the purposes of this Act, 2 individuals filing a joint return

shall be considered one taxpayer.

Section 10. Credit awards.

(a) The Department shall award credits against the tax

imposed under subsections (a) and (b) of Section 201 of the

Illinois Income Tax Act to taxpayers who make qualified

contributions. For contributions made under this Act, the

credit shall be equal to 75% of the total amount of qualified

contributions made by the taxpayer during a taxable year, not

to exceed a credit of $1,000,000 per taxpayer.

(b) The aggregate amount of all credits the Department may

award under this Act in any calendar year may not exceed

$75,000,000.

(c) Contributions made by corporations (including

Subchapter S corporations), partnerships, and trusts under

this Act may not be directed to a particular subset of schools,

a particular school, a particular group of students, or a

particular student. Contributions made by individuals under

this Act may be directed to a particular subset of schools or a

particular school but may not be directed to a particular group

of students or a particular student.

(d) No credit shall be taken under this Act for any

qualified contribution for which the taxpayer claims a federal

income tax deduction.

(e) Credits shall be awarded in a manner, as determined by

the Department, that is geographically proportionate to

enrollment in recognized non-public schools in Illinois. If the

cap on the aggregate credits that may be awarded by the

Department is not reached by June 1 of a given year, the

Department shall award remaining credits on a first-come,

first-served basis, without regard to the limitation of this

subsection.

Section 15. Approval to issue certificates of receipt.

(a) A scholarship granting organization shall submit an

application for approval to issue certificates of receipt in

the form and manner prescribed by the Department, provided that

each application shall include:

(1) documentary evidence that the scholarship granting

organization has been granted an exemption from taxation

under Section 501(c)(3) of the Internal Revenue Code;

(2) certification that all qualified contributions and

any income derived from qualified contributions are

deposited and held in an account that is separate from the

scholarship granting organization's operating or other

funds until such qualified contributions or income are

withdrawn for use;

(3) certification that the scholarship granting

organization will use at least 95% of its annual revenue

from qualified contributions for scholarships;

(4) certification that the scholarship granting

organization will provide scholarships to eligible

students;

(5) a list of the names and addresses of all members of

the governing board of the scholarship granting

organization; and

(6) a copy of the most recent financial audit of the

scholarship granting organization's accounts and records

conducted by an independent certified public accountant in

accordance with auditing standards generally accepted in

the United States, government auditing standards, and

rules adopted by the Department.

(b) A scholarship granting organization whose owner or

operator in the last 7 years has filed for personal bankruptcy

or corporate bankruptcy in a corporation of which he or she

owned more than 20% shall not be eligible to provide

scholarships.

(c) A scholarship granting organization must not have an

owner or operator who owns or operates a qualified school or

has a family member who is a paid staff or board member of a

participating qualified school.

(d) A scholarship granting organization shall comply with

the anti-discrimination provisions of 42 U.S.C. 2000d.

(e) The Department shall review and either approve or deny

each application to issue certificates of receipt pursuant to

this Act. Approval or denial of an application shall be made on

a periodic basis. Applicants shall be notified of the

Department's determination within 30 business days after the

application is received.

(f) No scholarship granting organization shall issue any

certificates of receipt without first being approved to issue

certificates of receipt.

Section 20. Annual review.

(a) Each scholarship granting organization that receives

approval to issue certificates of receipt shall file an

application for recertification on an annual basis. Such

application for recertification shall be in the form and manner

prescribed by the Department and shall include:

(1) certification from the Director or Chief Executive

Officer of the organization that the organization has

complied with and continues to comply with the requirements

of this Act, including evidence of that compliance; and

(2) a copy of the organization's current financial

statements.

(b) The Department may revoke the approval of a scholarship

granting organization to issue certificates of receipt upon a

finding that the organization has violated this Act or any

rules adopted under this Act. These violations shall include,

but need not be limited to, any of the following:

(1) failure to meet the requirements of this Act;

(2) failure to maintain full and adequate records with

respect to the receipt of qualified contributions;

(3) failure to supply such records to the Department;

or

(4) failure to provide notice to the Department of the

issuance of certificates of receipt pursuant to Section 35

of this Act.

(c) Within 5 days after the determination to revoke

approval, the Department shall provide notice of the

determination to the scholarship granting organization and

information regarding the process to request a hearing to

appeal the determination.

Section 25. Contribution authorization certificates.

(a) A taxpayer shall not be allowed a credit pursuant to

this Act for any contribution to a scholarship granting

organization that was made prior to the Department's issuance

of a contribution authorization certificate for such

contribution to the taxpayer.

(b) Prior to making a contribution to a scholarship

granting organization, the taxpayer shall apply to the

Department for a contribution authorization certificate.

(c) A taxpayer who makes more than one contribution to a

scholarship granting organization must make a separate

application for each such contribution authorization

certificate. The application shall be in the form and manner

prescribed by the Department, provided that the application

includes:

(1) the taxpayer's name and address;

(2) the amount the taxpayer will contribute; and

(3) any other information the Department deems

necessary.

(d) The Department may allow taxpayers to make multiple

applications on the same form, provided that each application

shall be treated as a separate application.

(e) The Department shall issue credit authorization

certificates on a first-come, first-served basis based upon the

date that the Department received the taxpayer's application

for the certificate subject to the provisions of subsection (e)

of Section 10 of this Act.

(f) A taxpayer's aggregate authorized contribution amount

as listed on one or more authorized contribution certificates

issued to the taxpayer shall not exceed the aggregate of the

amounts listed on the taxpayer's applications submitted in

accordance with this Section.

(g) Each contribution authorization certificate shall

state:

(1) the date such certificate was issued;

(2) the date by which the authorized contributions

listed in the certificate must be made, which shall be 60

days from the date of the issuance of a credit

authorization certificate;

(3) the total amount of authorized contributions; and

(4) any other information the Department deems

necessary.

(h) Credit authorization certificates shall be mailed to

the appropriate taxpayers within 3 business days after their

issuance.

(i) A taxpayer may rescind all or part of an authorized

contribution approved under this Act by providing written

notice to the Department. Amounts rescinded shall no longer be

deducted from the cap prescribed in Section 10 of this Act.

(j) The Department shall maintain on its website a running

total of the amount of credits for which taxpayers may make

applications for contribution authorization certification. The

running total shall be updated every business day.

Section 30. Certificates of receipt.

(a) No scholarship granting organization shall issue a

certificate of receipt for any qualified contribution made by a

taxpayer under this Act unless that scholarship granting

organization has been approved to issue certificates of receipt

pursuant to Section 15 of this Act.

(b) No scholarship granting organization shall issue a

certificate of receipt for a contribution made by a taxpayer

unless the taxpayer has been issued a credit authorization

certificate by the Department.

(c) If a taxpayer makes a contribution to a scholarship

granting organization prior to the date by which the authorized

contribution shall be made, the scholarship granting

organization shall, within 30 days of receipt of the authorized

contribution, issue to the taxpayer a written certificate of

receipt.

(d) If a taxpayer fails to make all or a portion of a

contribution prior to the date by which such authorized

contribution is required to be made, the taxpayer shall not be

entitled to a certificate of receipt for that portion of the

authorized contribution not made.

(e) Each certificate of receipt shall state:

(1) the name and address of the issuing scholarship

granting organization;

(2) the taxpayer's name and address;

(3) the date for each qualified contribution;

(4) the amount of each qualified contribution;

(5) the total qualified contribution amount; and

(6) any other information that the Department may deem

necessary.

(f) Upon the issuance of a certificate of receipt, the

issuing scholarship granting organization shall, within 10

days after issuing the certificate of receipt, provide the

Department with notification of the issuance of such

certificate in the form and manner prescribed by the

Department, provided that such notification shall include:

(1) the taxpayer's name and address;

(2) the date of the issuance of a certificate of

receipt;

(3) the qualified contribution date or dates and the

amounts contributed on such dates;

(4) the total qualified contribution listed on such

certificates;

(5) the issuing scholarship granting organization's

name and address; and

(6) any other information the Department may deem

necessary.

(g) Any portion of a contribution that a taxpayer fails to

make by the date indicated on the authorized contribution

certificate shall no longer be deducted from the cap prescribed

in Section 10 of this Act.

Section 35. Reports.

(a) Within 180 days after the end of its fiscal year, each

scholarship granting organization must provide to the

Department a copy of a financial audit of its accounts and

records conducted by an independent certified public

accountant in accordance with auditing standards generally

accepted in the United States, government auditing standards,

and rules adopted by the Department. The audit must include a

report on financial statements presented in accordance with

generally accepted accounting principles. The audit must

include evidence that no less than 95% of qualified

contributions received were used to provide scholarships to

eligible students. The Department shall review all audits

submitted pursuant to this subsection. The Department shall

request any significant items that were omitted in violation of

a rule adopted by the Department. The items must be provided

within 45 days after the date of request. If a scholarship

granting organization does not comply with the Department's

request, the Department may revoke the scholarship granting

organization's ability to issue certificates of receipt.

(b) A scholarship granting organization that is approved to

receive qualified contributions shall report to the

Department, on a form prescribed by the Department, by January

31 of each calendar year. The report shall include:

(1) the total number of certificates of receipt issued

during the immediately preceding calendar year;

(2) the total dollar amount of qualified contributions

received, as set forth in the certificates of receipt

issued during the immediately preceding calendar year;

(3) the total number of eligible students utilizing

scholarships for the immediately preceding calendar year

and the school year in progress and the total dollar value

of the scholarships;

(4) the name and address of each qualified school for

which scholarships using qualified contributions were

issued during the immediately preceding calendar year,

detailing the number, grade, race, gender, income level,

and residency by Zip Code of eligible students and the

total dollar value of scholarships being utilized at each

qualified school by priority group, as identified in

subsection (d) of Section 40 of this Act; and

(5) any additional information requested by the

Department.

(c) On or before the last day of March for each calendar

year, for the immediately preceding calendar year, the

Department shall submit a written report to the Governor, the

President of the Senate, the Speaker of the House of

Representatives, the Minority Leader of the Senate, and the

Minority Leader of the House of Representatives regarding this

Act. The report shall include, but not be limited to, the

following information:

(1) the names and addresses of all scholarship granting

organizations approved to issue certificates of receipt;

(2) the number and aggregate total of certificates of

receipt issued by each scholarship granting organization;

and

(3) the information reported to the Department

required by subsection (b) of this Section.

(d) The sharing and reporting of student data under this

Section must be in accordance with the requirements of the

Family Educational Rights and Privacy Act and the Illinois

School Student Records Act. All parties must preserve the

confidentiality of such information as required by law. Data

reported by the Department under subsection (c) of this Section

must not disaggregate data to a level that will disclose

demographic data of individual students.

Section 40. Scholarship granting organization

responsibilities.

(a) Before granting a scholarship for an academic year, all

scholarship granting organizations shall assess and document

each student's eligibility for the academic year.

(b) A scholarship granting organization shall grant

scholarships only to eligible students.

(c) A scholarship granting organization shall allow an

eligible student to attend any qualified school of the

student's choosing, subject to the availability of funds.

(d) In granting scholarships, a scholarship granting

organization shall give priority to the following priority

groups:

(1) eligible students who received a scholarship from a

scholarship granting organization during the previous

school year;

(2) eligible students who are members of a household

whose previous year's total annual income does not exceed

185% of the federal poverty level;

(3) eligible students who reside within a focus

district; and

(4) eligible students who are siblings of students

currently receiving a scholarship.

(d-5) A scholarship granting organization shall begin

granting scholarships no later than February 1 preceding the

school year for which the scholarship is sought. The priority

groups identified in subsection (d) of this Section shall be

eligible to receive scholarships on a first-come, first-served

basis until the April 1 immediately preceding the school year

for which the scholarship is sought. Applications for

scholarships for eligible students meeting the qualifications

of one or more priority groups that are received before April 1

must be either approved or denied within 10 business days after

receipt. Beginning April 1, all eligible students shall be

eligible to receive scholarships without regard to the priority

groups identified in subsection (d) of this Section.

(e) Except as provided in subsection (e-5) of this Section,

scholarships shall not exceed the lesser of (i) the statewide

average operational expense per student among public schools or

(ii) the necessary costs and fees for attendance at the

qualified school. Scholarships shall be prorated as follows:

(1) for eligible students whose household income is

less than 185% of the federal poverty level, the

scholarship shall be 100% of the amount determined pursuant

to this subsection (e) and subsection (e-5) of this

Section;

(2) for eligible students whose household income is

185% or more of the federal poverty level but less than

250% of the federal poverty level, the average of

scholarships shall be 75% of the amount determined pursuant

to this subsection (e) and subsection (e-5) of this

Section; and

(3) for eligible students whose household income is

250% or more of the federal poverty level, the average of

scholarships shall be 50% of the amount determined pursuant

to this subsection (e) and subsection (e-5) of this

Section.

(e-5) The statewide average operational expense per

student among public schools shall be multiplied by the

following factors:

(1) for students determined eligible to receive

services under the federal Individuals with Disabilities

Education Act, 2;

(2) for students who are English learners, as defined

in subsection (d) of Section 14C-2 of the School Code, 1.2;

and

(3) for students who are gifted and talented children,

as defined in Section 14A-20 of the School Code, 1.1.

(f) A scholarship granting organization shall distribute

scholarship payments to the participating school where the

student is enrolled.

(g) For the 2018-2019 school year through the 2021-2022

school year, each scholarship granting organization shall

expend no less than 75% of the qualified contributions received

during the calendar year in which the qualified contributions

were received. No more than 25% of the qualified contributions

may be carried forward to the following calendar year.

(h) For the 2022-2023 school year, each scholarship

granting organization shall expend all qualified contributions

received during the calendar year in which the qualified

contributions were received. No qualified contributions may be

carried forward to the following calendar year.

(i) A scholarship granting organization shall allow an

eligible student to transfer a scholarship during a school year

to any other participating school of the custodian's choice.

Such scholarships shall be prorated.

(j) With the prior approval of the Department, a

scholarship granting organization may transfer funds to

another scholarship granting organization if additional funds

are required to meet scholarship demands at the receiving

scholarship granting organization. All transferred funds must

be deposited by the receiving scholarship granting

organization into its scholarship accounts. All transferred

amounts received by any scholarship granting organization must

be separately disclosed to the Department.

(k) If the approval of a scholarship granting organization

is revoked as provided in Section 20 of this Act or the

scholarship granting organization is dissolved, all remaining

qualified contributions of the scholarship granting

organization shall be transferred to another scholarship

granting organization. All transferred funds must be deposited

by the receiving scholarship granting organization into its

scholarship accounts.

(l) Scholarship granting organizations shall make

reasonable efforts to advertise the availability of

scholarships to eligible students.

Section 45. State Board responsibilities.

(a) Beginning in the 2019-2020 school year, students who

have been granted a scholarship under this Act shall be

annually assessed at the qualified school where the student

attends school in the same manner in which students that attend

public schools are annually assessed pursuant to Section

2-3.64a-5 of the School Code. Such qualified school shall pay

costs associated with this requirement.

(b) The Board shall select an independent research

organization, which may be a public or private entity or

university, to which participating qualified schools must

report the scores of students who are receiving scholarships

and are assessed pursuant to subsection (a) of this Section.

Costs associated with the independent research organization

shall be paid by the scholarship granting organizations on a

per-pupil basis or by gifts, grants, or donations received by

the Board under subsection (d) of this Section, as determined

by the Board. The independent research organization must

annually report to the Board on the year-to-year learning gains

of students receiving scholarships on a statewide basis. The

report shall also include, to the extent possible, a comparison

of these learning gains to the statewide learning gains of

public school students with socioeconomic backgrounds similar

to those of students receiving scholarships. The annual report

shall be delivered to the Board and published on its website.

(c) Beginning within 120 days after the Board first

receives the annual report by the independent research

organization as provided in subsection (b) of this Section and

on an annual basis thereafter, the Board shall submit a written

report to the Governor, the President of the Senate, the

Speaker of the House of Representatives, the Minority Leader of

the Senate, and the Minority Leader of the House of

Representatives regarding this Act. Such report shall include

an evaluation of the academic performance of students receiving

scholarships and recommendations for improving student

performance.

(d) Subject to the State Officials and Employees Ethics

Act, the Board may receive and expend gifts, grants, and

donations of any kind from any public or private entity to

carry out the purposes of this Section, subject to the terms

and conditions under which the gifts are given, provided that

all such terms and conditions are permissible under law.

(e) The sharing and reporting of student learning gain data

under this Section must be in accordance with requirements of

the Family Educational Rights and Privacy Act and the Illinois

School Student Records Act. All parties must preserve the

confidentiality of such information as required by law. The

annual report must not disaggregate data to a level that will

disclose the academic level of individual students.

Section 50. Qualified school responsibilities. A qualified

school that accepts scholarship students must do all of the

following:

(1) provide to a scholarship granting organization,

upon request, all documentation required for the student's

participation, including the non-public school's cost and

student's fee schedules;

(2) be academically accountable to the custodian for

meeting the educational needs of the student by:

(A) at a minimum, annually providing to the

custodian a written explanation of the student's

progress; and

(B) annually administering assessments required by

subsection (a) of Section 45 of this Act in the same

manner in which they are administered at public schools

pursuant to Section 2-3.64a-5 of the School Code; the

Board shall bill participating qualified schools for

all costs associated with administering assessments

required by this paragraph; the participating

qualified schools shall ensure that all test security

and assessment administration procedures are followed;

participating qualified schools must report individual

student scores to the custodians of the students; the

independent research organization described in

subsection (b) of Section 45 of this Act shall be

provided all student score data in a secure manner by

the participating qualified school.

The inability of a qualified school to meet the

requirements of this Section shall constitute a basis for the

ineligibility of the qualified school to participate in the

scholarship program as determined by the Board.

Section 55. Custodian and student responsibilities.

(a) The custodian must select a qualified school and apply

for the admission of his or her child.

(b) The custodian shall ensure that the student

participating in the scholarship program takes the assessment

required by subsection (a) of Section 45 of this Act.

(c) Each custodian and each student has an obligation to

comply with the qualified school's published policies.

(d) The custodian shall authorize the scholarship granting

organization to access information needed for income

eligibility determinations.

Section 60. Recordkeeping; rulemaking; violations.

(a) Each taxpayer shall, for each taxable year for which

the tax credit provided for under this Act is claimed, maintain

records of the following information: (i) contribution

authorization certificates obtained under Section 25 of this

Act and (ii) certificates of receipt obtained under Section 30

of this Act.

(b) The Board and the Department may adopt rules consistent

with and necessary for the implementation of this Act.

(c) Violations of State laws or rules and complaints

relating to program participation shall be referred to the

Attorney General.

Section 65. Credit period; repeal.

(a) A taxpayer may take a credit under this Act for tax

years beginning on or after January 1, 2018 and ending before

January 1, 2023. A taxpayer may not take a credit pursuant to

this Act for tax years beginning on or after January 1, 2023.

(b) This Act is repealed on January 1, 2024.

Section 900. The Open Meetings Act is amended by changing

Section 2 as follows:

(5 ILCS 120/2) (from Ch. 102, par. 42)

Sec. 2. Open meetings.

(a) Openness required. All meetings of public bodies shall

be open to the public unless excepted in subsection (c) and

closed in accordance with Section 2a.

(b) Construction of exceptions. The exceptions contained

in subsection (c) are in derogation of the requirement that

public bodies meet in the open, and therefore, the exceptions

are to be strictly construed, extending only to subjects

clearly within their scope. The exceptions authorize but do not

require the holding of a closed meeting to discuss a subject

included within an enumerated exception.

(c) Exceptions. A public body may hold closed meetings to

consider the following subjects:

(1) The appointment, employment, compensation,

discipline, performance, or dismissal of specific

employees of the public body or legal counsel for the

public body, including hearing testimony on a complaint

lodged against an employee of the public body or against

legal counsel for the public body to determine its

validity. However, a meeting to consider an increase in

compensation to a specific employee of a public body that

is subject to the Local Government Wage Increase

Transparency Act may not be closed and shall be open to the

public and posted and held in accordance with this Act.

(2) Collective negotiating matters between the public

body and its employees or their representatives, or

deliberations concerning salary schedules for one or more

classes of employees.

(3) The selection of a person to fill a public office,

as defined in this Act, including a vacancy in a public

office, when the public body is given power to appoint

under law or ordinance, or the discipline, performance or

removal of the occupant of a public office, when the public

body is given power to remove the occupant under law or

ordinance.

(4) Evidence or testimony presented in open hearing, or

in closed hearing where specifically authorized by law, to

a quasi-adjudicative body, as defined in this Act, provided

that the body prepares and makes available for public

inspection a written decision setting forth its

determinative reasoning.

(5) The purchase or lease of real property for the use

of the public body, including meetings held for the purpose

of discussing whether a particular parcel should be

acquired.

(6) The setting of a price for sale or lease of

property owned by the public body.

(7) The sale or purchase of securities, investments, or

investment contracts. This exception shall not apply to the

investment of assets or income of funds deposited into the

Illinois Prepaid Tuition Trust Fund.

(8) Security procedures, school building safety and

security, and the use of personnel and equipment to respond

to an actual, a threatened, or a reasonably potential

danger to the safety of employees, students, staff, the

public, or public property.

(9) Student disciplinary cases.

(10) The placement of individual students in special

education programs and other matters relating to

individual students.

(11) Litigation, when an action against, affecting or

on behalf of the particular public body has been filed and

is pending before a court or administrative tribunal, or

when the public body finds that an action is probable or

imminent, in which case the basis for the finding shall be

recorded and entered into the minutes of the closed

meeting.

(12) The establishment of reserves or settlement of

claims as provided in the Local Governmental and

Governmental Employees Tort Immunity Act, if otherwise the

disposition of a claim or potential claim might be

prejudiced, or the review or discussion of claims, loss or

risk management information, records, data, advice or

communications from or with respect to any insurer of the

public body or any intergovernmental risk management

association or self insurance pool of which the public body

is a member.

(13) Conciliation of complaints of discrimination in

the sale or rental of housing, when closed meetings are

authorized by the law or ordinance prescribing fair housing

practices and creating a commission or administrative

agency for their enforcement.

(14) Informant sources, the hiring or assignment of

undercover personnel or equipment, or ongoing, prior or

future criminal investigations, when discussed by a public

body with criminal investigatory responsibilities.

(15) Professional ethics or performance when

considered by an advisory body appointed to advise a

licensing or regulatory agency on matters germane to the

advisory body's field of competence.

(16) Self evaluation, practices and procedures or

professional ethics, when meeting with a representative of

a statewide association of which the public body is a

member.

(17) The recruitment, credentialing, discipline or

formal peer review of physicians or other health care

professionals, or for the discussion of matters protected

under the federal Patient Safety and Quality Improvement

Act of 2005, and the regulations promulgated thereunder,

including 42 C.F.R. Part 3 (73 FR 70732), or the federal

Health Insurance Portability and Accountability Act of

1996, and the regulations promulgated thereunder,

including 45 C.F.R. Parts 160, 162, and 164, by a hospital,

or other institution providing medical care, that is

operated by the public body.

(18) Deliberations for decisions of the Prisoner

Review Board.

(19) Review or discussion of applications received

under the Experimental Organ Transplantation Procedures

Act.

(20) The classification and discussion of matters

classified as confidential or continued confidential by

the State Government Suggestion Award Board.

(21) Discussion of minutes of meetings lawfully closed

under this Act, whether for purposes of approval by the

body of the minutes or semi-annual review of the minutes as

mandated by Section 2.06.

(22) Deliberations for decisions of the State

Emergency Medical Services Disciplinary Review Board.

(23) The operation by a municipality of a municipal

utility or the operation of a municipal power agency or

municipal natural gas agency when the discussion involves

(i) contracts relating to the purchase, sale, or delivery

of electricity or natural gas or (ii) the results or

conclusions of load forecast studies.

(24) Meetings of a residential health care facility

resident sexual assault and death review team or the

Executive Council under the Abuse Prevention Review Team

Act.

(25) Meetings of an independent team of experts under

Brian's Law.

(26) Meetings of a mortality review team appointed

under the Department of Juvenile Justice Mortality Review

Team Act.

(27) (Blank).

(28) Correspondence and records (i) that may not be

disclosed under Section 11-9 of the Illinois Public Aid

Code or (ii) that pertain to appeals under Section 11-8 of

the Illinois Public Aid Code.

(29) Meetings between internal or external auditors

and governmental audit committees, finance committees, and

their equivalents, when the discussion involves internal

control weaknesses, identification of potential fraud risk

areas, known or suspected frauds, and fraud interviews

conducted in accordance with generally accepted auditing

standards of the United States of America.

(30) Those meetings or portions of meetings of a

fatality review team or the Illinois Fatality Review Team

Advisory Council during which a review of the death of an

eligible adult in which abuse or neglect is suspected,

alleged, or substantiated is conducted pursuant to Section

15 of the Adult Protective Services Act.

(31) Meetings and deliberations for decisions of the

Concealed Carry Licensing Review Board under the Firearm

Concealed Carry Act.

(32) Meetings between the Regional Transportation

Authority Board and its Service Boards when the discussion

involves review by the Regional Transportation Authority

Board of employment contracts under Section 28d of the

Metropolitan Transit Authority Act and Sections 3A.18 and

3B.26 of the Regional Transportation Authority Act.

(33) Those meetings or portions of meetings of the

advisory committee and peer review subcommittee created

under Section 320 of the Illinois Controlled Substances Act

during which specific controlled substance prescriber,

dispenser, or patient information is discussed.

(34) Meetings of the Tax Increment Financing Reform

Task Force under Section 2505-800 of the Department of

Revenue Law of the Civil Administrative Code of Illinois.

(d) Definitions. For purposes of this Section:

"Employee" means a person employed by a public body whose

relationship with the public body constitutes an

employer-employee relationship under the usual common law

rules, and who is not an independent contractor.

"Public office" means a position created by or under the

Constitution or laws of this State, the occupant of which is

charged with the exercise of some portion of the sovereign

power of this State. The term "public office" shall include

members of the public body, but it shall not include

organizational positions filled by members thereof, whether

established by law or by a public body itself, that exist to

assist the body in the conduct of its business.

"Quasi-adjudicative body" means an administrative body

charged by law or ordinance with the responsibility to conduct

hearings, receive evidence or testimony and make

determinations based thereon, but does not include local

electoral boards when such bodies are considering petition

challenges.

(e) Final action. No final action may be taken at a closed

meeting. Final action shall be preceded by a public recital of

the nature of the matter being considered and other information

that will inform the public of the business being conducted.

(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,

eff. 7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14;

99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480, eff. 9-9-15;

99-642, eff. 7-28-16; 99-646, eff. 7-28-16; 99-687, eff.

1-1-17; revised 9-21-16.)

Section 902. The Freedom of Information Act is amended by

changing Section 7.5 as follows:

(5 ILCS 140/7.5)

Sec. 7.5. Statutory exemptions. To the extent provided for

by the statutes referenced below, the following shall be exempt

from inspection and copying:

(a) All information determined to be confidential

under Section 4002 of the Technology Advancement and

Development Act.

(b) Library circulation and order records identifying

library users with specific materials under the Library

Records Confidentiality Act.

(c) Applications, related documents, and medical

records received by the Experimental Organ Transplantation

Procedures Board and any and all documents or other records

prepared by the Experimental Organ Transplantation

Procedures Board or its staff relating to applications it

has received.

(d) Information and records held by the Department of

Public Health and its authorized representatives relating

to known or suspected cases of sexually transmissible

disease or any information the disclosure of which is

restricted under the Illinois Sexually Transmissible

Disease Control Act.

(e) Information the disclosure of which is exempted

under Section 30 of the Radon Industry Licensing Act.

(f) Firm performance evaluations under Section 55 of

the Architectural, Engineering, and Land Surveying

Qualifications Based Selection Act.

(g) Information the disclosure of which is restricted

and exempted under Section 50 of the Illinois Prepaid

Tuition Act.

(h) Information the disclosure of which is exempted

under the State Officials and Employees Ethics Act, and

records of any lawfully created State or local inspector

general's office that would be exempt if created or

obtained by an Executive Inspector General's office under

that Act.

(i) Information contained in a local emergency energy

plan submitted to a municipality in accordance with a local

emergency energy plan ordinance that is adopted under

Section 11-21.5-5 of the Illinois Municipal Code.

(j) Information and data concerning the distribution

of surcharge moneys collected and remitted by wireless

carriers under the Wireless Emergency Telephone Safety

Act.

(k) Law enforcement officer identification information

or driver identification information compiled by a law

enforcement agency or the Department of Transportation

under Section 11-212 of the Illinois Vehicle Code.

(l) Records and information provided to a residential

health care facility resident sexual assault and death

review team or the Executive Council under the Abuse

Prevention Review Team Act.

(m) Information provided to the predatory lending

database created pursuant to Article 3 of the Residential

Real Property Disclosure Act, except to the extent

authorized under that Article.

(n) Defense budgets and petitions for certification of

compensation and expenses for court appointed trial

counsel as provided under Sections 10 and 15 of the Capital

Crimes Litigation Act. This subsection (n) shall apply

until the conclusion of the trial of the case, even if the

prosecution chooses not to pursue the death penalty prior

to trial or sentencing.

(o) Information that is prohibited from being

disclosed under Section 4 of the Illinois Health and

Hazardous Substances Registry Act.

(p) Security portions of system safety program plans,

investigation reports, surveys, schedules, lists, data, or

information compiled, collected, or prepared by or for the

Regional Transportation Authority under Section 2.11 of

the Regional Transportation Authority Act or the St. Clair

County Transit District under the Bi-State Transit Safety

Act.

(q) Information prohibited from being disclosed by the

Personnel Records Review Act.

(r) Information prohibited from being disclosed by the

Illinois School Student Records Act.

(s) Information the disclosure of which is restricted

under Section 5-108 of the Public Utilities Act.

(t) All identified or deidentified health information

in the form of health data or medical records contained in,

stored in, submitted to, transferred by, or released from

the Illinois Health Information Exchange, and identified

or deidentified health information in the form of health

data and medical records of the Illinois Health Information

Exchange in the possession of the Illinois Health

Information Exchange Authority due to its administration

of the Illinois Health Information Exchange. The terms

"identified" and "deidentified" shall be given the same

meaning as in the Health Insurance Portability and

Accountability Act of 1996, Public Law 104-191, or any

subsequent amendments thereto, and any regulations

promulgated thereunder.

(u) Records and information provided to an independent

team of experts under Brian's Law.

(v) Names and information of people who have applied

for or received Firearm Owner's Identification Cards under

the Firearm Owners Identification Card Act or applied for

or received a concealed carry license under the Firearm

Concealed Carry Act, unless otherwise authorized by the

Firearm Concealed Carry Act; and databases under the

Firearm Concealed Carry Act, records of the Concealed Carry

Licensing Review Board under the Firearm Concealed Carry

Act, and law enforcement agency objections under the

Firearm Concealed Carry Act.

(w) Personally identifiable information which is

exempted from disclosure under subsection (g) of Section

19.1 of the Toll Highway Act.

(x) Information which is exempted from disclosure

under Section 5-1014.3 of the Counties Code or Section

8-11-21 of the Illinois Municipal Code.

(y) Confidential information under the Adult

Protective Services Act and its predecessor enabling

statute, the Elder Abuse and Neglect Act, including

information about the identity and administrative finding

against any caregiver of a verified and substantiated

decision of abuse, neglect, or financial exploitation of an

eligible adult maintained in the Registry established

under Section 7.5 of the Adult Protective Services Act.

(z) Records and information provided to a fatality

review team or the Illinois Fatality Review Team Advisory

Council under Section 15 of the Adult Protective Services

Act.

(aa) Information which is exempted from disclosure

under Section 2.37 of the Wildlife Code.

(bb) Information which is or was prohibited from

disclosure by the Juvenile Court Act of 1987.

(cc) Recordings made under the Law Enforcement

Officer-Worn Body Camera Act, except to the extent

authorized under that Act.

(dd) Information that is prohibited from being

disclosed under Section 45 of the Condominium and Common

Interest Community Ombudsperson Act.

(ee) (dd) Information that is exempted from disclosure

under Section 30.1 of the Pharmacy Practice Act.

(ff) Information which is exempted from disclosure

under Section 2505-800 of the Department of Revenue Law of

the Civil Administrative Code of Illinois.

(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,

eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;

99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;

99-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.

8-19-16; revised 9-1-16.)

Section 904. The Election Code is amended by changing

Section 28-2 as follows:

(10 ILCS 5/28-2) (from Ch. 46, par. 28-2)

Sec. 28-2. (a) Except as otherwise provided in this

Section, petitions for the submission of public questions to

referendum must be filed with the appropriate officer or board

not less than 92 days prior to a regular election to be

eligible for submission on the ballot at such election; and

petitions for the submission of a question under Section 18-120

or Section 18-206 of the Property Tax Code must be filed with

the appropriate officer or board not more than 10 months nor

less than 6 months prior to the election at which such question

is to be submitted to the voters.

(b) However, petitions for the submission of a public

question to referendum which proposes the creation or formation

of a political subdivision must be filed with the appropriate

officer or board not less than 122 days prior to a regular

election to be eligible for submission on the ballot at such

election.

(c) Resolutions or ordinances of governing boards of

political subdivisions which initiate the submission of public

questions pursuant to law must be adopted not less than 79 days

before a regularly scheduled election to be eligible for

submission on the ballot at such election.

(d) A petition, resolution or ordinance initiating the

submission of a public question may specify a regular election

at which the question is to be submitted, and must so specify

if the statute authorizing the public question requires

submission at a particular election. However, no petition,

resolution or ordinance initiating the submission of a public

question, other than a legislative resolution initiating an

amendment to the Constitution, may specify such submission at

an election more than one year, or 15 months in the case of a

back door referendum as defined in subsection (f), after the

date on which it is filed or adopted, as the case may be. A

petition, resolution or ordinance initiating a public question

which specifies a particular election at which the question is

to be submitted shall be so limited, and shall not be valid as

to any other election, other than an emergency referendum

ordered pursuant to Section 2A-1.4.

(e) If a petition initiating a public question does not

specify a regularly scheduled election, the public question

shall be submitted to referendum at the next regular election

occurring not less than 92 days after the filing of the

petition, or not less than 122 days after the filing of a

petition for referendum to create a political subdivision. If a

resolution or ordinance initiating a public question does not

specify a regularly scheduled election, the public question

shall be submitted to referendum at the next regular election

occurring not less than 79 days after the adoption of the

resolution or ordinance.

(f) In the case of back door referenda, any limitations in

another statute authorizing such a referendum which restrict

the time in which the initiating petition may be validly filed

shall apply to such petition, in addition to the filing

deadlines specified in this Section for submission at a

particular election. In the case of any back door referendum,

the publication of the ordinance or resolution of the political

subdivision shall include a notice of (1) the specific number

of voters required to sign a petition requesting that a public

question be submitted to the voters of the subdivision; (2) the

time within which the petition must be filed; and (3) the date

of the prospective referendum. The secretary or clerk of the

political subdivision shall provide a petition form to any

individual requesting one. The legal sufficiency of that form,

if provided by the secretary or clerk of the political

subdivision, cannot be the basis of a challenge to placing the

back door referendum on the ballot. As used herein, a "back

door referendum" is the submission of a public question to the

voters of a political subdivision, initiated by a petition of

voters or residents of such political subdivision, to determine

whether an action by the governing body of such subdivision

shall be adopted or rejected.

(g) A petition for the incorporation or formation of a new

political subdivision whose officers are to be elected rather

than appointed must have attached to it an affidavit attesting

that at least 122 days and no more than 152 days prior to such

election notice of intention to file such petition was

published in a newspaper published within the proposed

political subdivision, or if none, in a newspaper of general

circulation within the territory of the proposed political

subdivision in substantially the following form:

NOTICE OF PETITION TO FORM A NEW........

Residents of the territory described below are notified

that a petition will or has been filed in the Office

of............requesting a referendum to establish a

new........, to be called the............

*The officers of the new...........will be elected on the

same day as the referendum. Candidates for the governing board

of the new......may file nominating petitions with the officer

named above until...........

The territory proposed to comprise the new........is

described as follows:

(description of territory included in petition)

(signature)....................................

Name and address of person or persons proposing

the new political subdivision.

* Where applicable.

Failure to file such affidavit, or failure to publish the

required notice with the correct information contained therein

shall render the petition, and any referendum held pursuant to

such petition, null and void.

Notwithstanding the foregoing provisions of this

subsection (g) or any other provisions of this Code, the

publication of notice and affidavit requirements of this

subsection (g) shall not apply to any petition filed under

Article 7 or 11E of the School Code nor to any referendum held

pursuant to any such petition, and neither any petition filed

under any of those Articles nor any referendum held pursuant to

any such petition shall be rendered null and void because of

the failure to file an affidavit or publish a notice with

respect to the petition or referendum as required under this

subsection (g) for petitions that are not filed under any of

those Articles of the School Code.

(Source: P.A. 96-1008, eff. 7-6-10.)

Section 905. The Economic Development Area Tax Increment

Allocation Act is amended by changing Section 7 as follows:

(20 ILCS 620/7) (from Ch. 67 1/2, par. 1007)

Sec. 7. Creation of special tax allocation fund. If a

municipality has adopted tax increment allocation financing

for an economic development project area by ordinance, the

county clerk has thereafter certified the "total initial

equalized assessed value" of the taxable real property within

such economic development project area in the manner provided

in Section 6 of this Act, and the Department has approved and

certified the economic development project area, each year

after the date of the certification by the county clerk of the

"total initial equalized assessed value" until economic

development project costs and all municipal obligations

financing economic development project costs have been paid,

the ad valorem taxes, if any, arising from the levies upon the

taxable real property in the economic development project area

by taxing districts and tax rates determined in the manner

provided in subsection (b) of Section 6 of this Act shall be

divided as follows:

(1) That portion of the taxes levied upon each taxable lot,

block, tract or parcel of real property which is attributable

to the lower of the current equalized assessed value or the

initial equalized assessed value of each such taxable lot,

block, tract, or parcel of real property existing at the time

tax increment allocation financing was adopted, shall be

allocated to and when collected shall be paid by the county

collector to the respective affected taxing districts in the

manner required by law in the absence of the adoption of tax

increment allocation financing.

(2) That portion, if any, of those taxes which is

attributable to the increase in the current equalized assessed

valuation of each taxable lot, block, tract, or parcel of real

property in the economic development project area, over and

above the initial equalized assessed value of each property

existing at the time tax increment allocation financing was

adopted, shall be allocated to and when collected shall be paid

to the municipal treasurer, who shall deposit those taxes into

a special fund called the special tax allocation fund of the

municipality for the purpose of paying economic development

project costs and obligations incurred in the payment thereof.

The municipality, by an ordinance adopting tax increment

allocation financing, may pledge the funds in and to be

deposited in the special tax allocation fund for the payment of

obligations issued under this Act and for the payment of

economic development project costs. No part of the current

equalized assessed valuation of each property in the economic

development project area attributable to any increase above the

total initial equalized assessed value, of such properties

shall be used in calculating the general State school aid

formula, provided for in Section 18-8 of the School Code, or

the evidence-based funding formula, provided for in Section

18-8.15 of the School Code, until such time as all economic

development projects costs have been paid as provided for in

this Section.

When the economic development project costs, including

without limitation all municipal obligations financing

economic development project costs incurred under this Act,

have been paid, all surplus funds then remaining in the special

tax allocation fund shall be distributed by being paid by the

municipal treasurer to the county collector, who shall

immediately thereafter pay those funds to the taxing districts

having taxable property in the economic development project

area in the same manner and proportion as the most recent

distribution by the county collector to those taxing districts

of real property taxes from real property in the economic

development project area.

Upon the payment of all economic development project costs,

retirement of obligations and the distribution of any excess

monies pursuant to this Section the municipality shall adopt an

ordinance dissolving the special tax allocation fund for the

economic development project area, terminating the economic

development project area, and terminating the use of tax

increment allocation financing for the economic development

project area. Thereafter the rates of the taxing districts

shall be extended and taxes levied, collected and distributed

in the manner applicable in the absence of the adoption of tax

increment allocation financing.

Nothing in this Section shall be construed as relieving

property in economic development project areas from being

assessed as provided in the Property Tax Code, or as relieving

owners of that property from paying a uniform rate of taxes, as

required by Section 4 of Article IX of the Illinois

Constitution.

(Source: P.A. 98-463, eff. 8-16-13.)

Section 910. The Civil Administrative Code of Illinois

(Department of Revenue Law) is amended by adding Section

2505-800 as follows:

(20 ILCS 2505/2505-800 new)

Sec. 2505-800. Tax Increment Financing Reform Task Force.

(a) There is hereby created the Tax Increment Financing

Reform Task Force which shall consist of the following members:

(1) 3 members of the General Assembly, appointed by the

President of the Senate;

(2) 3 members of the General Assembly, appointed by the

Minority Leader of the Senate;

(3) 3 members of the General Assembly, appointed by the

Speaker of the House of Representatives; and

(4) 3 members of the General Assembly, appointed by the

Minority Leader of the House of Representatives.

(b) The members of the Task Force shall elect one co-chair

from each legislative caucus, who shall call meetings of the

Task Force to order. The Task Force shall hold an initial

meeting within 60 days after the effective date of this

amendatory Act of the 100th General Assembly.

(c) The Task Force shall conduct a study examining current

Tax Increment Financing (TIF) laws in this State and issues

that include, but are not limited to:

(1) the benefits and costs of TIF districts;

(2) the interaction between TIF law and school funding;

(3) the expenditure of TIF funds; and

(4) the expenditure of TIF surplus funds.

(d) The Task Force shall report the findings of the study

and any recommendations to the General Assembly on or before

April 1, 2018, at which time the Task Force shall be dissolved.

(e) The Department of Revenue shall provide staff and

administrative support to the Task Force, and shall post on its

website the report under subsection (d) of this Section.

(f) The Task Force is exempt from any requirements under

the Freedom of Information Act and Open Meetings Act.

(g) This Section is repealed on April 30, 2018.

Section 915. The State Finance Act is amended by changing

Section 13.2 as follows:

(30 ILCS 105/13.2) (from Ch. 127, par. 149.2)

Sec. 13.2. Transfers among line item appropriations.

(a) Transfers among line item appropriations from the same

treasury fund for the objects specified in this Section may be

made in the manner provided in this Section when the balance

remaining in one or more such line item appropriations is

insufficient for the purpose for which the appropriation was

made.

(a-1) No transfers may be made from one agency to another

agency, nor may transfers be made from one institution of

higher education to another institution of higher education

except as provided by subsection (a-4).

(a-2) Except as otherwise provided in this Section,

transfers may be made only among the objects of expenditure

enumerated in this Section, except that no funds may be

transferred from any appropriation for personal services, from

any appropriation for State contributions to the State

Employees' Retirement System, from any separate appropriation

for employee retirement contributions paid by the employer, nor

from any appropriation for State contribution for employee

group insurance. During State fiscal year 2005, an agency may

transfer amounts among its appropriations within the same

treasury fund for personal services, employee retirement

contributions paid by employer, and State Contributions to

retirement systems; notwithstanding and in addition to the

transfers authorized in subsection (c) of this Section, the

fiscal year 2005 transfers authorized in this sentence may be

made in an amount not to exceed 2% of the aggregate amount

appropriated to an agency within the same treasury fund. During

State fiscal year 2007, the Departments of Children and Family

Services, Corrections, Human Services, and Juvenile Justice

may transfer amounts among their respective appropriations

within the same treasury fund for personal services, employee

retirement contributions paid by employer, and State

contributions to retirement systems. During State fiscal year

2010, the Department of Transportation may transfer amounts

among their respective appropriations within the same treasury

fund for personal services, employee retirement contributions

paid by employer, and State contributions to retirement

systems. During State fiscal years 2010 and 2014 only, an

agency may transfer amounts among its respective

appropriations within the same treasury fund for personal

services, employee retirement contributions paid by employer,

and State contributions to retirement systems.

Notwithstanding, and in addition to, the transfers authorized

in subsection (c) of this Section, these transfers may be made

in an amount not to exceed 2% of the aggregate amount

appropriated to an agency within the same treasury fund.

(a-2.5) During State fiscal year 2015 only, the State's

Attorneys Appellate Prosecutor may transfer amounts among its

respective appropriations contained in operational line items

within the same treasury fund. Notwithstanding, and in addition

to, the transfers authorized in subsection (c) of this Section,

these transfers may be made in an amount not to exceed 4% of

the aggregate amount appropriated to the State's Attorneys

Appellate Prosecutor within the same treasury fund.

(a-3) Further, if an agency receives a separate

appropriation for employee retirement contributions paid by

the employer, any transfer by that agency into an appropriation

for personal services must be accompanied by a corresponding

transfer into the appropriation for employee retirement

contributions paid by the employer, in an amount sufficient to

meet the employer share of the employee contributions required

to be remitted to the retirement system.

(a-4) Long-Term Care Rebalancing. The Governor may

designate amounts set aside for institutional services

appropriated from the General Revenue Fund or any other State

fund that receives monies for long-term care services to be

transferred to all State agencies responsible for the

administration of community-based long-term care programs,

including, but not limited to, community-based long-term care

programs administered by the Department of Healthcare and

Family Services, the Department of Human Services, and the

Department on Aging, provided that the Director of Healthcare

and Family Services first certifies that the amounts being

transferred are necessary for the purpose of assisting persons

in or at risk of being in institutional care to transition to

community-based settings, including the financial data needed

to prove the need for the transfer of funds. The total amounts

transferred shall not exceed 4% in total of the amounts

appropriated from the General Revenue Fund or any other State

fund that receives monies for long-term care services for each

fiscal year. A notice of the fund transfer must be made to the

General Assembly and posted at a minimum on the Department of

Healthcare and Family Services website, the Governor's Office

of Management and Budget website, and any other website the

Governor sees fit. These postings shall serve as notice to the

General Assembly of the amounts to be transferred. Notice shall

be given at least 30 days prior to transfer.

(b) In addition to the general transfer authority provided

under subsection (c), the following agencies have the specific

transfer authority granted in this subsection:

The Department of Healthcare and Family Services is

authorized to make transfers representing savings attributable

to not increasing grants due to the births of additional

children from line items for payments of cash grants to line

items for payments for employment and social services for the

purposes outlined in subsection (f) of Section 4-2 of the

Illinois Public Aid Code.

The Department of Children and Family Services is

authorized to make transfers not exceeding 2% of the aggregate

amount appropriated to it within the same treasury fund for the

following line items among these same line items: Foster Home

and Specialized Foster Care and Prevention, Institutions and

Group Homes and Prevention, and Purchase of Adoption and

Guardianship Services.

The Department on Aging is authorized to make transfers not

exceeding 2% of the aggregate amount appropriated to it within

the same treasury fund for the following Community Care Program

line items among these same line items: purchase of services

covered by the Community Care Program and Comprehensive Case

Coordination.

The State Treasurer is authorized to make transfers among

line item appropriations from the Capital Litigation Trust

Fund, with respect to costs incurred in fiscal years 2002 and

2003 only, when the balance remaining in one or more such line

item appropriations is insufficient for the purpose for which

the appropriation was made, provided that no such transfer may

be made unless the amount transferred is no longer required for

the purpose for which that appropriation was made.

The State Board of Education is authorized to make

transfers from line item appropriations within the same

treasury fund for General State Aid, and General State Aid -

Hold Harmless, and Evidence-Based Funding, provided that no

such transfer may be made unless the amount transferred is no

longer required for the purpose for which that appropriation

was made, to the line item appropriation for Transitional

Assistance when the balance remaining in such line item

appropriation is insufficient for the purpose for which the

appropriation was made.

The State Board of Education is authorized to make

transfers between the following line item appropriations

within the same treasury fund: Disabled Student

Services/Materials (Section 14-13.01 of the School Code),

Disabled Student Transportation Reimbursement (Section

14-13.01 of the School Code), Disabled Student Tuition -

Private Tuition (Section 14-7.02 of the School Code),

Extraordinary Special Education (Section 14-7.02b of the

School Code), Reimbursement for Free Lunch/Breakfast Program,

Summer School Payments (Section 18-4.3 of the School Code), and

Transportation - Regular/Vocational Reimbursement (Section

29-5 of the School Code). Such transfers shall be made only

when the balance remaining in one or more such line item

appropriations is insufficient for the purpose for which the

appropriation was made and provided that no such transfer may

be made unless the amount transferred is no longer required for

the purpose for which that appropriation was made.

The Department of Healthcare and Family Services is

authorized to make transfers not exceeding 4% of the aggregate

amount appropriated to it, within the same treasury fund, among

the various line items appropriated for Medical Assistance.

(c) The sum of such transfers for an agency in a fiscal

year shall not exceed 2% of the aggregate amount appropriated

to it within the same treasury fund for the following objects:

Personal Services; Extra Help; Student and Inmate

Compensation; State Contributions to Retirement Systems; State

Contributions to Social Security; State Contribution for

Employee Group Insurance; Contractual Services; Travel;

Commodities; Printing; Equipment; Electronic Data Processing;

Operation of Automotive Equipment; Telecommunications

Services; Travel and Allowance for Committed, Paroled and

Discharged Prisoners; Library Books; Federal Matching Grants

for Student Loans; Refunds; Workers' Compensation,

Occupational Disease, and Tort Claims; and, in appropriations

to institutions of higher education, Awards and Grants.

Notwithstanding the above, any amounts appropriated for

payment of workers' compensation claims to an agency to which

the authority to evaluate, administer and pay such claims has

been delegated by the Department of Central Management Services

may be transferred to any other expenditure object where such

amounts exceed the amount necessary for the payment of such

claims.

(c-1) Special provisions for State fiscal year 2003.

Notwithstanding any other provision of this Section to the

contrary, for State fiscal year 2003 only, transfers among line

item appropriations to an agency from the same treasury fund

may be made provided that the sum of such transfers for an

agency in State fiscal year 2003 shall not exceed 3% of the

aggregate amount appropriated to that State agency for State

fiscal year 2003 for the following objects: personal services,

except that no transfer may be approved which reduces the

aggregate appropriations for personal services within an

agency; extra help; student and inmate compensation; State

contributions to retirement systems; State contributions to

social security; State contributions for employee group

insurance; contractual services; travel; commodities;

printing; equipment; electronic data processing; operation of

automotive equipment; telecommunications services; travel and

allowance for committed, paroled, and discharged prisoners;

library books; federal matching grants for student loans;

refunds; workers' compensation, occupational disease, and tort

claims; and, in appropriations to institutions of higher

education, awards and grants.

(c-2) Special provisions for State fiscal year 2005.

Notwithstanding subsections (a), (a-2), and (c), for State

fiscal year 2005 only, transfers may be made among any line

item appropriations from the same or any other treasury fund

for any objects or purposes, without limitation, when the

balance remaining in one or more such line item appropriations

is insufficient for the purpose for which the appropriation was

made, provided that the sum of those transfers by a State

agency shall not exceed 4% of the aggregate amount appropriated

to that State agency for fiscal year 2005.

(c-3) Special provisions for State fiscal year 2015.

Notwithstanding any other provision of this Section, for State

fiscal year 2015, transfers among line item appropriations to a

State agency from the same State treasury fund may be made for

operational or lump sum expenses only, provided that the sum of

such transfers for a State agency in State fiscal year 2015

shall not exceed 4% of the aggregate amount appropriated to

that State agency for operational or lump sum expenses for

State fiscal year 2015. For the purpose of this subsection,

"operational or lump sum expenses" includes the following

objects: personal services; extra help; student and inmate

compensation; State contributions to retirement systems; State

contributions to social security; State contributions for

employee group insurance; contractual services; travel;

commodities; printing; equipment; electronic data processing;

operation of automotive equipment; telecommunications

services; travel and allowance for committed, paroled, and

discharged prisoners; library books; federal matching grants

for student loans; refunds; workers' compensation,

occupational disease, and tort claims; lump sum and other

purposes; and lump sum operations. For the purpose of this

subsection (c-3), "State agency" does not include the Attorney

General, the Secretary of State, the Comptroller, the

Treasurer, or the legislative or judicial branches.

(d) Transfers among appropriations made to agencies of the

Legislative and Judicial departments and to the

constitutionally elected officers in the Executive branch

require the approval of the officer authorized in Section 10 of

this Act to approve and certify vouchers. Transfers among

appropriations made to the University of Illinois, Southern

Illinois University, Chicago State University, Eastern

Illinois University, Governors State University, Illinois

State University, Northeastern Illinois University, Northern

Illinois University, Western Illinois University, the Illinois

Mathematics and Science Academy and the Board of Higher

Education require the approval of the Board of Higher Education

and the Governor. Transfers among appropriations to all other

agencies require the approval of the Governor.

The officer responsible for approval shall certify that the

transfer is necessary to carry out the programs and purposes

for which the appropriations were made by the General Assembly

and shall transmit to the State Comptroller a certified copy of

the approval which shall set forth the specific amounts

transferred so that the Comptroller may change his records

accordingly. The Comptroller shall furnish the Governor with

information copies of all transfers approved for agencies of

the Legislative and Judicial departments and transfers

approved by the constitutionally elected officials of the

Executive branch other than the Governor, showing the amounts

transferred and indicating the dates such changes were entered

on the Comptroller's records.

(e) The State Board of Education, in consultation with the

State Comptroller, may transfer line item appropriations for

General State Aid or Evidence-Based Funding between the Common

School Fund and the Education Assistance Fund. With the advice

and consent of the Governor's Office of Management and Budget,

the State Board of Education, in consultation with the State

Comptroller, may transfer line item appropriations between the

General Revenue Fund and the Education Assistance Fund for the

following programs:

(1) Disabled Student Personnel Reimbursement (Section

14-13.01 of the School Code);

(2) Disabled Student Transportation Reimbursement

(subsection (b) of Section 14-13.01 of the School Code);

(3) Disabled Student Tuition - Private Tuition

(Section 14-7.02 of the School Code);

(4) Extraordinary Special Education (Section 14-7.02b

of the School Code);

(5) Reimbursement for Free Lunch/Breakfast Programs;

(6) Summer School Payments (Section 18-4.3 of the

School Code);

(7) Transportation - Regular/Vocational Reimbursement

(Section 29-5 of the School Code);

(8) Regular Education Reimbursement (Section 18-3 of

the School Code); and

(9) Special Education Reimbursement (Section 14-7.03

of the School Code).

(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,

eff. 3-26-15.)

Section 920. The Illinois Income Tax Act is amended by

adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Invest in Kids credit.

(a) For taxable years beginning on or after January 1, 2018

and ending before January 1, 2023, each taxpayer for whom a tax

credit has been awarded by the Department under the Invest in

Kids Act is entitled to a credit against the tax imposed under

subsections (a) and (b) of Section 201 of this Act in an amount

equal to the amount awarded under the Invest in Kids Act.

(b) For partners, shareholders of subchapter S

corporations, and owners of limited liability companies, if the

liability company is treated as a partnership for purposes of

federal and State income taxation, the credit under this

Section shall be determined in accordance with the

determination of income and distributive share of income under

Sections 702 and 704 and subchapter S of the Internal Revenue

Code.

(c) The credit may not be carried back and may not reduce

the taxpayer's liability to less than zero. If the amount of

the credit exceeds the tax liability for the year, the excess

may be carried forward and applied to the tax liability of the

5 taxable years following the excess credit year. The tax

credit shall be applied to the earliest year for which there is

a tax liability. If there are credits for more than one year

that are available to offset the liability, the earlier credit

shall be applied first.

(d) A tax credit awarded by the Department under the Invest

in Kids Act may not be claimed for any qualified contribution

for which the taxpayer claims a federal income tax deduction.

Section 925. The Property Tax Code is amended by changing

Sections 18-185, 18-200, and 18-249 and by adding Section

18-206 as follows:

(35 ILCS 200/18-185)

Sec. 18-185. Short title; definitions. This Division 5 may

be cited as the Property Tax Extension Limitation Law. As used

in this Division 5:

"Consumer Price Index" means the Consumer Price Index for

All Urban Consumers for all items published by the United

States Department of Labor.

"Extension limitation" means (a) the lesser of 5% or the

percentage increase in the Consumer Price Index during the

12-month calendar year preceding the levy year or (b) the rate

of increase approved by voters under Section 18-205.

"Affected county" means a county of 3,000,000 or more

inhabitants or a county contiguous to a county of 3,000,000 or

more inhabitants.

"Taxing district" has the same meaning provided in Section

1-150, except as otherwise provided in this Section. For the

1991 through 1994 levy years only, "taxing district" includes

only each non-home rule taxing district having the majority of

its 1990 equalized assessed value within any county or counties

contiguous to a county with 3,000,000 or more inhabitants.

Beginning with the 1995 levy year, "taxing district" includes

only each non-home rule taxing district subject to this Law

before the 1995 levy year and each non-home rule taxing

district not subject to this Law before the 1995 levy year

having the majority of its 1994 equalized assessed value in an

affected county or counties. Beginning with the levy year in

which this Law becomes applicable to a taxing district as

provided in Section 18-213, "taxing district" also includes

those taxing districts made subject to this Law as provided in

Section 18-213.

"Aggregate extension" for taxing districts to which this

Law applied before the 1995 levy year means the annual

corporate extension for the taxing district and those special

purpose extensions that are made annually for the taxing

district, excluding special purpose extensions: (a) made for

the taxing district to pay interest or principal on general

obligation bonds that were approved by referendum; (b) made for

any taxing district to pay interest or principal on general

obligation bonds issued before October 1, 1991; (c) made for

any taxing district to pay interest or principal on bonds

issued to refund or continue to refund those bonds issued

before October 1, 1991; (d) made for any taxing district to pay

interest or principal on bonds issued to refund or continue to

refund bonds issued after October 1, 1991 that were approved by

referendum; (e) made for any taxing district to pay interest or

principal on revenue bonds issued before October 1, 1991 for

payment of which a property tax levy or the full faith and

credit of the unit of local government is pledged; however, a

tax for the payment of interest or principal on those bonds

shall be made only after the governing body of the unit of

local government finds that all other sources for payment are

insufficient to make those payments; (f) made for payments

under a building commission lease when the lease payments are

for the retirement of bonds issued by the commission before

October 1, 1991, to pay for the building project; (g) made for

payments due under installment contracts entered into before

October 1, 1991; (h) made for payments of principal and

interest on bonds issued under the Metropolitan Water

Reclamation District Act to finance construction projects

initiated before October 1, 1991; (i) made for payments of

principal and interest on limited bonds, as defined in Section

3 of the Local Government Debt Reform Act, in an amount not to

exceed the debt service extension base less the amount in items

(b), (c), (e), and (h) of this definition for non-referendum

obligations, except obligations initially issued pursuant to

referendum; (j) made for payments of principal and interest on

bonds issued under Section 15 of the Local Government Debt

Reform Act; (k) made by a school district that participates in

the Special Education District of Lake County, created by

special education joint agreement under Section 10-22.31 of the

School Code, for payment of the school district's share of the

amounts required to be contributed by the Special Education

District of Lake County to the Illinois Municipal Retirement

Fund under Article 7 of the Illinois Pension Code; the amount

of any extension under this item (k) shall be certified by the

school district to the county clerk; (l) made to fund expenses

of providing joint recreational programs for persons with

disabilities under Section 5-8 of the Park District Code or

Section 11-95-14 of the Illinois Municipal Code; (m) made for

temporary relocation loan repayment purposes pursuant to

Sections 2-3.77 and 17-2.2d of the School Code; (n) made for

payment of principal and interest on any bonds issued under the

authority of Section 17-2.2d of the School Code; (o) made for

contributions to a firefighter's pension fund created under

Article 4 of the Illinois Pension Code, to the extent of the

amount certified under item (5) of Section 4-134 of the

Illinois Pension Code; and (p) made for road purposes in the

first year after a township assumes the rights, powers, duties,

assets, property, liabilities, obligations, and

responsibilities of a road district abolished under the

provisions of Section 6-133 of the Illinois Highway Code.

"Aggregate extension" for the taxing districts to which

this Law did not apply before the 1995 levy year (except taxing

districts subject to this Law in accordance with Section

18-213) means the annual corporate extension for the taxing

district and those special purpose extensions that are made

annually for the taxing district, excluding special purpose

extensions: (a) made for the taxing district to pay interest or

principal on general obligation bonds that were approved by

referendum; (b) made for any taxing district to pay interest or

principal on general obligation bonds issued before March 1,

1995; (c) made for any taxing district to pay interest or

principal on bonds issued to refund or continue to refund those

bonds issued before March 1, 1995; (d) made for any taxing

district to pay interest or principal on bonds issued to refund

or continue to refund bonds issued after March 1, 1995 that

were approved by referendum; (e) made for any taxing district

to pay interest or principal on revenue bonds issued before

March 1, 1995 for payment of which a property tax levy or the

full faith and credit of the unit of local government is

pledged; however, a tax for the payment of interest or

principal on those bonds shall be made only after the governing

body of the unit of local government finds that all other

sources for payment are insufficient to make those payments;

(f) made for payments under a building commission lease when

the lease payments are for the retirement of bonds issued by

the commission before March 1, 1995 to pay for the building

project; (g) made for payments due under installment contracts

entered into before March 1, 1995; (h) made for payments of

principal and interest on bonds issued under the Metropolitan

Water Reclamation District Act to finance construction

projects initiated before October 1, 1991; (h-4) made for

stormwater management purposes by the Metropolitan Water

Reclamation District of Greater Chicago under Section 12 of the

Metropolitan Water Reclamation District Act; (i) made for

payments of principal and interest on limited bonds, as defined

in Section 3 of the Local Government Debt Reform Act, in an

amount not to exceed the debt service extension base less the

amount in items (b), (c), and (e) of this definition for

non-referendum obligations, except obligations initially

issued pursuant to referendum and bonds described in subsection

(h) of this definition; (j) made for payments of principal and

interest on bonds issued under Section 15 of the Local

Government Debt Reform Act; (k) made for payments of principal

and interest on bonds authorized by Public Act 88-503 and

issued under Section 20a of the Chicago Park District Act for

aquarium or museum projects; (l) made for payments of principal

and interest on bonds authorized by Public Act 87-1191 or

93-601 and (i) issued pursuant to Section 21.2 of the Cook

County Forest Preserve District Act, (ii) issued under Section

42 of the Cook County Forest Preserve District Act for

zoological park projects, or (iii) issued under Section 44.1 of

the Cook County Forest Preserve District Act for botanical

gardens projects; (m) made pursuant to Section 34-53.5 of the

School Code, whether levied annually or not; (n) made to fund

expenses of providing joint recreational programs for persons

with disabilities under Section 5-8 of the Park District Code

or Section 11-95-14 of the Illinois Municipal Code; (o) made by

the Chicago Park District for recreational programs for persons

with disabilities under subsection (c) of Section 7.06 of the

Chicago Park District Act; (p) made for contributions to a

firefighter's pension fund created under Article 4 of the

Illinois Pension Code, to the extent of the amount certified

under item (5) of Section 4-134 of the Illinois Pension Code;

(q) made by Ford Heights School District 169 under Section

17-9.02 of the School Code; and (r) made for the purpose of

making employer contributions to the Public School Teachers'

Pension and Retirement Fund of Chicago under Section 34-53 of

the School Code.

"Aggregate extension" for all taxing districts to which

this Law applies in accordance with Section 18-213, except for

those taxing districts subject to paragraph (2) of subsection

(e) of Section 18-213, means the annual corporate extension for

the taxing district and those special purpose extensions that

are made annually for the taxing district, excluding special

purpose extensions: (a) made for the taxing district to pay

interest or principal on general obligation bonds that were

approved by referendum; (b) made for any taxing district to pay

interest or principal on general obligation bonds issued before

the date on which the referendum making this Law applicable to

the taxing district is held; (c) made for any taxing district

to pay interest or principal on bonds issued to refund or

continue to refund those bonds issued before the date on which

the referendum making this Law applicable to the taxing

district is held; (d) made for any taxing district to pay

interest or principal on bonds issued to refund or continue to

refund bonds issued after the date on which the referendum

making this Law applicable to the taxing district is held if

the bonds were approved by referendum after the date on which

the referendum making this Law applicable to the taxing

district is held; (e) made for any taxing district to pay

interest or principal on revenue bonds issued before the date

on which the referendum making this Law applicable to the

taxing district is held for payment of which a property tax

levy or the full faith and credit of the unit of local

government is pledged; however, a tax for the payment of

interest or principal on those bonds shall be made only after

the governing body of the unit of local government finds that

all other sources for payment are insufficient to make those

payments; (f) made for payments under a building commission

lease when the lease payments are for the retirement of bonds

issued by the commission before the date on which the

referendum making this Law applicable to the taxing district is

held to pay for the building project; (g) made for payments due

under installment contracts entered into before the date on

which the referendum making this Law applicable to the taxing

district is held; (h) made for payments of principal and

interest on limited bonds, as defined in Section 3 of the Local

Government Debt Reform Act, in an amount not to exceed the debt

service extension base less the amount in items (b), (c), and

(e) of this definition for non-referendum obligations, except

obligations initially issued pursuant to referendum; (i) made

for payments of principal and interest on bonds issued under

Section 15 of the Local Government Debt Reform Act; (j) made

for a qualified airport authority to pay interest or principal

on general obligation bonds issued for the purpose of paying

obligations due under, or financing airport facilities

required to be acquired, constructed, installed or equipped

pursuant to, contracts entered into before March 1, 1996 (but

not including any amendments to such a contract taking effect

on or after that date); (k) made to fund expenses of providing

joint recreational programs for persons with disabilities

under Section 5-8 of the Park District Code or Section 11-95-14

of the Illinois Municipal Code; (l) made for contributions to a

firefighter's pension fund created under Article 4 of the

Illinois Pension Code, to the extent of the amount certified

under item (5) of Section 4-134 of the Illinois Pension Code;

and (m) made for the taxing district to pay interest or

principal on general obligation bonds issued pursuant to

Section 19-3.10 of the School Code.

"Aggregate extension" for all taxing districts to which

this Law applies in accordance with paragraph (2) of subsection

(e) of Section 18-213 means the annual corporate extension for

the taxing district and those special purpose extensions that

are made annually for the taxing district, excluding special

purpose extensions: (a) made for the taxing district to pay

interest or principal on general obligation bonds that were

approved by referendum; (b) made for any taxing district to pay

interest or principal on general obligation bonds issued before

the effective date of this amendatory Act of 1997; (c) made for

any taxing district to pay interest or principal on bonds

issued to refund or continue to refund those bonds issued

before the effective date of this amendatory Act of 1997; (d)

made for any taxing district to pay interest or principal on

bonds issued to refund or continue to refund bonds issued after

the effective date of this amendatory Act of 1997 if the bonds

were approved by referendum after the effective date of this

amendatory Act of 1997; (e) made for any taxing district to pay

interest or principal on revenue bonds issued before the

effective date of this amendatory Act of 1997 for payment of

which a property tax levy or the full faith and credit of the

unit of local government is pledged; however, a tax for the

payment of interest or principal on those bonds shall be made

only after the governing body of the unit of local government

finds that all other sources for payment are insufficient to

make those payments; (f) made for payments under a building

commission lease when the lease payments are for the retirement

of bonds issued by the commission before the effective date of

this amendatory Act of 1997 to pay for the building project;

(g) made for payments due under installment contracts entered

into before the effective date of this amendatory Act of 1997;

(h) made for payments of principal and interest on limited

bonds, as defined in Section 3 of the Local Government Debt

Reform Act, in an amount not to exceed the debt service

extension base less the amount in items (b), (c), and (e) of

this definition for non-referendum obligations, except

obligations initially issued pursuant to referendum; (i) made

for payments of principal and interest on bonds issued under

Section 15 of the Local Government Debt Reform Act; (j) made

for a qualified airport authority to pay interest or principal

on general obligation bonds issued for the purpose of paying

obligations due under, or financing airport facilities

required to be acquired, constructed, installed or equipped

pursuant to, contracts entered into before March 1, 1996 (but

not including any amendments to such a contract taking effect

on or after that date); (k) made to fund expenses of providing

joint recreational programs for persons with disabilities

under Section 5-8 of the Park District Code or Section 11-95-14

of the Illinois Municipal Code; and (l) made for contributions

to a firefighter's pension fund created under Article 4 of the

Illinois Pension Code, to the extent of the amount certified

under item (5) of Section 4-134 of the Illinois Pension Code.

"Debt service extension base" means an amount equal to that

portion of the extension for a taxing district for the 1994

levy year, or for those taxing districts subject to this Law in

accordance with Section 18-213, except for those subject to

paragraph (2) of subsection (e) of Section 18-213, for the levy

year in which the referendum making this Law applicable to the

taxing district is held, or for those taxing districts subject

to this Law in accordance with paragraph (2) of subsection (e)

of Section 18-213 for the 1996 levy year, constituting an

extension for payment of principal and interest on bonds issued

by the taxing district without referendum, but not including

excluded non-referendum bonds. For park districts (i) that were

first subject to this Law in 1991 or 1995 and (ii) whose

extension for the 1994 levy year for the payment of principal

and interest on bonds issued by the park district without

referendum (but not including excluded non-referendum bonds)

was less than 51% of the amount for the 1991 levy year

constituting an extension for payment of principal and interest

on bonds issued by the park district without referendum (but

not including excluded non-referendum bonds), "debt service

extension base" means an amount equal to that portion of the

extension for the 1991 levy year constituting an extension for

payment of principal and interest on bonds issued by the park

district without referendum (but not including excluded

non-referendum bonds). A debt service extension base

established or increased at any time pursuant to any provision

of this Law, except Section 18-212, shall be increased each

year commencing with the later of (i) the 2009 levy year or

(ii) the first levy year in which this Law becomes applicable

to the taxing district, by the lesser of 5% or the percentage

increase in the Consumer Price Index during the 12-month

calendar year preceding the levy year. The debt service

extension base may be established or increased as provided

under Section 18-212. "Excluded non-referendum bonds" means

(i) bonds authorized by Public Act 88-503 and issued under

Section 20a of the Chicago Park District Act for aquarium and

museum projects; (ii) bonds issued under Section 15 of the

Local Government Debt Reform Act; or (iii) refunding

obligations issued to refund or to continue to refund

obligations initially issued pursuant to referendum.

"Special purpose extensions" include, but are not limited

to, extensions for levies made on an annual basis for

unemployment and workers' compensation, self-insurance,

contributions to pension plans, and extensions made pursuant to

Section 6-601 of the Illinois Highway Code for a road

district's permanent road fund whether levied annually or not.

The extension for a special service area is not included in the

aggregate extension.

"Aggregate extension base" means the taxing district's

last preceding aggregate extension as adjusted under Sections

18-135, 18-215, and 18-230, and 18-206. An adjustment under

Section 18-135 shall be made for the 2007 levy year and all

subsequent levy years whenever one or more counties within

which a taxing district is located (i) used estimated

valuations or rates when extending taxes in the taxing district

for the last preceding levy year that resulted in the over or

under extension of taxes, or (ii) increased or decreased the

tax extension for the last preceding levy year as required by

Section 18-135(c). Whenever an adjustment is required under

Section 18-135, the aggregate extension base of the taxing

district shall be equal to the amount that the aggregate

extension of the taxing district would have been for the last

preceding levy year if either or both (i) actual, rather than

estimated, valuations or rates had been used to calculate the

extension of taxes for the last levy year, or (ii) the tax

extension for the last preceding levy year had not been

adjusted as required by subsection (c) of Section 18-135.

Notwithstanding any other provision of law, for levy year

2012, the aggregate extension base for West Northfield School

District No. 31 in Cook County shall be $12,654,592.

"Levy year" has the same meaning as "year" under Section

1-155.

"New property" means (i) the assessed value, after final

board of review or board of appeals action, of new improvements

or additions to existing improvements on any parcel of real

property that increase the assessed value of that real property

during the levy year multiplied by the equalization factor

issued by the Department under Section 17-30, (ii) the assessed

value, after final board of review or board of appeals action,

of real property not exempt from real estate taxation, which

real property was exempt from real estate taxation for any

portion of the immediately preceding levy year, multiplied by

the equalization factor issued by the Department under Section

17-30, including the assessed value, upon final stabilization

of occupancy after new construction is complete, of any real

property located within the boundaries of an otherwise or

previously exempt military reservation that is intended for

residential use and owned by or leased to a private corporation

or other entity, (iii) in counties that classify in accordance

with Section 4 of Article IX of the Illinois Constitution, an

incentive property's additional assessed value resulting from

a scheduled increase in the level of assessment as applied to

the first year final board of review market value, and (iv) any

increase in assessed value due to oil or gas production from an

oil or gas well required to be permitted under the Hydraulic

Fracturing Regulatory Act that was not produced in or accounted

for during the previous levy year. In addition, the county

clerk in a county containing a population of 3,000,000 or more

shall include in the 1997 recovered tax increment value for any

school district, any recovered tax increment value that was

applicable to the 1995 tax year calculations.

"Qualified airport authority" means an airport authority

organized under the Airport Authorities Act and located in a

county bordering on the State of Wisconsin and having a

population in excess of 200,000 and not greater than 500,000.

"Recovered tax increment value" means, except as otherwise

provided in this paragraph, the amount of the current year's

equalized assessed value, in the first year after a

municipality terminates the designation of an area as a

redevelopment project area previously established under the

Tax Increment Allocation Development Act in the Illinois

Municipal Code, previously established under the Industrial

Jobs Recovery Law in the Illinois Municipal Code, previously

established under the Economic Development Project Area Tax

Increment Act of 1995, or previously established under the

Economic Development Area Tax Increment Allocation Act, of each

taxable lot, block, tract, or parcel of real property in the

redevelopment project area over and above the initial equalized

assessed value of each property in the redevelopment project

area. For the taxes which are extended for the 1997 levy year,

the recovered tax increment value for a non-home rule taxing

district that first became subject to this Law for the 1995

levy year because a majority of its 1994 equalized assessed

value was in an affected county or counties shall be increased

if a municipality terminated the designation of an area in 1993

as a redevelopment project area previously established under

the Tax Increment Allocation Development Act in the Illinois

Municipal Code, previously established under the Industrial

Jobs Recovery Law in the Illinois Municipal Code, or previously

established under the Economic Development Area Tax Increment

Allocation Act, by an amount equal to the 1994 equalized

assessed value of each taxable lot, block, tract, or parcel of

real property in the redevelopment project area over and above

the initial equalized assessed value of each property in the

redevelopment project area. In the first year after a

municipality removes a taxable lot, block, tract, or parcel of

real property from a redevelopment project area established

under the Tax Increment Allocation Development Act in the

Illinois Municipal Code, the Industrial Jobs Recovery Law in

the Illinois Municipal Code, or the Economic Development Area

Tax Increment Allocation Act, "recovered tax increment value"

means the amount of the current year's equalized assessed value

of each taxable lot, block, tract, or parcel of real property

removed from the redevelopment project area over and above the

initial equalized assessed value of that real property before

removal from the redevelopment project area.

Except as otherwise provided in this Section, "limiting

rate" means a fraction the numerator of which is the last

preceding aggregate extension base times an amount equal to one

plus the extension limitation defined in this Section and the

denominator of which is the current year's equalized assessed

value of all real property in the territory under the

jurisdiction of the taxing district during the prior levy year.

For those taxing districts that reduced their aggregate

extension for the last preceding levy year, except for school

districts that reduced their extension for educational

purposes pursuant to Section 18-206, the highest aggregate

extension in any of the last 3 preceding levy years shall be

used for the purpose of computing the limiting rate. The

denominator shall not include new property or the recovered tax

increment value. If a new rate, a rate decrease, or a limiting

rate increase has been approved at an election held after March

21, 2006, then (i) the otherwise applicable limiting rate shall

be increased by the amount of the new rate or shall be reduced

by the amount of the rate decrease, as the case may be, or (ii)

in the case of a limiting rate increase, the limiting rate

shall be equal to the rate set forth in the proposition

approved by the voters for each of the years specified in the

proposition, after which the limiting rate of the taxing

district shall be calculated as otherwise provided. In the case

of a taxing district that obtained referendum approval for an

increased limiting rate on March 20, 2012, the limiting rate

for tax year 2012 shall be the rate that generates the

approximate total amount of taxes extendable for that tax year,

as set forth in the proposition approved by the voters; this

rate shall be the final rate applied by the county clerk for

the aggregate of all capped funds of the district for tax year

2012.

(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,

eff. 7-27-15; 99-521, eff. 6-1-17.)

(35 ILCS 200/18-200)

Sec. 18-200. School Code. A school district's State aid

shall not be reduced under the computation under subsections

5(a) through 5(h) of Part A of Section 18-8 of the School Code

or under Section 18-8.15 of the School Code due to the

operating tax rate falling from above the minimum requirement

of that Section of the School Code to below the minimum

requirement of that Section of the School Code due to the

operation of this Law.

(Source: P.A. 87-17; 88-455.)

(35 ILCS 200/18-206 new)

Sec. 18-206. Decrease in extension for educational

purposes.

(a) Notwithstanding any other provision of law, for those

school districts whose adequacy targets, as defined in Section

18-8.15 of this Code, exceed 110% for the school year that

begins during the calendar year immediately preceding the levy

year for which the reduction under this Section is sought, the

question of whether the school district shall reduce its

extension for educational purposes for the levy year in which

the election is held to an amount that is less than the

extension for educational purposes for the immediately

preceding levy year shall be submitted to the voters of the

school district at the next consolidated election but only upon

submission of a petition signed by not fewer than 10% of the

registered voters in the school district. In no event shall the

reduced extension be more than 10% lower than the amount

extended for educational purposes in the previous levy year,

and in no event shall the reduction cause the school district's

adequacy target to fall below 110% for the levy year for which

the reduction is sought.

(b) The petition shall be filed with the applicable

election authority, as defined in Section 1-3 of the Election

Code, or, in the case of multiple election authorities, with

the State Board of Elections, not more than 10 months nor less

than 6 months prior to the election at which the question is to

be submitted to the voters, and its validity shall be

determined as provided by Article 28 of the Election Code and

general election law. The election authority or Board, as

applicable, shall certify the question and the proper election

authority or authorities shall submit the question to the

voters. Except as otherwise provided in this Section, this

referendum shall be subject to all other general election law

requirements.

(c) The proposition seeking to reduce the extension for

educational purposes shall be in substantially the following

form:

Shall the amount extended for educational purposes by

(school district) be reduced from (previous levy year's

extension) to (proposed extension) for (levy year), but in

no event lower than the amount required to maintain an

adequacy target of 110%?

Votes shall be recorded as "Yes" or "No".

If a majority of all votes cast on the proposition are in

favor of the proposition, then, for the levy year in which the

election is held, the amount extended by the school district

for educational purposes shall be reduced as provided in the

referendum; however, in no event shall the reduction exceed the

amount that would cause the school district to have an adequacy

target of 110% for the applicable school year.

Once the question is submitted to the voters, then the

question may not be submitted again for the same school

district at any of the next 2 consolidated elections.

(d) For school districts that approve a reduction under

this Section, the county clerk shall extend a rate for

educational purposes that is no greater than the limiting rate

for educational purposes. If the school district is otherwise

subject to this Law for the applicable levy year, then, for the

levy year in which the reduction occurs, the county clerk shall

calculate separate limiting rates for educational purposes and

for the aggregate of the school district's other funds.

As used in this Section:

"School district" means each school district in the State,

regardless of whether or not that school district is otherwise

subject to this Law.

"Limiting rate for educational purposes" means a fraction

the numerator of which is the greater of (i) the amount

approved by the voters in the referendum under subsection (c)

of this Section or (ii) the amount that would cause the school

district to have an adequacy target of 110% for the applicable

school year, but in no event more than the school district's

extension for educational purposes in the immediately

preceding levy year, and the denominator of which is the

current year's equalized assessed value of all real property

under the jurisdiction of the school district during the prior

levy year.

(35 ILCS 200/18-249)

Sec. 18-249. Miscellaneous provisions.

(a) Certification of new property. For the 1994 levy year,

the chief county assessment officer shall certify to the county

clerk, after all changes by the board of review or board of

appeals, as the case may be, the assessed value of new property

by taxing district for the 1994 levy year under rules

promulgated by the Department.

(b) School Code. A school district's State aid shall not be

reduced under the computation under subsections 5(a) through

5(h) of Part A of Section 18-8 of the School Code or under

Section 18-8.15 of the School Code due to the operating tax

rate falling from above the minimum requirement of that Section

of the School Code to below the minimum requirement of that

Section of the School Code due to the operation of this Law.

(c) Rules. The Department shall make and promulgate

reasonable rules relating to the administration of the purposes

and provisions of Sections 18-246 through 18-249 as may be

necessary or appropriate.

(Source: P.A. 89-1, eff. 2-12-95.)

Section 930. The Illinois Pension Code is amended by

changing Section 17-127 as follows:

(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)

Sec. 17-127. Financing; revenues for the Fund.

(a) The revenues for the Fund shall consist of: (1) amounts

paid into the Fund by contributors thereto and from employer

contributions and State appropriations in accordance with this

Article; (2) amounts contributed to the Fund by an Employer;

(3) amounts contributed to the Fund pursuant to any law now in

force or hereafter to be enacted; (4) contributions from any

other source; and (5) the earnings on investments.

(b) The General Assembly finds that for many years the

State has contributed to the Fund an annual amount that is

between 20% and 30% of the amount of the annual State

contribution to the Article 16 retirement system, and the

General Assembly declares that it is its goal and intention to

continue this level of contribution to the Fund in the future.

(c) Beginning in State fiscal year 1999, the State shall

include in its annual contribution to the Fund an additional

amount equal to 0.544% of the Fund's total teacher payroll;

except that this additional contribution need not be made in a

fiscal year if the Board has certified in the previous fiscal

year that the Fund is at least 90% funded, based on actuarial

determinations. These additional State contributions are

intended to offset a portion of the cost to the Fund of the

increases in retirement benefits resulting from this

amendatory Act of 1998.

(d) In addition to any other contribution required under

this Article, including the contribution required under

subsection (c), the State shall contribute to the Fund the

following amounts:

(1) For State fiscal year 2018, the State shall

contribute $221,300,000 for the employer normal cost for

fiscal year 2018 and the amount allowed under paragraph (3)

of Section 17-142.1 of this Code to defray health insurance

costs. Funds for this paragraph (1) shall come from funds

appropriated for Evidence-Based Funding pursuant to

Section 18-8.15 of the School Code.

(2) Beginning in State fiscal year 2019, the State

shall contribute for each fiscal year an amount to be

determined by the Fund, equal to the employer normal cost

for that fiscal year, plus the amount allowed pursuant to

paragraph (3) of Section 17-142.1 to defray health

insurance costs.

(e) The Board shall determine the amount of State

contributions required for each fiscal year on the basis of the

actuarial tables and other assumptions adopted by the Board and

the recommendations of the actuary. On or before November 1 of

each year, beginning November 1, 2017, the Board shall submit

to the State Actuary, the Governor, and the General Assembly a

proposed certification of the amount of the required State

contribution to the Fund for the next fiscal year, along with

all of the actuarial assumptions, calculations, and data upon

which that proposed certification is based.

On or before January 1 of each year, beginning January 1,

2018, the State Actuary shall issue a preliminary report

concerning the proposed certification and identifying, if

necessary, recommended changes in actuarial assumptions that

the Board must consider before finalizing its certification of

the required State contributions.

(f) On or before January 15, 2018 and each January 15

thereafter, the Board shall certify to the Governor and the

General Assembly the amount of the required State contribution

for the next fiscal year. The certification shall include a

copy of the actuarial recommendations upon which it is based

and shall specifically identify the Fund's projected employer

normal cost for that fiscal year. The Board's certification

must note any deviations from the State Actuary's recommended

changes, the reason or reasons for not following the State

Actuary's recommended changes, and the fiscal impact of not

following the State Actuary's recommended changes on the

required State contribution.

For the purposes of this Article, including issuing

vouchers, and for the purposes of subsection (h) of Section 1.1

of the State Pension Funds Continuing Appropriation Act, the

State contribution specified for State fiscal year 2018 shall

be deemed to have been certified, by operation of law and

without official action by the Board or the State Actuary, in

the amount provided in subsection (c) and subsection (d) of

this Section.

(g) For State fiscal year 2018, the State Board of

Education shall submit vouchers, as directed by the Board, for

payment of State contributions to the Fund for the required

annual State contribution under subsection (d) of this Section.

These vouchers shall be paid by the State Comptroller and

Treasurer by warrants drawn on the amount appropriated to the

State Board of Education from the Common School Fund in Section

5 of Article 97 of Public Act 100-21. If State appropriations

for State fiscal year 2018 are less than the amount lawfully

vouchered under this subsection, the difference shall be paid

from the Common School Fund under the continuing appropriation

authority provided in Section 1.1 of the State Pension Funds

Continuing Appropriation Act.

(h) For State fiscal year 2018, the Board shall submit

vouchers for the payment of State contributions to the Fund for

the required annual State contribution under subsection (c) of

this Section. Beginning in State fiscal year 2019, the Board

shall submit vouchers for payment of State contributions to the

Fund for the required annual State contribution under

subsections (c) and (d) of this Section. These vouchers shall

be paid by the State Comptroller and Treasurer by warrants

drawn on the funds appropriated to the Fund for that fiscal

year. If State appropriations to the Fund for the applicable

fiscal year are less than the amount lawfully vouchered under

this subsection, the difference shall be paid from the Common

School Fund under the continuing appropriation authority

provided in Section 1.1 of the State Pension Funds Continuing

Appropriation Act.

(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;

90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)

Section 935. The State Pension Funds Continuing

Appropriation Act is amended by changing Section 1.1 as

follows:

(40 ILCS 15/1.1)

Sec. 1.1. Appropriations to certain retirement systems.

(a) There is hereby appropriated from the General Revenue

Fund to the General Assembly Retirement System, on a continuing

monthly basis, the amount, if any, by which the total available

amount of all other appropriations to that retirement system

for the payment of State contributions is less than the total

amount of the vouchers for required State contributions

lawfully submitted by the retirement system for that month

under Section 2-134 of the Illinois Pension Code.

(b) There is hereby appropriated from the General Revenue

Fund to the State Universities Retirement System, on a

continuing monthly basis, the amount, if any, by which the

total available amount of all other appropriations to that

retirement system for the payment of State contributions,

including any deficiency in the required contributions of the

optional retirement program established under Section 15-158.2

of the Illinois Pension Code, is less than the total amount of

the vouchers for required State contributions lawfully

submitted by the retirement system for that month under Section

15-165 of the Illinois Pension Code.

(c) There is hereby appropriated from the Common School

Fund to the Teachers' Retirement System of the State of

Illinois, on a continuing monthly basis, the amount, if any, by

which the total available amount of all other appropriations to

that retirement system for the payment of State contributions

is less than the total amount of the vouchers for required

State contributions lawfully submitted by the retirement

system for that month under Section 16-158 of the Illinois

Pension Code.

(d) There is hereby appropriated from the General Revenue

Fund to the Judges Retirement System of Illinois, on a

continuing monthly basis, the amount, if any, by which the

total available amount of all other appropriations to that

retirement system for the payment of State contributions is

less than the total amount of the vouchers for required State

contributions lawfully submitted by the retirement system for

that month under Section 18-140 of the Illinois Pension Code.

(e) The continuing appropriations provided by subsections

(a), (b), (c), and (d) of this Section shall first be available

in State fiscal year 1996. The continuing appropriations

provided by subsection (h) of this Section shall first be

available as provided in that subsection (h).

(f) For State fiscal year 2010 only, the continuing

appropriations provided by this Section are equal to the amount

certified by each System on or before December 31, 2008, less

(i) the gross proceeds of the bonds sold in fiscal year 2010

under the authorization contained in subsection (a) of Section

7.2 of the General Obligation Bond Act and (ii) any amounts

received from the State Pensions Fund.

(g) For State fiscal year 2011 only, the continuing

appropriations provided by this Section are equal to the amount

certified by each System on or before April 1, 2011, less (i)

the gross proceeds of the bonds sold in fiscal year 2011 under

the authorization contained in subsection (a) of Section 7.2 of

the General Obligation Bond Act and (ii) any amounts received

from the State Pensions Fund.

(h) There is hereby appropriated from the Common School

Fund to the Public School Teachers' Pension and Retirement Fund

of Chicago, on a continuing basis, the amount, if any, by which

the total available amount of all other State appropriations to

that Retirement Fund for the payment of State contributions

under Section 17-127 of the Illinois Pension Code is less than

the total amount of the vouchers for required State

contributions lawfully submitted by the Retirement Fund or the

State Board of Education, under that Section 17-127.

(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;

96-1511, eff. 1-27-11.)

Section 940. The Innovation Development and Economy Act is

amended by changing Section 33 as follows:

(50 ILCS 470/33)

Sec. 33. STAR Bonds School Improvement and Operations Trust

Fund.

(a) The STAR Bonds School Improvement and Operations Trust

Fund is created as a trust fund in the State treasury. Deposits

into the Trust Fund shall be made as provided under this

Section. Moneys in the Trust Fund shall be used by the

Department of Revenue only for the purpose of making payments

to school districts in educational service regions that include

or are adjacent to the STAR bond district. Moneys in the Trust

Fund are not subject to appropriation and shall be used solely

as provided in this Section. All deposits into the Trust Fund

shall be held in the Trust Fund by the State Treasurer as ex

officio custodian separate and apart from all public moneys or

funds of this State and shall be administered by the Department

exclusively for the purposes set forth in this Section. All

moneys in the Trust Fund shall be invested and reinvested by

the State Treasurer. All interest accruing from these

investments shall be deposited in the Trust Fund.

(b) Upon approval of a STAR bond district, the political

subdivision shall immediately transmit to the county clerk of

the county in which the district is located a certified copy of

the ordinance creating the district, a legal description of the

district, a map of the district, identification of the year

that the county clerk shall use for determining the total

initial equalized assessed value of the district consistent

with subsection (c), and a list of the parcel or tax

identification number of each parcel of property included in

the district.

(c) Upon approval of a STAR bond district, the county clerk

immediately thereafter shall determine (i) the most recently

ascertained equalized assessed value of each lot, block, tract,

or parcel of real property within the STAR bond district, from

which shall be deducted the homestead exemptions under Article

15 of the Property Tax Code, which value shall be the initial

equalized assessed value of each such piece of property, and

(ii) the total equalized assessed value of all taxable real

property within the district by adding together the most

recently ascertained equalized assessed value of each taxable

lot, block, tract, or parcel of real property within the

district, from which shall be deducted the homestead exemptions

under Article 15 of the Property Tax Code, and shall certify

that amount as the total initial equalized assessed value of

the taxable real property within the STAR bond district.

(d) In reference to any STAR bond district created within

any political subdivision, and in respect to which the county

clerk has certified the total initial equalized assessed value

of the property in the area, the political subdivision may

thereafter request the clerk in writing to adjust the initial

equalized value of all taxable real property within the STAR

bond district by deducting therefrom the exemptions under

Article 15 of the Property Tax Code applicable to each lot,

block, tract, or parcel of real property within the STAR bond

district. The county clerk shall immediately, after the written

request to adjust the total initial equalized value is

received, determine the total homestead exemptions in the STAR

bond district as provided under Article 15 of the Property Tax

Code by adding together the homestead exemptions provided by

said Article on each lot, block, tract, or parcel of real

property within the STAR bond district and then shall deduct

the total of said exemptions from the total initial equalized

assessed value. The county clerk shall then promptly certify

that amount as the total initial equalized assessed value as

adjusted of the taxable real property within the STAR bond

district.

(e) The county clerk or other person authorized by law

shall compute the tax rates for each taxing district with all

or a portion of its equalized assessed value located in the

STAR bond district. The rate per cent of tax determined shall

be extended to the current equalized assessed value of all

property in the district in the same manner as the rate per

cent of tax is extended to all other taxable property in the

taxing district.

(f) Beginning with the assessment year in which the first

destination user in the first STAR bond project in a STAR bond

district makes its first retail sales and for each assessment

year thereafter until final maturity of the last STAR bonds

issued in the district, the county clerk or other person

authorized by law shall determine the increase in equalized

assessed value of all real property within the STAR bond

district by subtracting the initial equalized assessed value of

all property in the district certified under subsection (c)

from the current equalized assessed value of all property in

the district. Each year, the property taxes arising from the

increase in equalized assessed value in the STAR bond district

shall be determined for each taxing district and shall be

certified to the county collector.

(g) Beginning with the year in which taxes are collected

based on the assessment year in which the first destination

user in the first STAR bond project in a STAR bond district

makes its first retail sales and for each year thereafter until

final maturity of the last STAR bonds issued in the district,

the county collector shall, within 30 days after receipt of

property taxes, transmit to the Department to be deposited into

the STAR Bonds School Improvement and Operations Trust Fund 15%

of property taxes attributable to the increase in equalized

assessed value within the STAR bond district from each taxing

district as certified in subsection (f).

(h) The Department shall pay to the regional superintendent

of schools whose educational service region includes Franklin

and Williamson Counties, for each year for which money is

remitted to the Department and paid into the STAR Bonds School

Improvement and Operations Trust Fund, the money in the Fund as

provided in this Section. The amount paid to each school

district shall be allocated proportionately, based on each

qualifying school district's fall enrollment for the

then-current school year, such that the school district with

the largest fall enrollment receives the largest proportionate

share of money paid out of the Fund or by any other method or

formula that the regional superintendent of schools deems fit,

equitable, and in the public interest. The regional

superintendent may allocate moneys to school districts that are

outside of his or her educational service region or to other

regional superintendents.

The Department shall determine the distributions under

this Section using its best judgment and information. The

Department shall be held harmless for the distributions made

under this Section and all distributions shall be final.

(i) In any year that an assessment appeal is filed, the

extension of taxes on any assessment so appealed shall not be

delayed. In the case of an assessment that is altered, any

taxes extended upon the unauthorized assessment or part thereof

shall be abated, or, if already paid, shall be refunded with

interest as provided in Section 23-20 of the Property Tax Code.

In the case of an assessment appeal, the county collector shall

notify the Department that an assessment appeal has been filed

and the amount of the tax that would have been deposited in the

STAR Bonds School Improvement and Operations Trust Fund. The

county collector shall hold that amount in a separate fund

until the appeal process is final. After the appeal process is

finalized, the county collector shall transmit to the

Department the amount of tax that remains, if any, after all

required refunds are made. The Department shall pay any amount

deposited into the Trust Fund under this Section in the same

proportion as determined for payments for that taxable year

under subsection (h).

(j) In any year that ad valorem taxes are allocated to the

STAR Bonds School Improvement and Operations Trust Fund, that

allocation shall not reduce or otherwise impact the school aid

provided to any school district under the general State school

aid formula provided for in Section 18-8.05 of the School Code

or the evidence-based funding formula provided for in Section

18-8.15 of the School Code.

(Source: P.A. 96-939, eff. 6-24-10.)

Section 945. The County Economic Development Project Area

Property Tax Allocation Act is amended by changing Section 7 as

follows:

(55 ILCS 85/7) (from Ch. 34, par. 7007)

Sec. 7. Creation of special tax allocation fund. If a

county has adopted property tax allocation financing by

ordinance for an economic development project area, the

Department has approved and certified the economic development

project area, and the county clerk has thereafter certified the

"total initial equalized value" of the taxable real property

within such economic development project area in the manner

provided in subsection (b) of Section 6 of this Act, each year

after the date of the certification by the county clerk of the

"initial equalized assessed value" until economic development

project costs and all county obligations financing economic

development project costs have been paid, the ad valorem taxes,

if any, arising from the levies upon the taxable real property

in the economic development project area by taxing districts

and tax rates determined in the manner provided in subsection

(b) of Section 6 of this Act shall be divided as follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract or parcel of real property which is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value of each such

taxable lot, block, tract, or parcel of real property

existing at the time property tax allocation financing was

adopted shall be allocated and when collected shall be paid

by the county collector to the respective affected taxing

districts in the manner required by the law in the absence

of the adoption of property tax allocation financing.

(2) That portion, if any, of those taxes which is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract, or

parcel of real property in the economic development project

are, over and above the initial equalized assessed value of

each property existing at the time property tax allocation

financing was adopted shall be allocated to and when

collected shall be paid to the county treasurer, who shall

deposit those taxes into a special fund called the special

tax allocation fund of the county for the purpose of paying

economic development project costs and obligations

incurred in the payment thereof.

The county, by an ordinance adopting property tax

allocation financing, may pledge the funds in and to be

deposited in the special tax allocation fund for the payment of

obligations issued under this Act and for the payment of

economic development project costs. No part of the current

equalized assessed valuation of each property in the economic

development project area attributable to any increase above the

total initial equalized assessed value of such properties shall

be used in calculating the general State school aid formula,

provided for in Section 18-8 of the School Code, or the

evidence-based funding formula, provided for in Section

18-8.15 of the School Code, until such time as all economic

development projects costs have been paid as provided for in

this Section.

Whenever a county issues bonds for the purpose of financing

economic development project costs, the county may provide by

ordinance for the appointment of a trustee, which may be any

trust company within the State, and for the establishment of

the funds or accounts to be maintained by such trustee as the

county shall deem necessary to provide for the security and

payment of the bonds. If the county provides for the

appointment of a trustee, the trustee shall be considered the

assignee of any payments assigned by the county pursuant to the

ordinance and this Section. Any amounts paid to the trustee as

assignee shall be deposited in the funds or accounts

established pursuant to the trust agreement, and shall be held

by the trustee in trust for the benefit of the holders of the

bonds, and the holders shall have a lien on and a security

interest in those bonds or accounts so long as the bonds remain

outstanding and unpaid. Upon retirement of the bonds, the

trustee shall pay over any excess amounts held to the county

for deposit in the special tax allocation fund.

When the economic development project costs, including

without limitation all county obligations financing economic

development project costs incurred under this Act, have been

paid, all surplus funds then remaining in the special tax

allocation funds shall be distributed by being paid by the

county treasurer to the county collector, who shall immediately

thereafter pay those funds to the taxing districts having

taxable property in the economic development project area in

the same manner and proportion as the most recent distribution

by the county collector to those taxing districts of real

property taxes from real property in the economic development

project area.

Upon the payment of all economic development project costs,

retirement of obligations and the distribution of any excess

monies pursuant to this Section and not later than 23 years

from the date of adoption of the ordinance adopting property

tax allocation financing, the county shall adopt an ordinance

dissolving the special tax allocation fund for the economic

development project area and terminating the designation of the

economic development project area as an economic development

project area; however, in relation to one or more contiguous

parcels not exceeding a total area of 120 acres within which an

electric generating facility is intended to be constructed, and

with respect to which the owner of that proposed electric

generating facility has entered into a redevelopment agreement

with Grundy County on or before July 25, 2017, the ordinance of

the county required in this paragraph shall not dissolve the

special tax allocation fund for the existing economic

development project area and shall only terminate the

designation of the economic development project area as to

those portions of the economic development project area

excluding the area covered by the redevelopment agreement

between the owner of the proposed electric generating facility

and Grundy County; the county shall adopt an ordinance

dissolving the special tax allocation fund for the economic

development project area and terminating the designation of the

economic development project area as an economic development

project area with regard to the electric generating facility

property not later than 35 years from the date of adoption of

the ordinance adopting property tax allocation financing.

Thereafter the rates of the taxing districts shall be extended

and taxes levied, collected and distributed in the manner

applicable in the absence of the adoption of property tax

allocation financing.

Nothing in this Section shall be construed as relieving

property in economic development project areas from being

assessed as provided in the Property Tax Code or as relieving

owners of that property from paying a uniform rate of taxes, as

required by Section 4 of Article IX of the Illinois

Constitution of 1970.

(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)

Section 950. The County Economic Development Project Area

Tax Increment Allocation Act of 1991 is amended by changing

Section 50 as follows:

(55 ILCS 90/50) (from Ch. 34, par. 8050)

Sec. 50. Special tax allocation fund.

(a) If a county clerk has certified the "total initial

equalized assessed value" of the taxable real property within

an economic development project area in the manner provided in

Section 45, each year after the date of the certification by

the county clerk of the "total initial equalized assessed

value", until economic development project costs and all county

obligations financing economic development project costs have

been paid, the ad valorem taxes, if any, arising from the

levies upon the taxable real property in the economic

development project area by taxing districts and tax rates

determined in the manner provided in subsection (b) of Section

45 shall be divided as follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract, or parcel of real property that is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value of each

taxable lot, block, tract, or parcel of real property

existing at the time tax increment financing was adopted

shall be allocated to (and when collected shall be paid by

the county collector to) the respective affected taxing

districts in the manner required by law in the absence of

the adoption of tax increment allocation financing.

(2) That portion, if any, of the taxes that is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract, or

parcel of real property in the economic development project

area, over and above the initial equalized assessed value

of each property existing at the time tax increment

financing was adopted, shall be allocated to (and when

collected shall be paid to) the county treasurer, who shall

deposit the taxes into a special fund (called the special

tax allocation fund of the county) for the purpose of

paying economic development project costs and obligations

incurred in the payment of those costs.

(b) The county, by an ordinance adopting tax increment

allocation financing, may pledge the monies in and to be

deposited into the special tax allocation fund for the payment

of obligations issued under this Act and for the payment of

economic development project costs. No part of the current

equalized assessed valuation of each property in the economic

development project area attributable to any increase above the

total initial equalized assessed value of those properties

shall be used in calculating the general State school aid

formula under Section 18-8 of the School Code or the

evidence-based funding formula under Section 18-8.15 of the

School Code until all economic development projects costs have

been paid as provided for in this Section.

(c) When the economic development projects costs,

including without limitation all county obligations financing

economic development project costs incurred under this Act,

have been paid, all surplus monies then remaining in the

special tax allocation fund shall be distributed by being paid

by the county treasurer to the county collector, who shall

immediately pay the monies to the taxing districts having

taxable property in the economic development project area in

the same manner and proportion as the most recent distribution

by the county collector to those taxing districts of real

property taxes from real property in the economic development

project area.

(d) Upon the payment of all economic development project

costs, retirement of obligations, and distribution of any

excess monies under this Section, the county shall adopt an

ordinance dissolving the special tax allocation fund for the

economic development project area and terminating the

designation of the economic development project area as an

economic development project area. Thereafter, the rates of the

taxing districts shall be extended and taxes shall be levied,

collected, and distributed in the manner applicable in the

absence of the adoption of tax increment allocation financing.

(e) Nothing in this Section shall be construed as relieving

property in the economic development project areas from being

assessed as provided in the Property Tax Code or as relieving

owners of that property from paying a uniform rate of taxes as

required by Section 4 of Article IX of the Illinois

Constitution.

(Source: P.A. 98-463, eff. 8-16-13.)

Section 955. The Illinois Municipal Code is amended by

changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as

follows:

(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)

Sec. 11-74.4-3. Definitions. The following terms, wherever

used or referred to in this Division 74.4 shall have the

following respective meanings, unless in any case a different

meaning clearly appears from the context.

(a) For any redevelopment project area that has been

designated pursuant to this Section by an ordinance adopted

prior to November 1, 1999 (the effective date of Public Act

91-478), "blighted area" shall have the meaning set forth in

this Section prior to that date.

On and after November 1, 1999, "blighted area" means any

improved or vacant area within the boundaries of a

redevelopment project area located within the territorial

limits of the municipality where:

(1) If improved, industrial, commercial, and

residential buildings or improvements are detrimental to

the public safety, health, or welfare because of a

combination of 5 or more of the following factors, each of

which is (i) present, with that presence documented, to a

meaningful extent so that a municipality may reasonably

find that the factor is clearly present within the intent

of the Act and (ii) reasonably distributed throughout the

improved part of the redevelopment project area:

(A) Dilapidation. An advanced state of disrepair

or neglect of necessary repairs to the primary

structural components of buildings or improvements in

such a combination that a documented building

condition analysis determines that major repair is

required or the defects are so serious and so extensive

that the buildings must be removed.

(B) Obsolescence. The condition or process of

falling into disuse. Structures have become ill-suited

for the original use.

(C) Deterioration. With respect to buildings,

defects including, but not limited to, major defects in

the secondary building components such as doors,

windows, porches, gutters and downspouts, and fascia.

With respect to surface improvements, that the

condition of roadways, alleys, curbs, gutters,

sidewalks, off-street parking, and surface storage

areas evidence deterioration, including, but not

limited to, surface cracking, crumbling, potholes,

depressions, loose paving material, and weeds

protruding through paved surfaces.

(D) Presence of structures below minimum code

standards. All structures that do not meet the

standards of zoning, subdivision, building, fire, and

other governmental codes applicable to property, but

not including housing and property maintenance codes.

(E) Illegal use of individual structures. The use

of structures in violation of applicable federal,

State, or local laws, exclusive of those applicable to

the presence of structures below minimum code

standards.

(F) Excessive vacancies. The presence of buildings

that are unoccupied or under-utilized and that

represent an adverse influence on the area because of

the frequency, extent, or duration of the vacancies.

(G) Lack of ventilation, light, or sanitary

facilities. The absence of adequate ventilation for

light or air circulation in spaces or rooms without

windows, or that require the removal of dust, odor,

gas, smoke, or other noxious airborne materials.

Inadequate natural light and ventilation means the

absence of skylights or windows for interior spaces or

rooms and improper window sizes and amounts by room

area to window area ratios. Inadequate sanitary

facilities refers to the absence or inadequacy of

garbage storage and enclosure, bathroom facilities,

hot water and kitchens, and structural inadequacies

preventing ingress and egress to and from all rooms and

units within a building.

(H) Inadequate utilities. Underground and overhead

utilities such as storm sewers and storm drainage,

sanitary sewers, water lines, and gas, telephone, and

electrical services that are shown to be inadequate.

Inadequate utilities are those that are: (i) of

insufficient capacity to serve the uses in the

redevelopment project area, (ii) deteriorated,

antiquated, obsolete, or in disrepair, or (iii)

lacking within the redevelopment project area.

(I) Excessive land coverage and overcrowding of

structures and community facilities. The

over-intensive use of property and the crowding of

buildings and accessory facilities onto a site.

Examples of problem conditions warranting the

designation of an area as one exhibiting excessive land

coverage are: (i) the presence of buildings either

improperly situated on parcels or located on parcels of

inadequate size and shape in relation to present-day

standards of development for health and safety and (ii)

the presence of multiple buildings on a single parcel.

For there to be a finding of excessive land coverage,

these parcels must exhibit one or more of the following

conditions: insufficient provision for light and air

within or around buildings, increased threat of spread

of fire due to the close proximity of buildings, lack

of adequate or proper access to a public right-of-way,

lack of reasonably required off-street parking, or

inadequate provision for loading and service.

(J) Deleterious land use or layout. The existence

of incompatible land-use relationships, buildings

occupied by inappropriate mixed-uses, or uses

considered to be noxious, offensive, or unsuitable for

the surrounding area.

(K) Environmental clean-up. The proposed

redevelopment project area has incurred Illinois

Environmental Protection Agency or United States

Environmental Protection Agency remediation costs for,

or a study conducted by an independent consultant

recognized as having expertise in environmental

remediation has determined a need for, the clean-up of

hazardous waste, hazardous substances, or underground

storage tanks required by State or federal law,

provided that the remediation costs constitute a

material impediment to the development or

redevelopment of the redevelopment project area.

(L) Lack of community planning. The proposed

redevelopment project area was developed prior to or

without the benefit or guidance of a community plan.

This means that the development occurred prior to the

adoption by the municipality of a comprehensive or

other community plan or that the plan was not followed

at the time of the area's development. This factor must

be documented by evidence of adverse or incompatible

land-use relationships, inadequate street layout,

improper subdivision, parcels of inadequate shape and

size to meet contemporary development standards, or

other evidence demonstrating an absence of effective

community planning.

(M) The total equalized assessed value of the

proposed redevelopment project area has declined for 3

of the last 5 calendar years prior to the year in which

the redevelopment project area is designated or is

increasing at an annual rate that is less than the

balance of the municipality for 3 of the last 5

calendar years for which information is available or is

increasing at an annual rate that is less than the

Consumer Price Index for All Urban Consumers published

by the United States Department of Labor or successor

agency for 3 of the last 5 calendar years prior to the

year in which the redevelopment project area is

designated.

(2) If vacant, the sound growth of the redevelopment

project area is impaired by a combination of 2 or more of

the following factors, each of which is (i) present, with

that presence documented, to a meaningful extent so that a

municipality may reasonably find that the factor is clearly

present within the intent of the Act and (ii) reasonably

distributed throughout the vacant part of the

redevelopment project area to which it pertains:

(A) Obsolete platting of vacant land that results

in parcels of limited or narrow size or configurations

of parcels of irregular size or shape that would be

difficult to develop on a planned basis and in a manner

compatible with contemporary standards and

requirements, or platting that failed to create

rights-of-ways for streets or alleys or that created

inadequate right-of-way widths for streets, alleys, or

other public rights-of-way or that omitted easements

for public utilities.

(B) Diversity of ownership of parcels of vacant

land sufficient in number to retard or impede the

ability to assemble the land for development.

(C) Tax and special assessment delinquencies exist

or the property has been the subject of tax sales under

the Property Tax Code within the last 5 years.

(D) Deterioration of structures or site

improvements in neighboring areas adjacent to the

vacant land.

(E) The area has incurred Illinois Environmental

Protection Agency or United States Environmental

Protection Agency remediation costs for, or a study

conducted by an independent consultant recognized as

having expertise in environmental remediation has

determined a need for, the clean-up of hazardous waste,

hazardous substances, or underground storage tanks

required by State or federal law, provided that the

remediation costs constitute a material impediment to

the development or redevelopment of the redevelopment

project area.

(F) The total equalized assessed value of the

proposed redevelopment project area has declined for 3

of the last 5 calendar years prior to the year in which

the redevelopment project area is designated or is

increasing at an annual rate that is less than the

balance of the municipality for 3 of the last 5

calendar years for which information is available or is

increasing at an annual rate that is less than the

Consumer Price Index for All Urban Consumers published

by the United States Department of Labor or successor

agency for 3 of the last 5 calendar years prior to the

year in which the redevelopment project area is

designated.

(3) If vacant, the sound growth of the redevelopment

project area is impaired by one of the following factors

that (i) is present, with that presence documented, to a

meaningful extent so that a municipality may reasonably

find that the factor is clearly present within the intent

of the Act and (ii) is reasonably distributed throughout

the vacant part of the redevelopment project area to which

it pertains:

(A) The area consists of one or more unused

quarries, mines, or strip mine ponds.

(B) The area consists of unused rail yards, rail

tracks, or railroad rights-of-way.

(C) The area, prior to its designation, is subject

to (i) chronic flooding that adversely impacts on real

property in the area as certified by a registered

professional engineer or appropriate regulatory agency

or (ii) surface water that discharges from all or a

part of the area and contributes to flooding within the

same watershed, but only if the redevelopment project

provides for facilities or improvements to contribute

to the alleviation of all or part of the flooding.

(D) The area consists of an unused or illegal

disposal site containing earth, stone, building

debris, or similar materials that were removed from

construction, demolition, excavation, or dredge sites.

(E) Prior to November 1, 1999, the area is not less

than 50 nor more than 100 acres and 75% of which is

vacant (notwithstanding that the area has been used for

commercial agricultural purposes within 5 years prior

to the designation of the redevelopment project area),

and the area meets at least one of the factors itemized

in paragraph (1) of this subsection, the area has been

designated as a town or village center by ordinance or

comprehensive plan adopted prior to January 1, 1982,

and the area has not been developed for that designated

purpose.

(F) The area qualified as a blighted improved area

immediately prior to becoming vacant, unless there has

been substantial private investment in the immediately

surrounding area.

(b) For any redevelopment project area that has been

designated pursuant to this Section by an ordinance adopted

prior to November 1, 1999 (the effective date of Public Act

91-478), "conservation area" shall have the meaning set forth

in this Section prior to that date.

On and after November 1, 1999, "conservation area" means

any improved area within the boundaries of a redevelopment

project area located within the territorial limits of the

municipality in which 50% or more of the structures in the area

have an age of 35 years or more. Such an area is not yet a

blighted area but because of a combination of 3 or more of the

following factors is detrimental to the public safety, health,

morals or welfare and such an area may become a blighted area:

(1) Dilapidation. An advanced state of disrepair or

neglect of necessary repairs to the primary structural

components of buildings or improvements in such a

combination that a documented building condition analysis

determines that major repair is required or the defects are

so serious and so extensive that the buildings must be

removed.

(2) Obsolescence. The condition or process of falling

into disuse. Structures have become ill-suited for the

original use.

(3) Deterioration. With respect to buildings, defects

including, but not limited to, major defects in the

secondary building components such as doors, windows,

porches, gutters and downspouts, and fascia. With respect

to surface improvements, that the condition of roadways,

alleys, curbs, gutters, sidewalks, off-street parking, and

surface storage areas evidence deterioration, including,

but not limited to, surface cracking, crumbling, potholes,

depressions, loose paving material, and weeds protruding

through paved surfaces.

(4) Presence of structures below minimum code

standards. All structures that do not meet the standards of

zoning, subdivision, building, fire, and other

governmental codes applicable to property, but not

including housing and property maintenance codes.

(5) Illegal use of individual structures. The use of

structures in violation of applicable federal, State, or

local laws, exclusive of those applicable to the presence

of structures below minimum code standards.

(6) Excessive vacancies. The presence of buildings

that are unoccupied or under-utilized and that represent an

adverse influence on the area because of the frequency,

extent, or duration of the vacancies.

(7) Lack of ventilation, light, or sanitary

facilities. The absence of adequate ventilation for light

or air circulation in spaces or rooms without windows, or

that require the removal of dust, odor, gas, smoke, or

other noxious airborne materials. Inadequate natural light

and ventilation means the absence or inadequacy of

skylights or windows for interior spaces or rooms and

improper window sizes and amounts by room area to window

area ratios. Inadequate sanitary facilities refers to the

absence or inadequacy of garbage storage and enclosure,

bathroom facilities, hot water and kitchens, and

structural inadequacies preventing ingress and egress to

and from all rooms and units within a building.

(8) Inadequate utilities. Underground and overhead

utilities such as storm sewers and storm drainage, sanitary

sewers, water lines, and gas, telephone, and electrical

services that are shown to be inadequate. Inadequate

utilities are those that are: (i) of insufficient capacity

to serve the uses in the redevelopment project area, (ii)

deteriorated, antiquated, obsolete, or in disrepair, or

(iii) lacking within the redevelopment project area.

(9) Excessive land coverage and overcrowding of

structures and community facilities. The over-intensive

use of property and the crowding of buildings and accessory

facilities onto a site. Examples of problem conditions

warranting the designation of an area as one exhibiting

excessive land coverage are: the presence of buildings

either improperly situated on parcels or located on parcels

of inadequate size and shape in relation to present-day

standards of development for health and safety and the

presence of multiple buildings on a single parcel. For

there to be a finding of excessive land coverage, these

parcels must exhibit one or more of the following

conditions: insufficient provision for light and air

within or around buildings, increased threat of spread of

fire due to the close proximity of buildings, lack of

adequate or proper access to a public right-of-way, lack of

reasonably required off-street parking, or inadequate

provision for loading and service.

(10) Deleterious land use or layout. The existence of

incompatible land-use relationships, buildings occupied by

inappropriate mixed-uses, or uses considered to be

noxious, offensive, or unsuitable for the surrounding

area.

(11) Lack of community planning. The proposed

redevelopment project area was developed prior to or

without the benefit or guidance of a community plan. This

means that the development occurred prior to the adoption

by the municipality of a comprehensive or other community

plan or that the plan was not followed at the time of the

area's development. This factor must be documented by

evidence of adverse or incompatible land-use

relationships, inadequate street layout, improper

subdivision, parcels of inadequate shape and size to meet

contemporary development standards, or other evidence

demonstrating an absence of effective community planning.

(12) The area has incurred Illinois Environmental

Protection Agency or United States Environmental

Protection Agency remediation costs for, or a study

conducted by an independent consultant recognized as

having expertise in environmental remediation has

determined a need for, the clean-up of hazardous waste,

hazardous substances, or underground storage tanks

required by State or federal law, provided that the

remediation costs constitute a material impediment to the

development or redevelopment of the redevelopment project

area.

(13) The total equalized assessed value of the proposed

redevelopment project area has declined for 3 of the last 5

calendar years for which information is available or is

increasing at an annual rate that is less than the balance

of the municipality for 3 of the last 5 calendar years for

which information is available or is increasing at an

annual rate that is less than the Consumer Price Index for

All Urban Consumers published by the United States

Department of Labor or successor agency for 3 of the last 5

calendar years for which information is available.

(c) "Industrial park" means an area in a blighted or

conservation area suitable for use by any manufacturing,

industrial, research or transportation enterprise, of

facilities to include but not be limited to factories, mills,

processing plants, assembly plants, packing plants,

fabricating plants, industrial distribution centers,

warehouses, repair overhaul or service facilities, freight

terminals, research facilities, test facilities or railroad

facilities.

(d) "Industrial park conservation area" means an area

within the boundaries of a redevelopment project area located

within the territorial limits of a municipality that is a labor

surplus municipality or within 1 1/2 miles of the territorial

limits of a municipality that is a labor surplus municipality

if the area is annexed to the municipality; which area is zoned

as industrial no later than at the time the municipality by

ordinance designates the redevelopment project area, and which

area includes both vacant land suitable for use as an

industrial park and a blighted area or conservation area

contiguous to such vacant land.

(e) "Labor surplus municipality" means a municipality in

which, at any time during the 6 months before the municipality

by ordinance designates an industrial park conservation area,

the unemployment rate was over 6% and was also 100% or more of

the national average unemployment rate for that same time as

published in the United States Department of Labor Bureau of

Labor Statistics publication entitled "The Employment

Situation" or its successor publication. For the purpose of

this subsection, if unemployment rate statistics for the

municipality are not available, the unemployment rate in the

municipality shall be deemed to be the same as the unemployment

rate in the principal county in which the municipality is

located.

(f) "Municipality" shall mean a city, village,

incorporated town, or a township that is located in the

unincorporated portion of a county with 3 million or more

inhabitants, if the county adopted an ordinance that approved

the township's redevelopment plan.

(g) "Initial Sales Tax Amounts" means the amount of taxes

paid under the Retailers' Occupation Tax Act, Use Tax Act,

Service Use Tax Act, the Service Occupation Tax Act, the

Municipal Retailers' Occupation Tax Act, and the Municipal

Service Occupation Tax Act by retailers and servicemen on

transactions at places located in a State Sales Tax Boundary

during the calendar year 1985.

(g-1) "Revised Initial Sales Tax Amounts" means the amount

of taxes paid under the Retailers' Occupation Tax Act, Use Tax

Act, Service Use Tax Act, the Service Occupation Tax Act, the

Municipal Retailers' Occupation Tax Act, and the Municipal

Service Occupation Tax Act by retailers and servicemen on

transactions at places located within the State Sales Tax

Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.

(h) "Municipal Sales Tax Increment" means an amount equal

to the increase in the aggregate amount of taxes paid to a

municipality from the Local Government Tax Fund arising from

sales by retailers and servicemen within the redevelopment

project area or State Sales Tax Boundary, as the case may be,

for as long as the redevelopment project area or State Sales

Tax Boundary, as the case may be, exist over and above the

aggregate amount of taxes as certified by the Illinois

Department of Revenue and paid under the Municipal Retailers'

Occupation Tax Act and the Municipal Service Occupation Tax Act

by retailers and servicemen, on transactions at places of

business located in the redevelopment project area or State

Sales Tax Boundary, as the case may be, during the base year

which shall be the calendar year immediately prior to the year

in which the municipality adopted tax increment allocation

financing. For purposes of computing the aggregate amount of

such taxes for base years occurring prior to 1985, the

Department of Revenue shall determine the Initial Sales Tax

Amounts for such taxes and deduct therefrom an amount equal to

4% of the aggregate amount of taxes per year for each year the

base year is prior to 1985, but not to exceed a total deduction

of 12%. The amount so determined shall be known as the

"Adjusted Initial Sales Tax Amounts". For purposes of

determining the Municipal Sales Tax Increment, the Department

of Revenue shall for each period subtract from the amount paid

to the municipality from the Local Government Tax Fund arising

from sales by retailers and servicemen on transactions located

in the redevelopment project area or the State Sales Tax

Boundary, as the case may be, the certified Initial Sales Tax

Amounts, the Adjusted Initial Sales Tax Amounts or the Revised

Initial Sales Tax Amounts for the Municipal Retailers'

Occupation Tax Act and the Municipal Service Occupation Tax

Act. For the State Fiscal Year 1989, this calculation shall be

made by utilizing the calendar year 1987 to determine the tax

amounts received. For the State Fiscal Year 1990, this

calculation shall be made by utilizing the period from January

1, 1988, until September 30, 1988, to determine the tax amounts

received from retailers and servicemen pursuant to the

Municipal Retailers' Occupation Tax and the Municipal Service

Occupation Tax Act, which shall have deducted therefrom

nine-twelfths of the certified Initial Sales Tax Amounts, the

Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

Tax Amounts as appropriate. For the State Fiscal Year 1991,

this calculation shall be made by utilizing the period from

October 1, 1988, to June 30, 1989, to determine the tax amounts

received from retailers and servicemen pursuant to the

Municipal Retailers' Occupation Tax and the Municipal Service

Occupation Tax Act which shall have deducted therefrom

nine-twelfths of the certified Initial Sales Tax Amounts,

Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

Tax Amounts as appropriate. For every State Fiscal Year

thereafter, the applicable period shall be the 12 months

beginning July 1 and ending June 30 to determine the tax

amounts received which shall have deducted therefrom the

certified Initial Sales Tax Amounts, the Adjusted Initial Sales

Tax Amounts or the Revised Initial Sales Tax Amounts, as the

case may be.

(i) "Net State Sales Tax Increment" means the sum of the

following: (a) 80% of the first $100,000 of State Sales Tax

Increment annually generated within a State Sales Tax Boundary;

(b) 60% of the amount in excess of $100,000 but not exceeding

$500,000 of State Sales Tax Increment annually generated within

a State Sales Tax Boundary; and (c) 40% of all amounts in

excess of $500,000 of State Sales Tax Increment annually

generated within a State Sales Tax Boundary. If, however, a

municipality established a tax increment financing district in

a county with a population in excess of 3,000,000 before

January 1, 1986, and the municipality entered into a contract

or issued bonds after January 1, 1986, but before December 31,

1986, to finance redevelopment project costs within a State

Sales Tax Boundary, then the Net State Sales Tax Increment

means, for the fiscal years beginning July 1, 1990, and July 1,

1991, 100% of the State Sales Tax Increment annually generated

within a State Sales Tax Boundary; and notwithstanding any

other provision of this Act, for those fiscal years the

Department of Revenue shall distribute to those municipalities

100% of their Net State Sales Tax Increment before any

distribution to any other municipality and regardless of

whether or not those other municipalities will receive 100% of

their Net State Sales Tax Increment. For Fiscal Year 1999, and

every year thereafter until the year 2007, for any municipality

that has not entered into a contract or has not issued bonds

prior to June 1, 1988 to finance redevelopment project costs

within a State Sales Tax Boundary, the Net State Sales Tax

Increment shall be calculated as follows: By multiplying the

Net State Sales Tax Increment by 90% in the State Fiscal Year

1999; 80% in the State Fiscal Year 2000; 70% in the State

Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the

State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

in the State Fiscal Year 2005; 20% in the State Fiscal Year

2006; and 10% in the State Fiscal Year 2007. No payment shall

be made for State Fiscal Year 2008 and thereafter.

Municipalities that issued bonds in connection with a

redevelopment project in a redevelopment project area within

the State Sales Tax Boundary prior to July 29, 1991, or that

entered into contracts in connection with a redevelopment

project in a redevelopment project area before June 1, 1988,

shall continue to receive their proportional share of the

Illinois Tax Increment Fund distribution until the date on

which the redevelopment project is completed or terminated. If,

however, a municipality that issued bonds in connection with a

redevelopment project in a redevelopment project area within

the State Sales Tax Boundary prior to July 29, 1991 retires the

bonds prior to June 30, 2007 or a municipality that entered

into contracts in connection with a redevelopment project in a

redevelopment project area before June 1, 1988 completes the

contracts prior to June 30, 2007, then so long as the

redevelopment project is not completed or is not terminated,

the Net State Sales Tax Increment shall be calculated,

beginning on the date on which the bonds are retired or the

contracts are completed, as follows: By multiplying the Net

State Sales Tax Increment by 60% in the State Fiscal Year 2002;

50% in the State Fiscal Year 2003; 40% in the State Fiscal Year

2004; 30% in the State Fiscal Year 2005; 20% in the State

Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No

payment shall be made for State Fiscal Year 2008 and

thereafter. Refunding of any bonds issued prior to July 29,

1991, shall not alter the Net State Sales Tax Increment.

(j) "State Utility Tax Increment Amount" means an amount

equal to the aggregate increase in State electric and gas tax

charges imposed on owners and tenants, other than residential

customers, of properties located within the redevelopment

project area under Section 9-222 of the Public Utilities Act,

over and above the aggregate of such charges as certified by

the Department of Revenue and paid by owners and tenants, other

than residential customers, of properties within the

redevelopment project area during the base year, which shall be

the calendar year immediately prior to the year of the adoption

of the ordinance authorizing tax increment allocation

financing.

(k) "Net State Utility Tax Increment" means the sum of the

following: (a) 80% of the first $100,000 of State Utility Tax

Increment annually generated by a redevelopment project area;

(b) 60% of the amount in excess of $100,000 but not exceeding

$500,000 of the State Utility Tax Increment annually generated

by a redevelopment project area; and (c) 40% of all amounts in

excess of $500,000 of State Utility Tax Increment annually

generated by a redevelopment project area. For the State Fiscal

Year 1999, and every year thereafter until the year 2007, for

any municipality that has not entered into a contract or has

not issued bonds prior to June 1, 1988 to finance redevelopment

project costs within a redevelopment project area, the Net

State Utility Tax Increment shall be calculated as follows: By

multiplying the Net State Utility Tax Increment by 90% in the

State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%

in the State Fiscal Year 2001; 60% in the State Fiscal Year

2002; 50% in the State Fiscal Year 2003; 40% in the State

Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the

State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.

No payment shall be made for the State Fiscal Year 2008 and

thereafter.

Municipalities that issue bonds in connection with the

redevelopment project during the period from June 1, 1988 until

3 years after the effective date of this Amendatory Act of 1988

shall receive the Net State Utility Tax Increment, subject to

appropriation, for 15 State Fiscal Years after the issuance of

such bonds. For the 16th through the 20th State Fiscal Years

after issuance of the bonds, the Net State Utility Tax

Increment shall be calculated as follows: By multiplying the

Net State Utility Tax Increment by 90% in year 16; 80% in year

17; 70% in year 18; 60% in year 19; and 50% in year 20.

Refunding of any bonds issued prior to June 1, 1988, shall not

alter the revised Net State Utility Tax Increment payments set

forth above.

(l) "Obligations" mean bonds, loans, debentures, notes,

special certificates or other evidence of indebtedness issued

by the municipality to carry out a redevelopment project or to

refund outstanding obligations.

(m) "Payment in lieu of taxes" means those estimated tax

revenues from real property in a redevelopment project area

derived from real property that has been acquired by a

municipality which according to the redevelopment project or

plan is to be used for a private use which taxing districts

would have received had a municipality not acquired the real

property and adopted tax increment allocation financing and

which would result from levies made after the time of the

adoption of tax increment allocation financing to the time the

current equalized value of real property in the redevelopment

project area exceeds the total initial equalized value of real

property in said area.

(n) "Redevelopment plan" means the comprehensive program

of the municipality for development or redevelopment intended

by the payment of redevelopment project costs to reduce or

eliminate those conditions the existence of which qualified the

redevelopment project area as a "blighted area" or

"conservation area" or combination thereof or "industrial park

conservation area," and thereby to enhance the tax bases of the

taxing districts which extend into the redevelopment project

area, provided that, with respect to redevelopment project

areas described in subsections (p-1) and (p-2), "redevelopment

plan" means the comprehensive program of the affected

municipality for the development of qualifying transit

facilities. On and after November 1, 1999 (the effective date

of Public Act 91-478), no redevelopment plan may be approved or

amended that includes the development of vacant land (i) with a

golf course and related clubhouse and other facilities or (ii)

designated by federal, State, county, or municipal government

as public land for outdoor recreational activities or for

nature preserves and used for that purpose within 5 years prior

to the adoption of the redevelopment plan. For the purpose of

this subsection, "recreational activities" is limited to mean

camping and hunting. Each redevelopment plan shall set forth in

writing the program to be undertaken to accomplish the

objectives and shall include but not be limited to:

(A) an itemized list of estimated redevelopment

project costs;

(B) evidence indicating that the redevelopment project

area on the whole has not been subject to growth and

development through investment by private enterprise,

provided that such evidence shall not be required for any

redevelopment project area located within a transit

facility improvement area established pursuant to Section

11-74.4-3.3;

(C) an assessment of any financial impact of the

redevelopment project area on or any increased demand for

services from any taxing district affected by the plan and

any program to address such financial impact or increased

demand;

(D) the sources of funds to pay costs;

(E) the nature and term of the obligations to be

issued;

(F) the most recent equalized assessed valuation of the

redevelopment project area;

(G) an estimate as to the equalized assessed valuation

after redevelopment and the general land uses to apply in

the redevelopment project area;

(H) a commitment to fair employment practices and an

affirmative action plan;

(I) if it concerns an industrial park conservation

area, the plan shall also include a general description of

any proposed developer, user and tenant of any property, a

description of the type, structure and general character of

the facilities to be developed, a description of the type,

class and number of new employees to be employed in the

operation of the facilities to be developed; and

(J) if property is to be annexed to the municipality,

the plan shall include the terms of the annexation

agreement.

The provisions of items (B) and (C) of this subsection (n)

shall not apply to a municipality that before March 14, 1994

(the effective date of Public Act 88-537) had fixed, either by

its corporate authorities or by a commission designated under

subsection (k) of Section 11-74.4-4, a time and place for a

public hearing as required by subsection (a) of Section

11-74.4-5. No redevelopment plan shall be adopted unless a

municipality complies with all of the following requirements:

(1) The municipality finds that the redevelopment

project area on the whole has not been subject to growth

and development through investment by private enterprise

and would not reasonably be anticipated to be developed

without the adoption of the redevelopment plan, provided,

however, that such a finding shall not be required with

respect to any redevelopment project area located within a

transit facility improvement area established pursuant to

Section 11-74.4-3.3.

(2) The municipality finds that the redevelopment plan

and project conform to the comprehensive plan for the

development of the municipality as a whole, or, for

municipalities with a population of 100,000 or more,

regardless of when the redevelopment plan and project was

adopted, the redevelopment plan and project either: (i)

conforms to the strategic economic development or

redevelopment plan issued by the designated planning

authority of the municipality, or (ii) includes land uses

that have been approved by the planning commission of the

municipality.

(3) The redevelopment plan establishes the estimated

dates of completion of the redevelopment project and

retirement of obligations issued to finance redevelopment

project costs. Those dates may not be later than the dates

set forth under Section 11-74.4-3.5.

A municipality may by municipal ordinance amend an

existing redevelopment plan to conform to this paragraph

(3) as amended by Public Act 91-478, which municipal

ordinance may be adopted without further hearing or notice

and without complying with the procedures provided in this

Act pertaining to an amendment to or the initial approval

of a redevelopment plan and project and designation of a

redevelopment project area.

(3.5) The municipality finds, in the case of an

industrial park conservation area, also that the

municipality is a labor surplus municipality and that the

implementation of the redevelopment plan will reduce

unemployment, create new jobs and by the provision of new

facilities enhance the tax base of the taxing districts

that extend into the redevelopment project area.

(4) If any incremental revenues are being utilized

under Section 8(a)(1) or 8(a)(2) of this Act in

redevelopment project areas approved by ordinance after

January 1, 1986, the municipality finds: (a) that the

redevelopment project area would not reasonably be

developed without the use of such incremental revenues, and

(b) that such incremental revenues will be exclusively

utilized for the development of the redevelopment project

area.

(5) If: (a) the redevelopment plan will not result in

displacement of residents from 10 or more inhabited

residential units, and the municipality certifies in the

plan that such displacement will not result from the plan;

or (b) the redevelopment plan is for a redevelopment

project area located within a transit facility improvement

area established pursuant to Section 11-74.4-3.3, and the

applicable project is subject to the process for evaluation

of environmental effects under the National Environmental

Policy Act of 1969, 42 U.S.C. § 4321 et seq., then a

housing impact study need not be performed. If, however,

the redevelopment plan would result in the displacement of

residents from 10 or more inhabited residential units, or

if the redevelopment project area contains 75 or more

inhabited residential units and no certification is made,

then the municipality shall prepare, as part of the

separate feasibility report required by subsection (a) of

Section 11-74.4-5, a housing impact study.

Part I of the housing impact study shall include (i)

data as to whether the residential units are single family

or multi-family units, (ii) the number and type of rooms

within the units, if that information is available, (iii)

whether the units are inhabited or uninhabited, as

determined not less than 45 days before the date that the

ordinance or resolution required by subsection (a) of

Section 11-74.4-5 is passed, and (iv) data as to the racial

and ethnic composition of the residents in the inhabited

residential units. The data requirement as to the racial

and ethnic composition of the residents in the inhabited

residential units shall be deemed to be fully satisfied by

data from the most recent federal census.

Part II of the housing impact study shall identify the

inhabited residential units in the proposed redevelopment

project area that are to be or may be removed. If inhabited

residential units are to be removed, then the housing

impact study shall identify (i) the number and location of

those units that will or may be removed, (ii) the

municipality's plans for relocation assistance for those

residents in the proposed redevelopment project area whose

residences are to be removed, (iii) the availability of

replacement housing for those residents whose residences

are to be removed, and shall identify the type, location,

and cost of the housing, and (iv) the type and extent of

relocation assistance to be provided.

(6) On and after November 1, 1999, the housing impact

study required by paragraph (5) shall be incorporated in

the redevelopment plan for the redevelopment project area.

(7) On and after November 1, 1999, no redevelopment

plan shall be adopted, nor an existing plan amended, nor

shall residential housing that is occupied by households of

low-income and very low-income persons in currently

existing redevelopment project areas be removed after

November 1, 1999 unless the redevelopment plan provides,

with respect to inhabited housing units that are to be

removed for households of low-income and very low-income

persons, affordable housing and relocation assistance not

less than that which would be provided under the federal

Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970 and the regulations under

that Act, including the eligibility criteria. Affordable

housing may be either existing or newly constructed

housing. For purposes of this paragraph (7), "low-income

households", "very low-income households", and "affordable

housing" have the meanings set forth in the Illinois

Affordable Housing Act. The municipality shall make a good

faith effort to ensure that this affordable housing is

located in or near the redevelopment project area within

the municipality.

(8) On and after November 1, 1999, if, after the

adoption of the redevelopment plan for the redevelopment

project area, any municipality desires to amend its

redevelopment plan to remove more inhabited residential

units than specified in its original redevelopment plan,

that change shall be made in accordance with the procedures

in subsection (c) of Section 11-74.4-5.

(9) For redevelopment project areas designated prior

to November 1, 1999, the redevelopment plan may be amended

without further joint review board meeting or hearing,

provided that the municipality shall give notice of any

such changes by mail to each affected taxing district and

registrant on the interested party registry, to authorize

the municipality to expend tax increment revenues for

redevelopment project costs defined by paragraphs (5) and

(7.5), subparagraphs (E) and (F) of paragraph (11), and

paragraph (11.5) of subsection (q) of Section 11-74.4-3, so

long as the changes do not increase the total estimated

redevelopment project costs set out in the redevelopment

plan by more than 5% after adjustment for inflation from

the date the plan was adopted.

(o) "Redevelopment project" means any public and private

development project in furtherance of the objectives of a

redevelopment plan. On and after November 1, 1999 (the

effective date of Public Act 91-478), no redevelopment plan may

be approved or amended that includes the development of vacant

land (i) with a golf course and related clubhouse and other

facilities or (ii) designated by federal, State, county, or

municipal government as public land for outdoor recreational

activities or for nature preserves and used for that purpose

within 5 years prior to the adoption of the redevelopment plan.

For the purpose of this subsection, "recreational activities"

is limited to mean camping and hunting.

(p) "Redevelopment project area" means an area designated

by the municipality, which is not less in the aggregate than 1

1/2 acres and in respect to which the municipality has made a

finding that there exist conditions which cause the area to be

classified as an industrial park conservation area or a

blighted area or a conservation area, or a combination of both

blighted areas and conservation areas.

(p-1) Notwithstanding any provision of this Act to the

contrary, on and after August 25, 2009 (the effective date of

Public Act 96-680), a redevelopment project area may include

areas within a one-half mile radius of an existing or proposed

Regional Transportation Authority Suburban Transit Access

Route (STAR Line) station without a finding that the area is

classified as an industrial park conservation area, a blighted

area, a conservation area, or a combination thereof, but only

if the municipality receives unanimous consent from the joint

review board created to review the proposed redevelopment

project area.

(p-2) Notwithstanding any provision of this Act to the

contrary, on and after the effective date of this amendatory

Act of the 99th General Assembly, a redevelopment project area

may include areas within a transit facility improvement area

that has been established pursuant to Section 11-74.4-3.3

without a finding that the area is classified as an industrial

park conservation area, a blighted area, a conservation area,

or any combination thereof.

(q) "Redevelopment project costs", except for

redevelopment project areas created pursuant to subsection

subsections (p-1) or (p-2), means and includes the sum total of

all reasonable or necessary costs incurred or estimated to be

incurred, and any such costs incidental to a redevelopment plan

and a redevelopment project. Such costs include, without

limitation, the following:

(1) Costs of studies, surveys, development of plans,

and specifications, implementation and administration of

the redevelopment plan including but not limited to staff

and professional service costs for architectural,

engineering, legal, financial, planning or other services,

provided however that no charges for professional services

may be based on a percentage of the tax increment

collected; except that on and after November 1, 1999 (the

effective date of Public Act 91-478), no contracts for

professional services, excluding architectural and

engineering services, may be entered into if the terms of

the contract extend beyond a period of 3 years. In

addition, "redevelopment project costs" shall not include

lobbying expenses. After consultation with the

municipality, each tax increment consultant or advisor to a

municipality that plans to designate or has designated a

redevelopment project area shall inform the municipality

in writing of any contracts that the consultant or advisor

has entered into with entities or individuals that have

received, or are receiving, payments financed by tax

increment revenues produced by the redevelopment project

area with respect to which the consultant or advisor has

performed, or will be performing, service for the

municipality. This requirement shall be satisfied by the

consultant or advisor before the commencement of services

for the municipality and thereafter whenever any other

contracts with those individuals or entities are executed

by the consultant or advisor;

(1.5) After July 1, 1999, annual administrative costs

shall not include general overhead or administrative costs

of the municipality that would still have been incurred by

the municipality if the municipality had not designated a

redevelopment project area or approved a redevelopment

plan;

(1.6) The cost of marketing sites within the

redevelopment project area to prospective businesses,

developers, and investors;

(2) Property assembly costs, including but not limited

to acquisition of land and other property, real or

personal, or rights or interests therein, demolition of

buildings, site preparation, site improvements that serve

as an engineered barrier addressing ground level or below

ground environmental contamination, including, but not

limited to parking lots and other concrete or asphalt

barriers, and the clearing and grading of land;

(3) Costs of rehabilitation, reconstruction or repair

or remodeling of existing public or private buildings,

fixtures, and leasehold improvements; and the cost of

replacing an existing public building if pursuant to the

implementation of a redevelopment project the existing

public building is to be demolished to use the site for

private investment or devoted to a different use requiring

private investment; including any direct or indirect costs

relating to Green Globes or LEED certified construction

elements or construction elements with an equivalent

certification;

(4) Costs of the construction of public works or

improvements, including any direct or indirect costs

relating to Green Globes or LEED certified construction

elements or construction elements with an equivalent

certification, except that on and after November 1, 1999,

redevelopment project costs shall not include the cost of

constructing a new municipal public building principally

used to provide offices, storage space, or conference

facilities or vehicle storage, maintenance, or repair for

administrative, public safety, or public works personnel

and that is not intended to replace an existing public

building as provided under paragraph (3) of subsection (q)

of Section 11-74.4-3 unless either (i) the construction of

the new municipal building implements a redevelopment

project that was included in a redevelopment plan that was

adopted by the municipality prior to November 1, 1999, (ii)

the municipality makes a reasonable determination in the

redevelopment plan, supported by information that provides

the basis for that determination, that the new municipal

building is required to meet an increase in the need for

public safety purposes anticipated to result from the

implementation of the redevelopment plan, or (iii) the new

municipal public building is for the storage, maintenance,

or repair of transit vehicles and is located in a transit

facility improvement area that has been established

pursuant to Section 11-74.4-3.3;

(5) Costs of job training and retraining projects,

including the cost of "welfare to work" programs

implemented by businesses located within the redevelopment

project area;

(6) Financing costs, including but not limited to all

necessary and incidental expenses related to the issuance

of obligations and which may include payment of interest on

any obligations issued hereunder including interest

accruing during the estimated period of construction of any

redevelopment project for which such obligations are

issued and for not exceeding 36 months thereafter and

including reasonable reserves related thereto;

(7) To the extent the municipality by written agreement

accepts and approves the same, all or a portion of a taxing

district's capital costs resulting from the redevelopment

project necessarily incurred or to be incurred within a

taxing district in furtherance of the objectives of the

redevelopment plan and project; .

(7.5) For redevelopment project areas designated (or

redevelopment project areas amended to add or increase the

number of tax-increment-financing assisted housing units)

on or after November 1, 1999, an elementary, secondary, or

unit school district's increased costs attributable to

assisted housing units located within the redevelopment

project area for which the developer or redeveloper

receives financial assistance through an agreement with

the municipality or because the municipality incurs the

cost of necessary infrastructure improvements within the

boundaries of the assisted housing sites necessary for the

completion of that housing as authorized by this Act, and

which costs shall be paid by the municipality from the

Special Tax Allocation Fund when the tax increment revenue

is received as a result of the assisted housing units and

shall be calculated annually as follows:

(A) for foundation districts, excluding any school

district in a municipality with a population in excess

of 1,000,000, by multiplying the district's increase

in attendance resulting from the net increase in new

students enrolled in that school district who reside in

housing units within the redevelopment project area

that have received financial assistance through an

agreement with the municipality or because the

municipality incurs the cost of necessary

infrastructure improvements within the boundaries of

the housing sites necessary for the completion of that

housing as authorized by this Act since the designation

of the redevelopment project area by the most recently

available per capita tuition cost as defined in Section

10-20.12a of the School Code less any increase in

general State aid as defined in Section 18-8.05 of the

School Code or evidence-based funding as defined in

Section 18-8.15 of the School Code attributable to

these added new students subject to the following

annual limitations:

(i) for unit school districts with a district

average 1995-96 Per Capita Tuition Charge of less

than $5,900, no more than 25% of the total amount

of property tax increment revenue produced by

those housing units that have received tax

increment finance assistance under this Act;

(ii) for elementary school districts with a

district average 1995-96 Per Capita Tuition Charge

of less than $5,900, no more than 17% of the total

amount of property tax increment revenue produced

by those housing units that have received tax

increment finance assistance under this Act; and

(iii) for secondary school districts with a

district average 1995-96 Per Capita Tuition Charge

of less than $5,900, no more than 8% of the total

amount of property tax increment revenue produced

by those housing units that have received tax

increment finance assistance under this Act.

(B) For alternate method districts, flat grant

districts, and foundation districts with a district

average 1995-96 Per Capita Tuition Charge equal to or

more than $5,900, excluding any school district with a

population in excess of 1,000,000, by multiplying the

district's increase in attendance resulting from the

net increase in new students enrolled in that school

district who reside in housing units within the

redevelopment project area that have received

financial assistance through an agreement with the

municipality or because the municipality incurs the

cost of necessary infrastructure improvements within

the boundaries of the housing sites necessary for the

completion of that housing as authorized by this Act

since the designation of the redevelopment project

area by the most recently available per capita tuition

cost as defined in Section 10-20.12a of the School Code

less any increase in general state aid as defined in

Section 18-8.05 of the School Code or evidence-based

funding as defined in Section 18-8.15 of the School

Code attributable to these added new students subject

to the following annual limitations:

(i) for unit school districts, no more than 40%

of the total amount of property tax increment

revenue produced by those housing units that have

received tax increment finance assistance under

this Act;

(ii) for elementary school districts, no more

than 27% of the total amount of property tax

increment revenue produced by those housing units

that have received tax increment finance

assistance under this Act; and

(iii) for secondary school districts, no more

than 13% of the total amount of property tax

increment revenue produced by those housing units

that have received tax increment finance

assistance under this Act.

(C) For any school district in a municipality with

a population in excess of 1,000,000, the following

restrictions shall apply to the reimbursement of

increased costs under this paragraph (7.5):

(i) no increased costs shall be reimbursed

unless the school district certifies that each of

the schools affected by the assisted housing

project is at or over its student capacity;

(ii) the amount reimbursable shall be reduced

by the value of any land donated to the school

district by the municipality or developer, and by

the value of any physical improvements made to the

schools by the municipality or developer; and

(iii) the amount reimbursed may not affect

amounts otherwise obligated by the terms of any

bonds, notes, or other funding instruments, or the

terms of any redevelopment agreement.

Any school district seeking payment under this

paragraph (7.5) shall, after July 1 and before

September 30 of each year, provide the municipality

with reasonable evidence to support its claim for

reimbursement before the municipality shall be

required to approve or make the payment to the school

district. If the school district fails to provide the

information during this period in any year, it shall

forfeit any claim to reimbursement for that year.

School districts may adopt a resolution waiving the

right to all or a portion of the reimbursement

otherwise required by this paragraph (7.5). By

acceptance of this reimbursement the school district

waives the right to directly or indirectly set aside,

modify, or contest in any manner the establishment of

the redevelopment project area or projects;

(7.7) For redevelopment project areas designated (or

redevelopment project areas amended to add or increase the

number of tax-increment-financing assisted housing units)

on or after January 1, 2005 (the effective date of Public

Act 93-961), a public library district's increased costs

attributable to assisted housing units located within the

redevelopment project area for which the developer or

redeveloper receives financial assistance through an

agreement with the municipality or because the

municipality incurs the cost of necessary infrastructure

improvements within the boundaries of the assisted housing

sites necessary for the completion of that housing as

authorized by this Act shall be paid to the library

district by the municipality from the Special Tax

Allocation Fund when the tax increment revenue is received

as a result of the assisted housing units. This paragraph

(7.7) applies only if (i) the library district is located

in a county that is subject to the Property Tax Extension

Limitation Law or (ii) the library district is not located

in a county that is subject to the Property Tax Extension

Limitation Law but the district is prohibited by any other

law from increasing its tax levy rate without a prior voter

referendum.

The amount paid to a library district under this

paragraph (7.7) shall be calculated by multiplying (i) the

net increase in the number of persons eligible to obtain a

library card in that district who reside in housing units

within the redevelopment project area that have received

financial assistance through an agreement with the

municipality or because the municipality incurs the cost of

necessary infrastructure improvements within the

boundaries of the housing sites necessary for the

completion of that housing as authorized by this Act since

the designation of the redevelopment project area by (ii)

the per-patron cost of providing library services so long

as it does not exceed $120. The per-patron cost shall be

the Total Operating Expenditures Per Capita for the library

in the previous fiscal year. The municipality may deduct

from the amount that it must pay to a library district

under this paragraph any amount that it has voluntarily

paid to the library district from the tax increment

revenue. The amount paid to a library district under this

paragraph (7.7) shall be no more than 2% of the amount

produced by the assisted housing units and deposited into

the Special Tax Allocation Fund.

A library district is not eligible for any payment

under this paragraph (7.7) unless the library district has

experienced an increase in the number of patrons from the

municipality that created the tax-increment-financing

district since the designation of the redevelopment

project area.

Any library district seeking payment under this

paragraph (7.7) shall, after July 1 and before September 30

of each year, provide the municipality with convincing

evidence to support its claim for reimbursement before the

municipality shall be required to approve or make the

payment to the library district. If the library district

fails to provide the information during this period in any

year, it shall forfeit any claim to reimbursement for that

year. Library districts may adopt a resolution waiving the

right to all or a portion of the reimbursement otherwise

required by this paragraph (7.7). By acceptance of such

reimbursement, the library district shall forfeit any

right to directly or indirectly set aside, modify, or

contest in any manner whatsoever the establishment of the

redevelopment project area or projects;

(8) Relocation costs to the extent that a municipality

determines that relocation costs shall be paid or is

required to make payment of relocation costs by federal or

State law or in order to satisfy subparagraph (7) of

subsection (n);

(9) Payment in lieu of taxes;

(10) Costs of job training, retraining, advanced

vocational education or career education, including but

not limited to courses in occupational, semi-technical or

technical fields leading directly to employment, incurred

by one or more taxing districts, provided that such costs

(i) are related to the establishment and maintenance of

additional job training, advanced vocational education or

career education programs for persons employed or to be

employed by employers located in a redevelopment project

area; and (ii) when incurred by a taxing district or taxing

districts other than the municipality, are set forth in a

written agreement by or among the municipality and the

taxing district or taxing districts, which agreement

describes the program to be undertaken, including but not

limited to the number of employees to be trained, a

description of the training and services to be provided,

the number and type of positions available or to be

available, itemized costs of the program and sources of

funds to pay for the same, and the term of the agreement.

Such costs include, specifically, the payment by community

college districts of costs pursuant to Sections 3-37, 3-38,

3-40 and 3-40.1 of the Public Community College Act and by

school districts of costs pursuant to Sections 10-22.20a

and 10-23.3a of the The School Code;

(11) Interest cost incurred by a redeveloper related to

the construction, renovation or rehabilitation of a

redevelopment project provided that:

(A) such costs are to be paid directly from the

special tax allocation fund established pursuant to

this Act;

(B) such payments in any one year may not exceed

30% of the annual interest costs incurred by the

redeveloper with regard to the redevelopment project

during that year;

(C) if there are not sufficient funds available in

the special tax allocation fund to make the payment

pursuant to this paragraph (11) then the amounts so due

shall accrue and be payable when sufficient funds are

available in the special tax allocation fund;

(D) the total of such interest payments paid

pursuant to this Act may not exceed 30% of the total

(i) cost paid or incurred by the redeveloper for the

redevelopment project plus (ii) redevelopment project

costs excluding any property assembly costs and any

relocation costs incurred by a municipality pursuant

to this Act; and

(E) the cost limits set forth in subparagraphs (B)

and (D) of paragraph (11) shall be modified for the

financing of rehabilitated or new housing units for

low-income households and very low-income households,

as defined in Section 3 of the Illinois Affordable

Housing Act. The percentage of 75% shall be substituted

for 30% in subparagraphs (B) and (D) of paragraph (11);

and .

(F) instead Instead of the eligible costs provided

by subparagraphs (B) and (D) of paragraph (11), as

modified by this subparagraph, and notwithstanding any

other provisions of this Act to the contrary, the

municipality may pay from tax increment revenues up to

50% of the cost of construction of new housing units to

be occupied by low-income households and very

low-income households as defined in Section 3 of the

Illinois Affordable Housing Act. The cost of

construction of those units may be derived from the

proceeds of bonds issued by the municipality under this

Act or other constitutional or statutory authority or

from other sources of municipal revenue that may be

reimbursed from tax increment revenues or the proceeds

of bonds issued to finance the construction of that

housing.

The eligible costs provided under this

subparagraph (F) of paragraph (11) shall be an eligible

cost for the construction, renovation, and

rehabilitation of all low and very low-income housing

units, as defined in Section 3 of the Illinois

Affordable Housing Act, within the redevelopment

project area. If the low and very low-income units are

part of a residential redevelopment project that

includes units not affordable to low and very

low-income households, only the low and very

low-income units shall be eligible for benefits under

this subparagraph (F) of paragraph (11). The standards

for maintaining the occupancy by low-income households

and very low-income households, as defined in Section 3

of the Illinois Affordable Housing Act, of those units

constructed with eligible costs made available under

the provisions of this subparagraph (F) of paragraph

(11) shall be established by guidelines adopted by the

municipality. The responsibility for annually

documenting the initial occupancy of the units by

low-income households and very low-income households,

as defined in Section 3 of the Illinois Affordable

Housing Act, shall be that of the then current owner of

the property. For ownership units, the guidelines will

provide, at a minimum, for a reasonable recapture of

funds, or other appropriate methods designed to

preserve the original affordability of the ownership

units. For rental units, the guidelines will provide,

at a minimum, for the affordability of rent to low and

very low-income households. As units become available,

they shall be rented to income-eligible tenants. The

municipality may modify these guidelines from time to

time; the guidelines, however, shall be in effect for

as long as tax increment revenue is being used to pay

for costs associated with the units or for the

retirement of bonds issued to finance the units or for

the life of the redevelopment project area, whichever

is later; .

(11.5) If the redevelopment project area is located

within a municipality with a population of more than

100,000, the cost of day care services for children of

employees from low-income families working for businesses

located within the redevelopment project area and all or a

portion of the cost of operation of day care centers

established by redevelopment project area businesses to

serve employees from low-income families working in

businesses located in the redevelopment project area. For

the purposes of this paragraph, "low-income families"

means families whose annual income does not exceed 80% of

the municipal, county, or regional median income, adjusted

for family size, as the annual income and municipal,

county, or regional median income are determined from time

to time by the United States Department of Housing and

Urban Development.

(12) Unless explicitly stated herein the cost of

construction of new privately-owned buildings shall not be an

eligible redevelopment project cost.

(13) After November 1, 1999 (the effective date of Public

Act 91-478), none of the redevelopment project costs enumerated

in this subsection shall be eligible redevelopment project

costs if those costs would provide direct financial support to

a retail entity initiating operations in the redevelopment

project area while terminating operations at another Illinois

location within 10 miles of the redevelopment project area but

outside the boundaries of the redevelopment project area

municipality. For purposes of this paragraph, termination

means a closing of a retail operation that is directly related

to the opening of the same operation or like retail entity

owned or operated by more than 50% of the original ownership in

a redevelopment project area, but it does not mean closing an

operation for reasons beyond the control of the retail entity,

as documented by the retail entity, subject to a reasonable

finding by the municipality that the current location contained

inadequate space, had become economically obsolete, or was no

longer a viable location for the retailer or serviceman.

(14) No cost shall be a redevelopment project cost in a

redevelopment project area if used to demolish, remove, or

substantially modify a historic resource, after August 26, 2008

(the effective date of Public Act 95-934), unless no prudent

and feasible alternative exists. "Historic resource" for the

purpose of this paragraph item (14) means (i) a place or

structure that is included or eligible for inclusion on the

National Register of Historic Places or (ii) a contributing

structure in a district on the National Register of Historic

Places. This paragraph item (14) does not apply to a place or

structure for which demolition, removal, or modification is

subject to review by the preservation agency of a Certified

Local Government designated as such by the National Park

Service of the United States Department of the Interior.

If a special service area has been established pursuant to

the Special Service Area Tax Act or Special Service Area Tax

Law, then any tax increment revenues derived from the tax

imposed pursuant to the Special Service Area Tax Act or Special

Service Area Tax Law may be used within the redevelopment

project area for the purposes permitted by that Act or Law as

well as the purposes permitted by this Act.

(q-1) For redevelopment project areas created pursuant to

subsection (p-1), redevelopment project costs are limited to

those costs in paragraph (q) that are related to the existing

or proposed Regional Transportation Authority Suburban Transit

Access Route (STAR Line) station.

(q-2) For a redevelopment project area located within a

transit facility improvement area established pursuant to

Section 11-74.4-3.3, redevelopment project costs means those

costs described in subsection (q) that are related to the

construction, reconstruction, rehabilitation, remodeling, or

repair of any existing or proposed transit facility.

(r) "State Sales Tax Boundary" means the redevelopment

project area or the amended redevelopment project area

boundaries which are determined pursuant to subsection (9) of

Section 11-74.4-8a of this Act. The Department of Revenue shall

certify pursuant to subsection (9) of Section 11-74.4-8a the

appropriate boundaries eligible for the determination of State

Sales Tax Increment.

(s) "State Sales Tax Increment" means an amount equal to

the increase in the aggregate amount of taxes paid by retailers

and servicemen, other than retailers and servicemen subject to

the Public Utilities Act, on transactions at places of business

located within a State Sales Tax Boundary pursuant to the

Retailers' Occupation Tax Act, the Use Tax Act, the Service Use

Tax Act, and the Service Occupation Tax Act, except such

portion of such increase that is paid into the State and Local

Sales Tax Reform Fund, the Local Government Distributive Fund,

the Local Government Tax Fund and the County and Mass Transit

District Fund, for as long as State participation exists, over

and above the Initial Sales Tax Amounts, Adjusted Initial Sales

Tax Amounts or the Revised Initial Sales Tax Amounts for such

taxes as certified by the Department of Revenue and paid under

those Acts by retailers and servicemen on transactions at

places of business located within the State Sales Tax Boundary

during the base year which shall be the calendar year

immediately prior to the year in which the municipality adopted

tax increment allocation financing, less 3.0% of such amounts

generated under the Retailers' Occupation Tax Act, Use Tax Act

and Service Use Tax Act and the Service Occupation Tax Act,

which sum shall be appropriated to the Department of Revenue to

cover its costs of administering and enforcing this Section.

For purposes of computing the aggregate amount of such taxes

for base years occurring prior to 1985, the Department of

Revenue shall compute the Initial Sales Tax Amount for such

taxes and deduct therefrom an amount equal to 4% of the

aggregate amount of taxes per year for each year the base year

is prior to 1985, but not to exceed a total deduction of 12%.

The amount so determined shall be known as the "Adjusted

Initial Sales Tax Amount". For purposes of determining the

State Sales Tax Increment the Department of Revenue shall for

each period subtract from the tax amounts received from

retailers and servicemen on transactions located in the State

Sales Tax Boundary, the certified Initial Sales Tax Amounts,

Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax

Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,

the Service Use Tax Act and the Service Occupation Tax Act. For

the State Fiscal Year 1989 this calculation shall be made by

utilizing the calendar year 1987 to determine the tax amounts

received. For the State Fiscal Year 1990, this calculation

shall be made by utilizing the period from January 1, 1988,

until September 30, 1988, to determine the tax amounts received

from retailers and servicemen, which shall have deducted

therefrom nine-twelfths of the certified Initial Sales Tax

Amounts, Adjusted Initial Sales Tax Amounts or the Revised

Initial Sales Tax Amounts as appropriate. For the State Fiscal

Year 1991, this calculation shall be made by utilizing the

period from October 1, 1988, until June 30, 1989, to determine

the tax amounts received from retailers and servicemen, which

shall have deducted therefrom nine-twelfths of the certified

Initial State Sales Tax Amounts, Adjusted Initial Sales Tax

Amounts or the Revised Initial Sales Tax Amounts as

appropriate. For every State Fiscal Year thereafter, the

applicable period shall be the 12 months beginning July 1 and

ending on June 30, to determine the tax amounts received which

shall have deducted therefrom the certified Initial Sales Tax

Amounts, Adjusted Initial Sales Tax Amounts or the Revised

Initial Sales Tax Amounts. Municipalities intending to receive

a distribution of State Sales Tax Increment must report a list

of retailers to the Department of Revenue by October 31, 1988

and by July 31, of each year thereafter.

(t) "Taxing districts" means counties, townships, cities

and incorporated towns and villages, school, road, park,

sanitary, mosquito abatement, forest preserve, public health,

fire protection, river conservancy, tuberculosis sanitarium

and any other municipal corporations or districts with the

power to levy taxes.

(u) "Taxing districts' capital costs" means those costs of

taxing districts for capital improvements that are found by the

municipal corporate authorities to be necessary and directly

result from the redevelopment project.

(v) As used in subsection (a) of Section 11-74.4-3 of this

Act, "vacant land" means any parcel or combination of parcels

of real property without industrial, commercial, and

residential buildings which has not been used for commercial

agricultural purposes within 5 years prior to the designation

of the redevelopment project area, unless the parcel is

included in an industrial park conservation area or the parcel

has been subdivided; provided that if the parcel was part of a

larger tract that has been divided into 3 or more smaller

tracts that were accepted for recording during the period from

1950 to 1990, then the parcel shall be deemed to have been

subdivided, and all proceedings and actions of the municipality

taken in that connection with respect to any previously

approved or designated redevelopment project area or amended

redevelopment project area are hereby validated and hereby

declared to be legally sufficient for all purposes of this Act.

For purposes of this Section and only for land subject to the

subdivision requirements of the Plat Act, land is subdivided

when the original plat of the proposed Redevelopment Project

Area or relevant portion thereof has been properly certified,

acknowledged, approved, and recorded or filed in accordance

with the Plat Act and a preliminary plat, if any, for any

subsequent phases of the proposed Redevelopment Project Area or

relevant portion thereof has been properly approved and filed

in accordance with the applicable ordinance of the

municipality.

(w) "Annual Total Increment" means the sum of each

municipality's annual Net Sales Tax Increment and each

municipality's annual Net Utility Tax Increment. The ratio of

the Annual Total Increment of each municipality to the Annual

Total Increment for all municipalities, as most recently

calculated by the Department, shall determine the proportional

shares of the Illinois Tax Increment Fund to be distributed to

each municipality.

(x) "LEED certified" means any certification level of

construction elements by a qualified Leadership in Energy and

Environmental Design Accredited Professional as determined by

the U.S. Green Building Council.

(y) "Green Globes certified" means any certification level

of construction elements by a qualified Green Globes

Professional as determined by the Green Building Initiative.

(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)

(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)

Sec. 11-74.4-8. Tax increment allocation financing. A

municipality may not adopt tax increment financing in a

redevelopment project area after the effective date of this

amendatory Act of 1997 that will encompass an area that is

currently included in an enterprise zone created under the

Illinois Enterprise Zone Act unless that municipality,

pursuant to Section 5.4 of the Illinois Enterprise Zone Act,

amends the enterprise zone designating ordinance to limit the

eligibility for tax abatements as provided in Section 5.4.1 of

the Illinois Enterprise Zone Act. A municipality, at the time a

redevelopment project area is designated, may adopt tax

increment allocation financing by passing an ordinance

providing that the ad valorem taxes, if any, arising from the

levies upon taxable real property in such redevelopment project

area by taxing districts and tax rates determined in the manner

provided in paragraph (c) of Section 11-74.4-9 each year after

the effective date of the ordinance until redevelopment project

costs and all municipal obligations financing redevelopment

project costs incurred under this Division have been paid shall

be divided as follows, provided, however, that with respect to

any redevelopment project area located within a transit

facility improvement area established pursuant to Section

11-74.4-3.3 in a municipality with a population of 1,000,000 or

more, ad valorem taxes, if any, arising from the levies upon

taxable real property in such redevelopment project area shall

be allocated as specifically provided in this Section:

(a) That portion of taxes levied upon each taxable lot,

block, tract or parcel of real property which is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value of each such

taxable lot, block, tract or parcel of real property in the

redevelopment project area shall be allocated to and when

collected shall be paid by the county collector to the

respective affected taxing districts in the manner

required by law in the absence of the adoption of tax

increment allocation financing.

(b) Except from a tax levied by a township to retire

bonds issued to satisfy court-ordered damages, that

portion, if any, of such taxes which is attributable to the

increase in the current equalized assessed valuation of

each taxable lot, block, tract or parcel of real property

in the redevelopment project area over and above the

initial equalized assessed value of each property in the

project area shall be allocated to and when collected shall

be paid to the municipal treasurer who shall deposit said

taxes into a special fund called the special tax allocation

fund of the municipality for the purpose of paying

redevelopment project costs and obligations incurred in

the payment thereof. In any county with a population of

3,000,000 or more that has adopted a procedure for

collecting taxes that provides for one or more of the

installments of the taxes to be billed and collected on an

estimated basis, the municipal treasurer shall be paid for

deposit in the special tax allocation fund of the

municipality, from the taxes collected from estimated

bills issued for property in the redevelopment project

area, the difference between the amount actually collected

from each taxable lot, block, tract, or parcel of real

property within the redevelopment project area and an

amount determined by multiplying the rate at which taxes

were last extended against the taxable lot, block, track,

or parcel of real property in the manner provided in

subsection (c) of Section 11-74.4-9 by the initial

equalized assessed value of the property divided by the

number of installments in which real estate taxes are

billed and collected within the county; provided that the

payments on or before December 31, 1999 to a municipal

treasurer shall be made only if each of the following

conditions are met:

(1) The total equalized assessed value of the

redevelopment project area as last determined was not

less than 175% of the total initial equalized assessed

value.

(2) Not more than 50% of the total equalized assessed

value of the redevelopment project area as last

determined is attributable to a piece of property

assigned a single real estate index number.

(3) The municipal clerk has certified to the county

clerk that the municipality has issued its obligations

to which there has been pledged the incremental

property taxes of the redevelopment project area or

taxes levied and collected on any or all property in

the municipality or the full faith and credit of the

municipality to pay or secure payment for all or a

portion of the redevelopment project costs. The

certification shall be filed annually no later than

September 1 for the estimated taxes to be distributed

in the following year; however, for the year 1992 the

certification shall be made at any time on or before

March 31, 1992.

(4) The municipality has not requested that the total

initial equalized assessed value of real property be

adjusted as provided in subsection (b) of Section

11-74.4-9.

The conditions of paragraphs (1) through (4) do not

apply after December 31, 1999 to payments to a municipal

treasurer made by a county with 3,000,000 or more

inhabitants that has adopted an estimated billing

procedure for collecting taxes. If a county that has

adopted the estimated billing procedure makes an erroneous

overpayment of tax revenue to the municipal treasurer, then

the county may seek a refund of that overpayment. The

county shall send the municipal treasurer a notice of

liability for the overpayment on or before the mailing date

of the next real estate tax bill within the county. The

refund shall be limited to the amount of the overpayment.

It is the intent of this Division that after the

effective date of this amendatory Act of 1988 a

municipality's own ad valorem tax arising from levies on

taxable real property be included in the determination of

incremental revenue in the manner provided in paragraph (c)

of Section 11-74.4-9. If the municipality does not extend

such a tax, it shall annually deposit in the municipality's

Special Tax Increment Fund an amount equal to 10% of the

total contributions to the fund from all other taxing

districts in that year. The annual 10% deposit required by

this paragraph shall be limited to the actual amount of

municipally produced incremental tax revenues available to

the municipality from taxpayers located in the

redevelopment project area in that year if: (a) the plan

for the area restricts the use of the property primarily to

industrial purposes, (b) the municipality establishing the

redevelopment project area is a home-rule community with a

1990 population of between 25,000 and 50,000, (c) the

municipality is wholly located within a county with a 1990

population of over 750,000 and (d) the redevelopment

project area was established by the municipality prior to

June 1, 1990. This payment shall be in lieu of a

contribution of ad valorem taxes on real property. If no

such payment is made, any redevelopment project area of the

municipality shall be dissolved.

If a municipality has adopted tax increment allocation

financing by ordinance and the County Clerk thereafter

certifies the "total initial equalized assessed value as

adjusted" of the taxable real property within such

redevelopment project area in the manner provided in

paragraph (b) of Section 11-74.4-9, each year after the

date of the certification of the total initial equalized

assessed value as adjusted until redevelopment project

costs and all municipal obligations financing

redevelopment project costs have been paid the ad valorem

taxes, if any, arising from the levies upon the taxable

real property in such redevelopment project area by taxing

districts and tax rates determined in the manner provided

in paragraph (c) of Section 11-74.4-9 shall be divided as

follows, provided, however, that with respect to any

redevelopment project area located within a transit

facility improvement area established pursuant to Section

11-74.4-3.3 in a municipality with a population of

1,000,000 or more, ad valorem taxes, if any, arising from

the levies upon the taxable real property in such

redevelopment project area shall be allocated as

specifically provided in this Section:

(1) That portion of the taxes levied upon each taxable

lot, block, tract or parcel of real property which is

attributable to the lower of the current equalized

assessed value or "current equalized assessed value as

adjusted" or the initial equalized assessed value of

each such taxable lot, block, tract, or parcel of real

property existing at the time tax increment financing

was adopted, minus the total current homestead

exemptions under Article 15 of the Property Tax Code in

the redevelopment project area shall be allocated to

and when collected shall be paid by the county

collector to the respective affected taxing districts

in the manner required by law in the absence of the

adoption of tax increment allocation financing.

(2) That portion, if any, of such taxes which is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract,

or parcel of real property in the redevelopment project

area, over and above the initial equalized assessed

value of each property existing at the time tax

increment financing was adopted, minus the total

current homestead exemptions pertaining to each piece

of property provided by Article 15 of the Property Tax

Code in the redevelopment project area, shall be

allocated to and when collected shall be paid to the

municipal Treasurer, who shall deposit said taxes into

a special fund called the special tax allocation fund

of the municipality for the purpose of paying

redevelopment project costs and obligations incurred

in the payment thereof.

The municipality may pledge in the ordinance the funds

in and to be deposited in the special tax allocation fund

for the payment of such costs and obligations. No part of

the current equalized assessed valuation of each property

in the redevelopment project area attributable to any

increase above the total initial equalized assessed value,

or the total initial equalized assessed value as adjusted,

of such properties shall be used in calculating the general

State school aid formula, provided for in Section 18-8 of

the School Code, or the evidence-based funding formula,

provided for in Section 18-8.15 of the School Code, until

such time as all redevelopment project costs have been paid

as provided for in this Section.

Whenever a municipality issues bonds for the purpose of

financing redevelopment project costs, such municipality

may provide by ordinance for the appointment of a trustee,

which may be any trust company within the State, and for

the establishment of such funds or accounts to be

maintained by such trustee as the municipality shall deem

necessary to provide for the security and payment of the

bonds. If such municipality provides for the appointment of

a trustee, such trustee shall be considered the assignee of

any payments assigned by the municipality pursuant to such

ordinance and this Section. Any amounts paid to such

trustee as assignee shall be deposited in the funds or

accounts established pursuant to such trust agreement, and

shall be held by such trustee in trust for the benefit of

the holders of the bonds, and such holders shall have a

lien on and a security interest in such funds or accounts

so long as the bonds remain outstanding and unpaid. Upon

retirement of the bonds, the trustee shall pay over any

excess amounts held to the municipality for deposit in the

special tax allocation fund.

When such redevelopment projects costs, including

without limitation all municipal obligations financing

redevelopment project costs incurred under this Division,

have been paid, all surplus funds then remaining in the

special tax allocation fund shall be distributed by being

paid by the municipal treasurer to the Department of

Revenue, the municipality and the county collector; first

to the Department of Revenue and the municipality in direct

proportion to the tax incremental revenue received from the

State and the municipality, but not to exceed the total

incremental revenue received from the State or the

municipality less any annual surplus distribution of

incremental revenue previously made; with any remaining

funds to be paid to the County Collector who shall

immediately thereafter pay said funds to the taxing

districts in the redevelopment project area in the same

manner and proportion as the most recent distribution by

the county collector to the affected districts of real

property taxes from real property in the redevelopment

project area.

Upon the payment of all redevelopment project costs,

the retirement of obligations, the distribution of any

excess monies pursuant to this Section, and final closing

of the books and records of the redevelopment project area,

the municipality shall adopt an ordinance dissolving the

special tax allocation fund for the redevelopment project

area and terminating the designation of the redevelopment

project area as a redevelopment project area. Title to real

or personal property and public improvements acquired by or

for the municipality as a result of the redevelopment

project and plan shall vest in the municipality when

acquired and shall continue to be held by the municipality

after the redevelopment project area has been terminated.

Municipalities shall notify affected taxing districts

prior to November 1 if the redevelopment project area is to

be terminated by December 31 of that same year. If a

municipality extends estimated dates of completion of a

redevelopment project and retirement of obligations to

finance a redevelopment project, as allowed by this

amendatory Act of 1993, that extension shall not extend the

property tax increment allocation financing authorized by

this Section. Thereafter the rates of the taxing districts

shall be extended and taxes levied, collected and

distributed in the manner applicable in the absence of the

adoption of tax increment allocation financing.

If a municipality with a population of 1,000,000 or

more has adopted by ordinance tax increment allocation

financing for a redevelopment project area located in a

transit facility improvement area established pursuant to

Section 11-74.4-3.3, for each year after the effective date

of the ordinance until redevelopment project costs and all

municipal obligations financing redevelopment project

costs have been paid, the ad valorem taxes, if any, arising

from the levies upon the taxable real property in that

redevelopment project area by taxing districts and tax

rates determined in the manner provided in paragraph (c) of

Section 11-74.4-9 shall be divided as follows:

(1) That portion of the taxes levied upon each

taxable lot, block, tract or parcel of real property

which is attributable to the lower of (i) the current

equalized assessed value or "current equalized

assessed value as adjusted" or (ii) the initial

equalized assessed value of each such taxable lot,

block, tract, or parcel of real property existing at

the time tax increment financing was adopted, minus the

total current homestead exemptions under Article 15 of

the Property Tax Code in the redevelopment project area

shall be allocated to and when collected shall be paid

by the county collector to the respective affected

taxing districts in the manner required by law in the

absence of the adoption of tax increment allocation

financing.

(2) That portion, if any, of such taxes which is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract,

or parcel of real property in the redevelopment project

area, over and above the initial equalized assessed

value of each property existing at the time tax

increment financing was adopted, minus the total

current homestead exemptions pertaining to each piece

of property provided by Article 15 of the Property Tax

Code in the redevelopment project area, shall be

allocated to and when collected shall be paid by the

county collector as follows:

(A) First, that portion which would be payable

to a school district whose boundaries are

coterminous with such municipality in the absence

of the adoption of tax increment allocation

financing, shall be paid to such school district in

the manner required by law in the absence of the

adoption of tax increment allocation financing;

then

(B) 80% of the remaining portion shall be paid

to the municipal Treasurer, who shall deposit said

taxes into a special fund called the special tax

allocation fund of the municipality for the

purpose of paying redevelopment project costs and

obligations incurred in the payment thereof; and

then

(C) 20% of the remaining portion shall be paid

to the respective affected taxing districts, other

than the school district described in clause (a)

above, in the manner required by law in the absence

of the adoption of tax increment allocation

financing.

Nothing in this Section shall be construed as relieving

property in such redevelopment project areas from being

assessed as provided in the Property Tax Code or as relieving

owners of such property from paying a uniform rate of taxes, as

required by Section 4 of Article IX of the Illinois

Constitution.

(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)

(65 ILCS 5/11-74.6-35)

Sec. 11-74.6-35. Ordinance for tax increment allocation

financing.

(a) A municipality, at the time a redevelopment project

area is designated, may adopt tax increment allocation

financing by passing an ordinance providing that the ad valorem

taxes, if any, arising from the levies upon taxable real

property within the redevelopment project area by taxing

districts and tax rates determined in the manner provided in

subsection (b) of Section 11-74.6-40 each year after the

effective date of the ordinance until redevelopment project

costs and all municipal obligations financing redevelopment

project costs incurred under this Act have been paid shall be

divided as follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract or parcel of real property that is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value or the

updated initial equalized assessed value of each taxable

lot, block, tract or parcel of real property in the

redevelopment project area shall be allocated to and when

collected shall be paid by the county collector to the

respective affected taxing districts in the manner

required by law without regard to the adoption of tax

increment allocation financing.

(2) That portion, if any, of those taxes that is

attributable to the increase in the current equalized

assessed value of each taxable lot, block, tract or parcel

of real property in the redevelopment project area, over

and above the initial equalized assessed value or the

updated initial equalized assessed value of each property

in the project area, shall be allocated to and when

collected shall be paid by the county collector to the

municipal treasurer who shall deposit that portion of those

taxes into a special fund called the special tax allocation

fund of the municipality for the purpose of paying

redevelopment project costs and obligations incurred in

the payment of those costs and obligations. In any county

with a population of 3,000,000 or more that has adopted a

procedure for collecting taxes that provides for one or

more of the installments of the taxes to be billed and

collected on an estimated basis, the municipal treasurer

shall be paid for deposit in the special tax allocation

fund of the municipality, from the taxes collected from

estimated bills issued for property in the redevelopment

project area, the difference between the amount actually

collected from each taxable lot, block, tract, or parcel of

real property within the redevelopment project area and an

amount determined by multiplying the rate at which taxes

were last extended against the taxable lot, block, track,

or parcel of real property in the manner provided in

subsection (b) of Section 11-74.6-40 by the initial

equalized assessed value or the updated initial equalized

assessed value of the property divided by the number of

installments in which real estate taxes are billed and

collected within the county, provided that the payments on

or before December 31, 1999 to a municipal treasurer shall

be made only if each of the following conditions are met:

(A) The total equalized assessed value of the

redevelopment project area as last determined was not

less than 175% of the total initial equalized assessed

value.

(B) Not more than 50% of the total equalized

assessed value of the redevelopment project area as

last determined is attributable to a piece of property

assigned a single real estate index number.

(C) The municipal clerk has certified to the county

clerk that the municipality has issued its obligations

to which there has been pledged the incremental

property taxes of the redevelopment project area or

taxes levied and collected on any or all property in

the municipality or the full faith and credit of the

municipality to pay or secure payment for all or a

portion of the redevelopment project costs. The

certification shall be filed annually no later than

September 1 for the estimated taxes to be distributed

in the following year.

The conditions of paragraphs (A) through (C) do not apply

after December 31, 1999 to payments to a municipal treasurer

made by a county with 3,000,000 or more inhabitants that has

adopted an estimated billing procedure for collecting taxes. If

a county that has adopted the estimated billing procedure makes

an erroneous overpayment of tax revenue to the municipal

treasurer, then the county may seek a refund of that

overpayment. The county shall send the municipal treasurer a

notice of liability for the overpayment on or before the

mailing date of the next real estate tax bill within the

county. The refund shall be limited to the amount of the

overpayment.

(b) It is the intent of this Act that a municipality's own

ad valorem tax arising from levies on taxable real property be

included in the determination of incremental revenue in the

manner provided in paragraph (b) of Section 11-74.6-40.

(c) If a municipality has adopted tax increment allocation

financing for a redevelopment project area by ordinance and the

county clerk thereafter certifies the total initial equalized

assessed value or the total updated initial equalized assessed

value of the taxable real property within such redevelopment

project area in the manner provided in paragraph (a) or (b) of

Section 11-74.6-40, each year after the date of the

certification of the total initial equalized assessed value or

the total updated initial equalized assessed value until

redevelopment project costs and all municipal obligations

financing redevelopment project costs have been paid, the ad

valorem taxes, if any, arising from the levies upon the taxable

real property in the redevelopment project area by taxing

districts and tax rates determined in the manner provided in

paragraph (b) of Section 11-74.6-40 shall be divided as

follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract or parcel of real property that is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value, or the

updated initial equalized assessed value of each parcel if

the updated initial equalized assessed value of that parcel

has been certified in accordance with Section 11-74.6-40,

whichever has been most recently certified, of each taxable

lot, block, tract, or parcel of real property existing at

the time tax increment allocation financing was adopted in

the redevelopment project area, shall be allocated to and

when collected shall be paid by the county collector to the

respective affected taxing districts in the manner

required by law without regard to the adoption of tax

increment allocation financing.

(2) That portion, if any, of those taxes that is

attributable to the increase in the current equalized

assessed value of each taxable lot, block, tract, or parcel

of real property in the redevelopment project area, over

and above the initial equalized assessed value of each

property existing at the time tax increment allocation

financing was adopted in the redevelopment project area, or

the updated initial equalized assessed value of each parcel

if the updated initial equalized assessed value of that

parcel has been certified in accordance with Section

11-74.6-40, shall be allocated to and when collected shall

be paid to the municipal treasurer, who shall deposit those

taxes into a special fund called the special tax allocation

fund of the municipality for the purpose of paying

redevelopment project costs and obligations incurred in

the payment thereof.

(d) The municipality may pledge in the ordinance the funds

in and to be deposited in the special tax allocation fund for

the payment of redevelopment project costs and obligations. No

part of the current equalized assessed value of each property

in the redevelopment project area attributable to any increase

above the total initial equalized assessed value or the total

initial updated equalized assessed value of the property, shall

be used in calculating the general General State aid formula

School Aid Formula, provided for in Section 18-8 of the School

Code, or the evidence-based funding formula, provided for in

Section 18-8.15 of the School Code, until all redevelopment

project costs have been paid as provided for in this Section.

Whenever a municipality issues bonds for the purpose of

financing redevelopment project costs, that municipality may

provide by ordinance for the appointment of a trustee, which

may be any trust company within the State, and for the

establishment of any funds or accounts to be maintained by that

trustee, as the municipality deems necessary to provide for the

security and payment of the bonds. If the municipality provides

for the appointment of a trustee, the trustee shall be

considered the assignee of any payments assigned by the

municipality under that ordinance and this Section. Any amounts

paid to the trustee as assignee shall be deposited into the

funds or accounts established under the trust agreement, and

shall be held by the trustee in trust for the benefit of the

holders of the bonds. The holders of those bonds shall have a

lien on and a security interest in those funds or accounts

while the bonds remain outstanding and unpaid. Upon retirement

of the bonds, the trustee shall pay over any excess amounts

held to the municipality for deposit in the special tax

allocation fund.

When the redevelopment projects costs, including without

limitation all municipal obligations financing redevelopment

project costs incurred under this Law, have been paid, all

surplus funds then remaining in the special tax allocation fund

shall be distributed by being paid by the municipal treasurer

to the municipality and the county collector; first to the

municipality in direct proportion to the tax incremental

revenue received from the municipality, but not to exceed the

total incremental revenue received from the municipality,

minus any annual surplus distribution of incremental revenue

previously made. Any remaining funds shall be paid to the

county collector who shall immediately distribute that payment

to the taxing districts in the redevelopment project area in

the same manner and proportion as the most recent distribution

by the county collector to the affected districts of real

property taxes from real property situated in the redevelopment

project area.

Upon the payment of all redevelopment project costs,

retirement of obligations and the distribution of any excess

moneys under this Section, the municipality shall adopt an

ordinance dissolving the special tax allocation fund for the

redevelopment project area and terminating the designation of

the redevelopment project area as a redevelopment project area.

Thereafter the tax levies of taxing districts shall be

extended, collected and distributed in the same manner

applicable before the adoption of tax increment allocation

financing. Municipality shall notify affected taxing districts

prior to November if the redevelopment project area is to be

terminated by December 31 of that same year.

Nothing in this Section shall be construed as relieving

property in a redevelopment project area from being assessed as

provided in the Property Tax Code or as relieving owners of

that property from paying a uniform rate of taxes, as required

by Section 4 of Article IX of the Illinois Constitution.

(Source: P.A. 91-474, eff. 11-1-99.)

Section 960. The Economic Development Project Area Tax

Increment Allocation Act of 1995 is amended by changing Section

50 as follows:

(65 ILCS 110/50)

Sec. 50. Special tax allocation fund.

(a) If a county clerk has certified the "total initial

equalized assessed value" of the taxable real property within

an economic development project area in the manner provided in

Section 45, each year after the date of the certification by

the county clerk of the "total initial equalized assessed

value", until economic development project costs and all

municipal obligations financing economic development project

costs have been paid, the ad valorem taxes, if any, arising

from the levies upon the taxable real property in the economic

development project area by taxing districts and tax rates

determined in the manner provided in subsection (b) of Section

45 shall be divided as follows:

(1) That portion of the taxes levied upon each taxable

lot, block, tract, or parcel of real property that is

attributable to the lower of the current equalized assessed

value or the initial equalized assessed value of each

taxable lot, block, tract, or parcel of real property

existing at the time tax increment financing was adopted

shall be allocated to (and when collected shall be paid by

the county collector to) the respective affected taxing

districts in the manner required by law in the absence of

the adoption of tax increment allocation financing.

(2) That portion, if any, of the taxes that is

attributable to the increase in the current equalized

assessed valuation of each taxable lot, block, tract, or

parcel of real property in the economic development project

area, over and above the initial equalized assessed value

of each property existing at the time tax increment

financing was adopted, shall be allocated to (and when

collected shall be paid to) the municipal treasurer, who

shall deposit the taxes into a special fund (called the

special tax allocation fund of the municipality) for the

purpose of paying economic development project costs and

obligations incurred in the payment of those costs.

(b) The municipality, by an ordinance adopting tax

increment allocation financing, may pledge the monies in and to

be deposited into the special tax allocation fund for the

payment of obligations issued under this Act and for the

payment of economic development project costs. No part of the

current equalized assessed valuation of each property in the

economic development project area attributable to any increase

above the total initial equalized assessed value of those

properties shall be used in calculating the general State

school aid formula under Section 18-8 of the School Code or the

evidence-based funding formula under Section 18-8.15 of the

School Code, until all economic development projects costs have

been paid as provided for in this Section.

(c) When the economic development projects costs,

including without limitation all municipal obligations

financing economic development project costs incurred under

this Act, have been paid, all surplus monies then remaining in

the special tax allocation fund shall be distributed by being

paid by the municipal treasurer to the county collector, who

shall immediately pay the monies to the taxing districts having

taxable property in the economic development project area in

the same manner and proportion as the most recent distribution

by the county collector to those taxing districts of real

property taxes from real property in the economic development

project area.

(d) Upon the payment of all economic development project

costs, retirement of obligations, and distribution of any

excess monies under this Section and not later than 23 years

from the date of the adoption of the ordinance establishing the

economic development project area, the municipality shall

adopt an ordinance dissolving the special tax allocation fund

for the economic development project area and terminating the

designation of the economic development project area as an

economic development project area. Thereafter, the rates of the

taxing districts shall be extended and taxes shall be levied,

collected, and distributed in the manner applicable in the

absence of the adoption of tax increment allocation financing.

(e) Nothing in this Section shall be construed as relieving

property in the economic development project areas from being

assessed as provided in the Property Tax Code or as relieving

owners or lessees of that property from paying a uniform rate

of taxes as required by Section 4 of Article IX of the Illinois

Constitution.

(Source: P.A. 98-463, eff. 8-16-13.)

Section 965. The School Code is amended by changing

Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,

1F-20, 1F-62, 1H-20, 1H-70, 2-3.25g, 2-3.33, 2-3.51.5, 2-3.66,

2-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,

10-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,

13B-50, 13B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1,

14C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,

18-8.10, 18-9, 18-12, 26-16, 27-6, 27-7, 27-8.1, 27-24.2,

27A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, 34-43.1, and

34-53 and by adding Sections 2-3.170, 17-3.6, and 18-8.15 as

follows:

(105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)

Sec. 1A-8. Powers of the Board in Assisting Districts

Deemed in Financial Difficulties. To promote the financial

integrity of school districts, the State Board of Education

shall be provided the necessary powers to promote sound

financial management and continue operation of the public

schools.

(a) The State Superintendent of Education may require a

school district, including any district subject to Article 34A

of this Code, to share financial information relevant to a

proper investigation of the district's financial condition and

the delivery of appropriate State financial, technical, and

consulting services to the district if the district (i) has

been designated, through the State Board of Education's School

District Financial Profile System, as on financial warning or

financial watch status, (ii) has failed to file an annual

financial report, annual budget, deficit reduction plan, or

other financial information as required by law, (iii) has been

identified, through the district's annual audit or other

financial and management information, as in serious financial

difficulty in the current or next school year, or (iv) is

determined to be likely to fail to fully meet any regularly

scheduled, payroll-period obligations when due or any debt

service payments when due or both. In addition to financial,

technical, and consulting services provided by the State Board

of Education, at the request of a school district, the State

Superintendent may provide for an independent financial

consultant to assist the district review its financial

condition and options.

(b) The State Board of Education, after proper

investigation of a district's financial condition, may certify

that a district, including any district subject to Article 34A,

is in financial difficulty when any of the following conditions

occur:

(1) The district has issued school or teacher orders

for wages as permitted in Sections 8-16, 32-7.2 and 34-76

of this Code.

(2) The district has issued tax anticipation warrants

or tax anticipation notes in anticipation of a second

year's taxes when warrants or notes in anticipation of

current year taxes are still outstanding, as authorized by

Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has

issued short-term debt against 2 future revenue sources,

such as, but not limited to, tax anticipation warrants and

general State aid or evidence-based funding Aid

certificates or tax anticipation warrants and revenue

anticipation notes.

(3) The district has for 2 consecutive years shown an

excess of expenditures and other financing uses over

revenues and other financing sources and beginning fund

balances on its annual financial report for the aggregate

totals of the Educational, Operations and Maintenance,

Transportation, and Working Cash Funds.

(4) The district refuses to provide financial

information or cooperate with the State Superintendent in

an investigation of the district's financial condition.

(5) The district is likely to fail to fully meet any

regularly scheduled, payroll-period obligations when due

or any debt service payments when due or both.

No school district shall be certified by the State Board of

Education to be in financial difficulty solely by reason of any

of the above circumstances arising as a result of (i) the

failure of the county to make any distribution of property tax

money due the district at the time such distribution is due or

(ii) the failure of this State to make timely payments of

general State aid, evidence-based funding, or any of the

mandated categoricals; or if the district clearly demonstrates

to the satisfaction of the State Board of Education at the time

of its determination that such condition no longer exists. If

the State Board of Education certifies that a district in a

city with 500,000 inhabitants or more is in financial

difficulty, the State Board shall so notify the Governor and

the Mayor of the city in which the district is located. The

State Board of Education may require school districts certified

in financial difficulty, except those districts subject to

Article 34A, to develop, adopt and submit a financial plan

within 45 days after certification of financial difficulty. The

financial plan shall be developed according to guidelines

presented to the district by the State Board of Education

within 14 days of certification. Such guidelines shall address

the specific nature of each district's financial difficulties.

Any proposed budget of the district shall be consistent with

the financial plan submitted to and approved by the State Board

of Education.

A district certified to be in financial difficulty, other

than a district subject to Article 34A, shall report to the

State Board of Education at such times and in such manner as

the State Board may direct, concerning the district's

compliance with each financial plan. The State Board may review

the district's operations, obtain budgetary data and financial

statements, require the district to produce reports, and have

access to any other information in the possession of the

district that it deems relevant. The State Board may issue

recommendations or directives within its powers to the district

to assist in compliance with the financial plan. The district

shall produce such budgetary data, financial statements,

reports and other information and comply with such directives.

If the State Board of Education determines that a district has

failed to comply with its financial plan, the State Board of

Education may rescind approval of the plan and appoint a

Financial Oversight Panel for the district as provided in

Section 1B-4. This action shall be taken only after the

district has been given notice and an opportunity to appear

before the State Board of Education to discuss its failure to

comply with its financial plan.

No bonds, notes, teachers orders, tax anticipation

warrants or other evidences of indebtedness shall be issued or

sold by a school district or be legally binding upon or

enforceable against a local board of education of a district

certified to be in financial difficulty unless and until the

financial plan required under this Section has been approved by

the State Board of Education.

Any financial profile compiled and distributed by the State

Board of Education in Fiscal Year 2009 or any fiscal year

thereafter shall incorporate such adjustments as may be needed

in the profile scores to reflect the financial effects of the

inability or refusal of the State of Illinois to make timely

disbursements of any general State aid, evidence-based

funding, or mandated categorical aid payments due school

districts or to fully reimburse school districts for mandated

categorical programs pursuant to reimbursement formulas

provided in this School Code.

(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;

97-429, eff. 8-16-11.)

(105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5)

Sec. 1B-5. When a petition for emergency financial

assistance for a school district is allowed by the State Board

under Section 1B-4, the State Superintendent shall within 10

days thereafter appoint 3 members to serve at the State

Superintendent's pleasure on a Financial Oversight Panel for

the district. The State Superintendent shall designate one of

the members of the Panel to serve as its Chairman. In the event

of vacancy or resignation the State Superintendent shall

appoint a successor within 10 days of receiving notice thereof.

Members of the Panel shall be selected primarily on the

basis of their experience and education in financial

management, with consideration given to persons knowledgeable

in education finance. A member of the Panel may not be a board

member or employee of the district for which the Panel is

constituted, nor may a member have a direct financial interest

in that district.

Panel members shall serve without compensation, but may be

reimbursed for travel and other necessary expenses incurred in

the performance of their official duties by the State Board.

The amount reimbursed Panel members for their expenses shall be

charged to the school district as part of any emergency

financial assistance and incorporated as a part of the terms

and conditions for repayment of such assistance or shall be

deducted from the district's general State aid or

evidence-based funding as provided in Section 1B-8.

The first meeting of the Panel shall be held at the call of

the Chairman. The Panel may elect such other officers as it

deems appropriate. The Panel shall prescribe the times and

places for its meetings and the manner in which regular and

special meetings may be called, and shall comply with the Open

Meetings Act.

Two members of the Panel shall constitute a quorum, and the

affirmative vote of 2 members shall be necessary for any

decision or action to be taken by the Panel.

The Panel and the State Superintendent shall cooperate with

each other in the exercise of their respective powers. The

Panel shall report not later than September 1 annually to the

State Board and the State Superintendent with respect to its

activities and the condition of the school district for the

previous fiscal year.

Any Financial Oversight Panel established under this

Article shall remain in existence for not less than 3 years nor

more than 10 years from the date the State Board grants the

petition under Section 1B-4. If after 3 years the school

district has repaid all of its obligations resulting from

emergency State financial assistance provided under this

Article and has improved its financial situation, the board of

education may, not more frequently than once in any 12 month

period, petition the State Board to dissolve the Financial

Oversight Panel, terminate the oversight responsibility, and

remove the district's certification under Section 1A-8 as a

district in financial difficulty. In acting on such a petition

the State Board shall give additional weight to the

recommendations of the State Superintendent and the Financial

Oversight Panel.

(Source: P.A. 88-618, eff. 9-9-94.)

(105 ILCS 5/1B-6) (from Ch. 122, par. 1B-6)

Sec. 1B-6. General powers. The purpose of the Financial

Oversight Panel shall be to exercise financial control over the

board of education, and, when approved by the State Board and

the State Superintendent of Education, to furnish financial

assistance so that the board can provide public education

within the board's jurisdiction while permitting the board to

meet its obligations to its creditors and the holders of its

notes and bonds. Except as expressly limited by this Article,

the Panel shall have all powers necessary to meet its

responsibilities and to carry out its purposes and the purposes

of this Article, including, but not limited to, the following

powers:

(a) to sue and be sued;

(b) to provide for its organization and internal

management;

(c) to appoint a Financial Administrator to serve as the

chief executive officer of the Panel. The Financial

Administrator may be an individual, partnership, corporation,

including an accounting firm, or other entity determined by the

Panel to be qualified to serve; and to appoint other officers,

agents, and employees of the Panel, define their duties and

qualifications and fix their compensation and employee

benefits;

(d) to approve the local board of education appointments to

the positions of treasurer in a Class I county school unit and

in each school district which forms a part of a Class II county

school unit but which no longer is subject to the jurisdiction

and authority of a township treasurer or trustees of schools of

a township because the district has withdrawn from the

jurisdiction and authority of the township treasurer and the

trustees of schools of the township or because those offices

have been abolished as provided in subsection (b) or (c) of

Section 5-1, and chief school business official, if such

official is not the superintendent of the district. Either the

board or the Panel may remove such treasurer or chief school

business official;

(e) to approve any and all bonds, notes, teachers orders,

tax anticipation warrants, and other evidences of indebtedness

prior to issuance or sale by the school district; and

notwithstanding any other provision of The School Code, as now

or hereafter amended, no bonds, notes, teachers orders, tax

anticipation warrants or other evidences of indebtedness shall

be issued or sold by the school district or be legally binding

upon or enforceable against the local board of education unless

and until the approval of the Panel has been received;

(f) to approve all property tax levies of the school

district and require adjustments thereto as the Panel deems

necessary or advisable;

(g) to require and approve a school district financial

plan;

(h) to approve and require revisions of the school district

budget;

(i) to approve all contracts and other obligations as the

Panel deems necessary and appropriate;

(j) to authorize emergency State financial assistance,

including requirements regarding the terms and conditions of

repayment of such assistance, and to require the board of

education to levy a separate local property tax, subject to the

limitations of Section 1B-8, sufficient to repay such

assistance consistent with the terms and conditions of

repayment and the district's approved financial plan and

budget;

(k) to request the regional superintendent to make

appointments to fill all vacancies on the local school board as

provided in Section 10-10;

(l) to recommend dissolution or reorganization of the

school district to the General Assembly if in the Panel's

judgment the circumstances so require;

(m) to direct a phased reduction in the oversight

responsibilities of the Financial Administrator and of the

Panel as the circumstances permit;

(n) to determine the amount of emergency State financial

assistance to be made available to the school district, and to

establish an operating budget for the Panel to be supported by

funds available from such assistance, with the assistance and

the budget required to be approved by the State Superintendent;

(o) to procure insurance against any loss in such amounts

and from such insurers as it deems necessary;

(p) to engage the services of consultants for rendering

professional and technical assistance and advice on matters

within the Panel's power;

(q) to contract for and to accept any gifts, grants or

loans of funds or property or financial or other aid in any

form from the federal government, State government, unit of

local government, school district or any agency or

instrumentality thereof, or from any other private or public

source, and to comply with the terms and conditions thereof;

(r) to pay the expenses of its operations based on the

Panel's budget as approved by the State Superintendent from

emergency financial assistance funds available to the district

or from deductions from the district's general State aid or

evidence-based funding;

(s) to do any and all things necessary or convenient to

carry out its purposes and exercise the powers given to the

Panel by this Article; and

(t) to recommend the creation of a school finance authority

pursuant to Article 1F of this Code.

(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)

(105 ILCS 5/1B-7) (from Ch. 122, par. 1B-7)

Sec. 1B-7. Financial Administrator; Powers and Duties. The

Financial Administrator appointed by the Financial Oversight

Panel shall serve as the Panel's chief executive officer. The

Financial Administrator shall exercise the powers and duties

required by the Panel, including but not limited to the

following:

(a) to provide guidance and recommendations to the local

board and officials of the school district in developing the

district's financial plan and budget prior to board action;

(b) to direct the local board to reorganize its financial

accounts, budgetary systems, and internal accounting and

financial controls, in whatever manner the Panel deems

appropriate to achieve greater financial responsibility and to

reduce financial inefficiency, and to provide technical

assistance to aid the district in accomplishing the

reorganization;

(c) to make recommendations to the Financial Oversight

Panel concerning the school district's financial plan and

budget, and all other matters within the scope of the Panel's

authority;

(d) to prepare and recommend to the Panel a proposal for

emergency State financial assistance for the district,

including recommended terms and conditions of repayment, and an

operations budget for the Panel to be funded from the emergency

assistance or from deductions from the district's general State

aid or evidence-based funding;

(e) to require the local board to prepare and submit

preliminary staffing and budgetary analyses annually prior to

February 1 in such manner and form as the Financial

Administrator shall prescribe; and

(f) subject to the direction of the Panel, to do all other

things necessary or convenient to carry out its purposes and

exercise the powers given to the Panel under this Article.

(Source: P.A. 88-618, eff. 9-9-94.)

(105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)

Sec. 1B-8. There is created in the State Treasury a special

fund to be known as the School District Emergency Financial

Assistance Fund (the "Fund"). The School District Emergency

Financial Assistance Fund shall consist of appropriations,

loan repayments, grants from the federal government, and

donations from any public or private source. Moneys in the Fund

may be appropriated only to the Illinois Finance Authority and

the State Board for those purposes authorized under this

Article and Articles 1F and 1H of this Code. The appropriation

may be allocated and expended by the State Board for

contractual services to provide technical assistance or

consultation to school districts to assess their financial

condition and to Financial Oversight Panels that petition for

emergency financial assistance grants. The Illinois Finance

Authority may provide loans to school districts which are the

subject of an approved petition for emergency financial

assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.

Neither the State Board of Education nor the Illinois Finance

Authority may collect any fees for providing these services.

From the amount allocated to each such school district

under this Article the State Board shall identify a sum

sufficient to cover all approved costs of the Financial

Oversight Panel established for the respective school

district. If the State Board and State Superintendent of

Education have not approved emergency financial assistance in

conjunction with the appointment of a Financial Oversight

Panel, the Panel's approved costs shall be paid from deductions

from the district's general State aid or evidence-based

funding.

The Financial Oversight Panel may prepare and file with the

State Superintendent a proposal for emergency financial

assistance for the school district and for its operations

budget. No expenditures from the Fund shall be authorized by

the State Superintendent until he or she has approved the

request of the Panel, either as submitted or in such lesser

amount determined by the State Superintendent.

The maximum amount of an emergency financial assistance

loan which may be allocated to any school district under this

Article, including moneys necessary for the operations of the

Panel, shall not exceed $4,000 times the number of pupils

enrolled in the school district during the school year ending

June 30 prior to the date of approval by the State Board of the

petition for emergency financial assistance, as certified to

the local board and the Panel by the State Superintendent. An

emergency financial assistance grant shall not exceed $1,000

times the number of such pupils. A district may receive both a

loan and a grant.

The payment of an emergency State financial assistance

grant or loan shall be subject to appropriation by the General

Assembly. Payment of the emergency State financial assistance

loan is subject to the applicable provisions of the Illinois

Finance Authority Act. Emergency State financial assistance

allocated and paid to a school district under this Article may

be applied to any fund or funds from which the local board of

education of that district is authorized to make expenditures

by law.

Any emergency financial assistance grant proposed by the

Financial Oversight Panel and approved by the State

Superintendent may be paid in its entirety during the initial

year of the Panel's existence or spread in equal or declining

amounts over a period of years not to exceed the period of the

Panel's existence. An emergency financial assistance loan

proposed by the Financial Oversight Panel and approved by the

Illinois Finance Authority may be paid in its entirety during

the initial year of the Panel's existence or spread in equal or

declining amounts over a period of years not to exceed the

period of the Panel's existence. All loans made by the Illinois

Finance Authority for a school district shall be required to be

repaid, with simple interest over the term of the loan at a

rate equal to 50% of the one-year Constant Maturity Treasury

(CMT) yield as last published by the Board of Governors of the

Federal Reserve System before the date on which the district's

loan is approved by the Illinois Finance Authority, not later

than the date the Financial Oversight Panel ceases to exist.

The Panel shall establish and the Illinois Finance Authority

shall approve the terms and conditions, including the schedule,

of repayments. The schedule shall provide for repayments

commencing July 1 of each year or upon each fiscal year's

receipt of moneys from a tax levy for emergency financial

assistance. Repayment shall be incorporated into the annual

budget of the school district and may be made from any fund or

funds of the district in which there are moneys available. An

emergency financial assistance loan to the Panel or district

shall not be considered part of the calculation of a district's

debt for purposes of the limitation specified in Section 19-1

of this Code. Default on repayment is subject to the Illinois

Grant Funds Recovery Act. When moneys are repaid as provided

herein they shall not be made available to the local board for

further use as emergency financial assistance under this

Article at any time thereafter. All repayments required to be

made by a school district shall be received by the State Board

and deposited in the School District Emergency Financial

Assistance Fund.

In establishing the terms and conditions for the repayment

obligation of the school district the Panel shall annually

determine whether a separate local property tax levy is

required. The board of any school district with a tax rate for

educational purposes for the prior year of less than 120% of

the maximum rate for educational purposes authorized by Section

17-2 shall provide for a separate tax levy for emergency

financial assistance repayment purposes. Such tax levy shall

not be subject to referendum approval. The amount of the levy

shall be equal to the amount necessary to meet the annual

repayment obligations of the district as established by the

Panel, or 20% of the amount levied for educational purposes for

the prior year, whichever is less. However, no district shall

be required to levy the tax if the district's operating tax

rate as determined under Section 18-8, or 18-8.05, or 18-8.15

exceeds 200% of the district's tax rate for educational

purposes for the prior year.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/1C-1)

Sec. 1C-1. Purpose. The purpose of this Article is to

permit greater flexibility and efficiency in the distribution

and use of certain State funds available to local education

agencies for the improvement of the quality of educational

services pursuant to locally established priorities.

Through fiscal year 2017, this This Article does not apply

to school districts having a population in excess of 500,000

inhabitants.

(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;

89-397, eff. 8-20-95; 89-626, eff. 8-9-96.)

(105 ILCS 5/1C-2)

Sec. 1C-2. Block grants.

(a) For fiscal year 1999, and each fiscal year thereafter,

the State Board of Education shall award to school districts

block grants as described in subsection (c). The State Board of

Education may adopt rules and regulations necessary to

implement this Section. In accordance with Section 2-3.32, all

state block grants are subject to an audit. Therefore, block

grant receipts and block grant expenditures shall be recorded

to the appropriate fund code.

(b) (Blank).

(c) An Early Childhood Education Block Grant shall be

created by combining the following programs: Preschool

Education, Parental Training and Prevention Initiative. These

funds shall be distributed to school districts and other

entities on a competitive basis, except that the State Board of

Education shall award to a school district having a population

exceeding 500,000 inhabitants 37% of the funds in each fiscal

year. Not less than 14% of the Early Childhood Education Block

Grant allocation of funds shall be used to fund programs for

children ages 0-3. Beginning in Fiscal Year 2016, at least 25%

of any additional Early Childhood Education Block Grant funding

over and above the previous fiscal year's allocation shall be

used to fund programs for children ages 0-3. Once the

percentage of Early Childhood Education Block Grant funding

allocated to programs for children ages 0-3 reaches 20% of the

overall Early Childhood Education Block Grant allocation for a

full fiscal year, thereafter in subsequent fiscal years the

percentage of Early Childhood Education Block Grant funding

allocated to programs for children ages 0-3 each fiscal year

shall remain at least 20% of the overall Early Childhood

Education Block Grant allocation. However, if, in a given

fiscal year, the amount appropriated for the Early Childhood

Education Block Grant is insufficient to increase the

percentage of the grant to fund programs for children ages 0-3

without reducing the amount of the grant for existing providers

of preschool education programs, then the percentage of the

grant to fund programs for children ages 0-3 may be held steady

instead of increased.

(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)

(105 ILCS 5/1D-1)

Sec. 1D-1. Block grant funding.

(a) For fiscal year 1996 through fiscal year 2017 and each

fiscal year thereafter, the State Board of Education shall

award to a school district having a population exceeding

500,000 inhabitants a general education block grant and an

educational services block grant, determined as provided in

this Section, in lieu of distributing to the district separate

State funding for the programs described in subsections (b) and

(c). The provisions of this Section, however, do not apply to

any federal funds that the district is entitled to receive. In

accordance with Section 2-3.32, all block grants are subject to

an audit. Therefore, block grant receipts and block grant

expenditures shall be recorded to the appropriate fund code for

the designated block grant.

(b) The general education block grant shall include the

following programs: REI Initiative, Summer Bridges, Preschool

At Risk, K-6 Comprehensive Arts, School Improvement Support,

Urban Education, Scientific Literacy, Substance Abuse

Prevention, Second Language Planning, Staff Development,

Outcomes and Assessment, K-6 Reading Improvement, 7-12

Continued Reading Improvement, Truants' Optional Education,

Hispanic Programs, Agriculture Education, Parental Education,

Prevention Initiative, Report Cards, and Criminal Background

Investigations. Notwithstanding any other provision of law,

all amounts paid under the general education block grant from

State appropriations to a school district in a city having a

population exceeding 500,000 inhabitants shall be appropriated

and expended by the board of that district for any of the

programs included in the block grant or any of the board's

lawful purposes.

(c) The educational services block grant shall include the

following programs: Regular and Vocational Transportation,

State Lunch and Free Breakfast Program, Special Education

(Personnel, Transportation, Orphanage, Private Tuition),

funding for children requiring special education services,

Summer School, Educational Service Centers, and

Administrator's Academy. This subsection (c) does not relieve

the district of its obligation to provide the services required

under a program that is included within the educational

services block grant. It is the intention of the General

Assembly in enacting the provisions of this subsection (c) to

relieve the district of the administrative burdens that impede

efficiency and accompany single-program funding. The General

Assembly encourages the board to pursue mandate waivers

pursuant to Section 2-3.25g.

The funding program included in the educational services

block grant for funding for children requiring special

education services in each fiscal year shall be treated in that

fiscal year as a payment to the school district in respect of

services provided or costs incurred in the prior fiscal year,

calculated in each case as provided in this Section. Nothing in

this Section shall change the nature of payments for any

program that, apart from this Section, would be or, prior to

adoption or amendment of this Section, was on the basis of a

payment in a fiscal year in respect of services provided or

costs incurred in the prior fiscal year, calculated in each

case as provided in this Section.

(d) For fiscal year 1996 through fiscal year 2017 and each

fiscal year thereafter, the amount of the district's block

grants shall be determined as follows: (i) with respect to each

program that is included within each block grant, the district

shall receive an amount equal to the same percentage of the

current fiscal year appropriation made for that program as the

percentage of the appropriation received by the district from

the 1995 fiscal year appropriation made for that program, and

(ii) the total amount that is due the district under the block

grant shall be the aggregate of the amounts that the district

is entitled to receive for the fiscal year with respect to each

program that is included within the block grant that the State

Board of Education shall award the district under this Section

for that fiscal year. In the case of the Summer Bridges

program, the amount of the district's block grant shall be

equal to 44% of the amount of the current fiscal year

appropriation made for that program.

(e) The district is not required to file any application or

other claim in order to receive the block grants to which it is

entitled under this Section. The State Board of Education shall

make payments to the district of amounts due under the

district's block grants on a schedule determined by the State

Board of Education.

(f) A school district to which this Section applies shall

report to the State Board of Education on its use of the block

grants in such form and detail as the State Board of Education

may specify. In addition, the report must include the following

description for the district, which must also be reported to

the General Assembly: block grant allocation and expenditures

by program; population and service levels by program; and

administrative expenditures by program. The State Board of

Education shall ensure that the reporting requirements for the

district are the same as for all other school districts in this

State.

(g) Through fiscal year 2017, this This paragraph provides

for the treatment of block grants under Article 1C for purposes

of calculating the amount of block grants for a district under

this Section. Those block grants under Article 1C are, for this

purpose, treated as included in the amount of appropriation for

the various programs set forth in paragraph (b) above. The

appropriation in each current fiscal year for each block grant

under Article 1C shall be treated for these purposes as

appropriations for the individual program included in that

block grant. The proportion of each block grant so allocated to

each such program included in it shall be the proportion which

the appropriation for that program was of all appropriations

for such purposes now in that block grant, in fiscal 1995.

Payments to the school district under this Section with

respect to each program for which payments to school districts

generally, as of the date of this amendatory Act of the 92nd

General Assembly, are on a reimbursement basis shall continue

to be made to the district on a reimbursement basis, pursuant

to the provisions of this Code governing those programs.

(h) Notwithstanding any other provision of law, any school

district receiving a block grant under this Section may

classify all or a portion of the funds that it receives in a

particular fiscal year from any block grant authorized under

this Code or from general State aid pursuant to Section 18-8.05

of this Code (other than supplemental general State aid) as

funds received in connection with any funding program for which

it is entitled to receive funds from the State in that fiscal

year (including, without limitation, any funding program

referred to in subsection (c) of this Section), regardless of

the source or timing of the receipt. The district may not

classify more funds as funds received in connection with the

funding program than the district is entitled to receive in

that fiscal year for that program. Any classification by a

district must be made by a resolution of its board of

education. The resolution must identify the amount of any block

grant or general State aid to be classified under this

subsection (h) and must specify the funding program to which

the funds are to be treated as received in connection

therewith. This resolution is controlling as to the

classification of funds referenced therein. A certified copy of

the resolution must be sent to the State Superintendent of

Education. The resolution shall still take effect even though a

copy of the resolution has not been sent to the State

Superintendent of Education in a timely manner. No

classification under this subsection (h) by a district shall

affect the total amount or timing of money the district is

entitled to receive under this Code. No classification under

this subsection (h) by a district shall in any way relieve the

district from or affect any requirements that otherwise would

apply with respect to the block grant as provided in this

Section, including any accounting of funds by source, reporting

expenditures by original source and purpose, reporting

requirements, or requirements of provision of services.

(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;

97-813, eff. 7-13-12.)

(105 ILCS 5/1E-20)

(This Section scheduled to be repealed in accordance with

105 ILCS 5/1E-165)

Sec. 1E-20. Members of Authority; meetings.

(a) When a petition for a School Finance Authority is

allowed by the State Board under Section 1E-15 of this Code,

the State Superintendent shall within 10 days thereafter

appoint 5 members to serve on a School Finance Authority for

the district. Of the initial members, 2 shall be appointed to

serve a term of 2 years and 3 shall be appointed to serve a term

of 3 years. Thereafter, each member shall serve for a term of 3

years and until his or her successor has been appointed. The

State Superintendent shall designate one of the members of the

Authority to serve as its Chairperson. In the event of vacancy

or resignation, the State Superintendent shall, within 10 days

after receiving notice, appoint a successor to serve out that

member's term. The State Superintendent may remove a member for

incompetence, malfeasance, neglect of duty, or other just

cause.

Members of the Authority shall be selected primarily on the

basis of their experience and education in financial

management, with consideration given to persons knowledgeable

in education finance. Two members of the Authority shall be

residents of the school district that the Authority serves. A

member of the Authority may not be a member of the district's

school board or an employee of the district nor may a member

have a direct financial interest in the district.

Authority members shall serve without compensation, but

may be reimbursed by the State Board for travel and other

necessary expenses incurred in the performance of their

official duties. Unless paid from bonds issued under Section

1E-65 of this Code, the amount reimbursed members for their

expenses shall be charged to the school district as part of any

emergency financial assistance and incorporated as a part of

the terms and conditions for repayment of the assistance or

shall be deducted from the district's general State aid or

evidence-based funding as provided in Section 1B-8 of this

Code.

The Authority may elect such officers as it deems

appropriate.

(b) The first meeting of the Authority shall be held at the

call of the Chairperson. The Authority shall prescribe the

times and places for its meetings and the manner in which

regular and special meetings may be called and shall comply

with the Open Meetings Act.

Three members of the Authority shall constitute a quorum.

When a vote is taken upon any measure before the Authority, a

quorum being present, a majority of the votes of the members

voting on the measure shall determine the outcome.

(Source: P.A. 92-547, eff. 6-13-02.)

(105 ILCS 5/1F-20)

(This Section scheduled to be repealed in accordance with 105

ILCS 5/1F-165)

Sec. 1F-20. Members of Authority; meetings.

(a) Upon establishment of a School Finance Authority under

Section 1F-15 of this Code, the State Superintendent shall

within 15 days thereafter appoint 5 members to serve on a

School Finance Authority for the district. Of the initial

members, 2 shall be appointed to serve a term of 2 years and 3

shall be appointed to serve a term of 3 years. Thereafter, each

member shall serve for a term of 3 years and until his or her

successor has been appointed. The State Superintendent shall

designate one of the members of the Authority to serve as its

Chairperson. In the event of vacancy or resignation, the State

Superintendent shall, within 10 days after receiving notice,

appoint a successor to serve out that member's term. The State

Superintendent may remove a member for incompetence,

malfeasance, neglect of duty, or other just cause.

Members of the Authority shall be selected primarily on the

basis of their experience and education in financial

management, with consideration given to persons knowledgeable

in education finance. Two members of the Authority shall be

residents of the school district that the Authority serves. A

member of the Authority may not be a member of the district's

school board or an employee of the district nor may a member

have a direct financial interest in the district.

Authority members shall be paid a stipend approved by the

State Superintendent of not more than $100 per meeting and may

be reimbursed by the State Board for travel and other necessary

expenses incurred in the performance of their official duties.

Unless paid from bonds issued under Section 1F-65 of this Code,

the amount reimbursed members for their expenses shall be

charged to the school district as part of any emergency

financial assistance and incorporated as a part of the terms

and conditions for repayment of the assistance or shall be

deducted from the district's general State aid or

evidence-based funding as provided in Section 1B-8 of this

Code.

The Authority may elect such officers as it deems

appropriate.

(b) The first meeting of the Authority shall be held at the

call of the Chairperson. The Authority shall prescribe the

times and places for its meetings and the manner in which

regular and special meetings may be called and shall comply

with the Open Meetings Act.

Three members of the Authority shall constitute a quorum.

When a vote is taken upon any measure before the Authority, a

quorum being present, a majority of the votes of the members

voting on the measure shall determine the outcome.

(Source: P.A. 94-234, eff. 7-1-06.)

(105 ILCS 5/1F-62)

(This Section scheduled to be repealed in accordance with 105

ILCS 5/1F-165)

Sec. 1F-62. School District Emergency Financial Assistance

Fund; grants and loans.

(a) Moneys in the School District Emergency Financial

Assistance Fund established under Section 1B-8 of this Code may

be allocated and expended by the State Board as grants to

provide technical and consulting services to school districts

to assess their financial condition and by the Illinois Finance

Authority for emergency financial assistance loans to a School

Finance Authority that petitions for emergency financial

assistance. An emergency financial assistance loan to a School

Finance Authority or borrowing from sources other than the

State shall not be considered as part of the calculation of a

district's debt for purposes of the limitation specified in

Section 19-1 of this Code. From the amount allocated to each

School Finance Authority, the State Board shall identify a sum

sufficient to cover all approved costs of the School Finance

Authority. If the State Board and State Superintendent have not

approved emergency financial assistance in conjunction with

the appointment of a School Finance Authority, the Authority's

approved costs shall be paid from deductions from the

district's general State aid or evidence-based funding.

The School Finance Authority may prepare and file with the

State Superintendent a proposal for emergency financial

assistance for the school district and for its operations

budget. No expenditures shall be authorized by the State

Superintendent until he or she has approved the proposal of the

School Finance Authority, either as submitted or in such lesser

amount determined by the State Superintendent.

(b) The amount of an emergency financial assistance loan

that may be allocated to a School Finance Authority under this

Article, including moneys necessary for the operations of the

School Finance Authority, and borrowing from sources other than

the State shall not exceed, in the aggregate, $4,000 times the

number of pupils enrolled in the district during the school

year ending June 30 prior to the date of approval by the State

Board of the petition for emergency financial assistance, as

certified to the school board and the School Finance Authority

by the State Superintendent. However, this limitation does not

apply to borrowing by the district secured by amounts levied by

the district prior to establishment of the School Finance

Authority. An emergency financial assistance grant shall not

exceed $1,000 times the number of such pupils. A district may

receive both a loan and a grant.

(c) The payment of a State emergency financial assistance

grant or loan shall be subject to appropriation by the General

Assembly. State emergency financial assistance allocated and

paid to a School Finance Authority under this Article may be

applied to any fund or funds from which the School Finance

Authority is authorized to make expenditures by law.

(d) Any State emergency financial assistance proposed by

the School Finance Authority and approved by the State

Superintendent may be paid in its entirety during the initial

year of the School Finance Authority's existence or spread in

equal or declining amounts over a period of years not to exceed

the period of the School Finance Authority's existence. The

State Superintendent shall not approve any loan to the School

Finance Authority unless the School Finance Authority has been

unable to borrow sufficient funds to operate the district.

All loan payments made from the School District Emergency

Financial Assistance Fund to a School Finance Authority shall

be required to be repaid not later than the date the School

Finance Authority ceases to exist, with simple interest over

the term of the loan at a rate equal to 50% of the one-year

Constant Maturity Treasury (CMT) yield as last published by the

Board of Governors of the Federal Reserve System before the

date on which the School Finance Authority's loan is approved

by the State Board.

The School Finance Authority shall establish and the

Illinois Finance Authority shall approve the terms and

conditions of the loan, including the schedule of repayments.

The schedule shall provide for repayments commencing July 1 of

each year or upon each fiscal year's receipt of moneys from a

tax levy for emergency financial assistance. Repayment shall be

incorporated into the annual budget of the district and may be

made from any fund or funds of the district in which there are

moneys available. Default on repayment is subject to the

Illinois Grant Funds Recovery Act. When moneys are repaid as

provided in this Section, they shall not be made available to

the School Finance Authority for further use as emergency

financial assistance under this Article at any time thereafter.

All repayments required to be made by a School Finance

Authority shall be received by the State Board and deposited in

the School District Emergency Financial Assistance Fund.

In establishing the terms and conditions for the repayment

obligation of the School Finance Authority, the School Finance

Authority shall annually determine whether a separate local

property tax levy is required to meet that obligation. The

School Finance Authority shall provide for a separate tax levy

for emergency financial assistance repayment purposes. This

tax levy shall not be subject to referendum approval. The

amount of the levy shall not exceed the amount necessary to

meet the annual emergency financial repayment obligations of

the district, including principal and interest, as established

by the School Finance Authority.

(Source: P.A. 94-234, eff. 7-1-06.)

(105 ILCS 5/1H-20)

Sec. 1H-20. Members of Panel; meetings.

(a) Upon establishment of a Financial Oversight Panel under

Section 1H-15 of this Code, the State Superintendent shall

within 15 working days thereafter appoint 5 members to serve on

a Financial Oversight Panel for the district. Members appointed

to the Panel shall serve at the pleasure of the State

Superintendent. The State Superintendent shall designate one

of the members of the Panel to serve as its Chairperson. In the

event of vacancy or resignation, the State Superintendent

shall, within 10 days after receiving notice, appoint a

successor to serve out that member's term.

(b) Members of the Panel shall be selected primarily on the

basis of their experience and education in financial

management, with consideration given to persons knowledgeable

in education finance. Two members of the Panel shall be

residents of the school district that the Panel serves. A

member of the Panel may not be a member of the district's

school board or an employee of the district nor may a member

have a direct financial interest in the district.

(c) Panel members may be reimbursed by the State Board for

travel and other necessary expenses incurred in the performance

of their official duties. The amount reimbursed members for

their expenses shall be charged to the school district as part

of any emergency financial assistance and incorporated as a

part of the terms and conditions for repayment of the

assistance or shall be deducted from the district's general

State aid or evidence-based funding as provided in Section

1H-65 of this Code.

(d) With the exception of the chairperson, who shall be

designated as provided in subsection (a) of this Section, the

Panel may elect such officers as it deems appropriate.

(e) The first meeting of the Panel shall be held at the

call of the Chairperson. The Panel shall prescribe the times

and places for its meetings and the manner in which regular and

special meetings may be called and shall comply with the Open

Meetings Act. The Panel shall also comply with the Freedom of

Information Act.

(f) Three members of the Panel shall constitute a quorum. A

majority of members present is required to pass a measure.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/1H-70)

Sec. 1H-70. Tax anticipation warrants, tax anticipation

notes, revenue anticipation certificates or notes, general

State aid or evidence-based funding anticipation certificates,

and lines of credit. With the approval of the State

Superintendent and provided that the district is unable to

secure short-term financing after 3 attempts, a Panel shall

have the same power as a district to do the following:

(1) issue tax anticipation warrants under the

provisions of Section 17-16 of this Code against taxes

levied by either the school board or the Panel pursuant to

Section 1H-25 of this Code;

(2) issue tax anticipation notes under the provisions

of the Tax Anticipation Note Act against taxes levied by

either the school board or the Panel pursuant to Section

1H-25 of this Code;

(3) issue revenue anticipation certificates or notes

under the provisions of the Revenue Anticipation Act;

(4) issue general State aid or evidence-based funding

anticipation certificates under the provisions of Section

18-18 of this Code; and

(5) establish and utilize lines of credit under the

provisions of Section 17-17 of this Code.

Tax anticipation warrants, tax anticipation notes, revenue

anticipation certificates or notes, general State aid or

evidence-based funding anticipation certificates, and lines of

credit are considered borrowing from sources other than the

State and are subject to Section 1H-65 of this Code.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/2-3.25g) (from Ch. 122, par. 2-3.25g)

Sec. 2-3.25g. Waiver or modification of mandates within the

School Code and administrative rules and regulations.

(a) In this Section:

"Board" means a school board or the governing board or

administrative district, as the case may be, for a joint

agreement.

"Eligible applicant" means a school district, joint

agreement made up of school districts, or regional

superintendent of schools on behalf of schools and programs

operated by the regional office of education.

"Implementation date" has the meaning set forth in

Section 24A-2.5 of this Code.

"State Board" means the State Board of Education.

(b) Notwithstanding any other provisions of this School

Code or any other law of this State to the contrary, eligible

applicants may petition the State Board of Education for the

waiver or modification of the mandates of this School Code or

of the administrative rules and regulations promulgated by the

State Board of Education. Waivers or modifications of

administrative rules and regulations and modifications of

mandates of this School Code may be requested when an eligible

applicant demonstrates that it can address the intent of the

rule or mandate in a more effective, efficient, or economical

manner or when necessary to stimulate innovation or improve

student performance. Waivers of mandates of the School Code may

be requested when the waivers are necessary to stimulate

innovation or improve student performance or when the applicant

demonstrates that it can address the intent of the mandate of

the School Code in a more effective, efficient, or economical

manner. Waivers may not be requested from laws, rules, and

regulations pertaining to special education, teacher educator

licensure, teacher tenure and seniority, or Section 5-2.1 of

this Code or from compliance with the Every Student Succeeds

Act (Public Law 114-95) No Child Left Behind Act of 2001

(Public Law 107-110). Eligible applicants may not seek a waiver

or seek a modification of a mandate regarding the requirements

for (i) student performance data to be a significant factor in

teacher or principal evaluations or (ii) teachers and

principals to be rated using the 4 categories of "excellent",

"proficient", "needs improvement", or "unsatisfactory". On

September 1, 2014, any previously authorized waiver or

modification from such requirements shall terminate.

(c) Eligible applicants, as a matter of inherent managerial

policy, and any Independent Authority established under

Section 2-3.25f-5 of this Code may submit an application for a

waiver or modification authorized under this Section. Each

application must include a written request by the eligible

applicant or Independent Authority and must demonstrate that

the intent of the mandate can be addressed in a more effective,

efficient, or economical manner or be based upon a specific

plan for improved student performance and school improvement.

Any eligible applicant requesting a waiver or modification for

the reason that intent of the mandate can be addressed in a

more economical manner shall include in the application a

fiscal analysis showing current expenditures on the mandate and

projected savings resulting from the waiver or modification.

Applications and plans developed by eligible applicants must be

approved by the board or regional superintendent of schools

applying on behalf of schools or programs operated by the

regional office of education following a public hearing on the

application and plan and the opportunity for the board or

regional superintendent to hear testimony from staff directly

involved in its implementation, parents, and students. The time

period for such testimony shall be separate from the time

period established by the eligible applicant for public comment

on other matters. If the applicant is a school district or

joint agreement requesting a waiver or modification of Section

27-6 of this Code, the public hearing shall be held on a day

other than the day on which a regular meeting of the board is

held.

(c-5) If the applicant is a school district, then the

district shall post information that sets forth the time, date,

place, and general subject matter of the public hearing on its

Internet website at least 14 days prior to the hearing. If the

district is requesting to increase the fee charged for driver

education authorized pursuant to Section 27-24.2 of this Code,

the website information shall include the proposed amount of

the fee the district will request. All school districts must

publish a notice of the public hearing at least 7 days prior to

the hearing in a newspaper of general circulation within the

school district that sets forth the time, date, place, and

general subject matter of the hearing. Districts requesting to

increase the fee charged for driver education shall include in

the published notice the proposed amount of the fee the

district will request. If the applicant is a joint agreement or

regional superintendent, then the joint agreement or regional

superintendent shall post information that sets forth the time,

date, place, and general subject matter of the public hearing

on its Internet website at least 14 days prior to the hearing.

If the joint agreement or regional superintendent is requesting

to increase the fee charged for driver education authorized

pursuant to Section 27-24.2 of this Code, the website

information shall include the proposed amount of the fee the

applicant will request. All joint agreements and regional

superintendents must publish a notice of the public hearing at

least 7 days prior to the hearing in a newspaper of general

circulation in each school district that is a member of the

joint agreement or that is served by the educational service

region that sets forth the time, date, place, and general

subject matter of the hearing, provided that a notice appearing

in a newspaper generally circulated in more than one school

district shall be deemed to fulfill this requirement with

respect to all of the affected districts. Joint agreements or

regional superintendents requesting to increase the fee

charged for driver education shall include in the published

notice the proposed amount of the fee the applicant will

request. The eligible applicant must notify in writing the

affected exclusive collective bargaining agent and those State

legislators representing the eligible applicant's territory of

its intent to seek approval of a waiver or modification and of

the hearing to be held to take testimony from staff. The

affected exclusive collective bargaining agents shall be

notified of such public hearing at least 7 days prior to the

date of the hearing and shall be allowed to attend such public

hearing. The eligible applicant shall attest to compliance with

all of the notification and procedural requirements set forth

in this Section.

(d) A request for a waiver or modification of

administrative rules and regulations or for a modification of

mandates contained in this School Code shall be submitted to

the State Board of Education within 15 days after approval by

the board or regional superintendent of schools. The

application as submitted to the State Board of Education shall

include a description of the public hearing. Except with

respect to contracting for adaptive driver education, an

eligible applicant wishing to request a modification or waiver

of administrative rules of the State Board of Education

regarding contracting with a commercial driver training school

to provide the course of study authorized under Section 27-24.2

of this Code must provide evidence with its application that

the commercial driver training school with which it will

contract holds a license issued by the Secretary of State under

Article IV of Chapter 6 of the Illinois Vehicle Code and that

each instructor employed by the commercial driver training

school to provide instruction to students served by the school

district holds a valid teaching certificate or teaching

license, as applicable, issued under the requirements of this

Code and rules of the State Board of Education. Such evidence

must include, but need not be limited to, a list of each

instructor assigned to teach students served by the school

district, which list shall include the instructor's name,

personal identification number as required by the State Board

of Education, birth date, and driver's license number. If the

modification or waiver is granted, then the eligible applicant

shall notify the State Board of Education of any changes in the

personnel providing instruction within 15 calendar days after

an instructor leaves the program or a new instructor is hired.

Such notification shall include the instructor's name,

personal identification number as required by the State Board

of Education, birth date, and driver's license number. If a

school district maintains an Internet website, then the

district shall post a copy of the final contract between the

district and the commercial driver training school on the

district's Internet website. If no Internet website exists,

then the district shall make available the contract upon

request. A record of all materials in relation to the

application for contracting must be maintained by the school

district and made available to parents and guardians upon

request. The instructor's date of birth and driver's license

number and any other personally identifying information as

deemed by the federal Driver's Privacy Protection Act of 1994

must be redacted from any public materials. Following receipt

of the waiver or modification request, the State Board shall

have 45 days to review the application and request. If the

State Board fails to disapprove the application within that 45

day period, the waiver or modification shall be deemed granted.

The State Board may disapprove any request if it is not based

upon sound educational practices, endangers the health or

safety of students or staff, compromises equal opportunities

for learning, or fails to demonstrate that the intent of the

rule or mandate can be addressed in a more effective,

efficient, or economical manner or have improved student

performance as a primary goal. Any request disapproved by the

State Board may be appealed to the General Assembly by the

eligible applicant as outlined in this Section.

A request for a waiver from mandates contained in this

School Code shall be submitted to the State Board within 15

days after approval by the board or regional superintendent of

schools. The application as submitted to the State Board of

Education shall include a description of the public hearing.

The description shall include, but need not be limited to, the

means of notice, the number of people in attendance, the number

of people who spoke as proponents or opponents of the waiver, a

brief description of their comments, and whether there were any

written statements submitted. The State Board shall review the

applications and requests for completeness and shall compile

the requests in reports to be filed with the General Assembly.

The State Board shall file reports outlining the waivers

requested by eligible applicants and appeals by eligible

applicants of requests disapproved by the State Board with the

Senate and the House of Representatives before each March 1 and

October 1.

The report shall be reviewed by a panel of 4 members

consisting of:

(1) the Speaker of the House of Representatives;

(2) the Minority Leader of the House of

Representatives;

(3) the President of the Senate; and

(4) the Minority Leader of the Senate.

The State Board of Education may provide the panel

recommendations on waiver requests. The members of the panel

shall review the report submitted by the State Board of

Education and submit to the State Board of Education any notice

of further consideration to any waiver request within 14 days

after the member receives the report. If 3 or more of the panel

members submit a notice of further consideration to any waiver

request contained within the report, the State Board of

Education shall submit the waiver request to the General

Assembly for consideration. If less than 3 panel members submit

a notice of further consideration to a waiver request, the

waiver may be approved, denied, or modified by the State Board.

If the State Board does not act on a waiver request within 10

days, then the waiver request is approved. If the waiver

request is denied by the State Board, it shall submit the

waiver request to the General Assembly for consideration.

The General Assembly may disapprove any waiver request

submitted to the General Assembly pursuant to this subsection

(d) the report of the State Board in whole or in part within 60

calendar days after each house of the General Assembly next

convenes after the waiver request is submitted report is filed

by adoption of a resolution by a record vote of the majority of

members elected in each house. If the General Assembly fails to

disapprove any waiver request or appealed request within such

60 day period, the waiver or modification shall be deemed

granted. Any resolution adopted by the General Assembly

disapproving a report of the State Board in whole or in part

shall be binding on the State Board.

(e) An approved waiver or modification (except a waiver

from or modification to a physical education mandate) may

remain in effect for a period not to exceed 5 school years and

may be renewed upon application by the eligible applicant.

However, such waiver or modification may be changed within that

5-year period by a board or regional superintendent of schools

applying on behalf of schools or programs operated by the

regional office of education following the procedure as set

forth in this Section for the initial waiver or modification

request. If neither the State Board of Education nor the

General Assembly disapproves, the change is deemed granted.

An approved waiver from or modification to a physical

education mandate may remain in effect for a period not to

exceed 2 school years and may be renewed no more than 2 times

upon application by the eligible applicant. An approved waiver

from or modification to a physical education mandate may be

changed within the 2-year period by the board or regional

superintendent of schools, whichever is applicable, following

the procedure set forth in this Section for the initial waiver

or modification request. If neither the State Board of

Education nor the General Assembly disapproves, the change is

deemed granted.

(f) (Blank).

(Source: P.A. 98-513, eff. 1-1-14; 98-739, eff. 7-16-14;

98-1155, eff. 1-9-15; 99-78, eff. 7-20-15.)

(105 ILCS 5/2-3.33) (from Ch. 122, par. 2-3.33)

Sec. 2-3.33. Recomputation of claims. To recompute within

3 years from the final date for filing of a claim any claim for

general State aid reimbursement to any school district and one

year from the final date for filing of a claim for

evidence-based funding if the claim has been found to be

incorrect and to adjust subsequent claims accordingly, and to

recompute and adjust any such claims within 6 years from the

final date for filing when there has been an adverse court or

administrative agency decision on the merits affecting the tax

revenues of the school district. However, no such adjustment

shall be made regarding equalized assessed valuation unless the

district's equalized assessed valuation is changed by greater

than $250,000 or 2%. Any adjustments for claims recomputed for

the 2016-2017 school year and prior school years shall be

applied to the apportionment of evidence-based funding in

Section 18-8.15 of this Code beginning in the 2017-2018 school

year and thereafter. However, the recomputation of a claim for

evidence-based funding for a school district shall not require

the recomputation of claims for all districts, and the State

Board of Education shall only make recomputations of

evidence-based funding for those districts where an adjustment

is required.

Except in the case of an adverse court or administrative

agency decision, no recomputation of a State aid claim shall be

made pursuant to this Section as a result of a reduction in the

assessed valuation of a school district from the assessed

valuation of the district reported to the State Board of

Education by the Department of Revenue under Section 18-8.05 or

18-8.15 of this Code unless the requirements of Section 16-15

of the Property Tax Code and Section 2-3.84 of this Code are

complied with in all respects.

This paragraph applies to all requests for recomputation of

a general State aid or evidence-based funding claim received

after June 30, 2003. In recomputing a general State aid or

evidence-based funding claim that was originally calculated

using an extension limitation equalized assessed valuation

under paragraph (3) of subsection (G) of Section 18-8.05 of

this Code or Section 18-8.15 of this Code, a qualifying

reduction in equalized assessed valuation shall be deducted

from the extension limitation equalized assessed valuation

that was used in calculating the original claim.

From the total amount of general State aid or

evidence-based funding to be provided to districts,

adjustments as a result of recomputation under this Section

together with adjustments under Section 2-3.84 must not exceed

$25 million, in the aggregate for all districts under both

Sections combined, of the general State aid or evidence-based

funding appropriation in any fiscal year; if necessary, amounts

shall be prorated among districts. If it is necessary to

prorate claims under this paragraph, then that portion of each

prorated claim that is approved but not paid in the current

fiscal year may be resubmitted as a valid claim in the

following fiscal year.

(Source: P.A. 93-845, eff. 7-30-04.)

(105 ILCS 5/2-3.51.5)

Sec. 2-3.51.5. School Safety and Educational Improvement

Block Grant Program. To improve the level of education and

safety of students from kindergarten through grade 12 in school

districts and State-recognized, non-public schools. The State

Board of Education is authorized to fund a School Safety and

Educational Improvement Block Grant Program.

(1) For school districts, the program shall provide funding

for school safety, textbooks and software, electronic

textbooks and the technological equipment necessary to gain

access to and use electronic textbooks, teacher training and

curriculum development, school improvements, school report

cards under Section 10-17a, and criminal history records checks

under Sections 10-21.9 and 34-18.5. For State-recognized,

non-public schools, the program shall provide funding for

secular textbooks and software, criminal history records

checks, and health and safety mandates to the extent that the

funds are expended for purely secular purposes. A school

district or laboratory school as defined in Section 18-8, or

18-8.05, or 18-8.15 is not required to file an application in

order to receive the categorical funding to which it is

entitled under this Section. Funds for the School Safety and

Educational Improvement Block Grant Program shall be

distributed to school districts and laboratory schools based on

the prior year's best 3 months average daily attendance. Funds

for the School Safety and Educational Improvement Block Grant

Program shall be distributed to State-recognized, non-public

schools based on the average daily attendance figure for the

previous school year provided to the State Board of Education.

The State Board of Education shall develop an application that

requires State-recognized, non-public schools to submit

average daily attendance figures. A State-recognized,

non-public school must submit the application and average daily

attendance figure prior to receiving funds under this Section.

The State Board of Education shall promulgate rules and

regulations necessary for the implementation of this program.

(2) Distribution of moneys to school districts and

State-recognized, non-public schools shall be made in 2

semi-annual installments, one payment on or before October 30,

and one payment prior to April 30, of each fiscal year.

(3) Grants under the School Safety and Educational

Improvement Block Grant Program shall be awarded provided there

is an appropriation for the program, and funding levels for

each district shall be prorated according to the amount of the

appropriation.

(4) The provisions of this Section are in the public

interest, are for the public benefit, and serve secular public

purposes.

(Source: P.A. 98-972, eff. 8-15-14.)

(105 ILCS 5/2-3.66) (from Ch. 122, par. 2-3.66)

Sec. 2-3.66. Truants' alternative and optional education

programs. To establish projects to offer modified

instructional programs or other services designed to prevent

students from dropping out of school, including programs

pursuant to Section 2-3.41, and to serve as a part time or full

time option in lieu of regular school attendance and to award

grants to local school districts, educational service regions

or community college districts from appropriated funds to

assist districts in establishing such projects. The education

agency may operate its own program or enter into a contract

with another not-for-profit entity to implement the program.

The projects shall allow dropouts, up to and including age 21,

potential dropouts, including truants, uninvolved, unmotivated

and disaffected students, as defined by State Board of

Education rules and regulations, to enroll, as an alternative

to regular school attendance, in an optional education program

which may be established by school board policy and is in

conformance with rules adopted by the State Board of Education.

Truants' Alternative and Optional Education programs funded

pursuant to this Section shall be planned by a student, the

student's parents or legal guardians, unless the student is 18

years or older, and school officials and shall culminate in an

individualized optional education plan. Such plan shall focus

on academic or vocational skills, or both, and may include, but

not be limited to, evening school, summer school, community

college courses, adult education, preparation courses for high

school equivalency testing, vocational training, work

experience, programs to enhance self concept and parenting

courses. School districts which are awarded grants pursuant to

this Section shall be authorized to provide day care services

to children of students who are eligible and desire to enroll

in programs established and funded under this Section, but only

if and to the extent that such day care is necessary to enable

those eligible students to attend and participate in the

programs and courses which are conducted pursuant to this

Section. School districts and regional offices of education may

claim general State aid under Section 18-8.05 or evidence-based

funding under Section 18-8.15 for students enrolled in truants'

alternative and optional education programs, provided that

such students are receiving services that are supplemental to a

program leading to a high school diploma and are otherwise

eligible to be claimed for general State aid under Section

18-8.05 or evidence-based funding under Section 18-8.15, as

applicable.

(Source: P.A. 98-718, eff. 1-1-15.)

(105 ILCS 5/2-3.66b)

Sec. 2-3.66b. IHOPE Program.

(a) There is established the Illinois Hope and Opportunity

Pathways through Education (IHOPE) Program. The State Board of

Education shall implement and administer the IHOPE Program. The

goal of the IHOPE Program is to develop a comprehensive system

in this State to re-enroll significant numbers of high school

dropouts in programs that will enable them to earn their high

school diploma.

(b) The IHOPE Program shall award grants, subject to

appropriation for this purpose, to educational service regions

and a school district organized under Article 34 of this Code

from appropriated funds to assist in establishing

instructional programs and other services designed to

re-enroll high school dropouts. From any funds appropriated for

the IHOPE Program, the State Board of Education may use up to

5% for administrative costs, including the performance of a

program evaluation and the hiring of staff to implement and

administer the program.

The IHOPE Program shall provide incentive grant funds for

regional offices of education and a school district organized

under Article 34 of this Code to develop partnerships with

school districts, public community colleges, and community

groups to build comprehensive plans to re-enroll high school

dropouts in their regions or districts.

Programs funded through the IHOPE Program shall allow high

school dropouts, up to and including age 21 notwithstanding

Section 26-2 of this Code, to re-enroll in an educational

program in conformance with rules adopted by the State Board of

Education. Programs may include without limitation

comprehensive year-round programming, evening school, summer

school, community college courses, adult education, vocational

training, work experience, programs to enhance self-concept,

and parenting courses. Any student in the IHOPE Program who

wishes to earn a high school diploma must meet the

prerequisites to receiving a high school diploma specified in

Section 27-22 of this Code and any other graduation

requirements of the student's district of residence. Any

student who successfully completes the requirements for his or

her graduation shall receive a diploma identifying the student

as graduating from his or her district of residence.

(c) In order to be eligible for funding under the IHOPE

Program, an interested regional office of education or a school

district organized under Article 34 of this Code shall develop

an IHOPE Plan to be approved by the State Board of Education.

The State Board of Education shall develop rules for the IHOPE

Program that shall set forth the requirements for the

development of the IHOPE Plan. Each Plan shall involve school

districts, public community colleges, and key community

programs that work with high school dropouts located in an

educational service region or the City of Chicago before the

Plan is sent to the State Board for approval. No funds may be

distributed to a regional office of education or a school

district organized under Article 34 of this Code until the

State Board has approved the Plan.

(d) A regional office of education or a school district

organized under Article 34 of this Code may operate its own

program funded by the IHOPE Program or enter into a contract

with other not-for-profit entities, including school

districts, public community colleges, and not-for-profit

community-based organizations, to operate a program.

A regional office of education or a school district

organized under Article 34 of this Code that receives an IHOPE

grant from the State Board of Education may provide funds under

a sub-grant, as specified in the IHOPE Plan, to other

not-for-profit entities to provide services according to the

IHOPE Plan that was developed. These other entities may include

school districts, public community colleges, or not-for-profit

community-based organizations or a cooperative partnership

among these entities.

(e) In order to distribute funding based upon the need to

ensure delivery of programs that will have the greatest impact,

IHOPE Program funding must be distributed based upon the

proportion of dropouts in the educational service region or

school district, in the case of a school district organized

under Article 34 of this Code, to the total number of dropouts

in this State. This formula shall employ the dropout data

provided by school districts to the State Board of Education.

A regional office of education or a school district

organized under Article 34 of this Code may claim State aid

under Section 18-8.05 or 18-8.15 of this Code for students

enrolled in a program funded by the IHOPE Program, provided

that the State Board of Education has approved the IHOPE Plan

and that these students are receiving services that are meeting

the requirements of Section 27-22 of this Code for receipt of a

high school diploma and are otherwise eligible to be claimed

for general State aid under Section 18-8.05 of this Code or

evidence-based funding under Section 18-8.15 of this Code,

including provisions related to the minimum number of days of

pupil attendance pursuant to Section 10-19 of this Code and the

minimum number of daily hours of school work and any exceptions

thereto as defined by the State Board of Education in rules.

(f) IHOPE categories of programming may include the

following:

(1) Full-time programs that are comprehensive,

year-round programs.

(2) Part-time programs combining work and study

scheduled at various times that are flexible to the needs

of students.

(3) Online programs and courses in which students take

courses and complete on-site, supervised tests that

measure the student's mastery of a specific course needed

for graduation. Students may take courses online and earn

credit or students may prepare to take supervised tests for

specific courses for credit leading to receipt of a high

school diploma.

(4) Dual enrollment in which students attend high

school classes in combination with community college

classes or students attend community college classes while

simultaneously earning high school credit and eventually a

high school diploma.

(g) In order to have successful comprehensive programs

re-enrolling and graduating low-skilled high school dropouts,

programs funded through the IHOPE Program shall include all of

the following components:

(1) Small programs (70 to 100 students) at a separate

school site with a distinct identity. Programs may be

larger with specific need and justification, keeping in

mind that it is crucial to keep programs small to be

effective.

(2) Specific performance-based goals and outcomes and

measures of enrollment, attendance, skills, credits,

graduation, and the transition to college, training, and

employment.

(3) Strong, experienced leadership and teaching staff

who are provided with ongoing professional development.

(4) Voluntary enrollment.

(5) High standards for student learning, integrating

work experience, and education, including during the

school year and after school, and summer school programs

that link internships, work, and learning.

(6) Comprehensive programs providing extensive support

services.

(7) Small teams of students supported by full-time paid

mentors who work to retain and help those students

graduate.

(8) A comprehensive technology learning center with

Internet access and broad-based curriculum focusing on

academic and career subject areas.

(9) Learning opportunities that incorporate action

into study.

(h) Programs funded through the IHOPE Program must report

data to the State Board of Education as requested. This

information shall include, but is not limited to, student

enrollment figures, attendance information, course completion

data, graduation information, and post-graduation information,

as available.

(i) Rules must be developed by the State Board of Education

to set forth the fund distribution process to regional offices

of education and a school district organized under Article 34

of this Code, the planning and the conditions upon which an

IHOPE Plan would be approved by State Board, and other rules to

develop the IHOPE Program.

(Source: P.A. 96-106, eff. 7-30-09.)

(105 ILCS 5/2-3.84) (from Ch. 122, par. 2-3.84)

Sec. 2-3.84. In calculating the amount of State aid to be

apportioned to the various school districts in this State, the

State Board of Education shall incorporate and deduct the total

aggregate adjustments to assessments made by the State Property

Tax Appeal Board or Cook County Board of Appeals, as reported

pursuant to Section 16-15 of the Property Tax Code or Section

129.1 of the Revenue Act of 1939 by the Department of Revenue,

from the equalized assessed valuation that is otherwise to be

utilized in the initial calculation.

From the total amount of general State aid or

evidence-based funding to be provided to districts,

adjustments under this Section together with adjustments as a

result of recomputation under Section 2-3.33 must not exceed

$25 million, in the aggregate for all districts under both

Sections combined, of the general State aid or evidence-based

funding appropriation in any fiscal year; if necessary, amounts

shall be prorated among districts. If it is necessary to

prorate claims under this paragraph, then that portion of each

prorated claim that is approved but not paid in the current

fiscal year may be resubmitted as a valid claim in the

following fiscal year.

(Source: P.A. 93-845, eff. 7-30-04.)

(105 ILCS 5/2-3.109a)

Sec. 2-3.109a. Laboratory schools grant eligibility. A

laboratory school as defined in Section 18-8 or 18-8.15 may

apply for and be eligible to receive, subject to the same

restrictions applicable to school districts, any grant

administered by the State Board of Education that is available

for school districts.

(Source: P.A. 90-566, eff. 1-2-98.)

(105 ILCS 5/2-3.170 new)

Sec. 2-3.170. Property tax relief pool grants.

(a) As used in this Section,

"Property tax multiplier" equals one minus the square of

the school district's Local Capacity Percentage, as defined in

Section 18-8.15 of this Code.

"State Board" means the State Board of Education.

"Unit equivalent tax rate" means the Adjusted Operating Tax

Rate, as defined in Section 18-8.15 of this Code, multiplied by

a factor of 1 for unit school districts, 13/9 for elementary

school districts, and 13/4 for high school districts.

(b) Subject to appropriation, the State Board shall provide

grants to eligible school districts that provide tax relief to

the school district's residents, up to a limit of 1% of the

school district's equalized assessed value, as provided in this

Section.

(c) By August 1 of each year, the State Board shall publish

an estimated threshold unit equivalent tax rate. School

districts whose adjusted operating tax rate, as defined in this

Section, is greater than the estimated threshold unit

equivalent tax rate are eligible for relief under this Section.

This estimated tax rate shall be based on the most recent

available data provided by school districts pursuant to Section

18-8.15 of this Code. The State Board shall estimate this

property tax rate based on the amount appropriated to the grant

program and the assumption that a set of school districts,

based on criteria established by the State Board, will apply

for grants under this Section. The criteria shall be based on

reasonable assumptions about when school districts will apply

for the grant.

(d) School districts seeking grants under this Section

shall apply to the State Board by October 1 of each year. All

applications to the State Board for grants shall include the

amount of the grant requested.

(e) By December 1 of each year, based on the most recent

available data provided by school districts pursuant to Section

18-8.15 of this Code, the State Board shall calculate the unit

equivalent tax rate, based on the applications received by the

State Board, above which the appropriations are sufficient to

provide relief and publish a list of the school districts

eligible for relief.

(f) The State Board shall publish a final list of grant

recipients and provide payment of the grants by January 15 of

each year.

(g) If payment from the State Board is received by the

school district on time, the school district shall reduce its

property tax levy in an amount equal to the grant received

under this Section.

(h) The total grant to a school district under this Section

shall be calculated based on the total amount of reduction in

the school district's aggregate extension, up to a limit of 1%

of a district's equalized assessed value for a unit school

district, 0.69% for an elementary school district, and 0.31%

for a high school district, multiplied by the property tax

multiplier or the amount that the unit equivalent tax rate is

greater than the rate determined by the State Board, whichever

is less.

(i) If the State Board does not expend all appropriations

allocated pursuant to this Section, then any remaining funds

shall be allocated pursuant to Section 18-8.15 of this Code.

(j) The State Board shall prioritize payments under Section

18-8.15 of this Code over payments under this Section, if

necessary.

(k) Any grants received by a school district shall be

included in future calculations of that school district's Base

Funding Minimum under Section 18-8.15 of this Code.

(l) In the tax year following receipt of a Property Tax

Pool Relief Grant, the aggregate levy of any school district

receiving a grant under this Section, for purposes of the

Property Tax Extension Limitation Law, shall include the tax

relief the school district provided in the previous taxable

year under this Section.

(105 ILCS 5/3-14.21) (from Ch. 122, par. 3-14.21)

Sec. 3-14.21. Inspection of schools.

(a) The regional superintendent shall inspect and survey

all public schools under his or her supervision and notify the

board of education, or the trustees of schools in a district

with trustees, in writing before July 30, whether or not the

several schools in their district have been kept as required by

law, using forms provided by the State Board of Education which

are based on the Health/Life Safety Code for Public Schools

adopted under Section 2-3.12. The regional superintendent

shall report his or her findings to the State Board of

Education on forms provided by the State Board of Education.

(b) If the regional superintendent determines that a school

board has failed in a timely manner to correct urgent items

identified in a previous life-safety report completed under

Section 2-3.12 or as otherwise previously ordered by the

regional superintendent, the regional superintendent shall

order the school board to adopt and submit to the regional

superintendent a plan for the immediate correction of the

building violations. This plan shall be adopted following a

public hearing that is conducted by the school board on the

violations and the plan and that is preceded by at least 7

days' prior notice of the hearing published in a newspaper of

general circulation within the school district. If the regional

superintendent determines in the next annual inspection that

the plan has not been completed and that the violations have

not been corrected, the regional superintendent shall submit a

report to the State Board of Education with a recommendation

that the State Board withhold from payments of general State

aid or evidence-based funding due to the district an amount

necessary to correct the outstanding violations. The State

Board, upon notice to the school board and to the regional

superintendent, shall consider the report at a meeting of the

State Board, and may order that a sufficient amount of general

State aid or evidence-based funding be withheld from payments

due to the district to correct the violations. This amount

shall be paid to the regional superintendent who shall contract

on behalf of the school board for the correction of the

outstanding violations.

(c) The Office of the State Fire Marshal or a qualified

fire official, as defined in Section 2-3.12 of this Code, to

whom the State Fire Marshal has delegated his or her authority

shall conduct an annual fire safety inspection of each school

building in this State. The State Fire Marshal or the fire

official shall coordinate its inspections with the regional

superintendent. The inspection shall be based on the fire

safety code authorized in Section 2-3.12 of this Code. Any

violations shall be reported in writing to the regional

superintendent and shall reference the specific code sections

where a discrepancy has been identified within 15 days after

the inspection has been conducted. The regional superintendent

shall address those violations that are not corrected in a

timely manner pursuant to subsection (b) of this Section. The

inspection must be at no cost to the school district.

(d) If a municipality or, in the case of an unincorporated

area, a county or, if applicable, a fire protection district

wishes to perform new construction inspections under the

jurisdiction of a regional superintendent, then the entity must

register this wish with the regional superintendent. These

inspections must be based on the building code authorized in

Section 2-3.12 of this Code. The inspections must be at no cost

to the school district.

(Source: P.A. 96-734, eff. 8-25-09.)

(105 ILCS 5/7-14A) (from Ch. 122, par. 7-14A)

Sec. 7-14A. Annexation compensation. There shall be no

accounting made after a mere change in boundaries when no new

district is created, except that those districts whose

enrollment increases by 90% or more as a result of annexing

territory detached from another district pursuant to this

Article are eligible for supplementary State aid payments in

accordance with Section 11E-135 of this Code. Eligible annexing

districts shall apply to the State Board of Education for

supplementary State aid payments by submitting enrollment

figures for the year immediately preceding and the year

immediately following the effective date of the boundary change

for both the district gaining territory and the district losing

territory. Copies of any intergovernmental agreements between

the district gaining territory and the district losing

territory detailing any transfer of fund balances and staff

must also be submitted. In all instances of changes in

boundaries, the district losing territory shall not count the

average daily attendance of pupils living in the territory

during the year preceding the effective date of the boundary

change in its claim for reimbursement under Section 18-8.05 or

18-8.15 of this Code for the school year following the

effective date of the change in boundaries and the district

receiving the territory shall count the average daily

attendance of pupils living in the territory during the year

preceding the effective date of the boundary change in its

claim for reimbursement under Section 18-8.05 or 18-8.15 of

this Code for the school year following the effective date of

the change in boundaries. The changes to this Section made by

this amendatory Act of the 95th General Assembly are intended

to be retroactive and applicable to any annexation taking

effect on or after July 1, 2004.

(Source: P.A. 99-657, eff. 7-28-16.)

(105 ILCS 5/10-17a) (from Ch. 122, par. 10-17a)

Sec. 10-17a. State, school district, and school report

cards.

(1) By October 31, 2013 and October 31 of each subsequent

school year, the State Board of Education, through the State

Superintendent of Education, shall prepare a State report card,

school district report cards, and school report cards, and

shall by the most economic means provide to each school

district in this State, including special charter districts and

districts subject to the provisions of Article 34, the report

cards for the school district and each of its schools.

(2) In addition to any information required by federal law,

the State Superintendent shall determine the indicators and

presentation of the school report card, which must include, at

a minimum, the most current data possessed by the State Board

of Education related to the following:

(A) school characteristics and student demographics,

including average class size, average teaching experience,

student racial/ethnic breakdown, and the percentage of

students classified as low-income; the percentage of

students classified as English learners; the percentage of

students who have individualized education plans or 504

plans that provide for special education services; the

percentage of students who annually transferred in or out

of the school district; the per-pupil operating

expenditure of the school district; and the per-pupil State

average operating expenditure for the district type

(elementary, high school, or unit);

(B) curriculum information, including, where

applicable, Advanced Placement, International

Baccalaureate or equivalent courses, dual enrollment

courses, foreign language classes, school personnel

resources (including Career Technical Education teachers),

before and after school programs, extracurricular

activities, subjects in which elective classes are

offered, health and wellness initiatives (including the

average number of days of Physical Education per week per

student), approved programs of study, awards received,

community partnerships, and special programs such as

programming for the gifted and talented, students with

disabilities, and work-study students;

(C) student outcomes, including, where applicable, the

percentage of students deemed proficient on assessments of

State standards, the percentage of students in the eighth

grade who pass Algebra, the percentage of students enrolled

in post-secondary institutions (including colleges,

universities, community colleges, trade/vocational

schools, and training programs leading to career

certification within 2 semesters of high school

graduation), the percentage of students graduating from

high school who are college and career ready, and the

percentage of graduates enrolled in community colleges,

colleges, and universities who are in one or more courses

that the community college, college, or university

identifies as a developmental course;

(D) student progress, including, where applicable, the

percentage of students in the ninth grade who have earned 5

credits or more without failing more than one core class, a

measure of students entering kindergarten ready to learn, a

measure of growth, and the percentage of students who enter

high school on track for college and career readiness;

(E) the school environment, including, where

applicable, the percentage of students with less than 10

absences in a school year, the percentage of teachers with

less than 10 absences in a school year for reasons other

than professional development, leaves taken pursuant to

the federal Family Medical Leave Act of 1993, long-term

disability, or parental leaves, the 3-year average of the

percentage of teachers returning to the school from the

previous year, the number of different principals at the

school in the last 6 years, 2 or more indicators from any

school climate survey selected or approved by the State and

administered pursuant to Section 2-3.153 of this Code, with

the same or similar indicators included on school report

cards for all surveys selected or approved by the State

pursuant to Section 2-3.153 of this Code, and the combined

percentage of teachers rated as proficient or excellent in

their most recent evaluation; and

(F) a school district's and its individual schools'

balanced accountability measure, in accordance with

Section 2-3.25a of this Code; .

(G) a school district's Final Percent of Adequacy, as

defined in paragraph (4) of subsection (f) of Section

18-8.15 of this Code;

(H) a school district's Local Capacity Target, as

defined in paragraph (2) of subsection (c) of Section

18-8.15 of this Code, displayed as a percentage amount; and

(I) a school district's Real Receipts, as defined in

paragraph (1) of subsection (d) of Section 18-8.15 of this

Code, divided by a school district's Adequacy Target, as

defined in paragraph (1) of subsection (b) of Section

18-8.15 of this Code, displayed as a percentage amount.

The school report card shall also provide information that

allows for comparing the current outcome, progress, and

environment data to the State average, to the school data from

the past 5 years, and to the outcomes, progress, and

environment of similar schools based on the type of school and

enrollment of low-income students, special education students,

and English learners.

(3) At the discretion of the State Superintendent, the

school district report card shall include a subset of the

information identified in paragraphs (A) through (E) of

subsection (2) of this Section, as well as information relating

to the operating expense per pupil and other finances of the

school district, and the State report card shall include a

subset of the information identified in paragraphs (A) through

(E) of subsection (2) of this Section.

(4) Notwithstanding anything to the contrary in this

Section, in consultation with key education stakeholders, the

State Superintendent shall at any time have the discretion to

amend or update any and all metrics on the school, district, or

State report card.

(5) Annually, no more than 30 calendar days after receipt

of the school district and school report cards from the State

Superintendent of Education, each school district, including

special charter districts and districts subject to the

provisions of Article 34, shall present such report cards at a

regular school board meeting subject to applicable notice

requirements, post the report cards on the school district's

Internet web site, if the district maintains an Internet web

site, make the report cards available to a newspaper of general

circulation serving the district, and, upon request, send the

report cards home to a parent (unless the district does not

maintain an Internet web site, in which case the report card

shall be sent home to parents without request). If the district

posts the report card on its Internet web site, the district

shall send a written notice home to parents stating (i) that

the report card is available on the web site, (ii) the address

of the web site, (iii) that a printed copy of the report card

will be sent to parents upon request, and (iv) the telephone

number that parents may call to request a printed copy of the

report card.

(6) Nothing contained in this amendatory Act of the 98th

General Assembly repeals, supersedes, invalidates, or

nullifies final decisions in lawsuits pending on the effective

date of this amendatory Act of the 98th General Assembly in

Illinois courts involving the interpretation of Public Act

97-8.

(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,

eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)

(105 ILCS 5/10-19) (from Ch. 122, par. 10-19)

Sec. 10-19. Length of school term - experimental programs.

Each school board shall annually prepare a calendar for the

school term, specifying the opening and closing dates and

providing a minimum term of at least 185 days to insure 176

days of actual pupil attendance, computable under Section

18-8.05 or 18-8.15, except that for the 1980-1981 school year

only 175 days of actual pupil attendance shall be required

because of the closing of schools pursuant to Section 24-2 on

January 29, 1981 upon the appointment by the President of that

day as a day of thanksgiving for the freedom of the Americans

who had been held hostage in Iran. Any days allowed by law for

teachers' institutes but not used as such or used as parental

institutes as provided in Section 10-22.18d shall increase the

minimum term by the school days not so used. Except as provided

in Section 10-19.1, the board may not extend the school term

beyond such closing date unless that extension of term is

necessary to provide the minimum number of computable days. In

case of such necessary extension school employees shall be paid

for such additional time on the basis of their regular

contracts. A school board may specify a closing date earlier

than that set on the annual calendar when the schools of the

district have provided the minimum number of computable days

under this Section. Nothing in this Section prevents the board

from employing superintendents of schools, principals and

other nonteaching personnel for a period of 12 months, or in

the case of superintendents for a period in accordance with

Section 10-23.8, or prevents the board from employing other

personnel before or after the regular school term with payment

of salary proportionate to that received for comparable work

during the school term.

A school board may make such changes in its calendar for

the school term as may be required by any changes in the legal

school holidays prescribed in Section 24-2. A school board may

make changes in its calendar for the school term as may be

necessary to reflect the utilization of teachers' institute

days as parental institute days as provided in Section

10-22.18d.

The calendar for the school term and any changes must be

submitted to and approved by the regional superintendent of

schools before the calendar or changes may take effect.

With the prior approval of the State Board of Education and

subject to review by the State Board of Education every 3

years, any school board may, by resolution of its board and in

agreement with affected exclusive collective bargaining

agents, establish experimental educational programs, including

but not limited to programs for e-learning days as authorized

under Section 10-20.56 of this Code, self-directed learning, or

outside of formal class periods, which programs when so

approved shall be considered to comply with the requirements of

this Section as respects numbers of days of actual pupil

attendance and with the other requirements of this Act as

respects courses of instruction.

(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)

(105 ILCS 5/10-22.5a) (from Ch. 122, par. 10-22.5a)

Sec. 10-22.5a. Attendance by dependents of United States

military personnel, foreign exchange students, and certain

nonresident pupils.

(a) To enter into written agreements with cultural exchange

organizations, or with nationally recognized eleemosynary

institutions that promote excellence in the arts, mathematics,

or science. The written agreements may provide for tuition free

attendance at the local district school by foreign exchange

students, or by nonresident pupils of eleemosynary

institutions. The local board of education, as part of the

agreement, may require that the cultural exchange program or

the eleemosynary institutions provide services to the district

in exchange for the waiver of nonresident tuition.

To enter into written agreements with adjacent school

districts to provide for tuition free attendance by a student

of the adjacent district when requested for the student's

health and safety by the student or parent and both districts

determine that the student's health or safety will be served by

such attendance. Districts shall not be required to enter into

such agreements nor be required to alter existing

transportation services due to the attendance of such

non-resident pupils.

(a-5) If, at the time of enrollment, a dependent of United

States military personnel is housed in temporary housing

located outside of a school district, but will be living within

the district within 60 days after the time of initial

enrollment, the dependent must be allowed to enroll, subject to

the requirements of this subsection (a-5), and must not be

charged tuition. Any United States military personnel

attempting to enroll a dependent under this subsection (a-5)

shall provide proof that the dependent will be living within

the district within 60 days after the time of initial

enrollment. Proof of residency may include, but is not limited

to, postmarked mail addressed to the military personnel and

sent to an address located within the district, a lease

agreement for occupancy of a residence located within the

district, or proof of ownership of a residence located within

the district.

(b) Nonresident pupils and foreign exchange students

attending school on a tuition free basis under such agreements

and nonresident dependents of United States military personnel

attending school on a tuition free basis may be counted for the

purposes of determining the apportionment of State aid provided

under Section 18-8.05 or 18-8.15 of this Code. No organization

or institution participating in agreements authorized under

this Section may exclude any individual for participation in

its program on account of the person's race, color, sex,

religion or nationality.

(Source: P.A. 98-739, eff. 7-16-14.)

(105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)

Sec. 10-22.20. Classes for adults and youths whose

schooling has been interrupted; conditions for State

reimbursement; use of child care facilities.

(a) To establish special classes for the instruction (1) of

persons of age 21 years or over and (2) of persons less than

age 21 and not otherwise in attendance in public school, for

the purpose of providing adults in the community and youths

whose schooling has been interrupted with such additional basic

education, vocational skill training, and other instruction as

may be necessary to increase their qualifications for

employment or other means of self-support and their ability to

meet their responsibilities as citizens, including courses of

instruction regularly accepted for graduation from elementary

or high schools and for Americanization and high school

equivalency testing review classes.

The board shall pay the necessary expenses of such classes

out of school funds of the district, including costs of student

transportation and such facilities or provision for child-care

as may be necessary in the judgment of the board to permit

maximum utilization of the courses by students with children,

and other special needs of the students directly related to

such instruction. The expenses thus incurred shall be subject

to State reimbursement, as provided in this Section. The board

may make a tuition charge for persons taking instruction who

are not subject to State reimbursement, such tuition charge not

to exceed the per capita cost of such classes.

The cost of such instruction, including the additional

expenses herein authorized, incurred for recipients of

financial aid under the Illinois Public Aid Code, or for

persons for whom education and training aid has been authorized

under Section 9-8 of that Code, shall be assumed in its

entirety from funds appropriated by the State to the Illinois

Community College Board.

(b) The Illinois Community College Board shall establish

the standards for the courses of instruction reimbursed under

this Section. The Illinois Community College Board shall

supervise the administration of the programs. The Illinois

Community College Board shall determine the cost of instruction

in accordance with standards established by the Illinois

Community College Board, including therein other incidental

costs as herein authorized, which shall serve as the basis of

State reimbursement in accordance with the provisions of this

Section. In the approval of programs and the determination of

the cost of instruction, the Illinois Community College Board

shall provide for the maximum utilization of federal funds for

such programs. The Illinois Community College Board shall also

provide for:

(1) the development of an index of need for program

planning and for area funding allocations, as defined by

the Illinois Community College Board;

(2) the method for calculating hours of instruction, as

defined by the Illinois Community College Board, claimable

for reimbursement and a method to phase in the calculation

and for adjusting the calculations in cases where the

services of a program are interrupted due to circumstances

beyond the control of the program provider;

(3) a plan for the reallocation of funds to increase

the amount allocated for grants based upon program

performance as set forth in subsection (d) below; and

(4) the development of standards for determining

grants based upon performance as set forth in subsection

(d) below and a plan for the phased-in implementation of

those standards.

For instruction provided by school districts and community

college districts beginning July 1, 1996 and thereafter,

reimbursement provided by the Illinois Community College Board

for classes authorized by this Section shall be provided from

funds appropriated for the reimbursement criteria set forth in

subsection (c) below.

(c) Upon the annual approval of the Illinois Community

College Board, reimbursement shall be first provided for

transportation, child care services, and other special needs of

the students directly related to instruction and then from the

funds remaining an amount equal to the product of the total

credit hours or units of instruction approved by the Illinois

Community College Board, multiplied by the following:

(1) For adult basic education, the maximum

reimbursement per credit hour or per unit of instruction

shall be equal to (i) through fiscal year 2017, the general

state aid per pupil foundation level established in

subsection (B) of Section 18-8.05, divided by 60, or (ii)

in fiscal year 2018 and thereafter, the prior fiscal year

reimbursement level multiplied by the Consumer Price Index

for All Urban Consumers for all items published by the

United States Department of Labor;

(2) The maximum reimbursement per credit hour or per

unit of instruction in subparagraph (1) above shall be

weighted for students enrolled in classes defined as

vocational skills and approved by the Illinois Community

College Board by 1.25;

(3) The maximum reimbursement per credit hour or per

unit of instruction in subparagraph (1) above shall be

multiplied by .90 for students enrolled in classes defined

as adult secondary education programs and approved by the

Illinois Community College Board;

(4) (Blank); and

(5) Funding for program years after 1999-2000 shall be

determined by the Illinois Community College Board.

(d) Upon its annual approval, the Illinois Community

College Board shall provide grants to eligible programs for

supplemental activities to improve or expand services under the

Adult Education Act. Eligible programs shall be determined

based upon performance outcomes of students in the programs as

set by the Illinois Community College Board.

(e) Reimbursement under this Section shall not exceed the

actual costs of the approved program.

If the amount appropriated to the Illinois Community

College Board for reimbursement under this Section is less than

the amount required under this Act, the apportionment shall be

proportionately reduced.

School districts and community college districts may

assess students up to $3.00 per credit hour, for classes other

than Adult Basic Education level programs, if needed to meet

program costs.

(f) An education plan shall be established for each adult

or youth whose schooling has been interrupted and who is

participating in the instructional programs provided under

this Section.

Each school board and community college shall keep an

accurate and detailed account of the students assigned to and

receiving instruction under this Section who are subject to

State reimbursement and shall submit reports of services

provided commencing with fiscal year 1997 as required by the

Illinois Community College Board.

For classes authorized under this Section, a credit hour or

unit of instruction is equal to 15 hours of direct instruction

for students enrolled in approved adult education programs at

midterm and making satisfactory progress, in accordance with

standards established by the Illinois Community College Board.

(g) Upon proof submitted to the Illinois Department of

Human Services of the payment of all claims submitted under

this Section, that Department shall apply for federal funds

made available therefor and any federal funds so received shall

be paid into the General Revenue Fund in the State Treasury.

School districts or community colleges providing classes

under this Section shall submit applications to the Illinois

Community College Board for preapproval in accordance with the

standards established by the Illinois Community College Board.

Payments shall be made by the Illinois Community College Board

based upon approved programs. Interim expenditure reports may

be required by the Illinois Community College Board. Final

claims for the school year shall be submitted to the regional

superintendents for transmittal to the Illinois Community

College Board. Final adjusted payments shall be made by

September 30.

If a school district or community college district fails to

provide, or is providing unsatisfactory or insufficient

classes under this Section, the Illinois Community College

Board may enter into agreements with public or private

educational or other agencies other than the public schools for

the establishment of such classes.

(h) If a school district or community college district

establishes child-care facilities for the children of

participants in classes established under this Section, it may

extend the use of these facilities to students who have

obtained employment and to other persons in the community whose

children require care and supervision while the parent or other

person in charge of the children is employed or otherwise

absent from the home during all or part of the day. It may make

the facilities available before and after as well as during

regular school hours to school age and preschool age children

who may benefit thereby, including children who require care

and supervision pending the return of their parent or other

person in charge of their care from employment or other

activity requiring absence from the home.

The Illinois Community College Board shall pay to the board

the cost of care in the facilities for any child who is a

recipient of financial aid under the Illinois Public Aid Code.

The board may charge for care of children for whom it

cannot make claim under the provisions of this Section. The

charge shall not exceed per capita cost, and to the extent

feasible, shall be fixed at a level which will permit

utilization by employed parents of low or moderate income. It

may also permit any other State or local governmental agency or

private agency providing care for children to purchase care.

After July 1, 1970 when the provisions of Section 10-20.20

become operative in the district, children in a child-care

facility shall be transferred to the kindergarten established

under that Section for such portion of the day as may be

required for the kindergarten program, and only the prorated

costs of care and training provided in the Center for the

remaining period shall be charged to the Illinois Department of

Human Services or other persons or agencies paying for such

care.

(i) The provisions of this Section shall also apply to

school districts having a population exceeding 500,000.

(j) In addition to claiming reimbursement under this

Section, a school district may claim general State aid under

Section 18-8.05 or evidence-based funding under Section

18-8.15 for any student under age 21 who is enrolled in courses

accepted for graduation from elementary or high school and who

otherwise meets the requirements of Section 18-8.05 or 18-8.15,

as applicable.

(Source: P.A. 98-718, eff. 1-1-15.)

(105 ILCS 5/10-29)

Sec. 10-29. Remote educational programs.

(a) For purposes of this Section, "remote educational

program" means an educational program delivered to students in

the home or other location outside of a school building that

meets all of the following criteria:

(1) A student may participate in the program only after

the school district, pursuant to adopted school board

policy, and a person authorized to enroll the student under

Section 10-20.12b of this Code determine that a remote

educational program will best serve the student's

individual learning needs. The adopted school board policy

shall include, but not be limited to, all of the following:

(A) Criteria for determining that a remote

educational program will best serve a student's

individual learning needs. The criteria must include

consideration of, at a minimum, a student's prior

attendance, disciplinary record, and academic history.

(B) Any limitations on the number of students or

grade levels that may participate in a remote

educational program.

(C) A description of the process that the school

district will use to approve participation in the

remote educational program. The process must include

without limitation a requirement that, for any student

who qualifies to receive services pursuant to the

federal Individuals with Disabilities Education

Improvement Act of 2004, the student's participation

in a remote educational program receive prior approval

from the student's individualized education program

team.

(D) A description of the process the school

district will use to develop and approve a written

remote educational plan that meets the requirements of

subdivision (5) of this subsection (a).

(E) A description of the system the school district

will establish to calculate the number of clock hours a

student is participating in instruction in accordance

with the remote educational program.

(F) A description of the process for renewing a

remote educational program at the expiration of its

term.

(G) Such other terms and provisions as the school

district deems necessary to provide for the

establishment and delivery of a remote educational

program.

(2) The school district has determined that the remote

educational program's curriculum is aligned to State

learning standards and that the program offers instruction

and educational experiences consistent with those given to

students at the same grade level in the district.

(3) The remote educational program is delivered by

instructors that meet the following qualifications:

(A) they are certificated under Article 21 of this

Code;

(B) they meet applicable highly qualified criteria

under the federal No Child Left Behind Act of 2001; and

(C) they have responsibility for all of the

following elements of the program: planning

instruction, diagnosing learning needs, prescribing

content delivery through class activities, assessing

learning, reporting outcomes to administrators and

parents and guardians, and evaluating the effects of

instruction.

(4) During the period of time from and including the

opening date to the closing date of the regular school term

of the school district established pursuant to Section

10-19 of this Code, participation in a remote educational

program may be claimed for general State aid purposes under

Section 18-8.05 of this Code or evidence-based funding

purposes under Section 18-8.15 of this Code on any calendar

day, notwithstanding whether the day is a day of pupil

attendance or institute day on the school district's

calendar or any other provision of law restricting

instruction on that day. If the district holds year-round

classes in some buildings, the district shall classify each

student's participation in a remote educational program as

either on a year-round or a non-year-round schedule for

purposes of claiming general State aid or evidence-based

funding. Outside of the regular school term of the

district, the remote educational program may be offered as

part of any summer school program authorized by this Code.

(5) Each student participating in a remote educational

program must have a written remote educational plan that

has been approved by the school district and a person

authorized to enroll the student under Section 10-20.12b of

this Code. The school district and a person authorized to

enroll the student under Section 10-20.12b of this Code

must approve any amendment to a remote educational plan.

The remote educational plan must include, but is not

limited to, all of the following:

(A) Specific achievement goals for the student

aligned to State learning standards.

(B) A description of all assessments that will be

used to measure student progress, which description

shall indicate the assessments that will be

administered at an attendance center within the school

district.

(C) A description of the progress reports that will

be provided to the school district and the person or

persons authorized to enroll the student under Section

10-20.12b of this Code.

(D) Expectations, processes, and schedules for

interaction between a teacher and student.

(E) A description of the specific responsibilities

of the student's family and the school district with

respect to equipment, materials, phone and Internet

service, and any other requirements applicable to the

home or other location outside of a school building

necessary for the delivery of the remote educational

program.

(F) If applicable, a description of how the remote

educational program will be delivered in a manner

consistent with the student's individualized education

program required by Section 614(d) of the federal

Individuals with Disabilities Education Improvement

Act of 2004 or plan to ensure compliance with Section

504 of the federal Rehabilitation Act of 1973.

(G) A description of the procedures and

opportunities for participation in academic and

extra-curricular activities and programs within the

school district.

(H) The identification of a parent, guardian, or

other responsible adult who will provide direct

supervision of the program. The plan must include an

acknowledgment by the parent, guardian, or other

responsible adult that he or she may engage only in

non-teaching duties not requiring instructional

judgment or the evaluation of a student. The plan shall

designate the parent, guardian, or other responsible

adult as non-teaching personnel or volunteer personnel

under subsection (a) of Section 10-22.34 of this Code.

(I) The identification of a school district

administrator who will oversee the remote educational

program on behalf of the school district and who may be

contacted by the student's parents with respect to any

issues or concerns with the program.

(J) The term of the student's participation in the

remote educational program, which may not extend for

longer than 12 months, unless the term is renewed by

the district in accordance with subdivision (7) of this

subsection (a).

(K) A description of the specific location or

locations in which the program will be delivered. If

the remote educational program is to be delivered to a

student in any location other than the student's home,

the plan must include a written determination by the

school district that the location will provide a

learning environment appropriate for the delivery of

the program. The location or locations in which the

program will be delivered shall be deemed a long

distance teaching reception area under subsection (a)

of Section 10-22.34 of this Code.

(L) Certification by the school district that the

plan meets all other requirements of this Section.

(6) Students participating in a remote educational

program must be enrolled in a school district attendance

center pursuant to the school district's enrollment policy

or policies. A student participating in a remote

educational program must be tested as part of all

assessments administered by the school district pursuant

to Section 2-3.64a-5 of this Code at the attendance center

in which the student is enrolled and in accordance with the

attendance center's assessment policies and schedule. The

student must be included within all accountability

determinations for the school district and attendance

center under State and federal law.

(7) The term of a student's participation in a remote

educational program may not extend for longer than 12

months, unless the term is renewed by the school district.

The district may only renew a student's participation in a

remote educational program following an evaluation of the

student's progress in the program, a determination that the

student's continuation in the program will best serve the

student's individual learning needs, and an amendment to

the student's written remote educational plan addressing

any changes for the upcoming term of the program.

For purposes of this Section, a remote educational program

does not include instruction delivered to students through an

e-learning program approved under Section 10-20.56 of this

Code.

(b) A school district may, by resolution of its school

board, establish a remote educational program.

(c) Clock hours of instruction by students in a remote

educational program meeting the requirements of this Section

may be claimed by the school district and shall be counted as

school work for general State aid purposes in accordance with

and subject to the limitations of Section 18-8.05 of this Code

or evidence-based funding purposes in accordance with and

subject to the limitations of Section 18-8.15 of this Code.

(d) The impact of remote educational programs on wages,

hours, and terms and conditions of employment of educational

employees within the school district shall be subject to local

collective bargaining agreements.

(e) The use of a home or other location outside of a school

building for a remote educational program shall not cause the

home or other location to be deemed a public school facility.

(f) A remote educational program may be used, but is not

required, for instruction delivered to a student in the home or

other location outside of a school building that is not claimed

for general State aid purposes under Section 18-8.05 of this

Code or evidence-based funding purposes under Section 18-8.15

of this Code.

(g) School districts that, pursuant to this Section, adopt

a policy for a remote educational program must submit to the

State Board of Education a copy of the policy and any

amendments thereto, as well as data on student participation in

a format specified by the State Board of Education. The State

Board of Education may perform or contract with an outside

entity to perform an evaluation of remote educational programs

in this State.

(h) The State Board of Education may adopt any rules

necessary to ensure compliance by remote educational programs

with the requirements of this Section and other applicable

legal requirements.

(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;

99-194, eff. 7-30-15; 99-642, eff. 7-28-16.)

(105 ILCS 5/11E-135)

Sec. 11E-135. Incentives. For districts reorganizing under

this Article and for a district or districts that annex all of

the territory of one or more entire other school districts in

accordance with Article 7 of this Code, the following payments

shall be made from appropriations made for these purposes:

(a)(1) For a combined school district, as defined in

Section 11E-20 of this Code, or for a unit district, as defined

in Section 11E-25 of this Code, for its first year of

existence, the general State aid and supplemental general State

aid calculated under Section 18-8.05 of this Code or the

evidence-based funding calculated under Section 18-8.15 of

this Code, as applicable, shall be computed for the new

district and for the previously existing districts for which

property is totally included within the new district. If the

computation on the basis of the previously existing districts

is greater, a supplementary payment equal to the difference

shall be made for the first 4 years of existence of the new

district.

(2) For a school district that annexes all of the territory

of one or more entire other school districts as defined in

Article 7 of this Code, for the first year during which the

change of boundaries attributable to the annexation becomes

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

this Code, the general State aid and supplemental general State

aid calculated under Section 18-8.05 of this Code or the

evidence-based funding calculated under Section 18-8.15 of

this Code, as applicable, shall be computed for the annexing

district as constituted after the annexation and for the

annexing and each annexed district as constituted prior to the

annexation; and if the computation on the basis of the annexing

and annexed districts as constituted prior to the annexation is

greater, then a supplementary payment equal to the difference

shall be made for the first 4 years of existence of the

annexing school district as constituted upon the annexation.

(3) For 2 or more school districts that annex all of the

territory of one or more entire other school districts, as

defined in Article 7 of this Code, for the first year during

which the change of boundaries attributable to the annexation

becomes effective for all purposes, as determined under Section

7-9 of this Code, the general State aid and supplemental

general State aid calculated under Section 18-8.05 of this Code

or the evidence-based funding calculated under Section 18-8.15

of this Code, as applicable, shall be computed for each

annexing district as constituted after the annexation and for

each annexing and annexed district as constituted prior to the

annexation; and if the aggregate of the general State aid and

supplemental general State aid or evidence-based funding, as

applicable, as so computed for the annexing districts as

constituted after the annexation is less than the aggregate of

the general State aid and supplemental general State aid or

evidence-based funding, as applicable, as so computed for the

annexing and annexed districts, as constituted prior to the

annexation, then a supplementary payment equal to the

difference shall be made and allocated between or among the

annexing districts, as constituted upon the annexation, for the

first 4 years of their existence. The total difference payment

shall be allocated between or among the annexing districts in

the same ratio as the pupil enrollment from that portion of the

annexed district or districts that is annexed to each annexing

district bears to the total pupil enrollment from the entire

annexed district or districts, as such pupil enrollment is

determined for the school year last ending prior to the date

when the change of boundaries attributable to the annexation

becomes effective for all purposes. The amount of the total

difference payment and the amount thereof to be allocated to

the annexing districts shall be computed by the State Board of

Education on the basis of pupil enrollment and other data that

shall be certified to the State Board of Education, on forms

that it shall provide for that purpose, by the regional

superintendent of schools for each educational service region

in which the annexing and annexed districts are located.

(4) For a school district conversion, as defined in Section

11E-15 of this Code, or a multi-unit conversion, as defined in

subsection (b) of Section 11E-30 of this Code, if in their

first year of existence the newly created elementary districts

and the newly created high school district, from a school

district conversion, or the newly created elementary district

or districts and newly created combined high school - unit

district, from a multi-unit conversion, qualify for less

general State aid under Section 18-8.05 of this Code or

evidence-based funding under Section 18-8.15 of this Code than

would have been payable under Section 18-8.05 or 18-8.15, as

applicable, for that same year to the previously existing

districts, then a supplementary payment equal to that

difference shall be made for the first 4 years of existence of

the newly created districts. The aggregate amount of each

supplementary payment shall be allocated among the newly

created districts in the proportion that the deemed pupil

enrollment in each district during its first year of existence

bears to the actual aggregate pupil enrollment in all of the

districts during their first year of existence. For purposes of

each allocation:

(A) the deemed pupil enrollment of the newly created

high school district from a school district conversion

shall be an amount equal to its actual pupil enrollment for

its first year of existence multiplied by 1.25;

(B) the deemed pupil enrollment of each newly created

elementary district from a school district conversion

shall be an amount equal to its actual pupil enrollment for

its first year of existence reduced by an amount equal to

the product obtained when the amount by which the newly

created high school district's deemed pupil enrollment

exceeds its actual pupil enrollment for its first year of

existence is multiplied by a fraction, the numerator of

which is the actual pupil enrollment of the newly created

elementary district for its first year of existence and the

denominator of which is the actual aggregate pupil

enrollment of all of the newly created elementary districts

for their first year of existence;

(C) the deemed high school pupil enrollment of the

newly created combined high school - unit district from a

multi-unit conversion shall be an amount equal to its

actual grades 9 through 12 pupil enrollment for its first

year of existence multiplied by 1.25; and

(D) the deemed elementary pupil enrollment of each

newly created district from a multi-unit conversion shall

be an amount equal to each district's actual grade K

through 8 pupil enrollment for its first year of existence,

reduced by an amount equal to the product obtained when the

amount by which the newly created combined high school -

unit district's deemed high school pupil enrollment

exceeds its actual grade 9 through 12 pupil enrollment for

its first year of existence is multiplied by a fraction,

the numerator of which is the actual grade K through 8

pupil enrollment of each newly created district for its

first year of existence and the denominator of which is the

actual aggregate grade K through 8 pupil enrollment of all

such newly created districts for their first year of

existence.

The aggregate amount of each supplementary payment under

this subdivision (4) and the amount thereof to be allocated to

the newly created districts shall be computed by the State

Board of Education on the basis of pupil enrollment and other

data, which shall be certified to the State Board of Education,

on forms that it shall provide for that purpose, by the

regional superintendent of schools for each educational

service region in which the newly created districts are

located.

(5) For a partial elementary unit district, as defined in

subsection (a) or (c) of Section 11E-30 of this Code, if, in

the first year of existence, the newly created partial

elementary unit district qualifies for less general State aid

and supplemental general State aid under Section 18-8.05 of

this Code or less evidence-based funding under Section 18-8.15

of this Code, as applicable, than would have been payable under

those Sections that Section for that same year to the

previously existing districts that formed the partial

elementary unit district, then a supplementary payment equal to

that difference shall be made to the partial elementary unit

district for the first 4 years of existence of that newly

created district.

(6) For an elementary opt-in, as described in subsection

(d) of Section 11E-30 of this Code, the general State aid or

evidence-based funding difference shall be computed in

accordance with paragraph (5) of this subsection (a) as if the

elementary opt-in was included in an optional elementary unit

district at the optional elementary unit district's original

effective date. If the calculation in this paragraph (6) is

less than that calculated in paragraph (5) of this subsection

(a) at the optional elementary unit district's original

effective date, then no adjustments may be made. If the

calculation in this paragraph (6) is more than that calculated

in paragraph (5) of this subsection (a) at the optional

elementary unit district's original effective date, then the

excess must be paid as follows:

(A) If the effective date for the elementary opt-in is

one year after the effective date for the optional

elementary unit district, 100% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(B) If the effective date for the elementary opt-in is

2 years after the effective date for the optional

elementary unit district, 75% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(C) If the effective date for the elementary opt-in is

3 years after the effective date for the optional

elementary unit district, 50% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(D) If the effective date for the elementary opt-in is

4 years after the effective date for the optional

elementary unit district, 25% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(E) If the effective date for the elementary opt-in is

5 years after the effective date for the optional

elementary unit district, the optional elementary unit

district is not eligible for any additional incentives due

to the elementary opt-in.

(6.5) For a school district that annexes territory detached

from another school district whereby the enrollment of the

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

annexation, for the first year during which the change of

boundaries attributable to the annexation becomes effective

for all purposes as determined under Section 7-9 of this Code,

the general State aid and supplemental general State aid or

evidence-based funding, as applicable, calculated under this

Section shall be computed for the district gaining territory

and the district losing territory as constituted after the

annexation and for the same districts as constituted prior to

the annexation; and if the aggregate of the general State aid

and supplemental general State aid or evidence-based funding,

as applicable, as so computed for the district gaining

territory and the district losing territory as constituted

after the annexation is less than the aggregate of the general

State aid and supplemental general State aid or evidence-based

funding, as applicable, as so computed for the district gaining

territory and the district losing territory as constituted

prior to the annexation, then a supplementary payment shall be

made to the annexing district for the first 4 years of

existence after the annexation, equal to the difference

multiplied by the ratio of student enrollment in the territory

detached to the total student enrollment in the district losing

territory for the year prior to the effective date of the

annexation. The amount of the total difference and the

proportion paid to the annexing district shall be computed by

the State Board of Education on the basis of pupil enrollment

and other data that must be submitted to the State Board of

Education in accordance with Section 7-14A of this Code. The

changes to this Section made by Public Act 95-707 are intended

to be retroactive and applicable to any annexation taking

effect on or after July 1, 2004. For annexations that are

eligible for payments under this paragraph (6.5) and that are

effective on or after July 1, 2004, but before January 11, 2008

(the effective date of Public Act 95-707), the first required

yearly payment under this paragraph (6.5) shall be paid in the

fiscal year of January 11, 2008 (the effective date of Public

Act 95-707). Subsequent required yearly payments shall be paid

in subsequent fiscal years until the payment obligation under

this paragraph (6.5) is complete.

(7) Claims for financial assistance under this subsection

(a) may not be recomputed except as expressly provided under

Section 18-8.05 or 18-8.15 of this Code.

(8) Any supplementary payment made under this subsection

(a) must be treated as separate from all other payments made

pursuant to Section 18-8.05 or 18-8.15 of this Code.

(b)(1) After the formation of a combined school district,

as defined in Section 11E-20 of this Code, or a unit district,

as defined in Section 11E-25 of this Code, a computation shall

be made to determine the difference between the salaries

effective in each of the previously existing districts on June

30, prior to the creation of the new district. For the first 4

years after the formation of the new district, a supplementary

State aid reimbursement shall be paid to the new district equal

to the difference between the sum of the salaries earned by

each of the certificated members of the new district, while

employed in one of the previously existing districts during the

year immediately preceding the formation of the new district,

and the sum of the salaries those certificated members would

have been paid during the year immediately prior to the

formation of the new district if placed on the salary schedule

of the previously existing district with the highest salary

schedule.

(2) After the territory of one or more school districts is

annexed by one or more other school districts as defined in

Article 7 of this Code, a computation shall be made to

determine the difference between the salaries effective in each

annexed district and in the annexing district or districts as

they were each constituted on June 30 preceding the date when

the change of boundaries attributable to the annexation became

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

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

supplementary State aid reimbursement shall be paid to each

annexing district as constituted after the annexation equal to

the difference between the sum of the salaries earned by each

of the certificated members of the annexing district as

constituted after the annexation, while employed in an annexed

or annexing district during the year immediately preceding the

annexation, and the sum of the salaries those certificated

members would have been paid during the immediately preceding

year if placed on the salary schedule of whichever of the

annexing or annexed districts had the highest salary schedule

during the immediately preceding year.

(3) For each new high school district formed under a school

district conversion, as defined in Section 11E-15 of this Code,

the State shall make a supplementary payment for 4 years equal

to the difference between the sum of the salaries earned by

each certified member of the new high school district, while

employed in one of the previously existing districts, and the

sum of the salaries those certified members would have been

paid if placed on the salary schedule of the previously

existing district with the highest salary schedule.

(4) For each newly created partial elementary unit

district, the State shall make a supplementary payment for 4

years equal to the difference between the sum of the salaries

earned by each certified member of the newly created partial

elementary unit district, while employed in one of the

previously existing districts that formed the partial

elementary unit district, and the sum of the salaries those

certified members would have been paid if placed on the salary

schedule of the previously existing district with the highest

salary schedule. The salary schedules used in the calculation

shall be those in effect in the previously existing districts

for the school year prior to the creation of the new partial

elementary unit district.

(5) For an elementary district opt-in, as described in

subsection (d) of Section 11E-30 of this Code, the salary

difference incentive shall be computed in accordance with

paragraph (4) of this subsection (b) as if the opted-in

elementary district was included in the optional elementary

unit district at the optional elementary unit district's

original effective date. If the calculation in this paragraph

(5) is less than that calculated in paragraph (4) of this

subsection (b) at the optional elementary unit district's

original effective date, then no adjustments may be made. If

the calculation in this paragraph (5) is more than that

calculated in paragraph (4) of this subsection (b) at the

optional elementary unit district's original effective date,

then the excess must be paid as follows:

(A) If the effective date for the elementary opt-in is

one year after the effective date for the optional

elementary unit district, 100% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(B) If the effective date for the elementary opt-in is

2 years after the effective date for the optional

elementary unit district, 75% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(C) If the effective date for the elementary opt-in is

3 years after the effective date for the optional

elementary unit district, 50% of the calculated excess

shall be paid to the optional elementary unit district in

each of the first 4 years after the effective date of the

elementary opt-in.

(D) If the effective date for the elementary opt-in is

4 years after the effective date for the partial elementary

unit district, 25% of the calculated excess shall be paid

to the optional elementary unit district in each of the

first 4 years after the effective date of the elementary

opt-in.

(E) If the effective date for the elementary opt-in is

5 years after the effective date for the optional

elementary unit district, the optional elementary unit

district is not eligible for any additional incentives due

to the elementary opt-in.

(5.5) After the formation of a cooperative high school by 2

or more school districts under Section 10-22.22c of this Code,

a computation shall be made to determine the difference between

the salaries effective in each of the previously existing high

schools on June 30 prior to the formation of the cooperative

high school. For the first 4 years after the formation of the

cooperative high school, a supplementary State aid

reimbursement shall be paid to the cooperative high school

equal to the difference between the sum of the salaries earned

by each of the certificated members of the cooperative high

school while employed in one of the previously existing high

schools during the year immediately preceding the formation of

the cooperative high school and the sum of the salaries those

certificated members would have been paid during the year

immediately prior to the formation of the cooperative high

school if placed on the salary schedule of the previously

existing high school with the highest salary schedule.

(5.10) After the annexation of territory detached from

another school district whereby the enrollment of the annexing

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

annexation, a computation shall be made to determine the

difference between the salaries effective in the district

gaining territory and the district losing territory as they

each were constituted on June 30 preceding the date when the

change of boundaries attributable to the annexation became

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

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

supplementary State aid reimbursement shall be paid to the

annexing district equal to the difference between the sum of

the salaries earned by each of the certificated members of the

annexing district as constituted after the annexation while

employed in the district gaining territory or the district

losing territory during the year immediately preceding the

annexation and the sum of the salaries those certificated

members would have been paid during such immediately preceding

year if placed on the salary schedule of whichever of the

district gaining territory or district losing territory had the

highest salary schedule during the immediately preceding year.

To be eligible for supplementary State aid reimbursement under

this Section, the intergovernmental agreement to be submitted

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

members were transferred from the control of the district

losing territory to the control of the district gaining

territory in the annexation. The changes to this Section made

by Public Act 95-707 are intended to be retroactive and

applicable to any annexation taking effect on or after July 1,

2004. For annexations that are eligible for payments under this

paragraph (5.10) and that are effective on or after July 1,

2004, but before January 11, 2008 (the effective date of Public

Act 95-707), the first required yearly payment under this

paragraph (5.10) shall be paid in the fiscal year of January

11, 2008 (the effective date of Public Act 95-707). Subsequent

required yearly payments shall be paid in subsequent fiscal

years until the payment obligation under this paragraph (5.10)

is complete.

(5.15) After the deactivation of a school facility in

accordance with Section 10-22.22b of this Code, a computation

shall be made to determine the difference between the salaries

effective in the sending school district and each receiving

school district on June 30 prior to the deactivation of the

school facility. For the lesser of the first 4 years after the

deactivation of the school facility or the length of the

deactivation agreement, including any renewals of the original

deactivation agreement, a supplementary State aid

reimbursement shall be paid to each receiving district equal to

the difference between the sum of the salaries earned by each

of the certificated members transferred to that receiving

district as a result of the deactivation while employed in the

sending district during the year immediately preceding the

deactivation and the sum of the salaries those certificated

members would have been paid during the year immediately

preceding the deactivation if placed on the salary schedule of

the sending or receiving district with the highest salary

schedule.

(6) The supplementary State aid reimbursement under this

subsection (b) shall be treated as separate from all other

payments made pursuant to Section 18-8.05 of this Code. In the

case of the formation of a new district or cooperative high

school or a deactivation, reimbursement shall begin during the

first year of operation of the new district or cooperative high

school or the first year of the deactivation, and in the case

of an annexation of the territory of one or more school

districts by one or more other school districts or the

annexation of territory detached from a school district whereby

the enrollment of the annexing district increases by 90% or

more as a result of the annexation, reimbursement shall begin

during the first year when the change in boundaries

attributable to the annexation becomes effective for all

purposes as determined pursuant to Section 7-9 of this Code,

except that for an annexation of territory detached from a

school district that is effective on or after July 1, 2004, but

before January 11, 2008 (the effective date of Public Act

95-707), whereby the enrollment of the annexing district

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

reimbursement shall begin during the fiscal year of January 11,

2008 (the effective date of Public Act 95-707). Each year that

the new, annexing, or receiving district or cooperative high

school, as the case may be, is entitled to receive

reimbursement, the number of eligible certified members who are

employed on October 1 in the district or cooperative high

school shall be certified to the State Board of Education on

prescribed forms by October 15 and payment shall be made on or

before November 15 of that year.

(c)(1) For the first year after the formation of a combined

school district, as defined in Section 11E-20 of this Code or a

unit district, as defined in Section 11E-25 of this Code, a

computation shall be made totaling each previously existing

district's audited fund balances in the educational fund,

working cash fund, operations and maintenance fund, and

transportation fund for the year ending June 30 prior to the

referendum for the creation of the new district. The new

district shall be paid supplementary State aid equal to the sum

of the differences between the deficit of the previously

existing district with the smallest deficit and the deficits of

each of the other previously existing districts.

(2) For the first year after the annexation of all of the

territory of one or more entire school districts by another

school district, as defined in Article 7 of this Code,

computations shall be made, for the year ending June 30 prior

to the date that the change of boundaries attributable to the

annexation is allowed by the affirmative decision issued by the

regional board of school trustees under Section 7-6 of this

Code, notwithstanding any effort to seek administrative review

of the decision, totaling the annexing district's and totaling

each annexed district's audited fund balances in their

respective educational, working cash, operations and

maintenance, and transportation funds. The annexing district

as constituted after the annexation shall be paid supplementary

State aid equal to the sum of the differences between the

deficit of whichever of the annexing or annexed districts as

constituted prior to the annexation had the smallest deficit

and the deficits of each of the other districts as constituted

prior to the annexation.

(3) For the first year after the annexation of all of the

territory of one or more entire school districts by 2 or more

other school districts, as defined by Article 7 of this Code,

computations shall be made, for the year ending June 30 prior

to the date that the change of boundaries attributable to the

annexation is allowed by the affirmative decision of the

regional board of school trustees under Section 7-6 of this

Code, notwithstanding any action for administrative review of

the decision, totaling each annexing and annexed district's

audited fund balances in their respective educational, working

cash, operations and maintenance, and transportation funds.

The annexing districts as constituted after the annexation

shall be paid supplementary State aid, allocated as provided in

this paragraph (3), in an aggregate amount equal to the sum of

the differences between the deficit of whichever of the

annexing or annexed districts as constituted prior to the

annexation had the smallest deficit and the deficits of each of

the other districts as constituted prior to the annexation. The

aggregate amount of the supplementary State aid payable under

this paragraph (3) shall be allocated between or among the

annexing districts as follows:

(A) the regional superintendent of schools for each

educational service region in which an annexed district is

located prior to the annexation shall certify to the State

Board of Education, on forms that it shall provide for that

purpose, the value of all taxable property in each annexed

district, as last equalized or assessed by the Department

of Revenue prior to the annexation, and the equalized

assessed value of each part of the annexed district that

was annexed to or included as a part of an annexing

district;

(B) using equalized assessed values as certified by the

regional superintendent of schools under clause (A) of this

paragraph (3), the combined audited fund balance deficit of

each annexed district as determined under this Section

shall be apportioned between or among the annexing

districts in the same ratio as the equalized assessed value

of that part of the annexed district that was annexed to or

included as a part of an annexing district bears to the

total equalized assessed value of the annexed district; and

(C) the aggregate supplementary State aid payment

under this paragraph (3) shall be allocated between or

among, and shall be paid to, the annexing districts in the

same ratio as the sum of the combined audited fund balance

deficit of each annexing district as constituted prior to

the annexation, plus all combined audited fund balance

deficit amounts apportioned to that annexing district

under clause (B) of this subsection, bears to the aggregate

of the combined audited fund balance deficits of all of the

annexing and annexed districts as constituted prior to the

annexation.

(4) For the new elementary districts and new high school

district formed through a school district conversion, as

defined in Section 11E-15 of this Code or the new elementary

district or districts and new combined high school - unit

district formed through a multi-unit conversion, as defined in

subsection (b) of Section 11E-30 of this Code, a computation

shall be made totaling each previously existing district's

audited fund balances in the educational fund, working cash

fund, operations and maintenance fund, and transportation fund

for the year ending June 30 prior to the referendum

establishing the new districts. In the first year of the new

districts, the State shall make a one-time supplementary

payment equal to the sum of the differences between the deficit

of the previously existing district with the smallest deficit

and the deficits of each of the other previously existing

districts. A district with a combined balance among the 4 funds

that is positive shall be considered to have a deficit of zero.

The supplementary payment shall be allocated among the newly

formed high school and elementary districts in the manner

provided by the petition for the formation of the districts, in

the form in which the petition is approved by the regional

superintendent of schools or State Superintendent of Education

under Section 11E-50 of this Code.

(5) For each newly created partial elementary unit

district, as defined in subsection (a) or (c) of Section 11E-30

of this Code, a computation shall be made totaling the audited

fund balances of each previously existing district that formed

the new partial elementary unit district in the educational

fund, working cash fund, operations and maintenance fund, and

transportation fund for the year ending June 30 prior to the

referendum for the formation of the partial elementary unit

district. In the first year of the new partial elementary unit

district, the State shall make a one-time supplementary payment

to the new district equal to the sum of the differences between

the deficit of the previously existing district with the

smallest deficit and the deficits of each of the other

previously existing districts. A district with a combined

balance among the 4 funds that is positive shall be considered

to have a deficit of zero.

(6) For an elementary opt-in as defined in subsection (d)

of Section 11E-30 of this Code, the deficit fund balance

incentive shall be computed in accordance with paragraph (5) of

this subsection (c) as if the opted-in elementary was included

in the optional elementary unit district at the optional

elementary unit district's original effective date. If the

calculation in this paragraph (6) is less than that calculated

in paragraph (5) of this subsection (c) at the optional

elementary unit district's original effective date, then no

adjustments may be made. If the calculation in this paragraph

(6) is more than that calculated in paragraph (5) of this

subsection (c) at the optional elementary unit district's

original effective date, then the excess must be paid as

follows:

(A) If the effective date for the elementary opt-in is

one year after the effective date for the optional

elementary unit district, 100% of the calculated excess

shall be paid to the optional elementary unit district in

the first year after the effective date of the elementary

opt-in.

(B) If the effective date for the elementary opt-in is

2 years after the effective date for the optional

elementary unit district, 75% of the calculated excess

shall be paid to the optional elementary unit district in

the first year after the effective date of the elementary

opt-in.

(C) If the effective date for the elementary opt-in is

3 years after the effective date for the optional

elementary unit district, 50% of the calculated excess

shall be paid to the optional elementary unit district in

the first year after the effective date of the elementary

opt-in.

(D) If the effective date for the elementary opt-in is

4 years after the effective date for the optional

elementary unit district, 25% of the calculated excess

shall be paid to the optional elementary unit district in

the first year after the effective date of the elementary

opt-in.

(E) If the effective date for the elementary opt-in is

5 years after the effective date for the optional

elementary unit district, the optional elementary unit

district is not eligible for any additional incentives due

to the elementary opt-in.

(6.5) For the first year after the annexation of territory

detached from another school district whereby the enrollment of

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

the annexation, a computation shall be made totaling the

audited fund balances of the district gaining territory and the

audited fund balances of the district losing territory in the

educational fund, working cash fund, operations and

maintenance fund, and transportation fund for the year ending

June 30 prior to the date that the change of boundaries

attributable to the annexation is allowed by the affirmative

decision of the regional board of school trustees under Section

7-6 of this Code, notwithstanding any action for administrative

review of the decision. The annexing district as constituted

after the annexation shall be paid supplementary State aid

equal to the difference between the deficit of whichever

district included in this calculation as constituted prior to

the annexation had the smallest deficit and the deficit of each

other district included in this calculation as constituted

prior to the annexation, multiplied by the ratio of equalized

assessed value of the territory detached to the total equalized

assessed value of the district losing territory. The regional

superintendent of schools for the educational service region in

which a district losing territory is located prior to the

annexation shall certify to the State Board of Education the

value of all taxable property in the district losing territory

and the value of all taxable property in the territory being

detached, as last equalized or assessed by the Department of

Revenue prior to the annexation. To be eligible for

supplementary State aid reimbursement under this Section, the

intergovernmental agreement to be submitted pursuant to

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

transferred from the district losing territory to the district

gaining territory in the annexation. The changes to this

Section made by Public Act 95-707 are intended to be

retroactive and applicable to any annexation taking effect on

or after July 1, 2004. For annexations that are eligible for

payments under this paragraph (6.5) and that are effective on

or after July 1, 2004, but before January 11, 2008 (the

effective date of Public Act 95-707), the required payment

under this paragraph (6.5) shall be paid in the fiscal year of

January 11, 2008 (the effective date of Public Act 95-707).

(7) For purposes of any calculation required under

paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this

subsection (c), a district with a combined fund balance that is

positive shall be considered to have a deficit of zero. For

purposes of determining each district's audited fund balances

in its educational fund, working cash fund, operations and

maintenance fund, and transportation fund for the specified

year ending June 30, as provided in paragraphs (1), (2), (3),

(4), (5), (6), and (6.5) of this subsection (c), the balance of

each fund shall be deemed decreased by an amount equal to the

amount of the annual property tax theretofore levied in the

fund by the district for collection and payment to the district

during the calendar year in which the June 30 fell, but only to

the extent that the tax so levied in the fund actually was

received by the district on or before or comprised a part of

the fund on such June 30. For purposes of determining each

district's audited fund balances, a calculation shall be made

for each fund to determine the average for the 3 years prior to

the specified year ending June 30, as provided in paragraphs

(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),

of the district's expenditures in the categories "purchased

services", "supplies and materials", and "capital outlay", as

those categories are defined in rules of the State Board of

Education. If this 3-year average is less than the district's

expenditures in these categories for the specified year ending

June 30, as provided in paragraphs (1), (2), (3), (4), (5),

(6), and (6.5) of this subsection (c), then the 3-year average

shall be used in calculating the amounts payable under this

Section in place of the amounts shown in these categories for

the specified year ending June 30, as provided in paragraphs

(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).

Any deficit because of State aid not yet received may not be

considered in determining the June 30 deficits. The same basis

of accounting shall be used by all previously existing

districts and by all annexing or annexed districts, as

constituted prior to the annexation, in making any computation

required under paragraphs (1), (2), (3), (4), (5), (6), and

(6.5) of this subsection (c).

(8) The supplementary State aid payments under this

subsection (c) shall be treated as separate from all other

payments made pursuant to Section 18-8.05 of this Code.

(d)(1) Following the formation of a combined school

district, as defined in Section 11E-20 of this Code, a new unit

district, as defined in Section 11E-25 of this Code, a new

elementary district or districts and a new high school district

formed through a school district conversion, as defined in

Section 11E-15 of this Code, a new partial elementary unit

district, as defined in Section 11E-30 of this Code, or a new

elementary district or districts formed through a multi-unit

conversion, as defined in subsection (b) of Section 11E-30 of

this Code, or the annexation of all of the territory of one or

more entire school districts by one or more other school

districts, as defined in Article 7 of this Code, a

supplementary State aid reimbursement shall be paid for the

number of school years determined under the following table to

each new or annexing district equal to the sum of $4,000 for

each certified employee who is employed by the district on a

full-time basis for the regular term of the school year:

Reorganized District's Rank Reorganized District's Rank by type of district (unit, in Average Daily Attendance high school, elementary) By Quintile in Equalized Assessed Value Per Pupil by Quintile 3rd, 4th, 1st 2nd or 5th Quintile Quintile Quintile 1st Quintile 1 year 1 year 1 year 2nd Quintile 1 year 2 years 2 years 3rd Quintile 2 years 3 years 3 years 4th Quintile 2 years 3 years 3 years 5th Quintile 2 years 3 years 3 years

The State Board of Education shall make a one-time calculation

of a reorganized district's quintile ranks. The average daily

attendance used in this calculation shall be the best 3 months'

average daily attendance for the district's first year. The

equalized assessed value per pupil shall be the district's real

property equalized assessed value used in calculating the

district's first-year general State aid claim, under Section

18-8.05 of this Code, or first-year evidence-based funding

claim, under Section 18-8.15 of this Code, as applicable,

divided by the best 3 months' average daily attendance.

No annexing or resulting school district shall be entitled

to supplementary State aid under this subsection (d) unless the

district acquires at least 30% of the average daily attendance

of the district from which the territory is being detached or

divided.

If a district results from multiple reorganizations that

would otherwise qualify the district for multiple payments

under this subsection (d) in any year, then the district shall

receive a single payment only for that year based solely on the

most recent reorganization.

(2) For an elementary opt-in, as defined in subsection (d)

of Section 11E-30 of this Code, the full-time certified staff

incentive shall be computed in accordance with paragraph (1) of

this subsection (d), equal to the sum of $4,000 for each

certified employee of the elementary district that opts-in who

is employed by the optional elementary unit district on a

full-time basis for the regular term of the school year. The

calculation from this paragraph (2) must be paid as follows:

(A) If the effective date for the elementary opt-in is

one year after the effective date for the optional

elementary unit district, 100% of the amount calculated in

this paragraph (2) shall be paid to the optional elementary

unit district for the number of years calculated in

paragraph (1) of this subsection (d) at the optional

elementary unit district's original effective date,

starting in the second year after the effective date of the

elementary opt-in.

(B) If the effective date for the elementary opt-in is

2 years after the effective date for the optional

elementary unit district, 75% of the amount calculated in

this paragraph (2) shall be paid to the optional elementary

unit district for the number of years calculated in

paragraph (1) of this subsection (d) at the optional

elementary unit district's original effective date,

starting in the second year after the effective date of the

elementary opt-in.

(C) If the effective date for the elementary opt-in is

3 years after the effective date for the optional

elementary unit district, 50% of the amount calculated in

this paragraph (2) shall be paid to the optional elementary

unit district for the number of years calculated in

paragraph (1) of this subsection (d) at the optional

elementary unit district's original effective date,

starting in the second year after the effective date of the

elementary opt-in.

(D) If the effective date for the elementary opt-in is

4 years after the effective date for the optional

elementary unit district, 25% of the amount calculated in

this paragraph (2) shall be paid to the optional elementary

unit district for the number of years calculated in

paragraph (1) of this subsection (d) at the optional

elementary unit district's original effective date,

starting in the second year after the effective date of the

elementary opt-in.

(E) If the effective date for the elementary opt-in is

5 years after the effective date for the optional

elementary unit district, the optional elementary unit

district is not eligible for any additional incentives due

to the elementary opt-in.

(2.5) Following the formation of a cooperative high school

by 2 or more school districts under Section 10-22.22c of this

Code, a supplementary State aid reimbursement shall be paid for

3 school years to the cooperative high school equal to the sum

of $4,000 for each certified employee who is employed by the

cooperative high school on a full-time basis for the regular

term of any such school year. If a cooperative high school

results from multiple agreements that would otherwise qualify

the cooperative high school for multiple payments under this

Section in any year, the cooperative high school shall receive

a single payment for that year based solely on the most recent

agreement.

(2.10) Following the annexation of territory detached from

another school district whereby the enrollment of the annexing

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

supplementary State aid reimbursement shall be paid to the

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

employee who is employed by the annexing district on a

full-time basis and shall be calculated in accordance with

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

supplementary State aid reimbursement under this Section, the

intergovernmental agreement to be submitted pursuant to

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

members were transferred from the control of the district

losing territory to the control of the district gaining

territory in the annexation. The changes to this Section made

by Public Act 95-707 are intended to be retroactive and

applicable to any annexation taking effect on or after July 1,

2004. For annexations that are eligible for payments under this

paragraph (2.10) and that are effective on or after July 1,

2004, but before January 11, 2008 (the effective date of Public

Act 95-707), the first required yearly payment under this

paragraph (2.10) shall be paid in the second fiscal year after

January 11, 2008 (the effective date of Public Act 95-707). Any

subsequent required yearly payments shall be paid in subsequent

fiscal years until the payment obligation under this paragraph

(2.10) is complete.

(2.15) Following the deactivation of a school facility in

accordance with Section 10-22.22b of this Code, a supplementary

State aid reimbursement shall be paid for the lesser of 3

school years or the length of the deactivation agreement,

including any renewals of the original deactivation agreement,

to each receiving school district equal to the sum of $4,000

for each certified employee who is employed by that receiving

district on a full-time basis for the regular term of any such

school year who was originally transferred to the control of

that receiving district as a result of the deactivation.

Receiving districts are eligible for payments under this

paragraph (2.15) based on the certified employees transferred

to that receiving district as a result of the deactivation and

are not required to receive at least 30% of the deactivating

district's average daily attendance as required under

paragraph (1) of this subsection (d) to be eligible for

payments.

(3) The supplementary State aid reimbursement payable

under this subsection (d) shall be separate from and in

addition to all other payments made to the district pursuant to

any other Section of this Article.

(4) During May of each school year for which a

supplementary State aid reimbursement is to be paid to a new,

annexing, or receiving school district or cooperative high

school pursuant to this subsection (d), the school board or

governing board shall certify to the State Board of Education,

on forms furnished to the school board or governing board by

the State Board of Education for purposes of this subsection

(d), the number of certified employees for which the district

or cooperative high school is entitled to reimbursement under

this Section, together with the names, certificate numbers, and

positions held by the certified employees.

(5) Upon certification by the State Board of Education to

the State Comptroller of the amount of the supplementary State

aid reimbursement to which a school district or cooperative

high school is entitled under this subsection (d), the State

Comptroller shall draw his or her warrant upon the State

Treasurer for the payment thereof to the school district or

cooperative high school and shall promptly transmit the payment

to the school district or cooperative high school through the

appropriate school treasurer.

(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;

95-903, eff. 8-25-08; 96-328, eff. 8-11-09.)

(105 ILCS 5/13A-8)

Sec. 13A-8. Funding.

(a) The State of Illinois shall provide funding for the

alternative school programs within each educational service

region and within the Chicago public school system by line item

appropriation made to the State Board of Education for that

purpose. This money, when appropriated, shall be provided to

the regional superintendent and to the Chicago Board of

Education, who shall establish a budget, including salaries,

for their alternative school programs. Each program shall

receive funding in the amount of $30,000 plus an amount based

on the ratio of the region's or Chicago's best 3 months'

average daily attendance in grades pre-kindergarten through 12

to the statewide totals of these amounts. For purposes of this

calculation, the best 3 months' average daily attendance for

each region or Chicago shall be calculated by adding to the

best 3 months' average daily attendance the number of

low-income students identified in the most recently available

federal census multiplied by one-half times the percentage of

the region's or Chicago's low-income students to the State's

total low-income students. The State Board of Education shall

retain up to 1.1% of the appropriation to be used to provide

technical assistance, professional development, and

evaluations for the programs.

(a-5) Notwithstanding any other provisions of this

Section, for the 1998-1999 fiscal year, the total amount

distributed under subsection (a) for an alternative school

program shall be not less than the total amount that was

distributed under that subsection for that alternative school

program for the 1997-1998 fiscal year. If an alternative school

program is to receive a total distribution under subsection (a)

for the 1998-1999 fiscal year that is less than the total

distribution that the program received under that subsection

for the 1997-1998 fiscal year, that alternative school program

shall also receive, from a separate appropriation made for

purposes of this subsection (a-5), a supplementary payment

equal to the amount by which its total distribution under

subsection (a) for the 1997-1998 fiscal year exceeds the amount

of the total distribution that the alternative school program

receives under that subsection for the 1998-1999 fiscal year.

If the amount appropriated for supplementary payments to

alternative school programs under this subsection (a-5) is

insufficient for that purpose, those supplementary payments

shall be prorated among the alternative school programs

entitled to receive those supplementary payments according to

the aggregate amount of the appropriation made for purposes of

this subsection (a-5).

(b) An alternative school program shall be entitled to

receive general State aid as calculated in subsection (K) of

Section 18-8.05 or evidence-based funding as calculated in

subsection (g) of Section 18-8.15 upon filing a claim as

provided therein. Any time that a student who is enrolled in an

alternative school program spends in work-based learning,

community service, or a similar alternative educational

setting shall be included in determining the student's minimum

number of clock hours of daily school work that constitute a

day of attendance for purposes of calculating general State aid

or evidence-based funding.

(c) An alternative school program may receive additional

funding from its school districts in such amount as may be

agreed upon by the parties and necessary to support the

program. In addition, an alternative school program is

authorized to accept and expend gifts, legacies, and grants,

including but not limited to federal grants, from any source

for purposes directly related to the conduct and operation of

the program.

(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;

89-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;

90-802, eff. 12-15-98.)

(105 ILCS 5/13B-20.20)

Sec. 13B-20.20. Enrollment in other programs. High school

equivalency testing preparation programs are not eligible for

funding under this Article. A student may enroll in a program

approved under Section 18-8.05 or 18-8.15 of this Code, as

appropriate, or attend both the alternative learning

opportunities program and the regular school program to enhance

student performance and facilitate on-time graduation.

(Source: P.A. 98-718, eff. 1-1-15.)

(105 ILCS 5/13B-45)

Sec. 13B-45. Days and hours of attendance. An alternative

learning opportunities program shall provide students with at

least the minimum number of days of pupil attendance required

under Section 10-19 of this Code and the minimum number of

daily hours of school work required under Section 18-8.05 or

18-8.15 of this Code, provided that the State Board may approve

exceptions to these requirements if the program meets all of

the following conditions:

(1) The district plan submitted under Section

13B-25.15 of this Code establishes that a program providing

the required minimum number of days of attendance or daily

hours of school work would not serve the needs of the

program's students.

(2) Each day of attendance shall provide no fewer than

3 clock hours of school work, as defined under paragraph

(1) of subsection (F) of Section 18-8.05 of this Code.

(3) Each day of attendance that provides fewer than 5

clock hours of school work shall also provide supplementary

services, including without limitation work-based

learning, student assistance programs, counseling, case

management, health and fitness programs, or life-skills or

conflict resolution training, in order to provide a total

daily program to the student of 5 clock hours. A program

may claim general State aid or evidence-based funding for

up to 2 hours of the time each day that a student is

receiving supplementary services.

(4) Each program shall provide no fewer than 174 days

of actual pupil attendance during the school term; however,

approved evening programs that meet the requirements of

Section 13B-45 of this Code may offer less than 174 days of

actual pupil attendance during the school term.

(Source: P.A. 92-42, eff. 1-1-02.)

(105 ILCS 5/13B-50)

Sec. 13B-50. Eligibility to receive general State aid or

evidence-based funding. In order to receive general State aid

or evidence-based funding, alternative learning opportunities

programs must meet the requirements for claiming general State

aid as specified in Section 18-8.05 of this Code or

evidence-based funding as specified in Section 18-8.15 of this

Code, as applicable, with the exception of the length of the

instructional day, which may be less than 5 hours of school

work if the program meets the criteria set forth under Sections

13B-50.5 and 13B-50.10 of this Code and if the program is

approved by the State Board.

(Source: P.A. 92-42, eff. 1-1-02.)

(105 ILCS 5/13B-50.10)

Sec. 13B-50.10. Additional criteria for general State aid

or evidence-based funding. In order to claim general State aid

or evidence-based funding, an alternative learning

opportunities program must meet the following criteria:

(1) Teacher professional development plans should include

education in the instruction of at-risk students.

(2) Facilities must meet the health, life, and safety

requirements in this Code.

(3) The program must comply with all other State and

federal laws applicable to education providers.

(Source: P.A. 92-42, eff. 1-1-02.)

(105 ILCS 5/13B-50.15)

Sec. 13B-50.15. Level of funding. Approved alternative

learning opportunities programs are entitled to claim general

State aid or evidence-based funding, subject to Sections

13B-50, 13B-50.5, and 13B-50.10 of this Code. Approved programs

operated by regional offices of education are entitled to

receive general State aid at the foundation level of support. A

school district or consortium must ensure that an approved

program receives supplemental general State aid,

transportation reimbursements, and special education

resources, if appropriate, for students enrolled in the

program.

(Source: P.A. 92-42, eff. 1-1-02.)

(105 ILCS 5/14-7.02b)

Sec. 14-7.02b. Funding for children requiring special

education services. Payments to school districts for children

requiring special education services documented in their

individualized education program regardless of the program

from which these services are received, excluding children

claimed under Sections 14-7.02 and 14-7.03 of this Code, shall

be made in accordance with this Section. Funds received under

this Section may be used only for the provision of special

educational facilities and services as defined in Section

14-1.08 of this Code.

The appropriation for fiscal year 2005 through fiscal year

2017 and thereafter shall be based upon the IDEA child count of

all students in the State, excluding students claimed under

Sections 14-7.02 and 14-7.03 of this Code, on December 1 of the

fiscal year 2 years preceding, multiplied by 17.5% of the

general State aid foundation level of support established for

that fiscal year under Section 18-8.05 of this Code.

Beginning with fiscal year 2005 and through fiscal year

2007, individual school districts shall not receive payments

under this Section totaling less than they received under the

funding authorized under Section 14-7.02a of this Code during

fiscal year 2004, pursuant to the provisions of Section

14-7.02a as they were in effect before the effective date of

this amendatory Act of the 93rd General Assembly. This base

level funding shall be computed first.

Beginning with fiscal year 2008 through fiscal year 2017

and each fiscal year thereafter, individual school districts

must not receive payments under this Section totaling less than

they received in fiscal year 2007. This funding shall be

computed last and shall be a separate calculation from any

other calculation set forth in this Section. This amount is

exempt from the requirements of Section 1D-1 of this Code.

Through fiscal year 2017, an An amount equal to 85% of the

funds remaining in the appropriation shall be allocated to

school districts based upon the district's average daily

attendance reported for purposes of Section 18-8.05 of this

Code for the preceding school year. Fifteen percent of the

funds remaining in the appropriation shall be allocated to

school districts based upon the district's low income eligible

pupil count used in the calculation of general State aid under

Section 18-8.05 of this Code for the same fiscal year. One

hundred percent of the funds computed and allocated to

districts under this Section shall be distributed and paid to

school districts.

For individual students with disabilities whose program

costs exceed 4 times the district's per capita tuition rate as

calculated under Section 10-20.12a of this Code, the costs in

excess of 4 times the district's per capita tuition rate shall

be paid by the State Board of Education from unexpended IDEA

discretionary funds originally designated for room and board

reimbursement pursuant to Section 14-8.01 of this Code. The

amount of tuition for these children shall be determined by the

actual cost of maintaining classes for these children, using

the per capita cost formula set forth in Section 14-7.01 of

this Code, with the program and cost being pre-approved by the

State Superintendent of Education. Reimbursement for

individual students with disabilities whose program costs

exceed 4 times the district's per capita tuition rate shall be

claimed beginning with costs encumbered for the 2004-2005

school year and thereafter.

The State Board of Education shall prepare vouchers equal

to one-fourth the amount allocated to districts, for

transmittal to the State Comptroller on the 30th day of

September, December, and March, respectively, and the final

voucher, no later than June 20. The Comptroller shall make

payments pursuant to this Section to school districts as soon

as possible after receipt of vouchers. If the money

appropriated from the General Assembly for such purposes for

any year is insufficient, it shall be apportioned on the basis

of the payments due to school districts.

Nothing in this Section shall be construed to decrease or

increase the percentage of all special education funds that are

allocated annually under Article 1D of this Code or to alter

the requirement that a school district provide special

education services.

Nothing in this amendatory Act of the 93rd General Assembly

shall eliminate any reimbursement obligation owed as of the

effective date of this amendatory Act of the 93rd General

Assembly to a school district with in excess of 500,000

inhabitants.

Except for reimbursement for individual students with

disabilities whose program costs exceed 4 times the district's

per capita tuition rate, no funding shall be provided to school

districts under this Section after fiscal year 2017.

In fiscal year 2018 and each fiscal year thereafter, all

funding received by a school district from the State pursuant

to Section 18–8.15 of this Code that is attributable to

students requiring special education services must be used for

special education services authorized under this Code.

(Source: P.A. 93-1022, eff. 8-24-08; 95-705, eff. 1-8-08.)

(105 ILCS 5/14-13.01) (from Ch. 122, par. 14-13.01)

Sec. 14-13.01. Reimbursement payable by State; amounts for

personnel and transportation.

(a) Through fiscal year 2017, for For staff working on

behalf of children who have not been identified as eligible for

special education and for eligible children with physical

disabilities, including all eligible children whose placement

has been determined under Section 14-8.02 in hospital or home

instruction, 1/2 of the teacher's salary but not more than

$1,000 annually per child or $9,000 per teacher, whichever is

less.

(a-5) A child qualifies for home or hospital instruction if

it is anticipated that, due to a medical condition, the child

will be unable to attend school, and instead must be instructed

at home or in the hospital, for a period of 2 or more

consecutive weeks or on an ongoing intermittent basis. For

purposes of this Section, "ongoing intermittent basis" means

that the child's medical condition is of such a nature or

severity that it is anticipated that the child will be absent

from school due to the medical condition for periods of at

least 2 days at a time multiple times during the school year

totaling at least 10 days or more of absences. There shall be

no requirement that a child be absent from school a minimum

number of days before the child qualifies for home or hospital

instruction. In order to establish eligibility for home or

hospital services, a student's parent or guardian must submit

to the child's school district of residence a written statement

from a physician licensed to practice medicine in all of its

branches stating the existence of such medical condition, the

impact on the child's ability to participate in education, and

the anticipated duration or nature of the child's absence from

school. Home or hospital instruction may commence upon receipt

of a written physician's statement in accordance with this

Section, but instruction shall commence not later than 5 school

days after the school district receives the physician's

statement. Special education and related services required by

the child's IEP or services and accommodations required by the

child's federal Section 504 plan must be implemented as part of

the child's home or hospital instruction, unless the IEP team

or federal Section 504 plan team determines that modifications

are necessary during the home or hospital instruction due to

the child's condition.

(a-10) Through fiscal year 2017, eligible Eligible

children to be included in any reimbursement under this

paragraph must regularly receive a minimum of one hour of

instruction each school day, or in lieu thereof of a minimum of

5 hours of instruction in each school week in order to qualify

for full reimbursement under this Section. If the attending

physician for such a child has certified that the child should

not receive as many as 5 hours of instruction in a school week,

however, reimbursement under this paragraph on account of that

child shall be computed proportionate to the actual hours of

instruction per week for that child divided by 5.

(a-15) The State Board of Education shall establish rules

governing the required qualifications of staff providing home

or hospital instruction.

(b) For children described in Section 14-1.02, 80% of the

cost of transportation approved as a related service in the

Individualized Education Program for each student in order to

take advantage of special educational facilities.

Transportation costs shall be determined in the same fashion as

provided in Section 29-5 of this Code. For purposes of this

subsection (b), the dates for processing claims specified in

Section 29-5 shall apply.

(c) Through fiscal year 2017, for For each qualified

worker, the annual sum of $9,000.

(d) Through fiscal year 2017, for For one full time

qualified director of the special education program of each

school district which maintains a fully approved program of

special education the annual sum of $9,000. Districts

participating in a joint agreement special education program

shall not receive such reimbursement if reimbursement is made

for a director of the joint agreement program.

(e) (Blank).

(f) (Blank).

(g) Through fiscal year 2017, for For readers, working with

blind or partially seeing children 1/2 of their salary but not

more than $400 annually per child. Readers may be employed to

assist such children and shall not be required to be certified

but prior to employment shall meet standards set up by the

State Board of Education.

(h) Through fiscal year 2017, for For non-certified

employees, as defined by rules promulgated by the State Board

of Education, who deliver services to students with IEPs, 1/2

of the salary paid or $3,500 per employee, whichever is less.

(i) The State Board of Education shall set standards and

prescribe rules for determining the allocation of

reimbursement under this section on less than a full time basis

and for less than a school year.

When any school district eligible for reimbursement under

this Section operates a school or program approved by the State

Superintendent of Education for a number of days in excess of

the adopted school calendar but not to exceed 235 school days,

such reimbursement shall be increased by 1/180 of the amount or

rate paid hereunder for each day such school is operated in

excess of 180 days per calendar year.

Notwithstanding any other provision of law, any school

district receiving a payment under this Section or under

Section 14-7.02, 14-7.02b, or 29-5 of this Code may classify

all or a portion of the funds that it receives in a particular

fiscal year or from evidence-based funding general State aid

pursuant to Section 18-8.15 18-8.05 of this Code as funds

received in connection with any funding program for which it is

entitled to receive funds from the State in that fiscal year

(including, without limitation, any funding program referenced

in this Section), regardless of the source or timing of the

receipt. The district may not classify more funds as funds

received in connection with the funding program than the

district is entitled to receive in that fiscal year for that

program. Any classification by a district must be made by a

resolution of its board of education. The resolution must

identify the amount of any payments or evidence-based funding

general State aid to be classified under this paragraph and

must specify the funding program to which the funds are to be

treated as received in connection therewith. This resolution is

controlling as to the classification of funds referenced

therein. A certified copy of the resolution must be sent to the

State Superintendent of Education. The resolution shall still

take effect even though a copy of the resolution has not been

sent to the State Superintendent of Education in a timely

manner. No classification under this paragraph by a district

shall affect the total amount or timing of money the district

is entitled to receive under this Code. No classification under

this paragraph by a district shall in any way relieve the

district from or affect any requirements that otherwise would

apply with respect to that funding program, including any

accounting of funds by source, reporting expenditures by

original source and purpose, reporting requirements, or

requirements of providing services.

No funding shall be provided to school districts under this

Section after fiscal year 2017. In fiscal year 2018 and each

fiscal year thereafter, all funding received by a school

district from the State pursuant to Section 18-8.15 of this

Code that is attributable to personnel reimbursements for

special education pupils must be used for special education

services authorized under this Code.

(Source: P.A. 96-257, eff. 8-11-09; 97-123, eff. 7-14-11.)

(105 ILCS 5/14C-1) (from Ch. 122, par. 14C-1)

Sec. 14C-1. The General Assembly finds that there are large

numbers of children in this State who come from environments

where the primary language is other than English. Experience

has shown that public school classes in which instruction is

given only in English are often inadequate for the education of

children whose native tongue is another language. The General

Assembly believes that a program of transitional bilingual

education can meet the needs of these children and facilitate

their integration into the regular public school curriculum.

Therefore, pursuant to the policy of this State to ensure equal

educational opportunity to every child, and in recognition of

the educational needs of English learners, it is the purpose of

this Act to provide for the establishment of transitional

bilingual education programs in the public schools, to provide

supplemental financial assistance through fiscal year 2017 to

help local school districts meet the extra costs of such

programs, and to allow this State through the State Board of

Education to directly or indirectly provide technical

assistance and professional development to support

transitional bilingual education or a transitional program of

instruction programs statewide through contractual services by

a not-for-profit entity for technical assistance, professional

development, and other support to school districts and

educators for services for English learner pupils. In no case

may aggregate funding for contractual services by a

not-for-profit entity for support to school districts and

educators for services for English learner pupils be less than

the aggregate amount expended for such purposes in Fiscal Year

2017. Not-for-profit entities providing support to school

districts and educators for services for English learner pupils

must have experience providing those services in a school

district having a population exceeding 500,000; one or more

school districts in any of the counties of Lake, McHenry,

DuPage, Kane, and Will; and one or more school districts

elsewhere in this State. Funding for not-for-profit entities

providing support to school districts and educators for

services for English learner pupils may be increased subject to

an agreement with the State Board of Education. Funding for

not-for-profit entities providing support to school districts

and educators for services for English learner pupils shall

come from funds allocated pursuant to Section 18-8.15 of this

Code.

(Source: P.A. 99-30, eff. 7-10-15.)

(105 ILCS 5/14C-12) (from Ch. 122, par. 14C-12)

Sec. 14C-12. Account of expenditures; Cost report;

Reimbursement. Each school district with at least one English

learner shall keep an accurate, detailed and separate account

of all monies paid out by it for the programs in transitional

bilingual education required or permitted by this Article,

including transportation costs, and shall annually report

thereon for the school year ending June 30 indicating the

average per pupil expenditure. Through fiscal year 2017, each

Each school district shall be reimbursed for the amount by

which such costs exceed the average per pupil expenditure by

such school district for the education of children of

comparable age who are not in any special education program. No

funding shall be provided to school districts under this

Section after fiscal year 2017. In fiscal year 2018 and each

fiscal year thereafter, all funding received by a school

district from the State pursuant to Section 18-8.15 of this

Code that is attributable to instructions, supports, and

interventions for English learner pupils must be used for

programs and services authorized under this Article. At least

60% of transitional bilingual education funding received from

the State must be used for the instructional costs of programs

and services authorized under this Article transitional

bilingual education.

Applications for preapproval for reimbursement for costs

of transitional bilingual education programs must be submitted

to the State Superintendent of Education at least 60 days

before a transitional bilingual education program is started,

unless a justifiable exception is granted by the State

Superintendent of Education. Applications shall set forth a

plan for transitional bilingual education established and

maintained in accordance with this Article.

Through fiscal year 2017, reimbursement Reimbursement

claims for transitional bilingual education programs shall be

made as follows:

Each school district shall claim reimbursement on a current

basis for the first 3 quarters of the fiscal year and file a

final adjusted claim for the school year ended June 30

preceding computed in accordance with rules prescribed by the

State Superintendent's Office. The State Superintendent of

Education before approving any such claims shall determine

their accuracy and whether they are based upon services and

facilities provided under approved programs. Upon approval he

shall transmit to the Comptroller the vouchers showing the

amounts due for school district reimbursement claims. Upon

receipt of the final adjusted claims the State Superintendent

of Education shall make a final determination of the accuracy

of such claims. If the money appropriated by the General

Assembly for such purpose for any year is insufficient, it

shall be apportioned on the basis of the claims approved.

Failure on the part of the school district to prepare and

certify the final adjusted claims due under this Section may

constitute a forfeiture by the school district of its right to

be reimbursed by the State under this Section.

(Source: P.A. 96-1170, eff. 1-1-11.)

(105 ILCS 5/17-1) (from Ch. 122, par. 17-1)

Sec. 17-1. Annual Budget. The board of education of each

school district under 500,000 inhabitants shall, within or

before the first quarter of each fiscal year, adopt and file

with the State Board of Education an annual balanced budget

which it deems necessary to defray all necessary expenses and

liabilities of the district, and in such annual budget shall

specify the objects and purposes of each item and amount needed

for each object or purpose.

The budget shall be entered upon a School District Budget

form prepared and provided by the State Board of Education and

therein shall contain a statement of the cash on hand at the

beginning of the fiscal year, an estimate of the cash expected

to be received during such fiscal year from all sources, an

estimate of the expenditures contemplated for such fiscal year,

and a statement of the estimated cash expected to be on hand at

the end of such year. The estimate of taxes to be received may

be based upon the amount of actual cash receipts that may

reasonably be expected by the district during such fiscal year,

estimated from the experience of the district in prior years

and with due regard for other circumstances that may

substantially affect such receipts. Nothing in this Section

shall be construed as requiring any district to change or

preventing any district from changing from a cash basis of

financing to a surplus or deficit basis of financing; or as

requiring any district to change or preventing any district

from changing its system of accounting. The budget shall

conform to the requirements adopted by the State Board of

Education pursuant to Section 2-3.28 of this Code.

To the extent that a school district's budget is not

balanced, the district shall also adopt and file with the State

Board of Education a deficit reduction plan to balance the

district's budget within 3 years. The deficit reduction plan

must be filed at the same time as the budget, but the State

Superintendent of Education may extend this deadline if the

situation warrants.

If, as the result of an audit performed in compliance with

Section 3-7 of this Code, the resulting Annual Financial Report

required to be submitted pursuant to Section 3-15.1 of this

Code reflects a deficit as defined for purposes of the

preceding paragraph, then the district shall, within 30 days

after acceptance of such audit report, submit a deficit

reduction plan.

The board of education of each district shall fix a fiscal

year therefor. If the beginning of the fiscal year of a

district is subsequent to the time that the tax levy due to be

made in such fiscal year shall be made, then such annual budget

shall be adopted prior to the time such tax levy shall be made.

The failure by a board of education of any district to adopt an

annual budget, or to comply in any respect with the provisions

of this Section, shall not affect the validity of any tax levy

of the district otherwise in conformity with the law. With

respect to taxes levied either before, on, or after the

effective date of this amendatory Act of the 91st General

Assembly, (i) a tax levy is made for the fiscal year in which

the levy is due to be made regardless of which fiscal year the

proceeds of the levy are expended or are intended to be

expended, and (ii) except as otherwise provided by law, a board

of education's adoption of an annual budget in conformity with

this Section is not a prerequisite to the adoption of a valid

tax levy and is not a limit on the amount of the levy.

Such budget shall be prepared in tentative form by some

person or persons designated by the board, and in such

tentative form shall be made conveniently available to public

inspection for at least 30 days prior to final action thereon.

At least 1 public hearing shall be held as to such budget prior

to final action thereon. Notice of availability for public

inspection and of such public hearing shall be given by

publication in a newspaper published in such district, at least

30 days prior to the time of such hearing. If there is no

newspaper published in such district, notice of such public

hearing shall be given by posting notices thereof in 5 of the

most public places in such district. It shall be the duty of

the secretary of such board to make such tentative budget

available to public inspection, and to arrange for such public

hearing. The board may from time to time make transfers between

the various items in any fund not exceeding in the aggregate

10% of the total of such fund as set forth in the budget. The

board may from time to time amend such budget by the same

procedure as is herein provided for its original adoption.

Beginning July 1, 1976, the board of education, or regional

superintendent, or governing board responsible for the

administration of a joint agreement shall, by September 1 of

each fiscal year thereafter, adopt an annual budget for the

joint agreement in the same manner and subject to the same

requirements as are provided in this Section.

The State Board of Education shall exercise powers and

duties relating to budgets as provided in Section 2-3.27 of

this Code and shall require school districts to submit their

annual budgets, deficit reduction plans, and other financial

information, including revenue and expenditure reports and

borrowing and interfund transfer plans, in such form and within

the timelines designated by the State Board of Education.

By fiscal year 1982 all school districts shall use the

Program Budget Accounting System.

In the case of a school district receiving emergency State

financial assistance under Article 1B, the school board shall

also be subject to the requirements established under Article

1B with respect to the annual budget.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/17-1.2)

Sec. 17-1.2. Post annual budget on web site. If a school

district has an Internet web site, the school district shall

post its current annual budget, itemized by receipts and

expenditures, on the district's Internet web site. The budget

shall include information conforming to the rules adopted by

the State Board of Education pursuant to Section 2-3.28 of this

Code. The school district shall notify the parents or guardians

of its students that the budget has been posted on the

district's web site and what the web site's address is.

(Source: P.A. 92-438, eff. 1-1-02.)

(105 ILCS 5/17-1.5)

Sec. 17-1.5. Limitation of administrative costs.

(a) It is the purpose of this Section to establish

limitations on the growth of administrative expenditures in

order to maximize the proportion of school district resources

available for the instructional program, building maintenance,

and safety services for the students of each district.

(b) Definitions. For the purposes of this Section:

"Administrative expenditures" mean the annual expenditures

of school districts properly attributable to expenditure

functions defined by the rules of the State Board of Education

as: 2320 (Executive Administration Services); 2330 (Special

Area Administration Services); 2490 (Other Support Services -

School Administration); 2510 (Direction of Business Support

Services); 2570 (Internal Services); and 2610 (Direction of

Central Support Services); provided, however, that

"administrative expenditures" shall not include early

retirement or other pension system obligations required by

State law.

"School district" means all school districts having a

population of less than 500,000.

(c) For the 1998-99 school year and each school year

thereafter, each school district shall undertake budgetary and

expenditure control actions so that the increase in

administrative expenditures for that school year over the prior

school year does not exceed 5%. School districts with

administrative expenditures per pupil in the 25th percentile

and below for all districts of the same type, as defined by the

State Board of Education, may waive the limitation imposed

under this Section for any year following a public hearing and

with the affirmative vote of at least two-thirds of the members

of the school board of the district. Any district waiving the

limitation shall notify the State Board within 45 days of such

action.

(d) School districts shall file with the State Board of

Education by November 15, 1998 and by each November 15th

thereafter a one-page report that lists (i) the actual

administrative expenditures for the prior year from the

district's audited Annual Financial Report, and (ii) the

projected administrative expenditures for the current year

from the budget adopted by the school board pursuant to Section

17-1 of this Code.

If a school district that is ineligible to waive the

limitation imposed by subsection (c) of this Section by board

action exceeds the limitation solely because of circumstances

beyond the control of the district and the district has

exhausted all available and reasonable remedies to comply with

the limitation, the district may request a waiver pursuant to

Section 2-3.25g. The waiver application shall specify the

amount, nature, and reason for the relief requested, as well as

all remedies the district has exhausted to comply with the

limitation. Any emergency relief so requested shall apply only

to the specific school year for which the request is made. The

State Board of Education shall analyze all such waivers

submitted and shall recommend that the General Assembly

disapprove any such waiver requested that is not due solely to

circumstances beyond the control of the district and for which

the district has not exhausted all available and reasonable

remedies to comply with the limitation. The State

Superintendent shall have no authority to impose any sanctions

pursuant to this Section for any expenditures for which a

waiver has been requested until such waiver has been reviewed

by the General Assembly.

If the report and information required under this

subsection (d) are not provided by the school district in a

timely manner, or are subsequently determined by the State

Superintendent of Education to be incomplete or inaccurate, the

State Superintendent shall notify the district in writing of

reporting deficiencies. The school district shall, within 60

days of the notice, address the reporting deficiencies

identified.

(e) If the State Superintendent determines that a school

district has failed to comply with the administrative

expenditure limitation imposed in subsection (c) of this

Section, the State Superintendent shall notify the district of

the violation and direct the district to undertake corrective

action to bring the district's budget into compliance with the

administrative expenditure limitation. The district shall,

within 60 days of the notice, provide adequate assurance to the

State Superintendent that appropriate corrective actions have

been or will be taken. If the district fails to provide

adequate assurance or fails to undertake the necessary

corrective actions, the State Superintendent may impose

progressive sanctions against the district that may culminate

in withholding all subsequent payments of general State aid due

the district under Section 18-8.05 of this Code or

evidence-based funding due the district under Section 18-8.15

of this Code until the assurance is provided or the corrective

actions taken.

(f) The State Superintendent shall publish a list each year

of the school districts that violate the limitation imposed by

subsection (c) of this Section and a list of the districts that

waive the limitation by board action as provided in subsection

(c) of this Section.

(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)

(105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)

Sec. 17-2.11. School board power to levy a tax or to borrow

money and issue bonds for fire prevention, safety, energy

conservation, accessibility, school security, and specified

repair purposes.

(a) Whenever, as a result of any lawful order of any

agency, other than a school board, having authority to enforce

any school building code applicable to any facility that houses

students, or any law or regulation for the protection and

safety of the environment, pursuant to the Environmental

Protection Act, any school district having a population of less

than 500,000 inhabitants is required to alter or reconstruct

any school building or permanent, fixed equipment; the district

may, by proper resolution, levy a tax for the purpose of making

such alteration or reconstruction, based on a survey report by

an architect or engineer licensed in this State, upon all of

the taxable property of the district at the value as assessed

by the Department of Revenue and at a rate not to exceed 0.05%

per year for a period sufficient to finance such alteration or

reconstruction, upon the following conditions:

(1) When there are not sufficient funds available in

the operations and maintenance fund of the school district,

the school facility occupation tax fund of the district, or

the fire prevention and safety fund of the district, as

determined by the district on the basis of rules adopted by

the State Board of Education, to make such alteration or

reconstruction or to purchase and install such permanent,

fixed equipment so ordered or determined as necessary.

Appropriate school district records must be made available

to the State Superintendent of Education, upon request, to

confirm this insufficiency.

(2) When a certified estimate of an architect or

engineer licensed in this State stating the estimated

amount necessary to make the alteration or reconstruction

or to purchase and install the equipment so ordered has

been secured by the school district, and the estimate has

been approved by the regional superintendent of schools

having jurisdiction over the district and the State

Superintendent of Education. Approval must not be granted

for any work that has already started without the prior

express authorization of the State Superintendent of

Education. If the estimate is not approved or is denied

approval by the regional superintendent of schools within 3

months after the date on which it is submitted to him or

her, the school board of the district may submit the

estimate directly to the State Superintendent of Education

for approval or denial.

In the case of an emergency situation, where the estimated

cost to effectuate emergency repairs is less than the amount

specified in Section 10-20.21 of this Code, the school district

may proceed with such repairs prior to approval by the State

Superintendent of Education, but shall comply with the

provisions of subdivision (2) of this subsection (a) as soon

thereafter as may be as well as Section 10-20.21 of this Code.

If the estimated cost to effectuate emergency repairs is

greater than the amount specified in Section 10-20.21 of this

Code, then the school district shall proceed in conformity with

Section 10-20.21 of this Code and with rules established by the

State Board of Education to address such situations. The rules

adopted by the State Board of Education to deal with these

situations shall stipulate that emergency situations must be

expedited and given priority consideration. For purposes of

this paragraph, an emergency is a situation that presents an

imminent and continuing threat to the health and safety of

students or other occupants of a facility, requires complete or

partial evacuation of a building or part of a building, or

consumes one or more of the 5 emergency days built into the

adopted calendar of the school or schools or would otherwise be

expected to cause such school or schools to fall short of the

minimum school calendar requirements.

(b) Whenever any such district determines that it is

necessary for energy conservation purposes that any school

building or permanent, fixed equipment should be altered or

reconstructed and that such alterations or reconstruction will

be made with funds not necessary for the completion of approved

and recommended projects contained in any safety survey report

or amendments thereto authorized by Section 2-3.12 of this Act;

the district may levy a tax or issue bonds as provided in

subsection (a) of this Section.

(c) Whenever any such district determines that it is

necessary for accessibility purposes and to comply with the

school building code that any school building or equipment

should be altered or reconstructed and that such alterations or

reconstruction will be made with funds not necessary for the

completion of approved and recommended projects contained in

any safety survey report or amendments thereto authorized under

Section 2-3.12 of this Act, the district may levy a tax or

issue bonds as provided in subsection (a) of this Section.

(d) Whenever any such district determines that it is

necessary for school security purposes and the related

protection and safety of pupils and school personnel that any

school building or property should be altered or reconstructed

or that security systems and equipment (including but not

limited to intercom, early detection and warning, access

control and television monitoring systems) should be purchased

and installed, and that such alterations, reconstruction or

purchase and installation of equipment will be made with funds

not necessary for the completion of approved and recommended

projects contained in any safety survey report or amendment

thereto authorized by Section 2-3.12 of this Act and will deter

and prevent unauthorized entry or activities upon school

property by unknown or dangerous persons, assure early

detection and advance warning of any such actual or attempted

unauthorized entry or activities and help assure the continued

safety of pupils and school staff if any such unauthorized

entry or activity is attempted or occurs; the district may levy

a tax or issue bonds as provided in subsection (a) of this

Section.

(e) If a school district does not need funds for other fire

prevention and safety projects, including the completion of

approved and recommended projects contained in any safety

survey report or amendments thereto authorized by Section

2-3.12 of this Act, and it is determined after a public hearing

(which is preceded by at least one published notice (i)

occurring at least 7 days prior to the hearing in a newspaper

of general circulation within the school district and (ii)

setting forth the time, date, place, and general subject matter

of the hearing) that there is a substantial, immediate, and

otherwise unavoidable threat to the health, safety, or welfare

of pupils due to disrepair of school sidewalks, playgrounds,

parking lots, or school bus turnarounds and repairs must be

made; then the district may levy a tax or issue bonds as

provided in subsection (a) of this Section.

(f) For purposes of this Section a school district may

replace a school building or build additions to replace

portions of a building when it is determined that the

effectuation of the recommendations for the existing building

will cost more than the replacement costs. Such determination

shall be based on a comparison of estimated costs made by an

architect or engineer licensed in the State of Illinois. The

new building or addition shall be equivalent in area (square

feet) and comparable in purpose and grades served and may be on

the same site or another site. Such replacement may only be

done upon order of the regional superintendent of schools and

the approval of the State Superintendent of Education.

(g) The filing of a certified copy of the resolution

levying the tax when accompanied by the certificates of the

regional superintendent of schools and State Superintendent of

Education shall be the authority of the county clerk to extend

such tax.

(h) The county clerk of the county in which any school

district levying a tax under the authority of this Section is

located, in reducing raised levies, shall not consider any such

tax as a part of the general levy for school purposes and shall

not include the same in the limitation of any other tax rate

which may be extended.

Such tax shall be levied and collected in like manner as

all other taxes of school districts, subject to the provisions

contained in this Section.

(i) The tax rate limit specified in this Section may be

increased to .10% upon the approval of a proposition to effect

such increase by a majority of the electors voting on that

proposition at a regular scheduled election. Such proposition

may be initiated by resolution of the school board and shall be

certified by the secretary to the proper election authorities

for submission in accordance with the general election law.

(j) When taxes are levied by any school district for fire

prevention, safety, energy conservation, and school security

purposes as specified in this Section, and the purposes for

which the taxes have been levied are accomplished and paid in

full, and there remain funds on hand in the Fire Prevention and

Safety Fund from the proceeds of the taxes levied, including

interest earnings thereon, the school board by resolution shall

use such excess and other board restricted funds, excluding

bond proceeds and earnings from such proceeds, as follows:

(1) for other authorized fire prevention, safety,

energy conservation, required safety inspections, school

security purposes, sampling for lead in drinking water in

schools, and for repair and mitigation due to lead levels

in the drinking water supply; or

(2) for transfer to the Operations and Maintenance Fund

for the purpose of abating an equal amount of operations

and maintenance purposes taxes.

Notwithstanding subdivision (2) of this subsection (j) and

subsection (k) of this Section, through June 30, 2020 2019, the

school board may, by proper resolution following a public

hearing set by the school board or the president of the school

board (that is preceded (i) by at least one published notice

over the name of the clerk or secretary of the board, occurring

at least 7 days and not more than 30 days prior to the hearing,

in a newspaper of general circulation within the school

district and (ii) by posted notice over the name of the clerk

or secretary of the board, at least 48 hours before the

hearing, at the principal office of the school board or at the

building where the hearing is to be held if a principal office

does not exist, with both notices setting forth the time, date,

place, and subject matter of the hearing), transfer surplus

life safety taxes and interest earnings thereon to the

Operations and Maintenance Fund for building repair work.

(k) If any transfer is made to the Operation and

Maintenance Fund, the secretary of the school board shall

within 30 days notify the county clerk of the amount of that

transfer and direct the clerk to abate the taxes to be extended

for the purposes of operations and maintenance authorized under

Section 17-2 of this Act by an amount equal to such transfer.

(l) If the proceeds from the tax levy authorized by this

Section are insufficient to complete the work approved under

this Section, the school board is authorized to sell bonds

without referendum under the provisions of this Section in an

amount that, when added to the proceeds of the tax levy

authorized by this Section, will allow completion of the

approved work.

(m) Any bonds issued pursuant to this Section shall bear

interest at a rate not to exceed the maximum rate authorized by

law at the time of the making of the contract, shall mature

within 20 years from date, and shall be signed by the president

of the school board and the treasurer of the school district.

(n) In order to authorize and issue such bonds, the school

board shall adopt a resolution fixing the amount of bonds, the

date thereof, the maturities thereof, rates of interest

thereof, place of payment and denomination, which shall be in

denominations of not less than $100 and not more than $5,000,

and provide for the levy and collection of a direct annual tax

upon all the taxable property in the school district sufficient

to pay the principal and interest on such bonds to maturity.

Upon the filing in the office of the county clerk of the county

in which the school district is located of a certified copy of

the resolution, it is the duty of the county clerk to extend

the tax therefor in addition to and in excess of all other

taxes heretofore or hereafter authorized to be levied by such

school district.

(o) After the time such bonds are issued as provided for by

this Section, if additional alterations or reconstructions are

required to be made because of surveys conducted by an

architect or engineer licensed in the State of Illinois, the

district may levy a tax at a rate not to exceed .05% per year

upon all the taxable property of the district or issue

additional bonds, whichever action shall be the most feasible.

(p) This Section is cumulative and constitutes complete

authority for the issuance of bonds as provided in this Section

notwithstanding any other statute or law to the contrary.

(q) With respect to instruments for the payment of money

issued under this Section either before, on, or after the

effective date of Public Act 86-004 (June 6, 1989), it is, and

always has been, the intention of the General Assembly (i) that

the Omnibus Bond Acts are, and always have been, supplementary

grants of power to issue instruments in accordance with the

Omnibus Bond Acts, regardless of any provision of this Act that

may appear to be or to have been more restrictive than those

Acts, (ii) that the provisions of this Section are not a

limitation on the supplementary authority granted by the

Omnibus Bond Acts, and (iii) that instruments issued under this

Section within the supplementary authority granted by the

Omnibus Bond Acts are not invalid because of any provision of

this Act that may appear to be or to have been more restrictive

than those Acts.

(r) When the purposes for which the bonds are issued have

been accomplished and paid for in full and there remain funds

on hand from the proceeds of the bond sale and interest

earnings therefrom, the board shall, by resolution, use such

excess funds in accordance with the provisions of Section

10-22.14 of this Act.

(s) Whenever any tax is levied or bonds issued for fire

prevention, safety, energy conservation, and school security

purposes, such proceeds shall be deposited and accounted for

separately within the Fire Prevention and Safety Fund.

(Source: P.A. 98-26, eff. 6-21-13; 98-1066, eff. 8-26-14;

99-143, eff. 7-27-15; 99-713, eff. 8-5-16; 99-922, eff.

1-17-17.)

(105 ILCS 5/17-2A) (from Ch. 122, par. 17-2A)

Sec. 17-2A. Interfund transfers.

(a) The school board of any district having a population of

less than 500,000 inhabitants may, by proper resolution

following a public hearing set by the school board or the

president of the school board (that is preceded (i) by at least

one published notice over the name of the clerk or secretary of

the board, occurring at least 7 days and not more than 30 days

prior to the hearing, in a newspaper of general circulation

within the school district and (ii) by posted notice over the

name of the clerk or secretary of the board, at least 48 hours

before the hearing, at the principal office of the school board

or at the building where the hearing is to be held if a

principal office does not exist, with both notices setting

forth the time, date, place, and subject matter of the

hearing), transfer money from (1) the Educational Fund to the

Operations and Maintenance Fund or the Transportation Fund, (2)

the Operations and Maintenance Fund to the Educational Fund or

the Transportation Fund, (3) the Transportation Fund to the

Educational Fund or the Operations and Maintenance Fund, or (4)

the Tort Immunity Fund to the Operations and Maintenance Fund

of said district, provided that, except during the period from

July 1, 2003 through June 30, 2020 2019, such transfer is made

solely for the purpose of meeting one-time, non-recurring

expenses. Except during the period from July 1, 2003 through

June 30, 2020 2019 and except as otherwise provided in

subsection (b) of this Section, any other permanent interfund

transfers authorized by any provision or judicial

interpretation of this Code for which the transferee fund is

not precisely and specifically set forth in the provision of

this Code authorizing such transfer shall be made to the fund

of the school district most in need of the funds being

transferred, as determined by resolution of the school board.

(b) (Blank).

(c) Notwithstanding subsection (a) of this Section or any

other provision of this Code to the contrary, the school board

of any school district (i) that is subject to the Property Tax

Extension Limitation Law, (ii) that is an elementary district

servicing students in grades K through 8, (iii) whose territory

is in one county, (iv) that is eligible for Section 7002

Federal Impact Aid, and (v) that has no more than $81,000 in

funds remaining from refinancing bonds that were refinanced a

minimum of 5 years prior to January 20, 2017 (the effective

date of Public Act 99-926) this amendatory Act of the 99th

General Assembly may make a one-time transfer of the funds

remaining from the refinancing bonds to the Operations and

Maintenance Fund of the district by proper resolution following

a public hearing set by the school board or the president of

the school board, with notice as provided in subsection (a) of

this Section, so long as the district meets the qualifications

set forth in this subsection (c) on January 20, 2017 (the

effective date of Public Act 99-926) this amendatory Act of the

99th General Assembly.

(Source: P.A. 98-26, eff. 6-21-13; 98-131, eff. 1-1-14; 99-713,

eff. 8-5-16; 99-922, eff. 1-17-17; 99-926, eff. 1-20-17;

revised 1-23-17.)

(105 ILCS 5/17-3.6 new)

Sec. 17-3.6. Educational purposes tax rate for school

districts subject to Property Tax Extension Limitation Law.

Notwithstanding the provisions, requirements, or limitations

of this Code or any other law, any tax levied for educational

purposes by a school district subject to the Property Tax

Extension Limitation Law for the 2016 levy year or any

subsequent levy year may be extended at a rate exceeding the

rate established for educational purposes by referendum or this

Code, provided that the rate does not cause the school district

to exceed the limiting rate applicable to the school district

under the Property Tax Extension Limitation Law for that levy

year.

(105 ILCS 5/18-4.3) (from Ch. 122, par. 18-4.3)

Sec. 18-4.3. Summer school grants. Through fiscal year

2017, grants Grants shall be determined for pupil attendance in

summer schools conducted under Sections 10-22.33A and 34-18 and

approved under Section 2-3.25 in the following manner.

The amount of grant for each accredited summer school

attendance pupil shall be obtained by dividing the total amount

of apportionments determined under Section 18-8.05 by the

actual number of pupils in average daily attendance used for

such apportionments. The number of credited summer school

attendance pupils shall be determined (a) by counting clock

hours of class instruction by pupils enrolled in grades 1

through 12 in approved courses conducted at least 60 clock

hours in summer sessions; (b) by dividing such total of clock

hours of class instruction by 4 to produce days of credited

pupil attendance; (c) by dividing such days of credited pupil

attendance by the actual number of days in the regular term as

used in computation in the general apportionment in Section

18-8.05; and (d) by multiplying by 1.25.

The amount of the grant for a summer school program

approved by the State Superintendent of Education for children

with disabilities, as defined in Sections 14-1.02 through

14-1.07, shall be determined in the manner contained above

except that average daily membership shall be utilized in lieu

of average daily attendance.

In the case of an apportionment based on summer school

attendance or membership pupils, the claim therefor shall be

presented as a separate claim for the particular school year in

which such summer school session ends. On or before November 1

of each year the superintendent of each eligible school

district shall certify to the State Superintendent of Education

the claim of the district for the summer session just ended.

Failure on the part of the school board to so certify shall

constitute a forfeiture of its right to such payment. The State

Superintendent of Education shall transmit to the Comptroller

no later than December 15th of each year vouchers for payment

of amounts due school districts for summer school. The State

Superintendent of Education shall direct the Comptroller to

draw his warrants for payments thereof by the 30th day of

December. If the money appropriated by the General Assembly for

such purpose for any year is insufficient, it shall be

apportioned on the basis of claims approved.

However, notwithstanding the foregoing provisions, for

each fiscal year the money appropriated by the General Assembly

for the purposes of this Section shall only be used for grants

for approved summer school programs for those children with

disabilities served pursuant to Section 14-7.02 or 14-7.02b of

this Code.

No funding shall be provided to school districts under this

Section after fiscal year 2017. In fiscal year 2018 and each

fiscal year thereafter, all funding received by a school

district from the State pursuant to Section 18–8.15 of this

Code that is attributable to summer school for special

education pupils must be used for special education services

authorized under this Code.

(Source: P.A. 93-1022, eff. 8-24-04.)

(105 ILCS 5/18-8.05)

Sec. 18-8.05. Basis for apportionment of general State

financial aid and supplemental general State aid to the common

schools for the 1998-1999 through the 2016-2017 and subsequent

school years.

(A) General Provisions.

(1) The provisions of this Section relating to the

calculation and apportionment of general State financial aid

and supplemental general State aid apply to the 1998-1999

through the 2016-2017 and subsequent school years. The system

of general State financial aid provided for in this Section is

designed to assure that, through a combination of State

financial aid and required local resources, the financial

support provided each pupil in Average Daily Attendance equals

or exceeds a prescribed per pupil Foundation Level. This

formula approach imputes a level of per pupil Available Local

Resources and provides for the basis to calculate a per pupil

level of general State financial aid that, when added to

Available Local Resources, equals or exceeds the Foundation

Level. The amount of per pupil general State financial aid for

school districts, in general, varies in inverse relation to

Available Local Resources. Per pupil amounts are based upon

each school district's Average Daily Attendance as that term is

defined in this Section.

(2) In addition to general State financial aid, school

districts with specified levels or concentrations of pupils

from low income households are eligible to receive supplemental

general State financial aid grants as provided pursuant to

subsection (H). The supplemental State aid grants provided for

school districts under subsection (H) shall be appropriated for

distribution to school districts as part of the same line item

in which the general State financial aid of school districts is

appropriated under this Section.

(3) To receive financial assistance under this Section,

school districts are required to file claims with the State

Board of Education, subject to the following requirements:

(a) Any school district which fails for any given

school year to maintain school as required by law, or to

maintain a recognized school is not eligible to file for

such school year any claim upon the Common School Fund. In

case of nonrecognition of one or more attendance centers in

a school district otherwise operating recognized schools,

the claim of the district shall be reduced in the

proportion which the Average Daily Attendance in the

attendance center or centers bear to the Average Daily

Attendance in the school district. A "recognized school"

means any public school which meets the standards as

established for recognition by the State Board of

Education. A school district or attendance center not

having recognition status at the end of a school term is

entitled to receive State aid payments due upon a legal

claim which was filed while it was recognized.

(b) School district claims filed under this Section are

subject to Sections 18-9 and 18-12, except as otherwise

provided in this Section.

(c) If a school district operates a full year school

under Section 10-19.1, the general State aid to the school

district shall be determined by the State Board of

Education in accordance with this Section as near as may be

applicable.

(d) (Blank).

(4) Except as provided in subsections (H) and (L), the

board of any district receiving any of the grants provided for

in this Section may apply those funds to any fund so received

for which that board is authorized to make expenditures by law.

School districts are not required to exert a minimum

Operating Tax Rate in order to qualify for assistance under

this Section.

(5) As used in this Section the following terms, when

capitalized, shall have the meaning ascribed herein:

(a) "Average Daily Attendance": A count of pupil

attendance in school, averaged as provided for in

subsection (C) and utilized in deriving per pupil financial

support levels.

(b) "Available Local Resources": A computation of

local financial support, calculated on the basis of Average

Daily Attendance and derived as provided pursuant to

subsection (D).

(c) "Corporate Personal Property Replacement Taxes":

Funds paid to local school districts pursuant to "An Act in

relation to the abolition of ad valorem personal property

tax and the replacement of revenues lost thereby, and

amending and repealing certain Acts and parts of Acts in

connection therewith", certified August 14, 1979, as

amended (Public Act 81-1st S.S.-1).

(d) "Foundation Level": A prescribed level of per pupil

financial support as provided for in subsection (B).

(e) "Operating Tax Rate": All school district property

taxes extended for all purposes, except Bond and Interest,

Summer School, Rent, Capital Improvement, and Vocational

Education Building purposes.

(B) Foundation Level.

(1) The Foundation Level is a figure established by the

State representing the minimum level of per pupil financial

support that should be available to provide for the basic

education of each pupil in Average Daily Attendance. As set

forth in this Section, each school district is assumed to exert

a sufficient local taxing effort such that, in combination with

the aggregate of general State financial aid provided the

district, an aggregate of State and local resources are

available to meet the basic education needs of pupils in the

district.

(2) For the 1998-1999 school year, the Foundation Level of

support is $4,225. For the 1999-2000 school year, the

Foundation Level of support is $4,325. For the 2000-2001 school

year, the Foundation Level of support is $4,425. For the

2001-2002 school year and 2002-2003 school year, the Foundation

Level of support is $4,560. For the 2003-2004 school year, the

Foundation Level of support is $4,810. For the 2004-2005 school

year, the Foundation Level of support is $4,964. For the

2005-2006 school year, the Foundation Level of support is

$5,164. For the 2006-2007 school year, the Foundation Level of

support is $5,334. For the 2007-2008 school year, the

Foundation Level of support is $5,734. For the 2008-2009 school

year, the Foundation Level of support is $5,959.

(3) For the 2009-2010 school year and each school year

thereafter, the Foundation Level of support is $6,119 or such

greater amount as may be established by law by the General

Assembly.

(C) Average Daily Attendance.

(1) For purposes of calculating general State aid pursuant

to subsection (E), an Average Daily Attendance figure shall be

utilized. The Average Daily Attendance figure for formula

calculation purposes shall be the monthly average of the actual

number of pupils in attendance of each school district, as

further averaged for the best 3 months of pupil attendance for

each school district. In compiling the figures for the number

of pupils in attendance, school districts and the State Board

of Education shall, for purposes of general State aid funding,

conform attendance figures to the requirements of subsection

(F).

(2) The Average Daily Attendance figures utilized in

subsection (E) shall be the requisite attendance data for the

school year immediately preceding the school year for which

general State aid is being calculated or the average of the

attendance data for the 3 preceding school years, whichever is

greater. The Average Daily Attendance figures utilized in

subsection (H) shall be the requisite attendance data for the

school year immediately preceding the school year for which

general State aid is being calculated.

(D) Available Local Resources.

(1) For purposes of calculating general State aid pursuant

to subsection (E), a representation of Available Local

Resources per pupil, as that term is defined and determined in

this subsection, shall be utilized. Available Local Resources

per pupil shall include a calculated dollar amount representing

local school district revenues from local property taxes and

from Corporate Personal Property Replacement Taxes, expressed

on the basis of pupils in Average Daily Attendance. Calculation

of Available Local Resources shall exclude any tax amnesty

funds received as a result of Public Act 93-26.

(2) In determining a school district's revenue from local

property taxes, the State Board of Education shall utilize the

equalized assessed valuation of all taxable property of each

school district as of September 30 of the previous year. The

equalized assessed valuation utilized shall be obtained and

determined as provided in subsection (G).

(3) For school districts maintaining grades kindergarten

through 12, local property tax revenues per pupil shall be

calculated as the product of the applicable equalized assessed

valuation for the district multiplied by 3.00%, and divided by

the district's Average Daily Attendance figure. For school

districts maintaining grades kindergarten through 8, local

property tax revenues per pupil shall be calculated as the

product of the applicable equalized assessed valuation for the

district multiplied by 2.30%, and divided by the district's

Average Daily Attendance figure. For school districts

maintaining grades 9 through 12, local property tax revenues

per pupil shall be the applicable equalized assessed valuation

of the district multiplied by 1.05%, and divided by the

district's Average Daily Attendance figure.

For partial elementary unit districts created pursuant to

Article 11E of this Code, local property tax revenues per pupil

shall be calculated as the product of the equalized assessed

valuation for property within the partial elementary unit

district for elementary purposes, as defined in Article 11E of

this Code, multiplied by 2.06% and divided by the district's

Average Daily Attendance figure, plus the product of the

equalized assessed valuation for property within the partial

elementary unit district for high school purposes, as defined

in Article 11E of this Code, multiplied by 0.94% and divided by

the district's Average Daily Attendance figure.

(4) The Corporate Personal Property Replacement Taxes paid

to each school district during the calendar year one year

before the calendar year in which a school year begins, divided

by the Average Daily Attendance figure for that district, shall

be added to the local property tax revenues per pupil as

derived by the application of the immediately preceding

paragraph (3). The sum of these per pupil figures for each

school district shall constitute Available Local Resources as

that term is utilized in subsection (E) in the calculation of

general State aid.

(E) Computation of General State Aid.

(1) For each school year, the amount of general State aid

allotted to a school district shall be computed by the State

Board of Education as provided in this subsection.

(2) For any school district for which Available Local

Resources per pupil is less than the product of 0.93 times the

Foundation Level, general State aid for that district shall be

calculated as an amount equal to the Foundation Level minus

Available Local Resources, multiplied by the Average Daily

Attendance of the school district.

(3) For any school district for which Available Local

Resources per pupil is equal to or greater than the product of

0.93 times the Foundation Level and less than the product of

1.75 times the Foundation Level, the general State aid per

pupil shall be a decimal proportion of the Foundation Level

derived using a linear algorithm. Under this linear algorithm,

the calculated general State aid per pupil shall decline in

direct linear fashion from 0.07 times the Foundation Level for

a school district with Available Local Resources equal to the

product of 0.93 times the Foundation Level, to 0.05 times the

Foundation Level for a school district with Available Local

Resources equal to the product of 1.75 times the Foundation

Level. The allocation of general State aid for school districts

subject to this paragraph 3 shall be the calculated general

State aid per pupil figure multiplied by the Average Daily

Attendance of the school district.

(4) For any school district for which Available Local

Resources per pupil equals or exceeds the product of 1.75 times

the Foundation Level, the general State aid for the school

district shall be calculated as the product of $218 multiplied

by the Average Daily Attendance of the school district.

(5) The amount of general State aid allocated to a school

district for the 1999-2000 school year meeting the requirements

set forth in paragraph (4) of subsection (G) shall be increased

by an amount equal to the general State aid that would have

been received by the district for the 1998-1999 school year by

utilizing the Extension Limitation Equalized Assessed

Valuation as calculated in paragraph (4) of subsection (G) less

the general State aid allotted for the 1998-1999 school year.

This amount shall be deemed a one time increase, and shall not

affect any future general State aid allocations.

(F) Compilation of Average Daily Attendance.

(1) Each school district shall, by July 1 of each year,

submit to the State Board of Education, on forms prescribed by

the State Board of Education, attendance figures for the school

year that began in the preceding calendar year. The attendance

information so transmitted shall identify the average daily

attendance figures for each month of the school year. Beginning

with the general State aid claim form for the 2002-2003 school

year, districts shall calculate Average Daily Attendance as

provided in subdivisions (a), (b), and (c) of this paragraph

(1).

(a) In districts that do not hold year-round classes,

days of attendance in August shall be added to the month of

September and any days of attendance in June shall be added

to the month of May.

(b) In districts in which all buildings hold year-round

classes, days of attendance in July and August shall be

added to the month of September and any days of attendance

in June shall be added to the month of May.

(c) In districts in which some buildings, but not all,

hold year-round classes, for the non-year-round buildings,

days of attendance in August shall be added to the month of

September and any days of attendance in June shall be added

to the month of May. The average daily attendance for the

year-round buildings shall be computed as provided in

subdivision (b) of this paragraph (1). To calculate the

Average Daily Attendance for the district, the average

daily attendance for the year-round buildings shall be

multiplied by the days in session for the non-year-round

buildings for each month and added to the monthly

attendance of the non-year-round buildings.

Except as otherwise provided in this Section, days of

attendance by pupils shall be counted only for sessions of not

less than 5 clock hours of school work per day under direct

supervision of: (i) teachers, or (ii) non-teaching personnel or

volunteer personnel when engaging in non-teaching duties and

supervising in those instances specified in subsection (a) of

Section 10-22.34 and paragraph 10 of Section 34-18, with pupils

of legal school age and in kindergarten and grades 1 through

12. Days of attendance by pupils through verified participation

in an e-learning program approved by the State Board of

Education under Section 10-20.56 of the Code shall be

considered as full days of attendance for purposes of this

Section.

Days of attendance by tuition pupils shall be accredited

only to the districts that pay the tuition to a recognized

school.

(2) Days of attendance by pupils of less than 5 clock hours

of school shall be subject to the following provisions in the

compilation of Average Daily Attendance.

(a) Pupils regularly enrolled in a public school for

only a part of the school day may be counted on the basis

of 1/6 day for every class hour of instruction of 40

minutes or more attended pursuant to such enrollment,

unless a pupil is enrolled in a block-schedule format of 80

minutes or more of instruction, in which case the pupil may

be counted on the basis of the proportion of minutes of

school work completed each day to the minimum number of

minutes that school work is required to be held that day.

(b) (Blank).

(c) A session of 4 or more clock hours may be counted

as a day of attendance upon certification by the regional

superintendent, and approved by the State Superintendent

of Education to the extent that the district has been

forced to use daily multiple sessions.

(d) A session of 3 or more clock hours may be counted

as a day of attendance (1) when the remainder of the school

day or at least 2 hours in the evening of that day is

utilized for an in-service training program for teachers,

up to a maximum of 5 days per school year, provided a

district conducts an in-service training program for

teachers in accordance with Section 10-22.39 of this Code;

or, in lieu of 4 such days, 2 full days may be used, in

which event each such day may be counted as a day required

for a legal school calendar pursuant to Section 10-19 of

this Code; (1.5) when, of the 5 days allowed under item

(1), a maximum of 4 days are used for parent-teacher

conferences, or, in lieu of 4 such days, 2 full days are

used, in which case each such day may be counted as a

calendar day required under Section 10-19 of this Code,

provided that the full-day, parent-teacher conference

consists of (i) a minimum of 5 clock hours of

parent-teacher conferences, (ii) both a minimum of 2 clock

hours of parent-teacher conferences held in the evening

following a full day of student attendance, as specified in

subsection (F)(1)(c), and a minimum of 3 clock hours of

parent-teacher conferences held on the day immediately

following evening parent-teacher conferences, or (iii)

multiple parent-teacher conferences held in the evenings

following full days of student attendance, as specified in

subsection (F)(1)(c), in which the time used for the

parent-teacher conferences is equivalent to a minimum of 5

clock hours; and (2) when days in addition to those

provided in items (1) and (1.5) are scheduled by a school

pursuant to its school improvement plan adopted under

Article 34 or its revised or amended school improvement

plan adopted under Article 2, provided that (i) such

sessions of 3 or more clock hours are scheduled to occur at

regular intervals, (ii) the remainder of the school days in

which such sessions occur are utilized for in-service

training programs or other staff development activities

for teachers, and (iii) a sufficient number of minutes of

school work under the direct supervision of teachers are

added to the school days between such regularly scheduled

sessions to accumulate not less than the number of minutes

by which such sessions of 3 or more clock hours fall short

of 5 clock hours. Any full days used for the purposes of

this paragraph shall not be considered for computing

average daily attendance. Days scheduled for in-service

training programs, staff development activities, or

parent-teacher conferences may be scheduled separately for

different grade levels and different attendance centers of

the district.

(e) A session of not less than one clock hour of

teaching hospitalized or homebound pupils on-site or by

telephone to the classroom may be counted as 1/2 day of

attendance, however these pupils must receive 4 or more

clock hours of instruction to be counted for a full day of

attendance.

(f) A session of at least 4 clock hours may be counted

as a day of attendance for first grade pupils, and pupils

in full day kindergartens, and a session of 2 or more hours

may be counted as 1/2 day of attendance by pupils in

kindergartens which provide only 1/2 day of attendance.

(g) For children with disabilities who are below the

age of 6 years and who cannot attend 2 or more clock hours

because of their disability or immaturity, a session of not

less than one clock hour may be counted as 1/2 day of

attendance; however for such children whose educational

needs so require a session of 4 or more clock hours may be

counted as a full day of attendance.

(h) A recognized kindergarten which provides for only

1/2 day of attendance by each pupil shall not have more

than 1/2 day of attendance counted in any one day. However,

kindergartens may count 2 1/2 days of attendance in any 5

consecutive school days. When a pupil attends such a

kindergarten for 2 half days on any one school day, the

pupil shall have the following day as a day absent from

school, unless the school district obtains permission in

writing from the State Superintendent of Education.

Attendance at kindergartens which provide for a full day of

attendance by each pupil shall be counted the same as

attendance by first grade pupils. Only the first year of

attendance in one kindergarten shall be counted, except in

case of children who entered the kindergarten in their

fifth year whose educational development requires a second

year of kindergarten as determined under the rules and

regulations of the State Board of Education.

(i) On the days when the assessment that includes a

college and career ready determination is administered

under subsection (c) of Section 2-3.64a-5 of this Code, the

day of attendance for a pupil whose school day must be

shortened to accommodate required testing procedures may

be less than 5 clock hours and shall be counted towards the

176 days of actual pupil attendance required under Section

10-19 of this Code, provided that a sufficient number of

minutes of school work in excess of 5 clock hours are first

completed on other school days to compensate for the loss

of school work on the examination days.

(j) Pupils enrolled in a remote educational program

established under Section 10-29 of this Code may be counted

on the basis of one-fifth day of attendance for every clock

hour of instruction attended in the remote educational

program, provided that, in any month, the school district

may not claim for a student enrolled in a remote

educational program more days of attendance than the

maximum number of days of attendance the district can claim

(i) for students enrolled in a building holding year-round

classes if the student is classified as participating in

the remote educational program on a year-round schedule or

(ii) for students enrolled in a building not holding

year-round classes if the student is not classified as

participating in the remote educational program on a

year-round schedule.

(G) Equalized Assessed Valuation Data.

(1) For purposes of the calculation of Available Local

Resources required pursuant to subsection (D), the State Board

of Education shall secure from the Department of Revenue the

value as equalized or assessed by the Department of Revenue of

all taxable property of every school district, together with

(i) the applicable tax rate used in extending taxes for the

funds of the district as of September 30 of the previous year

and (ii) the limiting rate for all school districts subject to

property tax extension limitations as imposed under the

Property Tax Extension Limitation Law.

The Department of Revenue shall add to the equalized

assessed value of all taxable property of each school district

situated entirely or partially within a county that is or was

subject to the provisions of Section 15-176 or 15-177 of the

Property Tax Code (a) an amount equal to the total amount by

which the homestead exemption allowed under Section 15-176 or

15-177 of the Property Tax Code for real property situated in

that school district exceeds the total amount that would have

been allowed in that school district if the maximum reduction

under Section 15-176 was (i) $4,500 in Cook County or $3,500 in

all other counties in tax year 2003 or (ii) $5,000 in all

counties in tax year 2004 and thereafter and (b) an amount

equal to the aggregate amount for the taxable year of all

additional exemptions under Section 15-175 of the Property Tax

Code for owners with a household income of $30,000 or less. The

county clerk of any county that is or was subject to the

provisions of Section 15-176 or 15-177 of the Property Tax Code

shall annually calculate and certify to the Department of

Revenue for each school district all homestead exemption

amounts under Section 15-176 or 15-177 of the Property Tax Code

and all amounts of additional exemptions under Section 15-175

of the Property Tax Code for owners with a household income of

$30,000 or less. It is the intent of this paragraph that if the

general homestead exemption for a parcel of property is

determined under Section 15-176 or 15-177 of the Property Tax

Code rather than Section 15-175, then the calculation of

Available Local Resources shall not be affected by the

difference, if any, between the amount of the general homestead

exemption allowed for that parcel of property under Section

15-176 or 15-177 of the Property Tax Code and the amount that

would have been allowed had the general homestead exemption for

that parcel of property been determined under Section 15-175 of

the Property Tax Code. It is further the intent of this

paragraph that if additional exemptions are allowed under

Section 15-175 of the Property Tax Code for owners with a

household income of less than $30,000, then the calculation of

Available Local Resources shall not be affected by the

difference, if any, because of those additional exemptions.

This equalized assessed valuation, as adjusted further by

the requirements of this subsection, shall be utilized in the

calculation of Available Local Resources.

(2) The equalized assessed valuation in paragraph (1) shall

be adjusted, as applicable, in the following manner:

(a) For the purposes of calculating State aid under

this Section, with respect to any part of a school district

within a redevelopment project area in respect to which a

municipality has adopted tax increment allocation

financing pursuant to the Tax Increment Allocation

Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11

of the Illinois Municipal Code or the Industrial Jobs

Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the

Illinois Municipal Code, no part of the current equalized

assessed valuation of real property located in any such

project area which is attributable to an increase above the

total initial equalized assessed valuation of such

property shall be used as part of the equalized assessed

valuation of the district, until such time as all

redevelopment project costs have been paid, as provided in

Section 11-74.4-8 of the Tax Increment Allocation

Redevelopment Act or in Section 11-74.6-35 of the

Industrial Jobs Recovery Law. For the purpose of the

equalized assessed valuation of the district, the total

initial equalized assessed valuation or the current

equalized assessed valuation, whichever is lower, shall be

used until such time as all redevelopment project costs

have been paid.

(b) The real property equalized assessed valuation for

a school district shall be adjusted by subtracting from the

real property value as equalized or assessed by the

Department of Revenue for the district an amount computed

by dividing the amount of any abatement of taxes under

Section 18-170 of the Property Tax Code by 3.00% for a

district maintaining grades kindergarten through 12, by

2.30% for a district maintaining grades kindergarten

through 8, or by 1.05% for a district maintaining grades 9

through 12 and adjusted by an amount computed by dividing

the amount of any abatement of taxes under subsection (a)

of Section 18-165 of the Property Tax Code by the same

percentage rates for district type as specified in this

subparagraph (b).

(3) For the 1999-2000 school year and each school year

thereafter, if a school district meets all of the criteria of

this subsection (G)(3), the school district's Available Local

Resources shall be calculated under subsection (D) using the

district's Extension Limitation Equalized Assessed Valuation

as calculated under this subsection (G)(3).

For purposes of this subsection (G)(3) the following terms

shall have the following meanings:

"Budget Year": The school year for which general State

aid is calculated and awarded under subsection (E).

"Base Tax Year": The property tax levy year used to

calculate the Budget Year allocation of general State aid.

"Preceding Tax Year": The property tax levy year

immediately preceding the Base Tax Year.

"Base Tax Year's Tax Extension": The product of the

equalized assessed valuation utilized by the County Clerk

in the Base Tax Year multiplied by the limiting rate as

calculated by the County Clerk and defined in the Property

Tax Extension Limitation Law.

"Preceding Tax Year's Tax Extension": The product of

the equalized assessed valuation utilized by the County

Clerk in the Preceding Tax Year multiplied by the Operating

Tax Rate as defined in subsection (A).

"Extension Limitation Ratio": A numerical ratio,

certified by the County Clerk, in which the numerator is

the Base Tax Year's Tax Extension and the denominator is

the Preceding Tax Year's Tax Extension.

"Operating Tax Rate": The operating tax rate as defined

in subsection (A).

If a school district is subject to property tax extension

limitations as imposed under the Property Tax Extension

Limitation Law, the State Board of Education shall calculate

the Extension Limitation Equalized Assessed Valuation of that

district. For the 1999-2000 school year, the Extension

Limitation Equalized Assessed Valuation of a school district as

calculated by the State Board of Education shall be equal to

the product of the district's 1996 Equalized Assessed Valuation

and the district's Extension Limitation Ratio. Except as

otherwise provided in this paragraph for a school district that

has approved or does approve an increase in its limiting rate,

for the 2000-2001 school year and each school year thereafter,

the Extension Limitation Equalized Assessed Valuation of a

school district as calculated by the State Board of Education

shall be equal to the product of the Equalized Assessed

Valuation last used in the calculation of general State aid and

the district's Extension Limitation Ratio. If the Extension

Limitation Equalized Assessed Valuation of a school district as

calculated under this subsection (G)(3) is less than the

district's equalized assessed valuation as calculated pursuant

to subsections (G)(1) and (G)(2), then for purposes of

calculating the district's general State aid for the Budget

Year pursuant to subsection (E), that Extension Limitation

Equalized Assessed Valuation shall be utilized to calculate the

district's Available Local Resources under subsection (D). For

the 2009-2010 school year and each school year thereafter, if a

school district has approved or does approve an increase in its

limiting rate, pursuant to Section 18-190 of the Property Tax

Code, affecting the Base Tax Year, the Extension Limitation

Equalized Assessed Valuation of the school district, as

calculated by the State Board of Education, shall be equal to

the product of the Equalized Assessed Valuation last used in

the calculation of general State aid times an amount equal to

one plus the percentage increase, if any, in the Consumer Price

Index for all Urban Consumers for all items published by the

United States Department of Labor for the 12-month calendar

year preceding the Base Tax Year, plus the Equalized Assessed

Valuation of new property, annexed property, and recovered tax

increment value and minus the Equalized Assessed Valuation of

disconnected property. New property and recovered tax

increment value shall have the meanings set forth in the

Property Tax Extension Limitation Law.

Partial elementary unit districts created in accordance

with Article 11E of this Code shall not be eligible for the

adjustment in this subsection (G)(3) until the fifth year

following the effective date of the reorganization.

(3.5) For the 2010-2011 school year and each school year

thereafter, if a school district's boundaries span multiple

counties, then the Department of Revenue shall send to the

State Board of Education, for the purpose of calculating

general State aid, the limiting rate and individual rates by

purpose for the county that contains the majority of the school

district's Equalized Assessed Valuation.

(4) For the purposes of calculating general State aid for

the 1999-2000 school year only, if a school district

experienced a triennial reassessment on the equalized assessed

valuation used in calculating its general State financial aid

apportionment for the 1998-1999 school year, the State Board of

Education shall calculate the Extension Limitation Equalized

Assessed Valuation that would have been used to calculate the

district's 1998-1999 general State aid. This amount shall equal

the product of the equalized assessed valuation used to

calculate general State aid for the 1997-1998 school year and

the district's Extension Limitation Ratio. If the Extension

Limitation Equalized Assessed Valuation of the school district

as calculated under this paragraph (4) is less than the

district's equalized assessed valuation utilized in

calculating the district's 1998-1999 general State aid

allocation, then for purposes of calculating the district's

general State aid pursuant to paragraph (5) of subsection (E),

that Extension Limitation Equalized Assessed Valuation shall

be utilized to calculate the district's Available Local

Resources.

(5) For school districts having a majority of their

equalized assessed valuation in any county except Cook, DuPage,

Kane, Lake, McHenry, or Will, if the amount of general State

aid allocated to the school district for the 1999-2000 school

year under the provisions of subsection (E), (H), and (J) of

this Section is less than the amount of general State aid

allocated to the district for the 1998-1999 school year under

these subsections, then the general State aid of the district

for the 1999-2000 school year only shall be increased by the

difference between these amounts. The total payments made under

this paragraph (5) shall not exceed $14,000,000. Claims shall

be prorated if they exceed $14,000,000.

(H) Supplemental General State Aid.

(1) In addition to the general State aid a school district

is allotted pursuant to subsection (E), qualifying school

districts shall receive a grant, paid in conjunction with a

district's payments of general State aid, for supplemental

general State aid based upon the concentration level of

children from low-income households within the school

district. Supplemental State aid grants provided for school

districts under this subsection shall be appropriated for

distribution to school districts as part of the same line item

in which the general State financial aid of school districts is

appropriated under this Section.

(1.5) This paragraph (1.5) applies only to those school

years preceding the 2003-2004 school year. For purposes of this

subsection (H), the term "Low-Income Concentration Level"

shall be the low-income eligible pupil count from the most

recently available federal census divided by the Average Daily

Attendance of the school district. If, however, (i) the

percentage decrease from the 2 most recent federal censuses in

the low-income eligible pupil count of a high school district

with fewer than 400 students exceeds by 75% or more the

percentage change in the total low-income eligible pupil count

of contiguous elementary school districts, whose boundaries

are coterminous with the high school district, or (ii) a high

school district within 2 counties and serving 5 elementary

school districts, whose boundaries are coterminous with the

high school district, has a percentage decrease from the 2 most

recent federal censuses in the low-income eligible pupil count

and there is a percentage increase in the total low-income

eligible pupil count of a majority of the elementary school

districts in excess of 50% from the 2 most recent federal

censuses, then the high school district's low-income eligible

pupil count from the earlier federal census shall be the number

used as the low-income eligible pupil count for the high school

district, for purposes of this subsection (H). The changes made

to this paragraph (1) by Public Act 92-28 shall apply to

supplemental general State aid grants for school years

preceding the 2003-2004 school year that are paid in fiscal

year 1999 or thereafter and to any State aid payments made in

fiscal year 1994 through fiscal year 1998 pursuant to

subsection 1(n) of Section 18-8 of this Code (which was

repealed on July 1, 1998), and any high school district that is

affected by Public Act 92-28 is entitled to a recomputation of

its supplemental general State aid grant or State aid paid in

any of those fiscal years. This recomputation shall not be

affected by any other funding.

(1.10) This paragraph (1.10) applies to the 2003-2004

school year and each school year thereafter through the

2016-2017 school year. For purposes of this subsection (H), the

term "Low-Income Concentration Level" shall, for each fiscal

year, be the low-income eligible pupil count as of July 1 of

the immediately preceding fiscal year (as determined by the

Department of Human Services based on the number of pupils who

are eligible for at least one of the following low income

programs: Medicaid, the Children's Health Insurance Program,

TANF, or Food Stamps, excluding pupils who are eligible for

services provided by the Department of Children and Family

Services, averaged over the 2 immediately preceding fiscal

years for fiscal year 2004 and over the 3 immediately preceding

fiscal years for each fiscal year thereafter) divided by the

Average Daily Attendance of the school district.

(2) Supplemental general State aid pursuant to this

subsection (H) shall be provided as follows for the 1998-1999,

1999-2000, and 2000-2001 school years only:

(a) For any school district with a Low Income

Concentration Level of at least 20% and less than 35%, the

grant for any school year shall be $800 multiplied by the

low income eligible pupil count.

(b) For any school district with a Low Income

Concentration Level of at least 35% and less than 50%, the

grant for the 1998-1999 school year shall be $1,100

multiplied by the low income eligible pupil count.

(c) For any school district with a Low Income

Concentration Level of at least 50% and less than 60%, the

grant for the 1998-99 school year shall be $1,500

multiplied by the low income eligible pupil count.

(d) For any school district with a Low Income

Concentration Level of 60% or more, the grant for the

1998-99 school year shall be $1,900 multiplied by the low

income eligible pupil count.

(e) For the 1999-2000 school year, the per pupil amount

specified in subparagraphs (b), (c), and (d) immediately

above shall be increased to $1,243, $1,600, and $2,000,

respectively.

(f) For the 2000-2001 school year, the per pupil

amounts specified in subparagraphs (b), (c), and (d)

immediately above shall be $1,273, $1,640, and $2,050,

respectively.

(2.5) Supplemental general State aid pursuant to this

subsection (H) shall be provided as follows for the 2002-2003

school year:

(a) For any school district with a Low Income

Concentration Level of less than 10%, the grant for each

school year shall be $355 multiplied by the low income

eligible pupil count.

(b) For any school district with a Low Income

Concentration Level of at least 10% and less than 20%, the

grant for each school year shall be $675 multiplied by the

low income eligible pupil count.

(c) For any school district with a Low Income

Concentration Level of at least 20% and less than 35%, the

grant for each school year shall be $1,330 multiplied by

the low income eligible pupil count.

(d) For any school district with a Low Income

Concentration Level of at least 35% and less than 50%, the

grant for each school year shall be $1,362 multiplied by

the low income eligible pupil count.

(e) For any school district with a Low Income

Concentration Level of at least 50% and less than 60%, the

grant for each school year shall be $1,680 multiplied by

the low income eligible pupil count.

(f) For any school district with a Low Income

Concentration Level of 60% or more, the grant for each

school year shall be $2,080 multiplied by the low income

eligible pupil count.

(2.10) Except as otherwise provided, supplemental general

State aid pursuant to this subsection (H) shall be provided as

follows for the 2003-2004 school year and each school year

thereafter:

(a) For any school district with a Low Income

Concentration Level of 15% or less, the grant for each

school year shall be $355 multiplied by the low income

eligible pupil count.

(b) For any school district with a Low Income

Concentration Level greater than 15%, the grant for each

school year shall be $294.25 added to the product of $2,700

and the square of the Low Income Concentration Level, all

multiplied by the low income eligible pupil count.

For the 2003-2004 school year and each school year

thereafter through the 2008-2009 school year only, the grant

shall be no less than the grant for the 2002-2003 school year.

For the 2009-2010 school year only, the grant shall be no less

than the grant for the 2002-2003 school year multiplied by

0.66. For the 2010-2011 school year only, the grant shall be no

less than the grant for the 2002-2003 school year multiplied by

0.33. Notwithstanding the provisions of this paragraph to the

contrary, if for any school year supplemental general State aid

grants are prorated as provided in paragraph (1) of this

subsection (H), then the grants under this paragraph shall be

prorated.

For the 2003-2004 school year only, the grant shall be no

greater than the grant received during the 2002-2003 school

year added to the product of 0.25 multiplied by the difference

between the grant amount calculated under subsection (a) or (b)

of this paragraph (2.10), whichever is applicable, and the

grant received during the 2002-2003 school year. For the

2004-2005 school year only, the grant shall be no greater than

the grant received during the 2002-2003 school year added to

the product of 0.50 multiplied by the difference between the

grant amount calculated under subsection (a) or (b) of this

paragraph (2.10), whichever is applicable, and the grant

received during the 2002-2003 school year. For the 2005-2006

school year only, the grant shall be no greater than the grant

received during the 2002-2003 school year added to the product

of 0.75 multiplied by the difference between the grant amount

calculated under subsection (a) or (b) of this paragraph

(2.10), whichever is applicable, and the grant received during

the 2002-2003 school year.

(3) School districts with an Average Daily Attendance of

more than 1,000 and less than 50,000 that qualify for

supplemental general State aid pursuant to this subsection

shall submit a plan to the State Board of Education prior to

October 30 of each year for the use of the funds resulting from

this grant of supplemental general State aid for the

improvement of instruction in which priority is given to

meeting the education needs of disadvantaged children. Such

plan shall be submitted in accordance with rules and

regulations promulgated by the State Board of Education.

(4) School districts with an Average Daily Attendance of

50,000 or more that qualify for supplemental general State aid

pursuant to this subsection shall be required to distribute

from funds available pursuant to this Section, no less than

$261,000,000 in accordance with the following requirements:

(a) The required amounts shall be distributed to the

attendance centers within the district in proportion to the

number of pupils enrolled at each attendance center who are

eligible to receive free or reduced-price lunches or

breakfasts under the federal Child Nutrition Act of 1966

and under the National School Lunch Act during the

immediately preceding school year.

(b) The distribution of these portions of supplemental

and general State aid among attendance centers according to

these requirements shall not be compensated for or

contravened by adjustments of the total of other funds

appropriated to any attendance centers, and the Board of

Education shall utilize funding from one or several sources

in order to fully implement this provision annually prior

to the opening of school.

(c) Each attendance center shall be provided by the

school district a distribution of noncategorical funds and

other categorical funds to which an attendance center is

entitled under law in order that the general State aid and

supplemental general State aid provided by application of

this subsection supplements rather than supplants the

noncategorical funds and other categorical funds provided

by the school district to the attendance centers.

(d) Any funds made available under this subsection that

by reason of the provisions of this subsection are not

required to be allocated and provided to attendance centers

may be used and appropriated by the board of the district

for any lawful school purpose.

(e) Funds received by an attendance center pursuant to

this subsection shall be used by the attendance center at

the discretion of the principal and local school council

for programs to improve educational opportunities at

qualifying schools through the following programs and

services: early childhood education, reduced class size or

improved adult to student classroom ratio, enrichment

programs, remedial assistance, attendance improvement, and

other educationally beneficial expenditures which

supplement the regular and basic programs as determined by

the State Board of Education. Funds provided shall not be

expended for any political or lobbying purposes as defined

by board rule.

(f) Each district subject to the provisions of this

subdivision (H)(4) shall submit an acceptable plan to meet

the educational needs of disadvantaged children, in

compliance with the requirements of this paragraph, to the

State Board of Education prior to July 15 of each year.

This plan shall be consistent with the decisions of local

school councils concerning the school expenditure plans

developed in accordance with part 4 of Section 34-2.3. The

State Board shall approve or reject the plan within 60 days

after its submission. If the plan is rejected, the district

shall give written notice of intent to modify the plan

within 15 days of the notification of rejection and then

submit a modified plan within 30 days after the date of the

written notice of intent to modify. Districts may amend

approved plans pursuant to rules promulgated by the State

Board of Education.

Upon notification by the State Board of Education that

the district has not submitted a plan prior to July 15 or a

modified plan within the time period specified herein, the

State aid funds affected by that plan or modified plan

shall be withheld by the State Board of Education until a

plan or modified plan is submitted.

If the district fails to distribute State aid to

attendance centers in accordance with an approved plan, the

plan for the following year shall allocate funds, in

addition to the funds otherwise required by this

subsection, to those attendance centers which were

underfunded during the previous year in amounts equal to

such underfunding.

For purposes of determining compliance with this

subsection in relation to the requirements of attendance

center funding, each district subject to the provisions of

this subsection shall submit as a separate document by

December 1 of each year a report of expenditure data for

the prior year in addition to any modification of its

current plan. If it is determined that there has been a

failure to comply with the expenditure provisions of this

subsection regarding contravention or supplanting, the

State Superintendent of Education shall, within 60 days of

receipt of the report, notify the district and any affected

local school council. The district shall within 45 days of

receipt of that notification inform the State

Superintendent of Education of the remedial or corrective

action to be taken, whether by amendment of the current

plan, if feasible, or by adjustment in the plan for the

following year. Failure to provide the expenditure report

or the notification of remedial or corrective action in a

timely manner shall result in a withholding of the affected

funds.

The State Board of Education shall promulgate rules and

regulations to implement the provisions of this

subsection. No funds shall be released under this

subdivision (H)(4) to any district that has not submitted a

plan that has been approved by the State Board of

Education.

(I) (Blank).

(J) (Blank).

(K) Grants to Laboratory and Alternative Schools.

In calculating the amount to be paid to the governing board

of a public university that operates a laboratory school under

this Section or to any alternative school that is operated by a

regional superintendent of schools, the State Board of

Education shall require by rule such reporting requirements as

it deems necessary.

As used in this Section, "laboratory school" means a public

school which is created and operated by a public university and

approved by the State Board of Education. The governing board

of a public university which receives funds from the State

Board under this subsection (K) or subsection (g) of Section

18-8.15 of this Code may not increase the number of students

enrolled in its laboratory school from a single district, if

that district is already sending 50 or more students, except

under a mutual agreement between the school board of a

student's district of residence and the university which

operates the laboratory school. A laboratory school may not

have more than 1,000 students, excluding students with

disabilities in a special education program.

As used in this Section, "alternative school" means a

public school which is created and operated by a Regional

Superintendent of Schools and approved by the State Board of

Education. Such alternative schools may offer courses of

instruction for which credit is given in regular school

programs, courses to prepare students for the high school

equivalency testing program or vocational and occupational

training. A regional superintendent of schools may contract

with a school district or a public community college district

to operate an alternative school. An alternative school serving

more than one educational service region may be established by

the regional superintendents of schools of the affected

educational service regions. An alternative school serving

more than one educational service region may be operated under

such terms as the regional superintendents of schools of those

educational service regions may agree.

Each laboratory and alternative school shall file, on forms

provided by the State Superintendent of Education, an annual

State aid claim which states the Average Daily Attendance of

the school's students by month. The best 3 months' Average

Daily Attendance shall be computed for each school. The general

State aid entitlement shall be computed by multiplying the

applicable Average Daily Attendance by the Foundation Level as

determined under this Section.

(L) Payments, Additional Grants in Aid and Other Requirements.

(1) For a school district operating under the financial

supervision of an Authority created under Article 34A, the

general State aid otherwise payable to that district under this

Section, but not the supplemental general State aid, shall be

reduced by an amount equal to the budget for the operations of

the Authority as certified by the Authority to the State Board

of Education, and an amount equal to such reduction shall be

paid to the Authority created for such district for its

operating expenses in the manner provided in Section 18-11. The

remainder of general State school aid for any such district

shall be paid in accordance with Article 34A when that Article

provides for a disposition other than that provided by this

Article.

(2) (Blank).

(3) Summer school. Summer school payments shall be made as

provided in Section 18-4.3.

(M) (Blank). Education Funding Advisory Board.

The Education Funding Advisory Board, hereinafter in this

subsection (M) referred to as the "Board", is hereby created.

The Board shall consist of 5 members who are appointed by the

Governor, by and with the advice and consent of the Senate. The

members appointed shall include representatives of education,

business, and the general public. One of the members so

appointed shall be designated by the Governor at the time the

appointment is made as the chairperson of the Board. The

initial members of the Board may be appointed any time after

the effective date of this amendatory Act of 1997. The regular

term of each member of the Board shall be for 4 years from the

third Monday of January of the year in which the term of the

member's appointment is to commence, except that of the 5

initial members appointed to serve on the Board, the member who

is appointed as the chairperson shall serve for a term that

commences on the date of his or her appointment and expires on

the third Monday of January, 2002, and the remaining 4 members,

by lots drawn at the first meeting of the Board that is held

after all 5 members are appointed, shall determine 2 of their

number to serve for terms that commence on the date of their

respective appointments and expire on the third Monday of

January, 2001, and 2 of their number to serve for terms that

commence on the date of their respective appointments and

expire on the third Monday of January, 2000. All members

appointed to serve on the Board shall serve until their

respective successors are appointed and confirmed. Vacancies

shall be filled in the same manner as original appointments. If

a vacancy in membership occurs at a time when the Senate is not

in session, the Governor shall make a temporary appointment

until the next meeting of the Senate, when he or she shall

appoint, by and with the advice and consent of the Senate, a

person to fill that membership for the unexpired term. If the

Senate is not in session when the initial appointments are

made, those appointments shall be made as in the case of

vacancies.

The Education Funding Advisory Board shall be deemed

established, and the initial members appointed by the Governor

to serve as members of the Board shall take office, on the date

that the Governor makes his or her appointment of the fifth

initial member of the Board, whether those initial members are

then serving pursuant to appointment and confirmation or

pursuant to temporary appointments that are made by the

Governor as in the case of vacancies.

The State Board of Education shall provide such staff

assistance to the Education Funding Advisory Board as is

reasonably required for the proper performance by the Board of

its responsibilities.

For school years after the 2000-2001 school year, the

Education Funding Advisory Board, in consultation with the

State Board of Education, shall make recommendations as

provided in this subsection (M) to the General Assembly for the

foundation level under subdivision (B)(3) of this Section and

for the supplemental general State aid grant level under

subsection (H) of this Section for districts with high

concentrations of children from poverty. The recommended

foundation level shall be determined based on a methodology

which incorporates the basic education expenditures of

low-spending schools exhibiting high academic performance. The

Education Funding Advisory Board shall make such

recommendations to the General Assembly on January 1 of odd

numbered years, beginning January 1, 2001.

(N) (Blank).

(O) References.

(1) References in other laws to the various subdivisions of

Section 18-8 as that Section existed before its repeal and

replacement by this Section 18-8.05 shall be deemed to refer to

the corresponding provisions of this Section 18-8.05, to the

extent that those references remain applicable.

(2) References in other laws to State Chapter 1 funds shall

be deemed to refer to the supplemental general State aid

provided under subsection (H) of this Section.

(P) Public Act 93-838 and Public Act 93-808 make inconsistent

changes to this Section. Under Section 6 of the Statute on

Statutes there is an irreconcilable conflict between Public Act

93-808 and Public Act 93-838. Public Act 93-838, being the last

acted upon, is controlling. The text of Public Act 93-838 is

the law regardless of the text of Public Act 93-808.

(Q) State Fiscal Year 2015 Payments.

For payments made for State fiscal year 2015, the State

Board of Education shall, for each school district, calculate

that district's pro-rata share of a minimum sum of $13,600,000

or additional amounts as needed from the total net General

State Aid funding as calculated under this Section that shall

be deemed attributable to the provision of special educational

facilities and services, as defined in Section 14-1.08 of this

Code, in a manner that ensures compliance with maintenance of

State financial support requirements under the federal

Individuals with Disabilities Education Act. Each school

district must use such funds only for the provision of special

educational facilities and services, as defined in Section

14-1.08 of this Code, and must comply with any expenditure

verification procedures adopted by the State Board of

Education.

(R) State Fiscal Year 2016 Payments.

For payments made for State fiscal year 2016, the State

Board of Education shall, for each school district, calculate

that district's pro rata share of a minimum sum of $1 or

additional amounts as needed from the total net General State

Aid funding as calculated under this Section that shall be

deemed attributable to the provision of special educational

facilities and services, as defined in Section 14-1.08 of this

Code, in a manner that ensures compliance with maintenance of

State financial support requirements under the federal

Individuals with Disabilities Education Act. Each school

district must use such funds only for the provision of special

educational facilities and services, as defined in Section

14-1.08 of this Code, and must comply with any expenditure

verification procedures adopted by the State Board of

Education.

(Source: P.A. 98-972, eff. 8-15-14; 99-2, eff. 3-26-15; 99-194,

eff. 7-30-15; 99-523, eff. 6-30-16.)

(105 ILCS 5/18-8.10)

Sec. 18-8.10. Fast growth grants.

(a) If there has been an increase in a school district's

student population over the most recent 2 school years of (i)

over 1.5% in a district with over 10,000 pupils in average

daily attendance (as defined in Section 18-8.05 or 18-8.15 of

this Code) or (ii) over 7.5% in any other district, then the

district is eligible for a grant under this Section, subject to

appropriation.

(b) The State Board of Education shall determine a per

pupil grant amount for each school district. The total grant

amount for a district for any given school year shall equal the

per pupil grant amount multiplied by the difference between the

number of pupils in average daily attendance for the 2 most

recent school years.

(c) Funds for grants under this Section must be

appropriated to the State Board of Education in a separate line

item for this purpose. If the amount appropriated in any fiscal

year is insufficient to pay all grants for a school year, then

the amount appropriated shall be prorated among eligible

districts. As soon as possible after funds have been

appropriated to the State Board of Education, the State Board

of Education shall distribute the grants to eligible districts.

(d) If a school district intentionally reports incorrect

average daily attendance numbers to receive a grant under this

Section, then the district shall be denied State aid in the

same manner as State aid is denied for intentional incorrect

reporting of average daily attendance numbers under Section

18-8.05 or 18-8.15 of this Code.

(Source: P.A. 93-1042, eff. 10-8-04.)

(105 ILCS 5/18-8.15 new)

Sec. 18-8.15. Evidence-based funding for student success

for the 2017-2018 and subsequent school years.

(a) General provisions.

(1) The purpose of this Section is to ensure that, by

June 30, 2027 and beyond, this State has a kindergarten

through grade 12 public education system with the capacity

to ensure the educational development of all persons to the

limits of their capacities in accordance with Section 1 of

Article X of the Constitution of the State of Illinois. To

accomplish that objective, this Section creates a method of

funding public education that is evidence-based; is

sufficient to ensure every student receives a meaningful

opportunity to learn irrespective of race, ethnicity,

sexual orientation, gender, or community-income level; and

is sustainable and predictable. When fully funded under

this Section, every school shall have the resources, based

on what the evidence indicates is needed, to:

(A) provide all students with a high quality

education that offers the academic, enrichment, social

and emotional support, technical, and career-focused

programs that will allow them to become competitive

workers, responsible parents, productive citizens of

this State, and active members of our national

democracy;

(B) ensure all students receive the education they

need to graduate from high school with the skills

required to pursue post-secondary education and

training for a rewarding career;

(C) reduce, with a goal of eliminating, the

achievement gap between at-risk and non-at-risk

students by raising the performance of at-risk

students and not by reducing standards; and

(D) ensure this State satisfies its obligation to

assume the primary responsibility to fund public

education and simultaneously relieve the

disproportionate burden placed on local property taxes

to fund schools.

(2) The evidence-based funding formula under this

Section shall be applied to all Organizational Units in

this State. The evidence-based funding formula outlined in

this Act is based on the formula outlined in Senate Bill 1

of the 100th General Assembly, as passed by both

legislative chambers. As further defined and described in

this Section, there are 4 major components of the

evidence-based funding model:

(A) First, the model calculates a unique adequacy

target for each Organizational Unit in this State that

considers the costs to implement research-based

activities, the unit's student demographics, and

regional wage difference.

(B) Second, the model calculates each

Organizational Unit's local capacity, or the amount

each Organizational Unit is assumed to contribute

towards its adequacy target from local resources.

(C) Third, the model calculates how much funding

the State currently contributes to the Organizational

Unit, and adds that to the unit's local capacity to

determine the unit's overall current adequacy of

funding.

(D) Finally, the model's distribution method

allocates new State funding to those Organizational

Units that are least well-funded, considering both

local capacity and State funding, in relation to their

adequacy target.

(3) An Organizational Unit receiving any funding under

this Section may apply those funds to any fund so received

for which that Organizational Unit is authorized to make

expenditures by law.

(4) As used in this Section, the following terms shall

have the meanings ascribed in this paragraph (4):

"Adequacy Target" is defined in paragraph (1) of

subsection (b) of this Section.

"Adjusted EAV" is defined in paragraph (4) of

subsection (d) of this Section.

"Adjusted Local Capacity Target" is defined in

paragraph (3) of subsection (c) of this Section.

"Adjusted Operating Tax Rate" means a tax rate for all

Organizational Units, for which the State Superintendent

shall calculate and subtract for the Operating Tax Rate a

transportation rate based on total expenses for

transportation services under this Code, as reported on the

most recent Annual Financial Report in Pupil

Transportation Services, function 2550 in both the

Education and Transportation funds and functions 4110 and

4120 in the Transportation fund, less any corresponding

fiscal year State of Illinois scheduled payments excluding

net adjustments for prior years for regular, vocational, or

special education transportation reimbursement pursuant to

Section 29-5 or subsection (b) of Section 14-13.01 of this

Code divided by the Adjusted EAV. If an Organizational

Unit's corresponding fiscal year State of Illinois

scheduled payments excluding net adjustments for prior

years for regular, vocational, or special education

transportation reimbursement pursuant to Section 29-5 or

subsection (b) of Section 14-13.01 of this Code exceed the

total transportation expenses, as defined in this

paragraph, no transportation rate shall be subtracted from

the Operating Tax Rate.

"Allocation Rate" is defined in paragraph (3) of

subsection (g) of this Section.

"Alternative School" means a public school that is

created and operated by a regional superintendent of

schools and approved by the State Board.

"Applicable Tax Rate" is defined in paragraph (1) of

subsection (d) of this Section.

"Assessment" means any of those benchmark, progress

monitoring, formative, diagnostic, and other assessments,

in addition to the State accountability assessment, that

assist teachers' needs in understanding the skills and

meeting the needs of the students they serve.

"Assistant principal" means a school administrator

duly endorsed to be employed as an assistant principal in

this State.

"At-risk student" means a student who is at risk of not

meeting the Illinois Learning Standards or not graduating

from elementary or high school and who demonstrates a need

for vocational support or social services beyond that

provided by the regular school program. All students

included in an Organizational Unit's Low-Income Count, as

well as all English learner and disabled students attending

the Organizational Unit, shall be considered at-risk

students under this Section.

"Average Student Enrollment" or "ASE" means, for an

Organizational Unit in a given school year, the greater of

the average number of students (grades K through 12)

reported to the State Board as enrolled in the

Organizational Unit on October 1 and March 1, plus the

special education pre-kindergarten students with services

of at least more than 2 hours a day as reported to the

State Board on December 1, in the immediately preceding

school year or the average number of students (grades K

through 12) reported to the State Board as enrolled in the

Organizational Unit on October 1 and March 1, plus the

special education pre-kindergarten students with services

of at least more than 2 hours a day as reported to the

State Board on December 1, for each of the immediately

preceding 3 school years. For the purposes of this

definition, "enrolled in the Organizational Unit" means

the number of students reported to the State Board who are

enrolled in schools within the Organizational Unit that the

student attends or would attend if not placed or

transferred to another school or program to receive needed

services. For the purposes of calculating "ASE", all

students, grades K through 12, excluding those attending

kindergarten for a half day, shall be counted as 1.0. All

students attending kindergarten for a half day shall be

counted as 0.5, unless in 2017 by June 15 or by March 1 in

subsequent years, the school district reports to the State

Board of Education the intent to implement full-day

kindergarten district-wide for all students, then all

students attending kindergarten shall be counted as 1.0.

Special education pre-kindergarten students shall be

counted as 0.5 each. If the State Board does not collect or

has not collected both an October 1 and March 1 enrollment

count by grade or a December 1 collection of special

education pre-kindergarten students as of the effective

date of this amendatory Act of the 100th General Assembly,

it shall establish such collection for all future years.

For any year where a count by grade level was collected

only once, that count shall be used as the single count

available for computing a 3-year average ASE. School

districts shall submit the data for the ASE calculation to

the State Board within 45 days of the dates required in

this Section for submission of enrollment data in order for

it to be included in the ASE calculation.

"Base Funding Guarantee" is defined in paragraph (10)

of subsection (g) of this Section.

"Base Funding Minimum" is defined in subsection (e) of

this Section.

"Base Tax Year" means the property tax levy year used

to calculate the Budget Year allocation of primary State

aid.

"Base Tax Year's Extension" means the product of the

equalized assessed valuation utilized by the county clerk

in the Base Tax Year multiplied by the limiting rate as

calculated by the county clerk and defined in PTELL.

"Bilingual Education Allocation" means the amount of

an Organizational Unit's final Adequacy Target

attributable to bilingual education divided by the

Organizational Unit's final Adequacy Target, the product

of which shall be multiplied by the amount of new funding

received pursuant to this Section. An Organizational

Unit's final Adequacy Target attributable to bilingual

education shall include all additional investments in

English learner students' adequacy elements.

"Budget Year" means the school year for which primary

State aid is calculated and awarded under this Section.

"Central office" means individual administrators and

support service personnel charged with managing the

instructional programs, business and operations, and

security of the Organizational Unit.

"Comparable Wage Index" or "CWI" means a regional cost

differentiation metric that measures systemic, regional

variations in the salaries of college graduates who are not

educators. The CWI utilized for this Section shall, for the

first 3 years of Evidence-Based Funding implementation, be

the CWI initially developed by the National Center for

Education Statistics, as most recently updated by Texas A &

M University. In the fourth and subsequent years of

Evidence-Based Funding implementation, the State

Superintendent shall re-determine the CWI using a similar

methodology to that identified in the Texas A & M

University study, with adjustments made no less frequently

than once every 5 years.

"Computer technology and equipment" means computers

servers, notebooks, network equipment, copiers, printers,

instructional software, security software, curriculum

management courseware, and other similar materials and

equipment.

"Core subject" means mathematics; science; reading,

English, writing, and language arts; history and social

studies; world languages; and subjects taught as Advanced

Placement in high schools.

"Core teacher" means a regular classroom teacher in

elementary schools and teachers of a core subject in middle

and high schools.

"Core Intervention teacher (tutor)" means a licensed

teacher providing one-on-one or small group tutoring to

students struggling to meet proficiency in core subjects.

"CPPRT" means corporate personal property replacement

tax funds paid to an Organizational Unit during the

calendar year one year before the calendar year in which a

school year begins, pursuant to "An Act in relation to the

abolition of ad valorem personal property tax and the

replacement of revenues lost thereby, and amending and

repealing certain Acts and parts of Acts in connection

therewith", certified August 14, 1979, as amended (Public

Act 81-1st S.S.-1).

"EAV" means equalized assessed valuation as defined in

paragraph (2) of subsection (d) of this Section and

calculated in accordance with paragraph (3) of subsection

(d) of this Section.

"ECI" means the Bureau of Labor Statistics' national

employment cost index for civilian workers in educational

services in elementary and secondary schools on a

cumulative basis for the 12-month calendar year preceding

the fiscal year of the Evidence-Based Funding calculation.

"EIS Data" means the employment information system

data maintained by the State Board on educators within

Organizational Units.

"Employee benefits" means health, dental, and vision

insurance offered to employees of an Organizational Unit,

the costs associated with statutorily required payment of

the normal cost of the Organizational Unit's teacher

pensions, Social Security employer contributions, and

Illinois Municipal Retirement Fund employer contributions.

"English learner" or "EL" means a child included in the

definition of "English learners" under Section 14C-2 of

this Code participating in a program of transitional

bilingual education or a transitional program of

instruction meeting the requirements and program

application procedures of Article 14C of this Code. For the

purposes of collecting the number of EL students enrolled,

the same collection and calculation methodology as defined

above for "ASE" shall apply to English learners.

"Essential Elements" means those elements, resources,

and educational programs that have been identified through

academic research as necessary to improve student success,

improve academic performance, close achievement gaps, and

provide for other per student costs related to the delivery

and leadership of the Organizational Unit, as well as the

maintenance and operations of the unit, and which are

specified in paragraph (2) of subsection (b) of this

Section.

"Evidence-Based Funding" means State funding provided

to an Organizational Unit pursuant to this Section.

"Extended day" means academic and enrichment programs

provided to students outside the regular school day before

and after school or during non-instructional times during

the school day.

"Extension Limitation Ratio" means a numerical ratio

in which the numerator is the Base Tax Year's Extension and

the denominator is the Preceding Tax Year's Extension.

"Final Percent of Adequacy" is defined in paragraph (4)

of subsection (f) of this Section.

"Final Resources" is defined in paragraph (3) of

subsection (f) of this Section.

"Full-time equivalent" or "FTE" means the full-time

equivalency compensation for staffing the relevant

position at an Organizational Unit.

"Funding Gap" is defined in paragraph (1) of subsection

(g).

"Guidance counselor" means a licensed guidance

counselor who provides guidance and counseling support for

students within an Organizational Unit.

"Hybrid District" means a partial elementary unit

district created pursuant to Article 11E of this Code.

"Instructional assistant" means a core or special

education, non-licensed employee who assists a teacher in

the classroom and provides academic support to students.

"Instructional facilitator" means a qualified teacher

or licensed teacher leader who facilitates and coaches

continuous improvement in classroom instruction; provides

instructional support to teachers in the elements of

research-based instruction or demonstrates the alignment

of instruction with curriculum standards and assessment

tools; develops or coordinates instructional programs or

strategies; develops and implements training; chooses

standards-based instructional materials; provides teachers

with an understanding of current research; serves as a

mentor, site coach, curriculum specialist, or lead

teacher; or otherwise works with fellow teachers, in

collaboration, to use data to improve instructional

practice or develop model lessons.

"Instructional materials" means relevant instructional

materials for student instruction, including, but not

limited to, textbooks, consumable workbooks, laboratory

equipment, library books, and other similar materials.

"Laboratory School" means a public school that is

created and operated by a public university and approved by

the State Board.

"Librarian" means a teacher with an endorsement as a

library information specialist or another individual whose

primary responsibility is overseeing library resources

within an Organizational Unit.

"Local Capacity" is defined in paragraph (1) of

subsection (c) of this Section.

"Local Capacity Percentage" is defined in subparagraph

(A) of paragraph (2) of subsection (c) of this Section.

"Local Capacity Ratio" is defined in subparagraph (B)

of paragraph (2) of subsection (c) of this Section.

"Local Capacity Target" is defined in paragraph (2) of

subsection (c) of this Section.

"Low-Income Count" means, for an Organizational Unit

in a fiscal year, the higher of the average number of

students for the prior school year or the immediately

preceding 3 school years who, as of July 1 of the

immediately preceding fiscal year (as determined by the

Department of Human Services), are eligible for at least

one of the following low income programs: Medicaid, the

Children's Health Insurance Program, TANF, or the

Supplemental Nutrition Assistance Program, excluding

pupils who are eligible for services provided by the

Department of Children and Family Services. Until such time

that grade level low-income populations become available,

grade level low-income populations shall be determined by

applying the low-income percentage to total student

enrollments by grade level. The low-income percentage is

determined by dividing the Low-Income Count by the Average

Student Enrollment.

"Maintenance and operations" means custodial services,

facility and ground maintenance, facility operations,

facility security, routine facility repairs, and other

similar services and functions.

"Minimum Funding Level" is defined in paragraph (9) of

subsection (g) of this Section.

"New Property Tax Relief Pool Funds" means, for any

given fiscal year, all State funds appropriated under

Section 2-3.170 of the School Code.

"New State Funds" means, for a given school year, all

State funds appropriated for Evidence-Based Funding in

excess of the amount needed to fund the Base Funding

Minimum for all Organizational Units in that school year.

"Net State Contribution Target" means, for a given

school year, the amount of State funds that would be

necessary to fully meet the Adequacy Target of an

Operational Unit minus the Preliminary Resources available

to each unit.

"Nurse" means an individual licensed as a certified

school nurse, in accordance with the rules established for

nursing services by the State Board, who is an employee of

and is available to provide health care-related services

for students of an Organizational Unit.

"Operating Tax Rate" means the rate utilized in the

previous year to extend property taxes for all purposes,

except, Bond and Interest, Summer School, Rent, Capital

Improvement, and Vocational Education Building purposes.

For Hybrid Districts, the Operating Tax Rate shall be the

combined elementary and high school rates utilized in the

previous year to extend property taxes for all purposes,

except, Bond and Interest, Summer School, Rent, Capital

Improvement, and Vocational Education Building purposes.

"Organizational Unit" means a Laboratory School, an

Alternative School, or any public school district that is

recognized as such by the State Board and that contains

elementary schools typically serving kindergarten through

5th grades, middle schools typically serving 6th through

8th grades, or high schools typically serving 9th through

12th grades. The General Assembly acknowledges that the

actual grade levels served by a particular Organizational

Unit may vary slightly from what is typical.

"Organizational Unit CWI" is determined by calculating

the CWI in the region and original county in which an

Organizational Unit's primary administrative office is

located as set forth in this paragraph, provided that if

the Organizational Unit CWI as calculated in accordance

with this paragraph is less than 0.9, the Organizational

Unit CWI shall be increased to 0.9. Each county's current

CWI value shall be adjusted based on the CWI value of that

county's neighboring Illinois counties, to create a

"weighted adjusted index value". This shall be calculated

by summing the CWI values of all of a county's adjacent

Illinois counties and dividing by the number of adjacent

Illinois counties, then taking the weighted value of the

original county's CWI value and the adjacent Illinois

county average. To calculate this weighted value, if the

number of adjacent Illinois counties is greater than 2, the

original county's CWI value will be weighted at 0.25 and

the adjacent Illinois county average will be weighted at

0.75. If the number of adjacent Illinois counties is 2, the

original county's CWI value will be weighted at 0.33 and

the adjacent Illinois county average will be weighted at

0.66. The greater of the county's current CWI value and its

weighted adjusted index value shall be used as the

Organizational Unit CWI.

"Preceding Tax Year" means the property tax levy year

immediately preceding the Base Tax Year.

"Preceding Tax Year's Extension" means the product of

the equalized assessed valuation utilized by the county

clerk in the Preceding Tax Year multiplied by the Operating

Tax Rate.

"Preliminary Percent of Adequacy" is defined in

paragraph (2) of subsection (f) of this Section.

"Preliminary Resources" is defined in paragraph (2) of

subsection (f) of this Section.

"Principal" means a school administrator duly endorsed

to be employed as a principal in this State.

"Professional development" means training programs for

licensed staff in schools, including, but not limited to,

programs that assist in implementing new curriculum

programs, provide data focused or academic assessment data

training to help staff identify a student's weaknesses and

strengths, target interventions, improve instruction,

encompass instructional strategies for English learner,

gifted, or at-risk students, address inclusivity, cultural

sensitivity, or implicit bias, or otherwise provide

professional support for licensed staff.

"Prototypical" means 450 special education

pre-kindergarten and kindergarten through grade 5 students

for an elementary school, 450 grade 6 through 8 students

for a middle school, and 600 grade 9 through 12 students

for a high school.

"PTELL" means the Property Tax Extension Limitation

Law.

"PTELL EAV" is defined in paragraph (4) of subsection

(d) of this Section.

"Pupil support staff" means a nurse, psychologist,

social worker, family liaison personnel, or other staff

member who provides support to at-risk or struggling

students.

"Real Receipts" is defined in paragraph (1) of

subsection (d) of this Section.

"Regionalization Factor" means, for a particular

Organizational Unit, the figure derived by dividing the

Organizational Unit CWI by the Statewide Weighted CWI.

"School site staff" means the primary school secretary

and any additional clerical personnel assigned to a school.

"Special education" means special educational

facilities and services, as defined in Section 14-1.08 of

this Code.

"Special Education Allocation" means the amount of an

Organizational Unit's final Adequacy Target attributable

to special education divided by the Organizational Unit's

final Adequacy Target, the product of which shall be

multiplied by the amount of new funding received pursuant

to this Section. An Organizational Unit's final Adequacy

Target attributable to special education shall include all

special education investment adequacy elements.

"Specialist teacher" means a teacher who provides

instruction in subject areas not included in core subjects,

including, but not limited to, art, music, physical

education, health, driver education, career-technical

education, and such other subject areas as may be mandated

by State law or provided by an Organizational Unit.

"Specially Funded Unit" means an Alternative School,

safe school, Department of Juvenile Justice school,

special education cooperative or entity recognized by the

State Board as a special education cooperative,

State-approved charter school, or alternative learning

opportunities program that received direct funding from

the State Board during the 2016-2017 school year through

any of the funding sources included within the calculation

of the Base Funding Minimum or Glenwood Academy.

"Supplemental Grant Funding" means supplemental

general State aid funding received by an Organization Unit

during the 2016-2017 school year pursuant to subsection (H)

of Section 18-8.05 of this Code.

"State Adequacy Level" is the sum of the Adequacy

Targets of all Organizational Units.

"State Board" means the State Board of Education.

"State Superintendent" means the State Superintendent

of Education.

"Statewide Weighted CWI" means a figure determined by

multiplying each Organizational Unit CWI times the ASE for

that Organizational Unit creating a weighted value,

summing all Organizational Unit's weighted values, and

dividing by the total ASE of all Organizational Units,

thereby creating an average weighted index.

"Student activities" means non-credit producing

after-school programs, including, but not limited to,

clubs, bands, sports, and other activities authorized by

the school board of the Organizational Unit.

"Substitute teacher" means an individual teacher or

teaching assistant who is employed by an Organizational

Unit and is temporarily serving the Organizational Unit on

a per diem or per period-assignment basis replacing another

staff member.

"Summer school" means academic and enrichment programs

provided to students during the summer months outside of

the regular school year.

"Supervisory aide" means a non-licensed staff member

who helps in supervising students of an Organizational

Unit, but does so outside of the classroom, in situations

such as, but not limited to, monitoring hallways and

playgrounds, supervising lunchrooms, or supervising

students when being transported in buses serving the

Organizational Unit.

"Target Ratio" is defined in paragraph (4) of

subsection (g).

"Tier 1", "Tier 2", "Tier 3", and "Tier 4" are defined

in paragraph (3) of subsection (g).

"Tier 1 Aggregate Funding", "Tier 2 Aggregate

Funding", "Tier 3 Aggregate Funding", and "Tier 4 Aggregate

Funding" are defined in paragraph (1) of subsection (g).

(b) Adequacy Target calculation.

(1) Each Organizational Unit's Adequacy Target is the

sum of the Organizational Unit's cost of providing

Essential Elements, as calculated in accordance with this

subsection (b), with the salary amounts in the Essential

Elements multiplied by a Regionalization Factor calculated

pursuant to paragraph (3) of this subsection (b).

(2) The Essential Elements are attributable on a pro

rata basis related to defined subgroups of the ASE of each

Organizational Unit as specified in this paragraph (2),

with investments and FTE positions pro rata funded based on

ASE counts in excess or less than the thresholds set forth

in this paragraph (2). The method for calculating

attributable pro rata costs and the defined subgroups

thereto are as follows:

(A) Core class size investments. Each

Organizational Unit shall receive the funding required

to support that number of FTE core teacher positions as

is needed to keep the respective class sizes of the

Organizational Unit to the following maximum numbers:

(i) For grades kindergarten through 3, the

Organizational Unit shall receive funding required

to support one FTE core teacher position for every

15 Low-Income Count students in those grades and

one FTE core teacher position for every 20

non-Low-Income Count students in those grades.

(ii) For grades 4 through 12, the

Organizational Unit shall receive funding required

to support one FTE core teacher position for every

20 Low-Income Count students in those grades and

one FTE core teacher position for every 25

non-Low-Income Count students in those grades.

The number of non-Low-Income Count students in a

grade shall be determined by subtracting the

Low-Income students in that grade from the ASE of the

Organizational Unit for that grade.

(B) Specialist teacher investments. Each

Organizational Unit shall receive the funding needed

to cover that number of FTE specialist teacher

positions that correspond to the following

percentages:

(i) if the Organizational Unit operates an

elementary or middle school, then 20.00% of the

number of the Organizational Unit's core teachers,

as determined under subparagraph (A) of this

paragraph (2); and

(ii) if such Organizational Unit operates a

high school, then 33.33% of the number of the

Organizational Unit's core teachers.

(C) Instructional facilitator investments. Each

Organizational Unit shall receive the funding needed

to cover one FTE instructional facilitator position

for every 200 combined ASE of pre-kindergarten

children with disabilities and all kindergarten

through grade 12 students of the Organizational Unit.

(D) Core intervention teacher (tutor) investments.

Each Organizational Unit shall receive the funding

needed to cover one FTE teacher position for each

prototypical elementary, middle, and high school.

(E) Substitute teacher investments. Each

Organizational Unit shall receive the funding needed

to cover substitute teacher costs that is equal to

5.70% of the minimum pupil attendance days required

under Section 10-19 of this Code for all full-time

equivalent core, specialist, and intervention

teachers, school nurses, special education teachers

and instructional assistants, instructional

facilitators, and summer school and extended-day

teacher positions, as determined under this paragraph

(2), at a salary rate of 33.33% of the average salary

for grade K through 12 teachers and 33.33% of the

average salary of each instructional assistant

position.

(F) Core guidance counselor investments. Each

Organizational Unit shall receive the funding needed

to cover one FTE guidance counselor for each 450

combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 5

students, plus one FTE guidance counselor for each 250

grades 6 through 8 ASE middle school students, plus one

FTE guidance counselor for each 250 grades 9 through 12

ASE high school students.

(G) Nurse investments. Each Organizational Unit

shall receive the funding needed to cover one FTE nurse

for each 750 combined ASE of pre-kindergarten children

with disabilities and all kindergarten through grade

12 students across all grade levels it serves.

(H) Supervisory aide investments. Each

Organizational Unit shall receive the funding needed

to cover one FTE for each 225 combined ASE of

pre-kindergarten children with disabilities and all

kindergarten through grade 5 students, plus one FTE for

each 225 ASE middle school students, plus one FTE for

each 200 ASE high school students.

(I) Librarian investments. Each Organizational

Unit shall receive the funding needed to cover one FTE

librarian for each prototypical elementary school,

middle school, and high school and one FTE aide or

media technician for every 300 combined ASE of

pre-kindergarten children with disabilities and all

kindergarten through grade 12 students.

(J) Principal investments. Each Organizational

Unit shall receive the funding needed to cover one FTE

principal position for each prototypical elementary

school, plus one FTE principal position for each

prototypical middle school, plus one FTE principal

position for each prototypical high school.

(K) Assistant principal investments. Each

Organizational Unit shall receive the funding needed

to cover one FTE assistant principal position for each

prototypical elementary school, plus one FTE assistant

principal position for each prototypical middle

school, plus one FTE assistant principal position for

each prototypical high school.

(L) School site staff investments. Each

Organizational Unit shall receive the funding needed

for one FTE position for each 225 ASE of

pre-kindergarten children with disabilities and all

kindergarten through grade 5 students, plus one FTE

position for each 225 ASE middle school students, plus

one FTE position for each 200 ASE high school students.

(M) Gifted investments. Each Organizational Unit

shall receive $40 per kindergarten through grade 12

ASE.

(N) Professional development investments. Each

Organizational Unit shall receive $125 per student of

the combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12

students for trainers and other professional

development-related expenses for supplies and

materials.

(O) Instructional material investments. Each

Organizational Unit shall receive $190 per student of

the combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12

students to cover instructional material costs.

(P) Assessment investments. Each Organizational

Unit shall receive $25 per student of the combined ASE

of pre-kindergarten children with disabilities and all

kindergarten through grade 12 students student to

cover assessment costs.

(Q) Computer technology and equipment investments.

Each Organizational Unit shall receive $285.50 per

student of the combined ASE of pre-kindergarten

children with disabilities and all kindergarten

through grade 12 students to cover computer technology

and equipment costs. For the 2018-2019 school year and

subsequent school years, Tier 1 and Tier 2

Organizational Units selected by the State Board

through a request for proposals process shall, upon the

State Board's approval of an Organizational Unit's

one-to-one computing technology plan, receive an

additional $285.50 per student of the combined ASE of

pre-kindergarten children with disabilities and all

kindergarten through grade 12 students to cover

computer technology and equipment costs. The State

Board may establish additional requirements for

Organizational Unit expenditures of funds received

pursuant to this subparagraph (Q). It is the intent of

this amendatory Act of the 100th General Assembly that

all Tier 1 and Tier 2 districts that apply for the

technology grant receive the addition to their

Adequacy Target, subject to compliance with the

requirements of the State Board.

(R) Student activities investments. Each

Organizational Unit shall receive the following

funding amounts to cover student activities: $100 per

kindergarten through grade 5 ASE student in elementary

school, plus $200 per ASE student in middle school,

plus $675 per ASE student in high school.

(S) Maintenance and operations investments. Each

Organizational Unit shall receive $1,038 per student

of the combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12 for

day-to-day maintenance and operations expenditures,

including salary, supplies, and materials, as well as

purchased services, but excluding employee benefits.

The proportion of salary for the application of a

Regionalization Factor and the calculation of benefits

is equal to $352.92.

(T) Central office investments. Each

Organizational Unit shall receive $742 per student of

the combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12

students to cover central office operations, including

administrators and classified personnel charged with

managing the instructional programs, business and

operations of the school district, and security

personnel. The proportion of salary for the

application of a Regionalization Factor and the

calculation of benefits is equal to $368.48.

(U) Employee benefit investments. Each

Organizational Unit shall receive 30% of the total of

all salary-calculated elements of the Adequacy Target,

excluding substitute teachers and student activities

investments, to cover benefit costs. For central

office and maintenance and operations investments, the

benefit calculation shall be based upon the salary

proportion of each investment. If at any time the

responsibility for funding the employer normal cost of

teacher pensions is assigned to school districts, then

that amount certified by the Teachers' Retirement

System of the State of Illinois to be paid by the

Organizational Unit for the preceding school year

shall be added to the benefit investment. For any

fiscal year in which a school district organized under

Article 34 of this Code is responsible for paying the

employer normal cost of teacher pensions, then that

amount of its employer normal cost plus the amount for

retiree health insurance as certified by the Public

School Teachers' Pension and Retirement Fund of

Chicago to be paid by the school district for the

preceding school year that is statutorily required to

cover employer normal costs and the amount for retiree

health insurance shall be added to the 30% specified in

this subparagraph (U). The Public School Teachers'

Pension and Retirement Fund of Chicago shall submit

such information as the State Superintendent may

require for the calculations set forth in this

subparagraph (U).

(V) Additional investments in low-income students.

In addition to and not in lieu of all other funding

under this paragraph (2), each Organizational Unit

shall receive funding based on the average teacher

salary for grades K through 12 to cover the costs of:

(i) one FTE intervention teacher (tutor)

position for every 125 Low-Income Count students;

(ii) one FTE pupil support staff position for

every 125 Low-Income Count students;

(iii) one FTE extended day teacher position

for every 120 Low-Income Count students; and

(iv) one FTE summer school teacher position

for every 120 Low-Income Count students.

(W) Additional investments in English learner

students. In addition to and not in lieu of all other

funding under this paragraph (2), each Organizational

Unit shall receive funding based on the average teacher

salary for grades K through 12 to cover the costs of:

(i) one FTE intervention teacher (tutor)

position for every 125 English learner students;

(ii) one FTE pupil support staff position for

every 125 English learner students;

(iii) one FTE extended day teacher position

for every 120 English learner students;

(iv) one FTE summer school teacher position

for every 120 English learner students; and

(v) one FTE core teacher position for every 100

English learner students.

(X) Special education investments. Each

Organizational Unit shall receive funding based on the

average teacher salary for grades K through 12 to cover

special education as follows:

(i) one FTE teacher position for every 141

combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12

students;

(ii) one FTE instructional assistant for every

141 combined ASE of pre-kindergarten children with

disabilities and all kindergarten through grade 12

students; and

(iii) one FTE psychologist position for every

1,000 combined ASE of pre-kindergarten children

with disabilities and all kindergarten through

grade 12 students.

(3) For calculating the salaries included within the

Essential Elements, the State Superintendent shall

annually calculate average salaries to the nearest dollar

using the employment information system data maintained by

the State Board, limited to public schools only and

excluding special education and vocational cooperatives,

schools operated by the Department of Juvenile Justice, and

charter schools, for the following positions:

(A) Teacher for grades K through 8.

(B) Teacher for grades 9 through 12.

(C) Teacher for grades K through 12.

(D) Guidance counselor for grades K through 8.

(E) Guidance counselor for grades 9 through 12.

(F) Guidance counselor for grades K through 12.

(G) Social worker.

(H) Psychologist.

(I) Librarian.

(J) Nurse.

(K) Principal.

(L) Assistant principal.

For the purposes of this paragraph (3), "teacher"

includes core teachers, specialist and elective teachers,

instructional facilitators, tutors, special education

teachers, pupil support staff teachers, English learner

teachers, extended-day teachers, and summer school

teachers. Where specific grade data is not required for the

Essential Elements, the average salary for corresponding

positions shall apply. For substitute teachers, the

average teacher salary for grades K through 12 shall apply.

For calculating the salaries included within the

Essential Elements for positions not included within EIS

Data, the following salaries shall be used in the first

year of implementation of Evidence-Based Funding:

(i) school site staff, $30,000; and

(ii) non-instructional assistant, instructional

assistant, library aide, library media tech, or

supervisory aide: $25,000.

In the second and subsequent years of implementation of

Evidence-Based Funding, the amounts in items (i) and (ii)

of this paragraph (3) shall annually increase by the ECI.

The salary amounts for the Essential Elements

determined pursuant to subparagraphs (A) through (L), (S)

and (T), and (V) through (X) of paragraph (2) of subsection

(b) of this Section shall be multiplied by a

Regionalization Factor.

(c) Local capacity calculation.

(1) Each Organizational Unit's Local Capacity

represents an amount of funding it is assumed to contribute

toward its Adequacy Target for purposes of the

Evidence-Based Funding formula calculation. "Local

Capacity" means either (i) the Organizational Unit's Local

Capacity Target as calculated in accordance with paragraph

(2) of this subsection (c) if its Real Receipts are equal

to or less than its Local Capacity Target or (ii) the

Organizational Unit's Adjusted Local Capacity, as

calculated in accordance with paragraph (3) of this

subsection (c) if Real Receipts are more than its Local

Capacity Target.

(2) "Local Capacity Target" means, for an

Organizational Unit, that dollar amount that is obtained by

multiplying its Adequacy Target by its Local Capacity

Ratio.

(A) An Organizational Unit's Local Capacity

Percentage is the conversion of the Organizational

Unit's Local Capacity Ratio, as such ratio is

determined in accordance with subparagraph (B) of this

paragraph (2), into a normal curve equivalent score to

determine each Organizational Unit's relative position

to all other Organizational Units in this State. The

calculation of Local Capacity Percentage is described

in subparagraph (C) of this paragraph (2).

(B) An Organizational Unit's Local Capacity Ratio

in a given year is the percentage obtained by dividing

its Adjusted EAV or PTELL EAV, whichever is less, by

its Adequacy Target, with the resulting ratio further

adjusted as follows:

(i) for Organizational Units serving grades

kindergarten through 12 and Hybrid Districts, no

further adjustments shall be made;

(ii) for Organizational Units serving grades

kindergarten through 8, the ratio shall be

multiplied by 9/13;

(iii) for Organizational Units serving grades

9 through 12, the Local Capacity Ratio shall be

multiplied by 4/13; and

(iv) for an Organizational Unit with a

different grade configuration than those specified

in items (i) through (iii) of this subparagraph

(B), the State Superintendent shall determine a

comparable adjustment based on the grades served.

(C) Local Capacity Percentage converts each

Organizational Unit's Local Capacity Ratio to a normal

curve equivalent score to determine each

Organizational Unit's relative position to all other

Organizational Units in this State. The Local Capacity

Percentage normal curve equivalent score for each

Organizational Unit shall be calculated using the

standard normal distribution of the score in relation

to the weighted mean and weighted standard deviation

and Local Capacity Ratios of all Organizational Units.

If the value assigned to any Organizational Unit is in

excess of 90%, the value shall be adjusted to 90%. For

Laboratory Schools, the Local Capacity Percentage

shall be set at 10% in recognition of the absence of

EAV and resources from the public university that are

allocated to the Laboratory School. The weighted mean

for the Local Capacity Percentage shall be determined

by multiplying each Organizational Unit's Local

Capacity Ratio times the ASE for the unit creating a

weighted value, summing the weighted values of all

Organizational Units, and dividing by the total ASE of

all Organizational Units. The weighted standard

deviation shall be determined by taking the square root

of the weighted variance of all Organizational Units'

Local Capacity Ratio, where the variance is calculated

by squaring the difference between each unit's Local

Capacity Ratio and the weighted mean, then multiplying

the variance for each unit times the ASE for the unit

to create a weighted variance for each unit, then

summing all units' weighted variance and dividing by

the total ASE of all units.

(D) For any Organizational Unit, the

Organizational Unit's Adjusted Local Capacity Target

shall be reduced by either (i) the school board's

remaining contribution pursuant to paragraph (ii) of

subsection (b-4) of Section 16-158 of the Illinois

Pension Code in a given year, or (ii) the board of

education's remaining contribution pursuant to

paragraph (iv) of subsection (b) of Section 17-129 of

the Illinois Pension Code absent the employer normal

cost portion of the required contribution and amount

allowed pursuant to subdivision (3) of Section

17-142.1 of the Illinois Pension Code in a given year.

In the preceding sentence, item (i) shall be certified

to the State Board of Education by the Teachers'

Retirement System of the State of Illinois and item

(ii) shall be certified to the State Board of Education

by the Public School Teachers' Pension and Retirement

Fund of the City of Chicago.

(3) If an Organizational Unit's Real Receipts are more

than its Local Capacity Target, then its Local Capacity

shall equal an Adjusted Local Capacity Target as calculated

in accordance with this paragraph (3). The Adjusted Local

Capacity Target is calculated as the sum of the

Organizational Unit's Local Capacity Target and its Real

Receipts Adjustment. The Real Receipts Adjustment equals

the Organizational Unit's Real Receipts less its Local

Capacity Target, with the resulting figure multiplied by

the Local Capacity Percentage.

As used in this paragraph (3), "Real Percent of

Adequacy" means the sum of an Organizational Unit's Real

Receipts, CPPRT, and Base Funding Minimum, with the

resulting figure divided by the Organizational Unit's

Adequacy Target.

(d) Calculation of Real Receipts, EAV, and Adjusted EAV for

purposes of the Local Capacity calculation.

(1) An Organizational Unit's Real Receipts are the

product of its Applicable Tax Rate and its Adjusted EAV. An

Organizational Unit's Applicable Tax Rate is its Adjusted

Operating Tax Rate for property within the Organizational

Unit.

(2) The State Superintendent shall calculate the

Equalized Assessed Valuation, or EAV, of all taxable

property of each Organizational Unit as of September 30 of

the previous year in accordance with paragraph (3) of this

subsection (d). The State Superintendent shall then

determine the Adjusted EAV of each Organizational Unit in

accordance with paragraph (4) of this subsection (d), which

Adjusted EAV figure shall be used for the purposes of

calculating Local Capacity.

(3) To calculate Real Receipts and EAV, the Department

of Revenue shall supply to the State Superintendent the

value as equalized or assessed by the Department of Revenue

of all taxable property of every Organizational Unit,

together with (i) the applicable tax rate used in extending

taxes for the funds of the Organizational Unit as of

September 30 of the previous year and (ii) the limiting

rate for all Organizational Units subject to property tax

extension limitations as imposed under PTELL.

(A) The Department of Revenue shall add to the

equalized assessed value of all taxable property of

each Organizational Unit situated entirely or

partially within a county that is or was subject to the

provisions of Section 15-176 or 15-177 of the Property

Tax Code (i) an amount equal to the total amount by

which the homestead exemption allowed under Section

15-176 or 15-177 of the Property Tax Code for real

property situated in that Organizational Unit exceeds

the total amount that would have been allowed in that

Organizational Unit if the maximum reduction under

Section 15-176 was (I) $4,500 in Cook County or $3,500

in all other counties in tax year 2003 or (II) $5,000

in all counties in tax year 2004 and thereafter and

(ii) an amount equal to the aggregate amount for the

taxable year of all additional exemptions under

Section 15-175 of the Property Tax Code for owners with

a household income of $30,000 or less. The county clerk

of any county that is or was subject to the provisions

of Section 15-176 or 15-177 of the Property Tax Code

shall annually calculate and certify to the Department

of Revenue for each Organizational Unit all homestead

exemption amounts under Section 15-176 or 15-177 of the

Property Tax Code and all amounts of additional

exemptions under Section 15-175 of the Property Tax

Code for owners with a household income of $30,000 or

less. It is the intent of this subparagraph (A) that if

the general homestead exemption for a parcel of

property is determined under Section 15-176 or 15-177

of the Property Tax Code rather than Section 15-175,

then the calculation of EAV shall not be affected by

the difference, if any, between the amount of the

general homestead exemption allowed for that parcel of

property under Section 15-176 or 15-177 of the Property

Tax Code and the amount that would have been allowed

had the general homestead exemption for that parcel of

property been determined under Section 15-175 of the

Property Tax Code. It is further the intent of this

subparagraph (A) that if additional exemptions are

allowed under Section 15-175 of the Property Tax Code

for owners with a household income of less than

$30,000, then the calculation of EAV shall not be

affected by the difference, if any, because of those

additional exemptions.

(B) With respect to any part of an Organizational

Unit within a redevelopment project area in respect to

which a municipality has adopted tax increment

allocation financing pursuant to the Tax Increment

Allocation Redevelopment Act, Division 74.4 of the

Illinois Municipal Code, or the Industrial Jobs

Recovery Law, Division 74.6 of the Illinois Municipal

Code, no part of the current EAV of real property

located in any such project area which is attributable

to an increase above the total initial EAV of such

property shall be used as part of the EAV of the

Organizational Unit, until such time as all

redevelopment project costs have been paid, as

provided in Section 11-74.4-8 of the Tax Increment

Allocation Redevelopment Act or in Section 11-74.6-35

of the Industrial Jobs Recovery Law. For the purpose of

the EAV of the Organizational Unit, the total initial

EAV or the current EAV, whichever is lower, shall be

used until such time as all redevelopment project costs

have been paid.

(C) For Organizational Units that are Hybrid

Districts, the State Superintendent shall use the

lesser of the equalized assessed valuation for

property within the partial elementary unit district

for elementary purposes, as defined in Article 11E of

this Code, or the equalized assessed valuation for

property within the partial elementary unit district

for high school purposes, as defined in Article 11E of

this Code.

(4) An Organizational Unit's Adjusted EAV shall be the

average of its EAV over the immediately preceding 3 years

or its EAV in the immediately preceding year if the EAV in

the immediately preceding year has declined by 10% or more

compared to the 3-year average. In the event of

Organizational Unit reorganization, consolidation, or

annexation, the Organizational Unit's Adjusted EAV for the

first 3 years after such change shall be as follows: the

most current EAV shall be used in the first year, the

average of a 2-year EAV or its EAV in the immediately

preceding year if the EAV declines by 10% or more compared

to the 2-year average for the second year, and a 3-year

average EAV or its EAV in the immediately preceding year if

the adjusted EAV declines by 10% or more compared to the

3-year average for the third year.

"PTELL EAV" means a figure calculated by the State

Board for Organizational Units subject to PTELL as

described in this paragraph (4) for the purposes of

calculating an Organizational Unit's Local Capacity Ratio.

Except as otherwise provided in this paragraph (4), for an

Organizational Unit that has approved or does approve an

increase in its limiting rate, the PTELL EAV of an

Organizational Unit shall be equal to the product of the

equalized assessed valuation last used in the calculation

of general State aid under Section 18-8.05 of this Code or

Evidence-Based Funding under this Section and the

Organizational Unit's Extension Limitation Ratio. If an

Organizational Unit has approved or does approve an

increase in its limiting rate, pursuant to Section 18-190

of the Property Tax Code, affecting the Base Tax Year, the

PTELL EAV shall be equal to the product of the equalized

assessed valuation last used in the calculation of general

State aid under Section 18-8.05 of this Code or

Evidence-Based Funding under this Section multiplied by an

amount equal to one plus the percentage increase, if any,

in the Consumer Price Index for All Urban Consumers for all

items published by the United States Department of Labor

for the 12-month calendar year preceding the Base Tax Year,

plus the equalized assessed valuation of new property,

annexed property, and recovered tax increment value and

minus the equalized assessed valuation of disconnected

property.

As used in this paragraph (4), "new property" and

"recovered tax increment value" shall have the meanings set

forth in the Property Tax Extension Limitation Law.

(e) Base Funding Minimum calculation.

(1) For the 2017-2018 school year, the Base Funding

Minimum of an Organizational Unit, other than a Specially

Funded Unit, shall be the amount of State funds distributed

to the Organizational Unit during the 2016-2017 school year

prior to any adjustments and specified appropriation

amounts described in this paragraph (1) from the following

Sections, as calculated by the State Superintendent:

Section 18-8.05 of this Code (general State aid); Section 5

of Article 224 of Public Act 99-524 (equity grants);

Section 14-7.02b of this Code (funding for children

requiring special education services); Section 14-13.01 of

this Code (special education facilities and staffing),

except for reimbursement of the cost of transportation

pursuant to Section 14-13.01; Section 14C-12 of this Code

(English learners); and Section 18-4.3 of this Code (summer

school), based on an appropriation level of $13,121,600.

For a school district organized under Article 34 of this

Code, the Base Funding Minimum also includes (i) the funds

allocated to the school district pursuant to Section 1D-1

of this Code attributable to funding programs authorized by

the Sections of this Code listed in the preceding sentence;

and (ii) the difference between (I) the funds allocated to

the school district pursuant to Section 1D-1 of this Code

attributable to the funding programs authorized by Section

14-7.02 (non-public special education reimbursement),

subsection (b) of Section 14-13.01 (special education

transportation), Section 29-5 (transportation), Section

2-3.80 (agricultural education), Section 2-3.66 (truants'

alternative education), Section 2-3.62 (educational

service centers), and Section 14-7.03 (special education –

orphanage) of this Code and Section 15 of the Childhood

Hunger Relief Act (free breakfast program) and (II) the

school district's actual expenditures for its non-public

special education, special education transportation,

transportation programs, agricultural education, truants'

alternative education, services that would otherwise be

performed by a regional office of education, special

education orphanage expenditures, and free breakfast, as

most recently calculated and reported pursuant to

subsection (f) of Section 1D-1 of this Code. For Specially

Funded Units, the Base Funding Minimum shall be the total

amount of State funds allotted to the Specially Funded Unit

during the 2016-2017 school year. The Base Funding Minimum

for Glenwood Academy shall be $625,500.

(2) For the 2018-2019 and subsequent school years, the

Base Funding Minimum of Organizational Units and Specially

Funded Units shall be the sum of (i) the amount of

Evidence-Based Funding for the prior school year and (ii)

the Base Funding Minimum for the prior school year.

(f) Percent of Adequacy and Final Resources calculation.

(1) The Evidence-Based Funding formula establishes a

Percent of Adequacy for each Organizational Unit in order

to place such units into tiers for the purposes of the

funding distribution system described in subsection (g) of

this Section. Initially, an Organizational Unit's

Preliminary Resources and Preliminary Percent of Adequacy

are calculated pursuant to paragraph (2) of this subsection

(f). Then, an Organizational Unit's Final Resources and

Final Percent of Adequacy are calculated to account for the

Organizational Unit's poverty concentration levels

pursuant to paragraphs (3) and (4) of this subsection (f).

(2) An Organizational Unit's Preliminary Resources are

equal to the sum of its Local Capacity Target, CPPRT, and

Base Funding Minimum. An Organizational Unit's Preliminary

Percent of Adequacy is the lesser of (i) its Preliminary

Resources divided by its Adequacy Target or (ii) 100%.

(3) Except for Specially Funded Units, an

Organizational Unit's Final Resources are equal the sum of

its Local Capacity, CPPRT, and Adjusted Base Funding

Minimum. The Base Funding Minimum of each Specially Funded

Unit shall serve as its Final Resources, except that the

Base Funding Minimum for State-approved charter schools

shall not include any portion of general State aid

allocated in the prior year based on the per capita tuition

charge times the charter school enrollment.

(4) An Organizational Unit's Final Percent of Adequacy

is its Final Resources divided by its Adequacy Target. An

Organizational Unit's Adjusted Base Funding Minimum is

equal to its Base Funding Minimum less its Supplemental

Grant Funding, with the resulting figure added to the

product of its Supplemental Grant Funding and Preliminary

Percent of Adequacy.

(g) Evidence-Based Funding formula distribution system.

(1) In each school year under the Evidence-Based

Funding formula, each Organizational Unit receives funding

equal to the sum of its Base Funding Minimum and the unit's

allocation of New State Funds determined pursuant to this

subsection (g). To allocate New State Funds, the

Evidence-Based Funding formula distribution system first

places all Organizational Units into one of 4 tiers in

accordance with paragraph (3) of this subsection (g), based

on the Organizational Unit's Final Percent of Adequacy. New

State Funds are allocated to each of the 4 tiers as

follows: Tier 1 Aggregate Funding equals 50% of all New

State Funds, Tier 2 Aggregate Funding equals 49% of all New

State Funds, Tier 3 Aggregate Funding equals 0.9% of all

New State Funds, and Tier 4 Aggregate Funding equals 0.1%

of all New State Funds. Each Organizational Unit within

Tier 1 or Tier 2 receives an allocation of New State Funds

equal to its tier Funding Gap, as defined in the following

sentence, multiplied by the tier's Allocation Rate

determined pursuant to paragraph (4) of this subsection

(g). For Tier 1, an Organizational Unit's Funding Gap

equals the tier's Target Ratio, as specified in paragraph

(5) of this subsection (g), multiplied by the

Organizational Unit's Adequacy Target, with the resulting

amount reduced by the Organizational Unit's Final

Resources. For Tier 2, an Organizational Unit's Funding Gap

equals the tier's Target Ratio, as described in paragraph

(5) of this subsection (g), multiplied by the

Organizational Unit's Adequacy Target, with the resulting

amount reduced by the Organizational Unit's Final

Resources and its Tier 1 funding allocation. To determine

the Organizational Unit's Funding Gap, the resulting

amount is then multiplied by a factor equal to one minus

the Organizational Unit's Local Capacity Target

percentage. Each Organizational Unit within Tier 3 or Tier

4 receives an allocation of New State Funds equal to the

product of its Adequacy Target and the tier's Allocation

Rate, as specified in paragraph (4) of this subsection (g).

(2) To ensure equitable distribution of dollars for all

Tier 2 Organizational Units, no Tier 2 Organizational Unit

shall receive fewer dollars per ASE than any Tier 3

Organizational Unit. Each Tier 2 and Tier 3 Organizational

Unit shall have its funding allocation divided by its ASE.

Any Tier 2 Organizational Unit with a funding allocation

per ASE below the greatest Tier 3 allocation per ASE shall

get a funding allocation equal to the greatest Tier 3

funding allocation per ASE multiplied by the

Organizational Unit's ASE. Each Tier 2 Organizational

Unit's Tier 2 funding allocation shall be multiplied by the

percentage calculated by dividing the original Tier 2

Aggregate Funding by the sum of all Tier 2 Organizational

Unit's Tier 2 funding allocation after adjusting

districts' funding below Tier 3 levels.

(3) Organizational Units are placed into one of 4 tiers

as follows:

(A) Tier 1 consists of all Organizational Units,

except for Specially Funded Units, with a Percent of

Adequacy less than the Tier 1 Target Ratio. The Tier 1

Target Ratio is the ratio level that allows for Tier 1

Aggregate Funding to be distributed, with the Tier 1

Allocation Rate determined pursuant to paragraph (4)

of this subsection (g).

(B) Tier 2 consists of all Tier 1 Units and all

other Organizational Units, except for Specially

Funded Units, with a Percent of Adequacy of less than

0.90.

(C) Tier 3 consists of all Organizational Units,

except for Specially Funded Units, with a Percent of

Adequacy of at least 0.90 and less than 1.0.

(D) Tier 4 consists of all Organizational Units

with a Percent of Adequacy of at least 1.0 and

Specially Funded Units, excluding Glenwood Academy.

(4) The Allocation Rates for Tiers 1 through 4 is

determined as follows:

(A) The Tier 1 Allocation Rate is 30%.

(B) The Tier 2 Allocation Rate is the result of the

following equation: Tier 2 Aggregate Funding, divided

by the sum of the Funding Gaps for all Tier 2

Organizational Units, unless the result of such

equation is higher than 1.0. If the result of such

equation is higher than 1.0, then the Tier 2 Allocation

Rate is 1.0.

(C) The Tier 3 Allocation Rate is the result of the

following equation: Tier 3 Aggregate Funding, divided

by the sum of the Adequacy Targets of all Tier 3

Organizational Units.

(D) The Tier 4 Allocation Rate is the result of the

following equation: Tier 4 Aggregate Funding, divided

by the sum of the Adequacy Targets of all Tier 4

Organizational Units.

(5) A tier's Target Ratio is determined as follows:

(A) The Tier 1 Target Ratio is the ratio level that

allows for Tier 1 Aggregate Funding to be distributed

with the Tier 1 Allocation Rate.

(B) The Tier 2 Target Ratio is 0.90.

(C) The Tier 3 Target Ratio is 1.0.

(6) If, at any point, the Tier 1 Target Ratio is

greater than 90%, than all Tier 1 funding shall be

allocated to Tier 2 and no Tier 1 Organizational Unit's

funding may be identified.

(7) In the event that all Tier 2 Organizational Units

receive funding at the Tier 2 Target Ratio level, any

remaining New State Funds shall be allocated to Tier 3 and

Tier 4 Organizational Units.

(8) If any Specially Funded Units, excluding Glenwood

Academy, recognized by the State Board do not qualify for

direct funding following the implementation of this

amendatory Act of the 100th General Assembly from any of

the funding sources included within the definition of Base

Funding Minimum, the unqualified portion of the Base

Funding Minimum shall be transferred to one or more

appropriate Organizational Units as determined by the

State Superintendent based on the prior year ASE of the

Organizational Units.

(9) The Minimum Funding Level is intended to establish

a target for State funding that will keep pace with

inflation and continue to advance equity through the

Evidence-Based Funding formula. The target for State

funding of New Property Tax Relief Pool Funds is

$50,000,000 for State fiscal year 2019 and subsequent State

fiscal years. The Minimum Funding Level is equal to

$350,000,000. In addition to any New State Funds, no more

than $50,000,000 New Property Tax Relief Pool Funds may be

counted towards the Minimum Funding Level. If the sum of

New State Funds and applicable New Property Tax Relief Pool

Funds are less than the Minimum Funding Level, than funding

for tiers shall be reduced in the following manner:

(A) First, Tier 4 funding shall be reduced by an

amount equal to the difference between the Minimum

Funding Level and New State Funds until such time as

Tier 4 funding is exhausted.

(B) Next, Tier 3 funding shall be reduced by an

amount equal to the difference between the Minimum

Funding Level and New State Funds and the reduction in

Tier 4 funding until such time as Tier 3 funding is

exhausted.

(C) Next, Tier 2 funding shall be reduced by an

amount equal to the difference between the Minimum

Funding level and new State Funds and the reduction

Tier 4 and Tier 3.

(D) Finally, Tier 1 funding shall be reduced by an

amount equal to the difference between the Minimum

Funding level and New State Funds and the reduction in

Tier 2, 3, and 4 funding. In addition, the Allocation

Rate for Tier 1 shall be reduced to a percentage equal

to 50%, multiplied by the result of New State Funds

divided by the Minimum Funding Level.

(9.5) For State fiscal year 2019 and subsequent State

fiscal years, if New State Funds exceed $300,000,000, then

any amount in excess of $300,000,000 shall be dedicated for

purposes of Section 2-3.170 of this Code up to a maximum of

$50,000,000.

(10) In the event of a decrease in the amount of the

appropriation for this Section in any fiscal year after

implementation of this Section, the Organizational Units

receiving Tier 1 and Tier 2 funding, as determined under

paragraph (3) of this subsection (g), shall be held

harmless by establishing a Base Funding Guarantee equal to

the per pupil kindergarten through grade 12 funding

received in accordance with this Section in the prior

fiscal year. Reductions shall be made to the Base Funding

Minimum of Organizational Units in Tier 3 and Tier 4 on a

per pupil basis equivalent to the total number of the ASE

in Tier 3-funded and Tier 4-funded Organizational Units

divided by the total reduction in State funding. The Base

Funding Minimum as reduced shall continue to be applied to

Tier 3 and Tier 4 Organizational Units and adjusted by the

relative formula when increases in appropriations for this

Section resume. In no event may State funding reductions to

Organizational Units in Tier 3 or Tier 4 exceed an amount

that would be less than the Base Funding Minimum

established in the first year of implementation of this

Section. If additional reductions are required, all school

districts shall receive a reduction by a per pupil amount

equal to the aggregate additional appropriation reduction

divided by the total ASE of all Organizational Units.

(11) The State Superintendent shall make minor

adjustments to the distribution formula set forth in this

subsection (g) to account for the rounding of percentages

to the nearest tenth of a percentage and dollar amounts to

the nearest whole dollar.

(h) State Superintendent administration of funding and

district submission requirements.

(1) The State Superintendent shall, in accordance with

appropriations made by the General Assembly, meet the

funding obligations created under this Section.

(2) The State Superintendent shall calculate the

Adequacy Target for each Organizational Unit and Net State

Contribution Target for each Organizational Unit under

this Section. The State Superintendent shall also certify

the actual amounts of the New State Funds payable for each

eligible Organizational Unit based on the equitable

distribution calculation to the unit's treasurer, as soon

as possible after such amounts are calculated, including

any applicable adjusted charge-off increase. No

Evidence-Based Funding shall be distributed within an

Organizational Unit without the approval of the unit's

school board.

(3) Annually, the State Superintendent shall calculate

and report to each Organizational Unit the unit's aggregate

financial adequacy amount, which shall be the sum of the

Adequacy Target for each Organizational Unit. The State

Superintendent shall calculate and report separately for

each Organizational Unit the unit's total State funds

allocated for its students with disabilities. The State

Superintendent shall calculate and report separately for

each Organizational Unit the amount of funding and

applicable FTE calculated for each Essential Element of the

unit's Adequacy Target.

(4) Annually, the State Superintendent shall calculate

and report to each Organizational Unit the amount the unit

must expend on special education and bilingual education

pursuant to the unit's Base Funding Minimum, Special

Education Allocation, and Bilingual Education Allocation.

(5) Moneys distributed under this Section shall be

calculated on a school year basis, but paid on a fiscal

year basis, with payments beginning in August and extending

through June. Unless otherwise provided, the moneys

appropriated for each fiscal year shall be distributed in

22 equal payments at least 2 times monthly to each

Organizational Unit. The State Board shall publish a yearly

distribution schedule at its meeting in June. If moneys

appropriated for any fiscal year are distributed other than

monthly, the distribution shall be on the same basis for

each Organizational Unit.

(6) Any school district that fails, for any given

school year, to maintain school as required by law or to

maintain a recognized school is not eligible to receive

Evidence-Based Funding. In case of non-recognition of one

or more attendance centers in a school district otherwise

operating recognized schools, the claim of the district

shall be reduced in the proportion that the enrollment in

the attendance center or centers bears to the enrollment of

the school district. "Recognized school" means any public

school that meets the standards for recognition by the

State Board. A school district or attendance center not

having recognition status at the end of a school term is

entitled to receive State aid payments due upon a legal

claim that was filed while it was recognized.

(7) School district claims filed under this Section are

subject to Sections 18-9 and 18-12 of this Code, except as

otherwise provided in this Section.

(8) Each fiscal year, the State Superintendent shall

calculate for each Organizational Unit an amount of its

Base Funding Minimum and Evidence-Based Funding that shall

be deemed attributable to the provision of special

educational facilities and services, as defined in Section

14-1.08 of this Code, in a manner that ensures compliance

with maintenance of State financial support requirements

under the federal Individuals with Disabilities Education

Act. An Organizational Unit must use such funds only for

the provision of special educational facilities and

services, as defined in Section 14-1.08 of this Code, and

must comply with any expenditure verification procedures

adopted by the State Board.

(9) All Organizational Units in this State must submit

annual spending plans by the end of September of each year

to the State Board as part of the annual budget process,

which shall describe how each Organizational Unit will

utilize the Base Minimum Funding and Evidence-Based

funding it receives from this State under this Section with

specific identification of the intended utilization of

Low-Income, English learner, and special education

resources. Additionally, the annual spending plans of each

Organizational Unit shall describe how the Organizational

Unit expects to achieve student growth and how the

Organizational Unit will achieve State education goals, as

defined by the State Board. The State Superintendent may,

from time to time, identify additional requisites for

Organizational Units to satisfy when compiling the annual

spending plans required under this subsection (h). The

format and scope of annual spending plans shall be

developed by the State Superintendent in conjunction with

the Professional Review Panel.

(10) No later than January 1, 2018, the State

Superintendent shall develop a 5-year strategic plan for

all Organizational Units to help in planning for adequacy

funding under this Section. The State Superintendent shall

submit the plan to the Governor and the General Assembly,

as provided in Section 3.1 of the General Assembly

Organization Act. The plan shall include recommendations

for:

(A) a framework for collaborative, professional,

innovative, and 21st century learning environments

using the Evidence-Based Funding model;

(B) ways to prepare and support this State's

educators for successful instructional careers;

(C) application and enhancement of the current

financial accountability measures, the approved State

plan to comply with the federal Every Student Succeeds

Act, and the Illinois Balanced Accountability Measures

in relation to student growth and elements of the

Evidence-Based Funding model; and

(D) implementation of an effective school adequacy

funding system based on projected and recommended

funding levels from the General Assembly.

(i) Professional Review Panel.

(1) A Professional Review Panel is created to study and

review the implementation and effect of the Evidence-Based

Funding model under this Section and to recommend continual

recalibration and future study topics and modifications to

the Evidence-Based Funding model. The Panel shall elect a

chairperson and vice chairperson by a majority vote of the

Panel and shall advance recommendations based on a majority

vote of the Panel. A minority opinion may also accompany

any recommendation of the majority of the Panel. The Panel

shall be appointed by the State Superintendent, except as

otherwise provided in paragraph (2) of this subsection (i)

and include the following members:

(A) Two appointees that represent district

superintendents, recommended by a statewide

organization that represents district superintendents.

(B) Two appointees that represent school boards,

recommended by a statewide organization that

represents school boards.

(C) Two appointees from districts that represent

school business officials, recommended by a statewide

organization that represents school business

officials.

(D) Two appointees that represent school

principals, recommended by a statewide organization

that represents school principals.

(E) Two appointees that represent teachers,

recommended by a statewide organization that

represents teachers.

(F) Two appointees that represent teachers,

recommended by another statewide organization that

represents teachers.

(G) Two appointees that represent regional

superintendents of schools, recommended by

organizations that represent regional superintendents.

(H) Two independent experts selected solely by the

State Superintendent.

(I) Two independent experts recommended by public

universities in this State.

(J) One member recommended by a statewide

organization that represents parents.

(K) Two representatives recommended by collective

impact organizations that represent major metropolitan

areas or geographic areas in Illinois.

(L) One member from a statewide organization

focused on research-based education policy to support

a school system that prepares all students for college,

a career, and democratic citizenship.

(M) One representative from a school district

organized under Article 34 of this Code.

The State Superintendent shall ensure that the

membership of the Panel includes representatives from

school districts and communities reflecting the

geographic, socio-economic, racial, and ethnic diversity

of this State. The State Superintendent shall additionally

ensure that the membership of the Panel includes

representatives with expertise in bilingual education and

special education. Staff from the State Board shall staff

the Panel.

(2) In addition to those Panel members appointed by the

State Superintendent, 4 members of the General Assembly

shall be appointed as follows: one member of the House of

Representatives appointed by the Speaker of the House of

Representatives, one member of the Senate appointed by the

President of the Senate, one member of the House of

Representatives appointed by the Minority Leader of the

House of Representatives, and one member of the Senate

appointed by the Minority Leader of the Senate. There shall

be one additional member appointed by the Governor. All

members appointed by legislative leaders or the Governor

shall be non-voting, ex officio members.

(3) On an annual basis, the State Superintendent shall

recalibrate the following per pupil elements of the

Adequacy Target and applied to the formulas, based on the

Panel's study of average expenses as reported in the most

recent annual financial report:

(A) gifted under subparagraph (M) of paragraph (2)

of subsection (b) of this Section;

(B) instructional materials under subparagraph (O)

of paragraph (2) of subsection (b) of this Section;

(C) assessment under subparagraph (P) of paragraph

(2) of subsection (b) of this Section;

(D) student activities under subparagraph (R) of

paragraph (2) of subsection (b) of this Section;

(E) maintenance and operations under subparagraph

(S) of paragraph (2) of subsection (b) of this Section;

and

(F) central office under subparagraph (T) of

paragraph (2) of subsection (b) of this Section.

(4) On a periodic basis, the Panel shall study all the

following elements and make recommendations to the State

Board, the General Assembly, and the Governor for

modification of this Section:

(A) The format and scope of annual spending plans

referenced in paragraph (9) of subsection (h) of this

Section.

(B) The Comparable Wage Index under this Section,

to be studied by the Panel and reestablished by the

State Superintendent every 5 years.

(C) Maintenance and operations. Within 5 years

after the implementation of this Section, the Panel

shall make recommendations for the further study of

maintenance and operations costs, including capital

maintenance costs, and recommend any additional

reporting data required from Organizational Units.

(D) "At-risk student" definition. Within 5 years

after the implementation of this Section, the Panel

shall make recommendations for the further study and

determination of an "at-risk student" definition.

Within 5 years after the implementation of this

Section, the Panel shall evaluate and make

recommendations regarding adequate funding for poverty

concentration under the Evidence-Based Funding model.

(E) Benefits. Within 5 years after the

implementation of this Section, the Panel shall make

recommendations for further study of benefit costs.

(F) Technology. The per pupil target for

technology shall be reviewed every 3 years to determine

whether current allocations are sufficient to develop

21st century learning in all classrooms in this State

and supporting a one-to-one technological device

program in each school. Recommendations shall be made

no later than 3 years after the implementation of this

Section.

(G) Local Capacity Target. Within 3 years after the

implementation of this Section, the Panel shall make

recommendations for any additional data desired to

analyze possible modifications to the Local Capacity

Target, to be based on measures in addition to solely

EAV and to be completed within 5 years after

implementation of this Section.

(H) Funding for Alternative Schools, Laboratory

Schools, safe schools, and alternative learning

opportunities programs. By the beginning of the

2021-2022 school year, the Panel shall study and make

recommendations regarding the funding levels for

Alternative Schools, Laboratory Schools, safe schools,

and alternative learning opportunities programs in

this State.

(I) Funding for college and career acceleration

strategies. By the beginning of the 2021-2022 school

year, the Panel shall study and make recommendations

regarding funding levels to support college and career

acceleration strategies in high school that have been

demonstrated to result in improved secondary and

postsecondary outcomes, including Advanced Placement,

dual-credit opportunities, and college and career

pathway systems.

(J) Special education investments. By the

beginning of the 2021-2022 school year, the Panel shall

study and make recommendations on whether and how to

account for disability types within the special

education funding category.

(K) Early childhood investments. In collaboration

with the Illinois Early Learning Council, the Panel

shall include an analysis of what level of Preschool

for All Children funding would be necessary to serve

all children ages 0 through 5 years in the

highest-priority service tier, as specified in

paragraph (4.5) of subsection (a) of Section 2-3.71 of

this Code, and an analysis of the potential cost

savings that that level of Preschool for All Children

investment would have on the kindergarten through

grade 12 system.

(5) Within 5 years after the implementation of this

Section, the Panel shall complete an evaluative study of

the entire Evidence-Based Funding model, including an

assessment of whether or not the formula is achieving State

goals. The Panel shall report to the State Board, the

General Assembly, and the Governor on the findings of the

study.

(6) Within 3 years after the implementation of this

Section, the Panel shall evaluate and provide

recommendations to the Governor and the General Assembly on

the hold-harmless provisions of this Section found in the

Base Funding Minimum.

(j) References. Beginning July 1, 2017, references in other

laws to general State aid funds or calculations under Section

18-8.05 of this Code shall be deemed to be references to

evidence-based model formula funds or calculations under this

Section.

(105 ILCS 5/18-9) (from Ch. 122, par. 18-9)

Sec. 18-9. Requirement for special equalization and

supplementary State aid. If property comprising an aggregate

assessed valuation equal to 6% or more of the total assessed

valuation of all taxable property in a school district is owned

by a person or corporation that is the subject of bankruptcy

proceedings or that has been adjudged bankrupt and, as a result

thereof, has not paid taxes on the property, then the district

may amend its general State aid or evidence-based funding claim

(i) back to the inception of the bankruptcy, not to exceed 6

years, in which time those taxes were not paid and (ii) for

each succeeding year that those taxes remain unpaid, by adding

to the claim an amount determined by multiplying the assessed

valuation of the property on which taxes have not been paid due

to the bankruptcy by the lesser of the total tax rate for the

district for the tax year for which the taxes are unpaid or the

applicable rate used in calculating the district's general

State aid under paragraph (3) of subsection (D) of Section

18-8.05 of this Code or evidence-based funding under Section

18-8.15 of this Code, as applicable. If at any time a district

that receives additional State aid under this Section receives

tax revenue from the property for the years that taxes were not

paid, the district's next claim for State aid shall be reduced

in an amount equal to the taxes paid on the property, not to

exceed the additional State aid received under this Section.

Claims under this Section shall be filed on forms prescribed by

the State Superintendent of Education, and the State

Superintendent of Education, upon receipt of a claim, shall

adjust the claim in accordance with the provisions of this

Section. Supplementary State aid for each succeeding year under

this Section shall be paid beginning with the first general

State aid or evidence-based funding claim paid after the

district has filed a completed claim in accordance with this

Section.

(Source: P.A. 95-496, eff. 8-28-07.)

(105 ILCS 5/18-12) (from Ch. 122, par. 18-12)

Sec. 18-12. Dates for filing State aid claims. The school

board of each school district, a regional office of education,

a laboratory school, or a State-authorized charter school shall

require teachers, principals, or superintendents to furnish

from records kept by them such data as it needs in preparing

and certifying to the State Superintendent of Education its

report of claims provided in Section 18-8.05 of this Code. The

claim shall be based on the latest available equalized assessed

valuation and tax rates, as provided in Section 18-8.05 or

18-8.15, shall use the average daily attendance as determined

by the method outlined in Section 18-8.05 or 18-8.15, and shall

be certified and filed with the State Superintendent of

Education by June 21 for districts and State-authorized charter

schools with an official school calendar end date before June

15 or within 2 weeks following the official school calendar end

date for districts, regional offices of education, laboratory

schools, or State-authorized charter schools with a school year

end date of June 15 or later. Failure to so file by these

deadlines constitutes a forfeiture of the right to receive

payment by the State until such claim is filed. The State

Superintendent of Education shall voucher for payment those

claims to the State Comptroller as provided in Section 18-11.

Except as otherwise provided in this Section, if any school

district fails to provide the minimum school term specified in

Section 10-19, the State aid claim for that year shall be

reduced by the State Superintendent of Education in an amount

equivalent to 1/176 or .56818% for each day less than the

number of days required by this Code.

If the State Superintendent of Education determines that

the failure to provide the minimum school term was occasioned

by an act or acts of God, or was occasioned by conditions

beyond the control of the school district which posed a

hazardous threat to the health and safety of pupils, the State

aid claim need not be reduced.

If a school district is precluded from providing the

minimum hours of instruction required for a full day of

attendance due to an adverse weather condition or a condition

beyond the control of the school district that poses a

hazardous threat to the health and safety of students, then the

partial day of attendance may be counted if (i) the school

district has provided at least one hour of instruction prior to

the closure of the school district, (ii) a school building has

provided at least one hour of instruction prior to the closure

of the school building, or (iii) the normal start time of the

school district is delayed.

If, prior to providing any instruction, a school district

must close one or more but not all school buildings after

consultation with a local emergency response agency or due to a

condition beyond the control of the school district, then the

school district may claim attendance for up to 2 school days

based on the average attendance of the 3 school days

immediately preceding the closure of the affected school

building or, if approved by the State Board of Education,

utilize the provisions of an e-learning program for the

affected school building as prescribed in Section 10-20.56 of

this Code. The partial or no day of attendance described in

this Section and the reasons therefore shall be certified

within a month of the closing or delayed start by the school

district superintendent to the regional superintendent of

schools for forwarding to the State Superintendent of Education

for approval.

Other than the utilization of any e-learning days as

prescribed in Section 10-20.56 of this Code, no exception to

the requirement of providing a minimum school term may be

approved by the State Superintendent of Education pursuant to

this Section unless a school district has first used all

emergency days provided for in its regular calendar.

If the State Superintendent of Education declares that an

energy shortage exists during any part of the school year for

the State or a designated portion of the State, a district may

operate the school attendance centers within the district 4

days of the week during the time of the shortage by extending

each existing school day by one clock hour of school work, and

the State aid claim shall not be reduced, nor shall the

employees of that district suffer any reduction in salary or

benefits as a result thereof. A district may operate all

attendance centers on this revised schedule, or may apply the

schedule to selected attendance centers, taking into

consideration such factors as pupil transportation schedules

and patterns and sources of energy for individual attendance

centers.

Electronically submitted State aid claims shall be

submitted by duly authorized district individuals over a secure

network that is password protected. The electronic submission

of a State aid claim must be accompanied with an affirmation

that all of the provisions of Sections 18-8.05, 10-22.5, and

24-4 of this Code are met in all respects.

(Source: P.A. 99-194, eff. 7-30-15; 99-657, eff. 7-28-16.)

(105 ILCS 5/26-16)

Sec. 26-16. Graduation incentives program.

(a) The General Assembly finds that it is critical to

provide options for children to succeed in school. The purpose

of this Section is to provide incentives for and encourage all

Illinois students who have experienced or are experiencing

difficulty in the traditional education system to enroll in

alternative programs.

(b) Any student who is below the age of 20 years is

eligible to enroll in a graduation incentives program if he or

she:

(1) is considered a dropout pursuant to Section 26-2a

of this Code;

(2) has been suspended or expelled pursuant to Section

10-22.6 or 34-19 of this Code;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent; or

(5) is enrolled in a bilingual education or LEP

program.

(c) The following programs qualify as graduation

incentives programs for students meeting the criteria

established in this Section:

(1) Any public elementary or secondary education

graduation incentives program established by a school

district or by a regional office of education.

(2) Any alternative learning opportunities program

established pursuant to Article 13B of this Code.

(3) Vocational or job training courses approved by the

State Superintendent of Education that are available

through the Illinois public community college system.

Students may apply for reimbursement of 50% of tuition

costs for one course per semester or a maximum of 3 courses

per school year. Subject to available funds, students may

apply for reimbursement of up to 100% of tuition costs upon

a showing of employment within 6 months after completion of

a vocational or job training program. The qualifications

for reimbursement shall be established by the State

Superintendent of Education by rule.

(4) Job and career programs approved by the State

Superintendent of Education that are available through

Illinois-accredited private business and vocational

schools. Subject to available funds, pupils may apply for

reimbursement of up to 100% of tuition costs upon a showing

of employment within 6 months after completion of a job or

career program. The State Superintendent of Education

shall establish, by rule, the qualifications for

reimbursement, criteria for determining reimbursement

amounts, and limits on reimbursement.

(5) Adult education courses that offer preparation for

high school equivalency testing.

(d) Graduation incentives programs established by school

districts are entitled to claim general State aid and

evidence-based funding, subject to Sections 13B-50, 13B-50.5,

and 13B-50.10 of this Code. Graduation incentives programs

operated by regional offices of education are entitled to

receive general State aid and evidence-based funding at the

foundation level of support per pupil enrolled. A school

district must ensure that its graduation incentives program

receives supplemental general State aid, transportation

reimbursements, and special education resources, if

appropriate, for students enrolled in the program.

(Source: P.A. 98-718, eff. 1-1-15.)

(105 ILCS 5/27-6) (from Ch. 122, par. 27-6)

Sec. 27-6. Courses in physical education required; special

activities.

(a) Pupils enrolled in the public schools and State

universities engaged in preparing teachers shall be required to

engage daily during the school day, except on block scheduled

days for those public schools engaged in block scheduling, in

courses of physical education for such periods as are

compatible with the optimum growth and developmental needs of

individuals at the various age levels except when appropriate

excuses are submitted to the school by a pupil's parent or

guardian or by a person licensed under the Medical Practice Act

of 1987 and except as provided in subsection (b) of this

Section. A school board may determine the schedule or frequency

of physical education courses, provided that a pupil engages in

a course of physical education for a minimum of 3 days per

5-day week.

Special activities in physical education shall be provided

for pupils whose physical or emotional condition, as determined

by a person licensed under the Medical Practice Act of 1987,

prevents their participation in the courses provided for normal

children.

(b) A school board is authorized to excuse pupils enrolled

in grades 11 and 12 from engaging in physical education courses

if those pupils request to be excused for any of the following

reasons: (1) for ongoing participation in an interscholastic

athletic program; (2) to enroll in academic classes which are

required for admission to an institution of higher learning,

provided that failure to take such classes will result in the

pupil being denied admission to the institution of his or her

choice; or (3) to enroll in academic classes which are required

for graduation from high school, provided that failure to take

such classes will result in the pupil being unable to graduate.

A school board may also excuse pupils in grades 9 through 12

enrolled in a marching band program for credit from engaging in

physical education courses if those pupils request to be

excused for ongoing participation in such marching band

program. A school board may also, on a case-by-case basis,

excuse pupils in grades 7 through 12 who participate in an

interscholastic or extracurricular athletic program from

engaging in physical education courses. In addition, a pupil in

any of grades 3 through 12 who is eligible for special

education may be excused if the pupil's parent or guardian

agrees that the pupil must utilize the time set aside for

physical education to receive special education support and

services or, if there is no agreement, the individualized

education program team for the pupil determines that the pupil

must utilize the time set aside for physical education to

receive special education support and services, which

agreement or determination must be made a part of the

individualized education program. However, a pupil requiring

adapted physical education must receive that service in

accordance with the individualized education program developed

for the pupil. If requested, a school board is authorized to

excuse a pupil from engaging in a physical education course if

the pupil has an individualized educational program under

Article 14 of this Code, is participating in an adaptive

athletic program outside of the school setting, and documents

such participation as determined by the school board. A school

board may also excuse pupils in grades 9 through 12 enrolled in

a Reserve Officer's Training Corps (ROTC) program sponsored by

the school district from engaging in physical education

courses. School boards which choose to exercise this authority

shall establish a policy to excuse pupils on an individual

basis.

(c) The provisions of this Section are subject to the

provisions of Section 27-22.05.

(Source: P.A. 98-116, eff. 7-29-13.)

(105 ILCS 5/27-7) (from Ch. 122, par. 27-7)

Sec. 27-7. Physical education course of study. A physical

education course of study shall include a developmentally

planned and sequential curriculum that fosters the development

of movement skills, enhances health-related fitness, increases

students' knowledge, offers direct opportunities to learn how

to work cooperatively in a group setting, and encourages

healthy habits and attitudes for a healthy lifestyle. A

physical education course of study shall provide students with

an opportunity for an appropriate amount of daily physical

activity. A physical education course of study must be part of

the regular school curriculum and not extra-curricular in

nature or organization.

The State Board of Education shall prepare and make

available guidelines for the various grades and types of

schools in order to make effective the purposes set forth in

this Section and the requirements provided in Section 27-6, and

shall see that the general provisions and intent of Sections

27-5 to 27-9, inclusive, are enforced.

(Source: P.A. 94-189, eff. 7-12-05; 94-200, eff. 7-12-05.)

(105 ILCS 5/27-8.1) (from Ch. 122, par. 27-8.1)

Sec. 27-8.1. Health examinations and immunizations.

(1) In compliance with rules and regulations which the

Department of Public Health shall promulgate, and except as

hereinafter provided, all children in Illinois shall have a

health examination as follows: within one year prior to

entering kindergarten or the first grade of any public,

private, or parochial elementary school; upon entering the

sixth and ninth grades of any public, private, or parochial

school; prior to entrance into any public, private, or

parochial nursery school; and, irrespective of grade,

immediately prior to or upon entrance into any public, private,

or parochial school or nursery school, each child shall present

proof of having been examined in accordance with this Section

and the rules and regulations promulgated hereunder. Any child

who received a health examination within one year prior to

entering the fifth grade for the 2007-2008 school year is not

required to receive an additional health examination in order

to comply with the provisions of Public Act 95-422 when he or

she attends school for the 2008-2009 school year, unless the

child is attending school for the first time as provided in

this paragraph.

A tuberculosis skin test screening shall be included as a

required part of each health examination included under this

Section if the child resides in an area designated by the

Department of Public Health as having a high incidence of

tuberculosis. Additional health examinations of pupils,

including eye examinations, may be required when deemed

necessary by school authorities. Parents are encouraged to have

their children undergo eye examinations at the same points in

time required for health examinations.

(1.5) In compliance with rules adopted by the Department of

Public Health and except as otherwise provided in this Section,

all children in kindergarten and the second and sixth grades of

any public, private, or parochial school shall have a dental

examination. Each of these children shall present proof of

having been examined by a dentist in accordance with this

Section and rules adopted under this Section before May 15th of

the school year. If a child in the second or sixth grade fails

to present proof by May 15th, the school may hold the child's

report card until one of the following occurs: (i) the child

presents proof of a completed dental examination or (ii) the

child presents proof that a dental examination will take place

within 60 days after May 15th. The Department of Public Health

shall establish, by rule, a waiver for children who show an

undue burden or a lack of access to a dentist. Each public,

private, and parochial school must give notice of this dental

examination requirement to the parents and guardians of

students at least 60 days before May 15th of each school year.

(1.10) Except as otherwise provided in this Section, all

children enrolling in kindergarten in a public, private, or

parochial school on or after the effective date of this

amendatory Act of the 95th General Assembly and any student

enrolling for the first time in a public, private, or parochial

school on or after the effective date of this amendatory Act of

the 95th General Assembly shall have an eye examination. Each

of these children shall present proof of having been examined

by a physician licensed to practice medicine in all of its

branches or a licensed optometrist within the previous year, in

accordance with this Section and rules adopted under this

Section, before October 15th of the school year. If the child

fails to present proof by October 15th, the school may hold the

child's report card until one of the following occurs: (i) the

child presents proof of a completed eye examination or (ii) the

child presents proof that an eye examination will take place

within 60 days after October 15th. The Department of Public

Health shall establish, by rule, a waiver for children who show

an undue burden or a lack of access to a physician licensed to

practice medicine in all of its branches who provides eye

examinations or to a licensed optometrist. Each public,

private, and parochial school must give notice of this eye

examination requirement to the parents and guardians of

students in compliance with rules of the Department of Public

Health. Nothing in this Section shall be construed to allow a

school to exclude a child from attending because of a parent's

or guardian's failure to obtain an eye examination for the

child.

(2) The Department of Public Health shall promulgate rules

and regulations specifying the examinations and procedures

that constitute a health examination, which shall include an

age-appropriate developmental screening, an age-appropriate

social and emotional screening, and the collection of data

relating to obesity (including at a minimum, date of birth,

gender, height, weight, blood pressure, and date of exam), and

a dental examination and may recommend by rule that certain

additional examinations be performed. The rules and

regulations of the Department of Public Health shall specify

that a tuberculosis skin test screening shall be included as a

required part of each health examination included under this

Section if the child resides in an area designated by the

Department of Public Health as having a high incidence of

tuberculosis. With respect to the developmental screening and

the social and emotional screening, the Department of Public

Health must develop rules and appropriate revisions to the

Child Health Examination form in conjunction with a statewide

organization representing school boards; a statewide

organization representing pediatricians; statewide

organizations representing individuals holding Illinois

educator licenses with school support personnel endorsements,

including school social workers, school psychologists, and

school nurses; a statewide organization representing

children's mental health experts; a statewide organization

representing school principals; the Director of Healthcare and

Family Services or his or her designee, the State

Superintendent of Education or his or her designee; and

representatives of other appropriate State agencies and, at a

minimum, must recommend the use of validated screening tools

appropriate to the child's age or grade, and, with regard to

the social and emotional screening, require recording only

whether or not the screening was completed. The rules shall

take into consideration the screening recommendations of the

American Academy of Pediatrics and must be consistent with the

State Board of Education's social and emotional learning

standards. The Department of Public Health shall specify that a

diabetes screening as defined by rule shall be included as a

required part of each health examination. Diabetes testing is

not required.

Physicians licensed to practice medicine in all of its

branches, licensed advanced practice nurses, or licensed

physician assistants shall be responsible for the performance

of the health examinations, other than dental examinations, eye

examinations, and vision and hearing screening, and shall sign

all report forms required by subsection (4) of this Section

that pertain to those portions of the health examination for

which the physician, advanced practice nurse, or physician

assistant is responsible. If a registered nurse performs any

part of a health examination, then a physician licensed to

practice medicine in all of its branches must review and sign

all required report forms. Licensed dentists shall perform all

dental examinations and shall sign all report forms required by

subsection (4) of this Section that pertain to the dental

examinations. Physicians licensed to practice medicine in all

its branches or licensed optometrists shall perform all eye

examinations required by this Section and shall sign all report

forms required by subsection (4) of this Section that pertain

to the eye examination. For purposes of this Section, an eye

examination shall at a minimum include history, visual acuity,

subjective refraction to best visual acuity near and far,

internal and external examination, and a glaucoma evaluation,

as well as any other tests or observations that in the

professional judgment of the doctor are necessary. Vision and

hearing screening tests, which shall not be considered

examinations as that term is used in this Section, shall be

conducted in accordance with rules and regulations of the

Department of Public Health, and by individuals whom the

Department of Public Health has certified. In these rules and

regulations, the Department of Public Health shall require that

individuals conducting vision screening tests give a child's

parent or guardian written notification, before the vision

screening is conducted, that states, "Vision screening is not a

substitute for a complete eye and vision evaluation by an eye

doctor. Your child is not required to undergo this vision

screening if an optometrist or ophthalmologist has completed

and signed a report form indicating that an examination has

been administered within the previous 12 months."

(2.5) With respect to the developmental screening and the

social and emotional screening portion of the health

examination, each child may present proof of having been

screened in accordance with this Section and the rules adopted

under this Section before October 15th of the school year. With

regard to the social and emotional screening only, the

examining health care provider shall only record whether or not

the screening was completed. If the child fails to present

proof of the developmental screening or the social and

emotional screening portions of the health examination by

October 15th of the school year, qualified school support

personnel may, with a parent's or guardian's consent, offer the

developmental screening or the social and emotional screening

to the child. Each public, private, and parochial school must

give notice of the developmental screening and social and

emotional screening requirements to the parents and guardians

of students in compliance with the rules of the Department of

Public Health. Nothing in this Section shall be construed to

allow a school to exclude a child from attending because of a

parent's or guardian's failure to obtain a developmental

screening or a social and emotional screening for the child.

Once a developmental screening or a social and emotional

screening is completed and proof has been presented to the

school, the school may, with a parent's or guardian's consent,

make available appropriate school personnel to work with the

parent or guardian, the child, and the provider who signed the

screening form to obtain any appropriate evaluations and

services as indicated on the form and in other information and

documentation provided by the parents, guardians, or provider.

(3) Every child shall, at or about the same time as he or

she receives a health examination required by subsection (1) of

this Section, present to the local school proof of having

received such immunizations against preventable communicable

diseases as the Department of Public Health shall require by

rules and regulations promulgated pursuant to this Section and

the Communicable Disease Prevention Act.

(4) The individuals conducting the health examination,

dental examination, or eye examination shall record the fact of

having conducted the examination, and such additional

information as required, including for a health examination

data relating to obesity (including at a minimum, date of

birth, gender, height, weight, blood pressure, and date of

exam), on uniform forms which the Department of Public Health

and the State Board of Education shall prescribe for statewide

use. The examiner shall summarize on the report form any

condition that he or she suspects indicates a need for special

services, including for a health examination factors relating

to obesity. The duty to summarize on the report form does not

apply to social and emotional screenings. The confidentiality

of the information and records relating to the developmental

screening and the social and emotional screening shall be

determined by the statutes, rules, and professional ethics

governing the type of provider conducting the screening. The

individuals confirming the administration of required

immunizations shall record as indicated on the form that the

immunizations were administered.

(5) If a child does not submit proof of having had either

the health examination or the immunization as required, then

the child shall be examined or receive the immunization, as the

case may be, and present proof by October 15 of the current

school year, or by an earlier date of the current school year

established by a school district. To establish a date before

October 15 of the current school year for the health

examination or immunization as required, a school district must

give notice of the requirements of this Section 60 days prior

to the earlier established date. If for medical reasons one or

more of the required immunizations must be given after October

15 of the current school year, or after an earlier established

date of the current school year, then the child shall present,

by October 15, or by the earlier established date, a schedule

for the administration of the immunizations and a statement of

the medical reasons causing the delay, both the schedule and

the statement being issued by the physician, advanced practice

nurse, physician assistant, registered nurse, or local health

department that will be responsible for administration of the

remaining required immunizations. If a child does not comply by

October 15, or by the earlier established date of the current

school year, with the requirements of this subsection, then the

local school authority shall exclude that child from school

until such time as the child presents proof of having had the

health examination as required and presents proof of having

received those required immunizations which are medically

possible to receive immediately. During a child's exclusion

from school for noncompliance with this subsection, the child's

parents or legal guardian shall be considered in violation of

Section 26-1 and subject to any penalty imposed by Section

26-10. This subsection (5) does not apply to dental

examinations, eye examinations, and the developmental

screening and the social and emotional screening portions of

the health examination. If the student is an out-of-state

transfer student and does not have the proof required under

this subsection (5) before October 15 of the current year or

whatever date is set by the school district, then he or she may

only attend classes (i) if he or she has proof that an

appointment for the required vaccinations has been scheduled

with a party authorized to submit proof of the required

vaccinations. If the proof of vaccination required under this

subsection (5) is not submitted within 30 days after the

student is permitted to attend classes, then the student is not

to be permitted to attend classes until proof of the

vaccinations has been properly submitted. No school district or

employee of a school district shall be held liable for any

injury or illness to another person that results from admitting

an out-of-state transfer student to class that has an

appointment scheduled pursuant to this subsection (5).

(6) Every school shall report to the State Board of

Education by November 15, in the manner which that agency shall

require, the number of children who have received the necessary

immunizations and the health examination (other than a dental

examination or eye examination) as required, indicating, of

those who have not received the immunizations and examination

as required, the number of children who are exempt from health

examination and immunization requirements on religious or

medical grounds as provided in subsection (8). On or before

December 1 of each year, every public school district and

registered nonpublic school shall make publicly available the

immunization data they are required to submit to the State

Board of Education by November 15. The immunization data made

publicly available must be identical to the data the school

district or school has reported to the State Board of

Education.

Every school shall report to the State Board of Education

by June 30, in the manner that the State Board requires, the

number of children who have received the required dental

examination, indicating, of those who have not received the

required dental examination, the number of children who are

exempt from the dental examination on religious grounds as

provided in subsection (8) of this Section and the number of

children who have received a waiver under subsection (1.5) of

this Section.

Every school shall report to the State Board of Education

by June 30, in the manner that the State Board requires, the

number of children who have received the required eye

examination, indicating, of those who have not received the

required eye examination, the number of children who are exempt

from the eye examination as provided in subsection (8) of this

Section, the number of children who have received a waiver

under subsection (1.10) of this Section, and the total number

of children in noncompliance with the eye examination

requirement.

The reported information under this subsection (6) shall be

provided to the Department of Public Health by the State Board

of Education.

(7) Upon determining that the number of pupils who are

required to be in compliance with subsection (5) of this

Section is below 90% of the number of pupils enrolled in the

school district, 10% of each State aid payment made pursuant to

Section 18-8.05 or 18-8.15 to the school district for such year

may be withheld by the State Board of Education until the

number of students in compliance with subsection (5) is the

applicable specified percentage or higher.

(8) Children of parents or legal guardians who object to

health, dental, or eye examinations or any part thereof, to

immunizations, or to vision and hearing screening tests on

religious grounds shall not be required to undergo the

examinations, tests, or immunizations to which they so object

if such parents or legal guardians present to the appropriate

local school authority a signed Certificate of Religious

Exemption detailing the grounds for objection and the specific

immunizations, tests, or examinations to which they object. The

grounds for objection must set forth the specific religious

belief that conflicts with the examination, test,

immunization, or other medical intervention. The signed

certificate shall also reflect the parent's or legal guardian's

understanding of the school's exclusion policies in the case of

a vaccine-preventable disease outbreak or exposure. The

certificate must also be signed by the authorized examining

health care provider responsible for the performance of the

child's health examination confirming that the provider

provided education to the parent or legal guardian on the

benefits of immunization and the health risks to the student

and to the community of the communicable diseases for which

immunization is required in this State. However, the health

care provider's signature on the certificate reflects only that

education was provided and does not allow a health care

provider grounds to determine a religious exemption. Those

receiving immunizations required under this Code shall be

provided with the relevant vaccine information statements that

are required to be disseminated by the federal National

Childhood Vaccine Injury Act of 1986, which may contain

information on circumstances when a vaccine should not be

administered, prior to administering a vaccine. A healthcare

provider may consider including without limitation the

nationally accepted recommendations from federal agencies such

as the Advisory Committee on Immunization Practices, the

information outlined in the relevant vaccine information

statement, and vaccine package inserts, along with the

healthcare provider's clinical judgment, to determine whether

any child may be more susceptible to experiencing an adverse

vaccine reaction than the general population, and, if so, the

healthcare provider may exempt the child from an immunization

or adopt an individualized immunization schedule. The

Certificate of Religious Exemption shall be created by the

Department of Public Health and shall be made available and

used by parents and legal guardians by the beginning of the

2015-2016 school year. Parents or legal guardians must submit

the Certificate of Religious Exemption to their local school

authority prior to entering kindergarten, sixth grade, and

ninth grade for each child for which they are requesting an

exemption. The religious objection stated need not be directed

by the tenets of an established religious organization.

However, general philosophical or moral reluctance to allow

physical examinations, eye examinations, immunizations, vision

and hearing screenings, or dental examinations does not provide

a sufficient basis for an exception to statutory requirements.

The local school authority is responsible for determining if

the content of the Certificate of Religious Exemption

constitutes a valid religious objection. The local school

authority shall inform the parent or legal guardian of

exclusion procedures, in accordance with the Department's

rules under Part 690 of Title 77 of the Illinois Administrative

Code, at the time the objection is presented.

If the physical condition of the child is such that any one

or more of the immunizing agents should not be administered,

the examining physician, advanced practice nurse, or physician

assistant responsible for the performance of the health

examination shall endorse that fact upon the health examination

form.

Exempting a child from the health, dental, or eye

examination does not exempt the child from participation in the

program of physical education training provided in Sections

27-5 through 27-7 of this Code.

(9) For the purposes of this Section, "nursery schools"

means those nursery schools operated by elementary school

systems or secondary level school units or institutions of

higher learning.

(Source: P.A. 98-673, eff. 6-30-14; 99-173, eff. 7-29-15;

99-249, eff. 8-3-15; 99-642, eff. 7-28-16; 99-927, eff.

6-1-17.)

(105 ILCS 5/27-24.2) (from Ch. 122, par. 27-24.2)

Sec. 27-24.2. Safety education; driver education course.

Instruction shall be given in safety education in each of

grades one through 8, equivalent to one class period each week,

and any school district which maintains grades 9 through 12

shall offer a driver education course in any such school which

it operates. Its curriculum shall include content dealing with

Chapters 11, 12, 13, 15, and 16 of the Illinois Vehicle Code,

the rules adopted pursuant to those Chapters insofar as they

pertain to the operation of motor vehicles, and the portions of

the Litter Control Act relating to the operation of motor

vehicles. The course of instruction given in grades 10 through

12 shall include an emphasis on the development of knowledge,

attitudes, habits, and skills necessary for the safe operation

of motor vehicles, including motorcycles insofar as they can be

taught in the classroom, and instruction on distracted driving

as a major traffic safety issue. In addition, the course shall

include instruction on special hazards existing at and required

safety and driving precautions that must be observed at

emergency situations, highway construction and maintenance

zones, and railroad crossings and the approaches thereto.

Beginning with the 2017-2018 school year, the course shall also

include instruction concerning law enforcement procedures for

traffic stops, including a demonstration of the proper actions

to be taken during a traffic stop and appropriate interactions

with law enforcement. The course of instruction required of

each eligible student at the high school level shall consist of

a minimum of 30 clock hours of classroom instruction and a

minimum of 6 clock hours of individual behind-the-wheel

instruction in a dual control car on public roadways taught by

a driver education instructor endorsed by the State Board of

Education. Both the classroom instruction part and the practice

driving part of such driver education course shall be open to a

resident or non-resident student attending a non-public school

in the district wherein the course is offered. Each student

attending any public or non-public high school in the district

must receive a passing grade in at least 8 courses during the

previous 2 semesters prior to enrolling in a driver education

course, or the student shall not be permitted to enroll in the

course; provided that the local superintendent of schools (with

respect to a student attending a public high school in the

district) or chief school administrator (with respect to a

student attending a non-public high school in the district) may

waive the requirement if the superintendent or chief school

administrator, as the case may be, deems it to be in the best

interest of the student. A student may be allowed to commence

the classroom instruction part of such driver education course

prior to reaching age 15 if such student then will be eligible

to complete the entire course within 12 months after being

allowed to commence such classroom instruction.

A school district may offer a driver education course in a

school by contracting with a commercial driver training school

to provide both the classroom instruction part and the practice

driving part or either one without having to request a

modification or waiver of administrative rules of the State

Board of Education if the school district approves the action

during a public hearing on whether to enter into a contract

with a commercial driver training school. The public hearing

shall be held at a regular or special school board meeting

prior to entering into such a contract. If a school district

chooses to approve a contract with a commercial driver training

school, then the district must provide evidence to the State

Board of Education that the commercial driver training school

with which it will contract holds a license issued by the

Secretary of State under Article IV of Chapter 6 of the

Illinois Vehicle Code and that each instructor employed by the

commercial driver training school to provide instruction to

students served by the school district holds a valid teaching

license issued under the requirements of this Code and rules of

the State Board of Education. Such evidence must include, but

need not be limited to, a list of each instructor assigned to

teach students served by the school district, which list shall

include the instructor's name, personal identification number

as required by the State Board of Education, birth date, and

driver's license number. Once the contract is entered into, the

school district shall notify the State Board of Education of

any changes in the personnel providing instruction either (i)

within 15 calendar days after an instructor leaves the program

or (ii) before a new instructor is hired. Such notification

shall include the instructor's name, personal identification

number as required by the State Board of Education, birth date,

and driver's license number. If the school district maintains

an Internet website, then the district shall post a copy of the

final contract between the district and the commercial driver

training school on the district's Internet website. If no

Internet website exists, then the school district shall make

available the contract upon request. A record of all materials

in relation to the contract must be maintained by the school

district and made available to parents and guardians upon

request. The instructor's date of birth and driver's license

number and any other personally identifying information as

deemed by the federal Driver's Privacy Protection Act of 1994

must be redacted from any public materials.

Such a course may be commenced immediately after the

completion of a prior course. Teachers of such courses shall

meet the licensure certification requirements of this Code Act

and regulations of the State Board as to qualifications.

Subject to rules of the State Board of Education, the

school district may charge a reasonable fee, not to exceed $50,

to students who participate in the course, unless a student is

unable to pay for such a course, in which event the fee for

such a student must be waived. However, the district may

increase this fee to an amount not to exceed $250 by school

board resolution following a public hearing on the increase,

which increased fee must be waived for students who participate

in the course and are unable to pay for the course. The total

amount from driver education fees and reimbursement from the

State for driver education must not exceed the total cost of

the driver education program in any year and must be deposited

into the school district's driver education fund as a separate

line item budget entry. All moneys deposited into the school

district's driver education fund must be used solely for the

funding of a high school driver education program approved by

the State Board of Education that uses driver education

instructors endorsed by the State Board of Education.

(Source: P.A. 99-642, eff. 7-28-16; 99-720, eff. 1-1-17.)

(105 ILCS 5/27A-9)

Sec. 27A-9. Term of charter; renewal.

(a) For charters granted before January 1, 2017 (the

effective date of Public Act 99-840) this amendatory Act of the

99th General Assembly, a charter may be granted for a period

not less than 5 and not more than 10 school years. For charters

granted on or after January 1, 2017 (the effective date of

Public Act 99-840) this amendatory Act of the 99th General

Assembly, a charter shall be granted for a period of 5 school

years. For charters renewed before January 1, 2017 (the

effective date of Public Act 99-840) this amendatory Act of the

99th General Assembly, a charter may be renewed in incremental

periods not to exceed 5 school years. For charters renewed on

or after January 1, 2017 (the effective date of Public Act

99-840) this amendatory Act of the 99th General Assembly, a

charter may be renewed in incremental periods not to exceed 10

school years; however, the Commission may renew a charter only

in incremental periods not to exceed 5 years. Authorizers shall

ensure that every charter granted on or after January 1, 2017

(the effective date of Public Act 99-840) this amendatory Act

of the 99th General Assembly includes standards and goals for

academic, organizational, and financial performance. A charter

must meet all standards and goals for academic, organizational,

and financial performance set forth by the authorizer in order

to be renewed for a term in excess of 5 years but not more than

10 years. If an authorizer fails to establish standards and

goals, a charter shall not be renewed for a term in excess of 5

years. Nothing contained in this Section shall require an

authorizer to grant a full 10-year renewal term to any

particular charter school, but an authorizer may award a full

10-year renewal term to charter schools that have a

demonstrated track record of improving student performance.

(b) A charter school renewal proposal submitted to the

local school board or the Commission, as the chartering entity,

shall contain:

(1) A report on the progress of the charter school in

achieving the goals, objectives, pupil performance

standards, content standards, and other terms of the

initial approved charter proposal; and

(2) A financial statement that discloses the costs of

administration, instruction, and other spending categories

for the charter school that is understandable to the

general public and that will allow comparison of those

costs to other schools or other comparable organizations,

in a format required by the State Board.

(c) A charter may be revoked or not renewed if the local

school board or the Commission, as the chartering entity,

clearly demonstrates that the charter school did any of the

following, or otherwise failed to comply with the requirements

of this law:

(1) Committed a material violation of any of the

conditions, standards, or procedures set forth in the

charter.

(2) Failed to meet or make reasonable progress toward

achievement of the content standards or pupil performance

standards identified in the charter.

(3) Failed to meet generally accepted standards of

fiscal management.

(4) Violated any provision of law from which the

charter school was not exempted.

In the case of revocation, the local school board or the

Commission, as the chartering entity, shall notify the charter

school in writing of the reason why the charter is subject to

revocation. The charter school shall submit a written plan to

the local school board or the Commission, whichever is

applicable, to rectify the problem. The plan shall include a

timeline for implementation, which shall not exceed 2 years or

the date of the charter's expiration, whichever is earlier. If

the local school board or the Commission, as the chartering

entity, finds that the charter school has failed to implement

the plan of remediation and adhere to the timeline, then the

chartering entity shall revoke the charter. Except in

situations of an emergency where the health, safety, or

education of the charter school's students is at risk, the

revocation shall take place at the end of a school year.

Nothing in Public Act 96-105 this amendatory Act of the 96th

General Assembly shall be construed to prohibit an

implementation timetable that is less than 2 years in duration.

(d) (Blank).

(e) Notice of a local school board's decision to deny,

revoke, or not to renew a charter shall be provided to the

Commission and the State Board. The Commission may reverse a

local board's decision if the Commission finds that the charter

school or charter school proposal (i) is in compliance with

this Article, and (ii) is in the best interests of the students

it is designed to serve. The Commission may condition the

granting of an appeal on the acceptance by the charter school

of funding in an amount less than that requested in the

proposal submitted to the local school board. Final decisions

of the Commission shall be subject to judicial review under the

Administrative Review Law.

(f) Notwithstanding other provisions of this Article, if

the Commission on appeal reverses a local board's decision or

if a charter school is approved by referendum, the Commission

shall act as the authorized chartering entity for the charter

school. The Commission shall approve the charter and shall

perform all functions under this Article otherwise performed by

the local school board. The State Board shall determine whether

the charter proposal approved by the Commission is consistent

with the provisions of this Article and, if the approved

proposal complies, certify the proposal pursuant to this

Article. The State Board shall report the aggregate number of

charter school pupils resident in a school district to that

district and shall notify the district of the amount of funding

to be paid by the State Board to the charter school enrolling

such students. The Commission shall require the charter school

to maintain accurate records of daily attendance that shall be

deemed sufficient to file claims under Section 18-8.05 or

18-8.15 notwithstanding any other requirements of that Section

regarding hours of instruction and teacher certification. The

State Board shall withhold from funds otherwise due the

district the funds authorized by this Article to be paid to the

charter school and shall pay such amounts to the charter

school.

(g) For charter schools authorized by the Commission, the

Commission shall quarterly certify to the State Board the

student enrollment for each of its charter schools.

(h) For charter schools authorized by the Commission, the

State Board shall pay directly to a charter school any federal

or State aid attributable to a student with a disability

attending the school.

(Source: P.A. 98-739, eff. 7-16-14; 99-840, eff. 1-1-17;

revised 10-27-16.)

(105 ILCS 5/27A-11)

Sec. 27A-11. Local financing.

(a) For purposes of the School Code, pupils enrolled in a

charter school shall be included in the pupil enrollment of the

school district within which the pupil resides. Each charter

school (i) shall determine the school district in which each

pupil who is enrolled in the charter school resides, (ii) shall

report the aggregate number of pupils resident of a school

district who are enrolled in the charter school to the school

district in which those pupils reside, and (iii) shall maintain

accurate records of daily attendance that shall be deemed

sufficient to file claims under Section 18-8 or 18-8.15

notwithstanding any other requirements of that Section

regarding hours of instruction and teacher certification.

(b) Except for a charter school established by referendum

under Section 27A-6.5, as part of a charter school contract,

the charter school and the local school board shall agree on

funding and any services to be provided by the school district

to the charter school. Agreed funding that a charter school is

to receive from the local school board for a school year shall

be paid in equal quarterly installments with the payment of the

installment for the first quarter being made not later than

July 1, unless the charter establishes a different payment

schedule. However, if a charter school dismisses a pupil from

the charter school after receiving a quarterly payment, the

charter school shall return to the school district, on a

quarterly basis, the prorated portion of public funding

provided for the education of that pupil for the time the

student is not enrolled at the charter school. Likewise, if a

pupil transfers to a charter school between quarterly payments,

the school district shall provide, on a quarterly basis, a

prorated portion of the public funding to the charter school to

provide for the education of that pupil.

All services centrally or otherwise provided by the school

district including, but not limited to, rent, food services,

custodial services, maintenance, curriculum, media services,

libraries, transportation, and warehousing shall be subject to

negotiation between a charter school and the local school board

and paid for out of the revenues negotiated pursuant to this

subsection (b); provided that the local school board shall not

attempt, by negotiation or otherwise, to obligate a charter

school to provide pupil transportation for pupils for whom a

district is not required to provide transportation under the

criteria set forth in subsection (a)(13) of Section 27A-7.

In no event shall the funding be less than 97% 75% or more

than 103% 125% of the school district's per capita student

tuition multiplied by the number of students residing in the

district who are enrolled in the charter school.

It is the intent of the General Assembly that funding and

service agreements under this subsection (b) shall be neither a

financial incentive nor a financial disincentive to the

establishment of a charter school.

The charter school may set and collect reasonable fees.

Fees collected from students enrolled at a charter school shall

be retained by the charter school.

(c) Notwithstanding subsection (b) of this Section, the

proportionate share of State and federal resources generated by

students with disabilities or staff serving them shall be

directed to charter schools enrolling those students by their

school districts or administrative units. The proportionate

share of moneys generated under other federal or State

categorical aid programs shall be directed to charter schools

serving students eligible for that aid.

(d) The governing body of a charter school is authorized to

accept gifts, donations, or grants of any kind made to the

charter school and to expend or use gifts, donations, or grants

in accordance with the conditions prescribed by the donor;

however, a gift, donation, or grant may not be accepted by the

governing body if it is subject to any condition contrary to

applicable law or contrary to the terms of the contract between

the charter school and the local school board. Charter schools

shall be encouraged to solicit and utilize community volunteer

speakers and other instructional resources when providing

instruction on the Holocaust and other historical events.

(e) (Blank).

(f) The Commission shall provide technical assistance to

persons and groups preparing or revising charter applications.

(g) At the non-renewal or revocation of its charter, each

charter school shall refund to the local board of education all

unspent funds.

(h) A charter school is authorized to incur temporary,

short term debt to pay operating expenses in anticipation of

receipt of funds from the local school board.

(Source: P.A. 98-640, eff. 6-9-14; 98-739, eff. 7-16-14; 99-78,

eff. 7-20-15.)

(105 ILCS 5/29-5) (from Ch. 122, par. 29-5)

Sec. 29-5. Reimbursement by State for transportation. Any

school district, maintaining a school, transporting resident

pupils to another school district's vocational program,

offered through a joint agreement approved by the State Board

of Education, as provided in Section 10-22.22 or transporting

its resident pupils to a school which meets the standards for

recognition as established by the State Board of Education

which provides transportation meeting the standards of safety,

comfort, convenience, efficiency and operation prescribed by

the State Board of Education for resident pupils in

kindergarten or any of grades 1 through 12 who: (a) reside at

least 1 1/2 miles as measured by the customary route of travel,

from the school attended; or (b) reside in areas where

conditions are such that walking constitutes a hazard to the

safety of the child when determined under Section 29-3; and (c)

are transported to the school attended from pick-up points at

the beginning of the school day and back again at the close of

the school day or transported to and from their assigned

attendance centers during the school day, shall be reimbursed

by the State as hereinafter provided in this Section.

The State will pay the cost of transporting eligible pupils

less the prior year assessed valuation in a dual school

district maintaining secondary grades 9 to 12 inclusive times a

qualifying rate of .05%; in elementary school districts

maintaining grades K to 8 times a qualifying rate of .06%; and

in unit districts maintaining grades K to 12, including

optional elementary unit districts and combined high school -

unit districts, times a qualifying rate of .07%; provided that

for optional elementary unit districts and combined high school -

unit districts, prior year assessed valuation for high school

purposes, as defined in Article 11E of this Code, must be used.

To be eligible to receive reimbursement in excess of 4/5 of the

cost to transport eligible pupils, a school district shall have

a Transportation Fund tax rate of at least .12%. If a school

district does not have a .12% Transportation Fund tax rate, the

amount of its claim in excess of 4/5 of the cost of

transporting pupils shall be reduced by the sum arrived at by

subtracting the Transportation Fund tax rate from .12% and

multiplying that amount by the district's prior year districts

equalized or assessed valuation, provided, that in no case

shall said reduction result in reimbursement of less than 4/5

of the cost to transport eligible pupils.

The minimum amount to be received by a district is $16

times the number of eligible pupils transported.

When calculating the reimbursement for transportation

costs, the State Board of Education may not deduct the number

of pupils enrolled in early education programs from the number

of pupils eligible for reimbursement if the pupils enrolled in

the early education programs are transported at the same time

as other eligible pupils.

Any such district transporting resident pupils during the

school day to an area vocational school or another school

district's vocational program more than 1 1/2 miles from the

school attended, as provided in Sections 10-22.20a and

10-22.22, shall be reimbursed by the State for 4/5 of the cost

of transporting eligible pupils.

School day means that period of time which the pupil is

required to be in attendance for instructional purposes.

If a pupil is at a location within the school district

other than his residence for child care purposes at the time

for transportation to school, that location may be considered

for purposes of determining the 1 1/2 miles from the school

attended.

Claims for reimbursement that include children who attend

any school other than a public school shall show the number of

such children transported.

Claims for reimbursement under this Section shall not be

paid for the transportation of pupils for whom transportation

costs are claimed for payment under other Sections of this Act.

The allowable direct cost of transporting pupils for

regular, vocational, and special education pupil

transportation shall be limited to the sum of the cost of

physical examinations required for employment as a school bus

driver; the salaries of full or part-time drivers and school

bus maintenance personnel; employee benefits excluding

Illinois municipal retirement payments, social security

payments, unemployment insurance payments and workers'

compensation insurance premiums; expenditures to independent

carriers who operate school buses; payments to other school

districts for pupil transportation services; pre-approved

contractual expenditures for computerized bus scheduling; the

cost of gasoline, oil, tires, and other supplies necessary for

the operation of school buses; the cost of converting buses'

gasoline engines to more fuel efficient engines or to engines

which use alternative energy sources; the cost of travel to

meetings and workshops conducted by the regional

superintendent or the State Superintendent of Education

pursuant to the standards established by the Secretary of State

under Section 6-106 of the Illinois Vehicle Code to improve the

driving skills of school bus drivers; the cost of maintenance

of school buses including parts and materials used;

expenditures for leasing transportation vehicles, except

interest and service charges; the cost of insurance and

licenses for transportation vehicles; expenditures for the

rental of transportation equipment; plus a depreciation

allowance of 20% for 5 years for school buses and vehicles

approved for transporting pupils to and from school and a

depreciation allowance of 10% for 10 years for other

transportation equipment so used. Each school year, if a school

district has made expenditures to the Regional Transportation

Authority or any of its service boards, a mass transit

district, or an urban transportation district under an

intergovernmental agreement with the district to provide for

the transportation of pupils and if the public transit carrier

received direct payment for services or passes from a school

district within its service area during the 2000-2001 school

year, then the allowable direct cost of transporting pupils for

regular, vocational, and special education pupil

transportation shall also include the expenditures that the

district has made to the public transit carrier. In addition to

the above allowable costs school districts shall also claim all

transportation supervisory salary costs, including Illinois

municipal retirement payments, and all transportation related

building and building maintenance costs without limitation.

Special education allowable costs shall also include

expenditures for the salaries of attendants or aides for that

portion of the time they assist special education pupils while

in transit and expenditures for parents and public carriers for

transporting special education pupils when pre-approved by the

State Superintendent of Education.

Indirect costs shall be included in the reimbursement claim

for districts which own and operate their own school buses.

Such indirect costs shall include administrative costs, or any

costs attributable to transporting pupils from their

attendance centers to another school building for

instructional purposes. No school district which owns and

operates its own school buses may claim reimbursement for

indirect costs which exceed 5% of the total allowable direct

costs for pupil transportation.

The State Board of Education shall prescribe uniform

regulations for determining the above standards and shall

prescribe forms of cost accounting and standards of determining

reasonable depreciation. Such depreciation shall include the

cost of equipping school buses with the safety features

required by law or by the rules, regulations and standards

promulgated by the State Board of Education, and the Department

of Transportation for the safety and construction of school

buses provided, however, any equipment cost reimbursed by the

Department of Transportation for equipping school buses with

such safety equipment shall be deducted from the allowable cost

in the computation of reimbursement under this Section in the

same percentage as the cost of the equipment is depreciated.

On or before August 15, annually, the chief school

administrator for the district shall certify to the State

Superintendent of Education the district's claim for

reimbursement for the school year ending on June 30 next

preceding. The State Superintendent of Education shall check

and approve the claims and prepare the vouchers showing the

amounts due for district reimbursement claims. Each fiscal

year, the State Superintendent of Education shall prepare and

transmit the first 3 vouchers to the Comptroller on the 30th

day of September, December and March, respectively, and the

final voucher, no later than June 20.

If the amount appropriated for transportation

reimbursement is insufficient to fund total claims for any

fiscal year, the State Board of Education shall reduce each

school district's allowable costs and flat grant amount

proportionately to make total adjusted claims equal the total

amount appropriated.

For purposes of calculating claims for reimbursement under

this Section for any school year beginning July 1, 1998, or

thereafter, the equalized assessed valuation for a school

district used to compute reimbursement shall be computed in the

same manner as it is computed under paragraph (2) of subsection

(G) of Section 18-8.05.

All reimbursements received from the State shall be

deposited into the district's transportation fund or into the

fund from which the allowable expenditures were made.

Notwithstanding any other provision of law, any school

district receiving a payment under this Section or under

Section 14-7.02, 14-7.02b, or 14-13.01 of this Code may

classify all or a portion of the funds that it receives in a

particular fiscal year or from general State aid pursuant to

Section 18-8.05 of this Code as funds received in connection

with any funding program for which it is entitled to receive

funds from the State in that fiscal year (including, without

limitation, any funding program referenced in this Section),

regardless of the source or timing of the receipt. The district

may not classify more funds as funds received in connection

with the funding program than the district is entitled to

receive in that fiscal year for that program. Any

classification by a district must be made by a resolution of

its board of education. The resolution must identify the amount

of any payments or general State aid to be classified under

this paragraph and must specify the funding program to which

the funds are to be treated as received in connection

therewith. This resolution is controlling as to the

classification of funds referenced therein. A certified copy of

the resolution must be sent to the State Superintendent of

Education. The resolution shall still take effect even though a

copy of the resolution has not been sent to the State

Superintendent of Education in a timely manner. No

classification under this paragraph by a district shall affect

the total amount or timing of money the district is entitled to

receive under this Code. No classification under this paragraph

by a district shall in any way relieve the district from or

affect any requirements that otherwise would apply with respect

to that funding program, including any accounting of funds by

source, reporting expenditures by original source and purpose,

reporting requirements, or requirements of providing services.

Any school district with a population of not more than

500,000 must deposit all funds received under this Article into

the transportation fund and use those funds for the provision

of transportation services.

(Source: P.A. 95-903, eff. 8-25-08; 96-1264, eff. 1-1-11.)

(105 ILCS 5/34-2.3) (from Ch. 122, par. 34-2.3)

Sec. 34-2.3. Local school councils - Powers and duties.

Each local school council shall have and exercise, consistent

with the provisions of this Article and the powers and duties

of the board of education, the following powers and duties:

1. (A) To annually evaluate the performance of the

principal of the attendance center using a Board approved

principal evaluation form, which shall include the evaluation

of (i) student academic improvement, as defined by the school

improvement plan, (ii) student absenteeism rates at the school,

(iii) instructional leadership, (iv) the effective

implementation of programs, policies, or strategies to improve

student academic achievement, (v) school management, and (vi)

any other factors deemed relevant by the local school council,

including, without limitation, the principal's communication

skills and ability to create and maintain a student-centered

learning environment, to develop opportunities for

professional development, and to encourage parental

involvement and community partnerships to achieve school

improvement;

(B) to determine in the manner provided by subsection (c)

of Section 34-2.2 and subdivision 1.5 of this Section whether

the performance contract of the principal shall be renewed; and

(C) to directly select, in the manner provided by

subsection (c) of Section 34-2.2, a new principal (including a

new principal to fill a vacancy) -- without submitting any list

of candidates for that position to the general superintendent

as provided in paragraph 2 of this Section -- to serve under a

4 year performance contract; provided that (i) the

determination of whether the principal's performance contract

is to be renewed, based upon the evaluation required by

subdivision 1.5 of this Section, shall be made no later than

150 days prior to the expiration of the current

performance-based contract of the principal, (ii) in cases

where such performance contract is not renewed -- a direct

selection of a new principal -- to serve under a 4 year

performance contract shall be made by the local school council

no later than 45 days prior to the expiration of the current

performance contract of the principal, and (iii) a selection by

the local school council of a new principal to fill a vacancy

under a 4 year performance contract shall be made within 90

days after the date such vacancy occurs. A Council shall be

required, if requested by the principal, to provide in writing

the reasons for the council's not renewing the principal's

contract.

1.5. The local school council's determination of whether to

renew the principal's contract shall be based on an evaluation

to assess the educational and administrative progress made at

the school during the principal's current performance-based

contract. The local school council shall base its evaluation on

(i) student academic improvement, as defined by the school

improvement plan, (ii) student absenteeism rates at the school,

(iii) instructional leadership, (iv) the effective

implementation of programs, policies, or strategies to improve

student academic achievement, (v) school management, and (vi)

any other factors deemed relevant by the local school council,

including, without limitation, the principal's communication

skills and ability to create and maintain a student-centered

learning environment, to develop opportunities for

professional development, and to encourage parental

involvement and community partnerships to achieve school

improvement. If a local school council fails to renew the

performance contract of a principal rated by the general

superintendent, or his or her designee, in the previous years'

evaluations as meeting or exceeding expectations, the

principal, within 15 days after the local school council's

decision not to renew the contract, may request a review of the

local school council's principal non-retention decision by a

hearing officer appointed by the American Arbitration

Association. A local school council member or members or the

general superintendent may support the principal's request for

review. During the period of the hearing officer's review of

the local school council's decision on whether or not to retain

the principal, the local school council shall maintain all

authority to search for and contract with a person to serve as

interim or acting principal, or as the principal of the

attendance center under a 4-year performance contract,

provided that any performance contract entered into by the

local school council shall be voidable or modified in

accordance with the decision of the hearing officer. The

principal may request review only once while at that attendance

center. If a local school council renews the contract of a

principal who failed to obtain a rating of "meets" or "exceeds

expectations" in the general superintendent's evaluation for

the previous year, the general superintendent, within 15 days

after the local school council's decision to renew the

contract, may request a review of the local school council's

principal retention decision by a hearing officer appointed by

the American Arbitration Association. The general

superintendent may request a review only once for that

principal at that attendance center. All requests to review the

retention or non-retention of a principal shall be submitted to

the general superintendent, who shall, in turn, forward such

requests, within 14 days of receipt, to the American

Arbitration Association. The general superintendent shall send

a contemporaneous copy of the request that was forwarded to the

American Arbitration Association to the principal and to each

local school council member and shall inform the local school

council of its rights and responsibilities under the

arbitration process, including the local school council's

right to representation and the manner and process by which the

Board shall pay the costs of the council's representation. If

the local school council retains the principal and the general

superintendent requests a review of the retention decision, the

local school council and the general superintendent shall be

considered parties to the arbitration, a hearing officer shall

be chosen between those 2 parties pursuant to procedures

promulgated by the State Board of Education, and the principal

may retain counsel and participate in the arbitration. If the

local school council does not retain the principal and the

principal requests a review of the retention decision, the

local school council and the principal shall be considered

parties to the arbitration and a hearing officer shall be

chosen between those 2 parties pursuant to procedures

promulgated by the State Board of Education. The hearing shall

begin (i) within 45 days after the initial request for review

is submitted by the principal to the general superintendent or

(ii) if the initial request for review is made by the general

superintendent, within 45 days after that request is mailed to

the American Arbitration Association. The hearing officer

shall render a decision within 45 days after the hearing begins

and within 90 days after the initial request for review. The

Board shall contract with the American Arbitration Association

for all of the hearing officer's reasonable and necessary

costs. In addition, the Board shall pay any reasonable costs

incurred by a local school council for representation before a

hearing officer.

1.10. The hearing officer shall conduct a hearing, which

shall include (i) a review of the principal's performance,

evaluations, and other evidence of the principal's service at

the school, (ii) reasons provided by the local school council

for its decision, and (iii) documentation evidencing views of

interested persons, including, without limitation, students,

parents, local school council members, school faculty and

staff, the principal, the general superintendent or his or her

designee, and members of the community. The burden of proof in

establishing that the local school council's decision was

arbitrary and capricious shall be on the party requesting the

arbitration, and this party shall sustain the burden by a

preponderance of the evidence. The hearing officer shall set

the local school council decision aside if that decision, in

light of the record developed at the hearing, is arbitrary and

capricious. The decision of the hearing officer may not be

appealed to the Board or the State Board of Education. If the

hearing officer decides that the principal shall be retained,

the retention period shall not exceed 2 years.

2. In the event (i) the local school council does not renew

the performance contract of the principal, or the principal

fails to receive a satisfactory rating as provided in

subsection (h) of Section 34-8.3, or the principal is removed

for cause during the term of his or her performance contract in

the manner provided by Section 34-85, or a vacancy in the

position of principal otherwise occurs prior to the expiration

of the term of a principal's performance contract, and (ii) the

local school council fails to directly select a new principal

to serve under a 4 year performance contract, the local school

council in such event shall submit to the general

superintendent a list of 3 candidates -- listed in the local

school council's order of preference -- for the position of

principal, one of which shall be selected by the general

superintendent to serve as principal of the attendance center.

If the general superintendent fails or refuses to select one of

the candidates on the list to serve as principal within 30 days

after being furnished with the candidate list, the general

superintendent shall select and place a principal on an interim

basis (i) for a period not to exceed one year or (ii) until the

local school council selects a new principal with 7 affirmative

votes as provided in subsection (c) of Section 34-2.2,

whichever occurs first. If the local school council fails or

refuses to select and appoint a new principal, as specified by

subsection (c) of Section 34-2.2, the general superintendent

may select and appoint a new principal on an interim basis for

an additional year or until a new contract principal is

selected by the local school council. There shall be no

discrimination on the basis of race, sex, creed, color or

disability unrelated to ability to perform in connection with

the submission of candidates for, and the selection of a

candidate to serve as principal of an attendance center. No

person shall be directly selected, listed as a candidate for,

or selected to serve as principal of an attendance center (i)

if such person has been removed for cause from employment by

the Board or (ii) if such person does not hold a valid

administrative certificate issued or exchanged under Article

21 and endorsed as required by that Article for the position of

principal. A principal whose performance contract is not

renewed as provided under subsection (c) of Section 34-2.2 may

nevertheless, if otherwise qualified and certified as herein

provided and if he or she has received a satisfactory rating as

provided in subsection (h) of Section 34-8.3, be included by a

local school council as one of the 3 candidates listed in order

of preference on any candidate list from which one person is to

be selected to serve as principal of the attendance center

under a new performance contract. The initial candidate list

required to be submitted by a local school council to the

general superintendent in cases where the local school council

does not renew the performance contract of its principal and

does not directly select a new principal to serve under a 4

year performance contract shall be submitted not later than 30

days prior to the expiration of the current performance

contract. In cases where the local school council fails or

refuses to submit the candidate list to the general

superintendent no later than 30 days prior to the expiration of

the incumbent principal's contract, the general superintendent

may appoint a principal on an interim basis for a period not to

exceed one year, during which time the local school council

shall be able to select a new principal with 7 affirmative

votes as provided in subsection (c) of Section 34-2.2. In cases

where a principal is removed for cause or a vacancy otherwise

occurs in the position of principal and the vacancy is not

filled by direct selection by the local school council, the

candidate list shall be submitted by the local school council

to the general superintendent within 90 days after the date

such removal or vacancy occurs. In cases where the local school

council fails or refuses to submit the candidate list to the

general superintendent within 90 days after the date of the

vacancy, the general superintendent may appoint a principal on

an interim basis for a period of one year, during which time

the local school council shall be able to select a new

principal with 7 affirmative votes as provided in subsection

(c) of Section 34-2.2.

2.5. Whenever a vacancy in the office of a principal occurs

for any reason, the vacancy shall be filled in the manner

provided by this Section by the selection of a new principal to

serve under a 4 year performance contract.

3. To establish additional criteria to be included as part

of the performance contract of its principal, provided that

such additional criteria shall not discriminate on the basis of

race, sex, creed, color or disability unrelated to ability to

perform, and shall not be inconsistent with the uniform 4 year

performance contract for principals developed by the board as

provided in Section 34-8.1 of the School Code or with other

provisions of this Article governing the authority and

responsibility of principals.

4. To approve the expenditure plan prepared by the

principal with respect to all funds allocated and distributed

to the attendance center by the Board. The expenditure plan

shall be administered by the principal. Notwithstanding any

other provision of this Act or any other law, any expenditure

plan approved and administered under this Section 34-2.3 shall

be consistent with and subject to the terms of any contract for

services with a third party entered into by the Chicago School

Reform Board of Trustees or the board under this Act.

Via a supermajority vote of 7 members of the local school

council or 8 members of a high school local school council, the

Council may transfer allocations pursuant to Section 34-2.3

within funds; provided that such a transfer is consistent with

applicable law and collective bargaining agreements.

Beginning in fiscal year 1991 and in each fiscal year

thereafter, the Board may reserve up to 1% of its total fiscal

year budget for distribution on a prioritized basis to schools

throughout the school system in order to assure adequate

programs to meet the needs of special student populations as

determined by the Board. This distribution shall take into

account the needs catalogued in the Systemwide Plan and the

various local school improvement plans of the local school

councils. Information about these centrally funded programs

shall be distributed to the local school councils so that their

subsequent planning and programming will account for these

provisions.

Beginning in fiscal year 1991 and in each fiscal year

thereafter, from other amounts available in the applicable

fiscal year budget, the board shall allocate a lump sum amount

to each local school based upon such formula as the board shall

determine taking into account the special needs of the student

body. The local school principal shall develop an expenditure

plan in consultation with the local school council, the

professional personnel leadership committee and with all other

school personnel, which reflects the priorities and activities

as described in the school's local school improvement plan and

is consistent with applicable law and collective bargaining

agreements and with board policies and standards; however, the

local school council shall have the right to request waivers of

board policy from the board of education and waivers of

employee collective bargaining agreements pursuant to Section

34-8.1a.

The expenditure plan developed by the principal with

respect to amounts available from the fund for prioritized

special needs programs and the allocated lump sum amount must

be approved by the local school council.

The lump sum allocation shall take into account the

following principles:

a. Teachers: Each school shall be allocated funds equal

to the amount appropriated in the previous school year for

compensation for teachers (regular grades kindergarten

through 12th grade) plus whatever increases in

compensation have been negotiated contractually or through

longevity as provided in the negotiated agreement.

Adjustments shall be made due to layoff or reduction in

force, lack of funds or work, change in subject

requirements, enrollment changes, or contracts with third

parties for the performance of services or to rectify any

inconsistencies with system-wide allocation formulas or

for other legitimate reasons.

b. Other personnel: Funds for other teacher

certificated and uncertificated personnel paid through

non-categorical funds shall be provided according to

system-wide formulas based on student enrollment and the

special needs of the school as determined by the Board.

c. Non-compensation items: Appropriations for all

non-compensation items shall be based on system-wide

formulas based on student enrollment and on the special

needs of the school or factors related to the physical

plant, including but not limited to textbooks, electronic

textbooks and the technological equipment necessary to

gain access to and use electronic textbooks, supplies,

electricity, equipment, and routine maintenance.

d. Funds for categorical programs: Schools shall

receive personnel and funds based on, and shall use such

personnel and funds in accordance with State and Federal

requirements applicable to each categorical program

provided to meet the special needs of the student body

(including but not limited to, Federal Chapter I,

Bilingual, and Special Education).

d.1. Funds for State Title I: Each school shall receive

funds based on State and Board requirements applicable to

each State Title I pupil provided to meet the special needs

of the student body. Each school shall receive the

proportion of funds as provided in Section 18-8 or 18-8.15

to which they are entitled. These funds shall be spent only

with the budgetary approval of the Local School Council as

provided in Section 34-2.3.

e. The Local School Council shall have the right to

request the principal to close positions and open new ones

consistent with the provisions of the local school

improvement plan provided that these decisions are

consistent with applicable law and collective bargaining

agreements. If a position is closed, pursuant to this

paragraph, the local school shall have for its use the

system-wide average compensation for the closed position.

f. Operating within existing laws and collective

bargaining agreements, the local school council shall have

the right to direct the principal to shift expenditures

within funds.

g. (Blank).

Any funds unexpended at the end of the fiscal year shall be

available to the board of education for use as part of its

budget for the following fiscal year.

5. To make recommendations to the principal concerning

textbook selection and concerning curriculum developed

pursuant to the school improvement plan which is consistent

with systemwide curriculum objectives in accordance with

Sections 34-8 and 34-18 of the School Code and in conformity

with the collective bargaining agreement.

6. To advise the principal concerning the attendance and

disciplinary policies for the attendance center, subject to the

provisions of this Article and Article 26, and consistent with

the uniform system of discipline established by the board

pursuant to Section 34-19.

7. To approve a school improvement plan developed as

provided in Section 34-2.4. The process and schedule for plan

development shall be publicized to the entire school community,

and the community shall be afforded the opportunity to make

recommendations concerning the plan. At least twice a year the

principal and local school council shall report publicly on

progress and problems with respect to plan implementation.

8. To evaluate the allocation of teaching resources and

other certificated and uncertificated staff to the attendance

center to determine whether such allocation is consistent with

and in furtherance of instructional objectives and school

programs reflective of the school improvement plan adopted for

the attendance center; and to make recommendations to the

board, the general superintendent and the principal concerning

any reallocation of teaching resources or other staff whenever

the council determines that any such reallocation is

appropriate because the qualifications of any existing staff at

the attendance center do not adequately match or support

instructional objectives or school programs which reflect the

school improvement plan.

9. To make recommendations to the principal and the general

superintendent concerning their respective appointments, after

August 31, 1989, and in the manner provided by Section 34-8 and

Section 34-8.1, of persons to fill any vacant, additional or

newly created positions for teachers at the attendance center

or at attendance centers which include the attendance center

served by the local school council.

10. To request of the Board the manner in which training

and assistance shall be provided to the local school council.

Pursuant to Board guidelines a local school council is

authorized to direct the Board of Education to contract with

personnel or not-for-profit organizations not associated with

the school district to train or assist council members. If

training or assistance is provided by contract with personnel

or organizations not associated with the school district, the

period of training or assistance shall not exceed 30 hours

during a given school year; person shall not be employed on a

continuous basis longer than said period and shall not have

been employed by the Chicago Board of Education within the

preceding six months. Council members shall receive training in

at least the following areas:

1. school budgets;

2. educational theory pertinent to the attendance

center's particular needs, including the development of

the school improvement plan and the principal's

performance contract; and

3. personnel selection.

Council members shall, to the greatest extent possible,

complete such training within 90 days of election.

11. In accordance with systemwide guidelines contained in

the System-Wide Educational Reform Goals and Objectives Plan,

criteria for evaluation of performance shall be established for

local school councils and local school council members. If a

local school council persists in noncompliance with systemwide

requirements, the Board may impose sanctions and take necessary

corrective action, consistent with Section 34-8.3.

12. Each local school council shall comply with the Open

Meetings Act and the Freedom of Information Act. Each local

school council shall issue and transmit to its school community

a detailed annual report accounting for its activities

programmatically and financially. Each local school council

shall convene at least 2 well-publicized meetings annually with

its entire school community. These meetings shall include

presentation of the proposed local school improvement plan, of

the proposed school expenditure plan, and the annual report,

and shall provide an opportunity for public comment.

13. Each local school council is encouraged to involve

additional non-voting members of the school community in

facilitating the council's exercise of its responsibilities.

14. The local school council may adopt a school uniform or

dress code policy that governs the attendance center and that

is necessary to maintain the orderly process of a school

function or prevent endangerment of student health or safety,

consistent with the policies and rules of the Board of

Education. A school uniform or dress code policy adopted by a

local school council: (i) shall not be applied in such manner

as to discipline or deny attendance to a transfer student or

any other student for noncompliance with that policy during

such period of time as is reasonably necessary to enable the

student to acquire a school uniform or otherwise comply with

the dress code policy that is in effect at the attendance

center into which the student's enrollment is transferred; and

(ii) shall include criteria and procedures under which the

local school council will accommodate the needs of or otherwise

provide appropriate resources to assist a student from an

indigent family in complying with an applicable school uniform

or dress code policy. A student whose parents or legal

guardians object on religious grounds to the student's

compliance with an applicable school uniform or dress code

policy shall not be required to comply with that policy if the

student's parents or legal guardians present to the local

school council a signed statement of objection detailing the

grounds for the objection.

15. All decisions made and actions taken by the local

school council in the exercise of its powers and duties shall

comply with State and federal laws, all applicable collective

bargaining agreements, court orders and rules properly

promulgated by the Board.

15a. To grant, in accordance with board rules and policies,

the use of assembly halls and classrooms when not otherwise

needed, including lighting, heat, and attendants, for public

lectures, concerts, and other educational and social

activities.

15b. To approve, in accordance with board rules and

policies, receipts and expenditures for all internal accounts

of the attendance center, and to approve all fund-raising

activities by nonschool organizations that use the school

building.

16. (Blank).

17. Names and addresses of local school council members

shall be a matter of public record.

(Source: P.A. 96-1403, eff. 7-29-10.)

(105 ILCS 5/34-18) (from Ch. 122, par. 34-18)

Sec. 34-18. Powers of the board. The board shall exercise

general supervision and jurisdiction over the public education

and the public school system of the city, and, except as

otherwise provided by this Article, shall have power:

1. To make suitable provision for the establishment and

maintenance throughout the year or for such portion thereof

as it may direct, not less than 9 months, of schools of all

grades and kinds, including normal schools, high schools,

night schools, schools for defectives and delinquents,

parental and truant schools, schools for the blind, the

deaf and persons with physical disabilities, schools or

classes in manual training, constructural and vocational

teaching, domestic arts and physical culture, vocation and

extension schools and lecture courses, and all other

educational courses and facilities, including

establishing, equipping, maintaining and operating

playgrounds and recreational programs, when such programs

are conducted in, adjacent to, or connected with any public

school under the general supervision and jurisdiction of

the board; provided that the calendar for the school term

and any changes must be submitted to and approved by the

State Board of Education before the calendar or changes may

take effect, and provided that in allocating funds from

year to year for the operation of all attendance centers

within the district, the board shall ensure that

supplemental general State aid or supplemental grant funds

are allocated and applied in accordance with Section 18-8,

or 18-8.05, or 18-8.15. To admit to such schools without

charge foreign exchange students who are participants in an

organized exchange student program which is authorized by

the board. The board shall permit all students to enroll in

apprenticeship programs in trade schools operated by the

board, whether those programs are union-sponsored or not.

No student shall be refused admission into or be excluded

from any course of instruction offered in the common

schools by reason of that student's sex. No student shall

be denied equal access to physical education and

interscholastic athletic programs supported from school

district funds or denied participation in comparable

physical education and athletic programs solely by reason

of the student's sex. Equal access to programs supported

from school district funds and comparable programs will be

defined in rules promulgated by the State Board of

Education in consultation with the Illinois High School

Association. Notwithstanding any other provision of this

Article, neither the board of education nor any local

school council or other school official shall recommend

that children with disabilities be placed into regular

education classrooms unless those children with

disabilities are provided with supplementary services to

assist them so that they benefit from the regular classroom

instruction and are included on the teacher's regular

education class register;

2. To furnish lunches to pupils, to make a reasonable

charge therefor, and to use school funds for the payment of

such expenses as the board may determine are necessary in

conducting the school lunch program;

3. To co-operate with the circuit court;

4. To make arrangements with the public or quasi-public

libraries and museums for the use of their facilities by

teachers and pupils of the public schools;

5. To employ dentists and prescribe their duties for

the purpose of treating the pupils in the schools, but

accepting such treatment shall be optional with parents or

guardians;

6. To grant the use of assembly halls and classrooms

when not otherwise needed, including light, heat, and

attendants, for free public lectures, concerts, and other

educational and social interests, free of charge, under

such provisions and control as the principal of the

affected attendance center may prescribe;

7. To apportion the pupils to the several schools;

provided that no pupil shall be excluded from or segregated

in any such school on account of his color, race, sex, or

nationality. The board shall take into consideration the

prevention of segregation and the elimination of

separation of children in public schools because of color,

race, sex, or nationality. Except that children may be

committed to or attend parental and social adjustment

schools established and maintained either for boys or girls

only. All records pertaining to the creation, alteration or

revision of attendance areas shall be open to the public.

Nothing herein shall limit the board's authority to

establish multi-area attendance centers or other student

assignment systems for desegregation purposes or

otherwise, and to apportion the pupils to the several

schools. Furthermore, beginning in school year 1994-95,

pursuant to a board plan adopted by October 1, 1993, the

board shall offer, commencing on a phased-in basis, the

opportunity for families within the school district to

apply for enrollment of their children in any attendance

center within the school district which does not have

selective admission requirements approved by the board.

The appropriate geographical area in which such open

enrollment may be exercised shall be determined by the

board of education. Such children may be admitted to any

such attendance center on a space available basis after all

children residing within such attendance center's area

have been accommodated. If the number of applicants from

outside the attendance area exceed the space available,

then successful applicants shall be selected by lottery.

The board of education's open enrollment plan must include

provisions that allow low income students to have access to

transportation needed to exercise school choice. Open

enrollment shall be in compliance with the provisions of

the Consent Decree and Desegregation Plan cited in Section

34-1.01;

8. To approve programs and policies for providing

transportation services to students. Nothing herein shall

be construed to permit or empower the State Board of

Education to order, mandate, or require busing or other

transportation of pupils for the purpose of achieving

racial balance in any school;

9. Subject to the limitations in this Article, to

establish and approve system-wide curriculum objectives

and standards, including graduation standards, which

reflect the multi-cultural diversity in the city and are

consistent with State law, provided that for all purposes

of this Article courses or proficiency in American Sign

Language shall be deemed to constitute courses or

proficiency in a foreign language; and to employ principals

and teachers, appointed as provided in this Article, and

fix their compensation. The board shall prepare such

reports related to minimal competency testing as may be

requested by the State Board of Education, and in addition

shall monitor and approve special education and bilingual

education programs and policies within the district to

assure that appropriate services are provided in

accordance with applicable State and federal laws to

children requiring services and education in those areas;

10. To employ non-teaching personnel or utilize

volunteer personnel for: (i) non-teaching duties not

requiring instructional judgment or evaluation of pupils,

including library duties; and (ii) supervising study

halls, long distance teaching reception areas used

incident to instructional programs transmitted by

electronic media such as computers, video, and audio,

detention and discipline areas, and school-sponsored

extracurricular activities. The board may further utilize

volunteer non-certificated personnel or employ

non-certificated personnel to assist in the instruction of

pupils under the immediate supervision of a teacher holding

a valid certificate, directly engaged in teaching subject

matter or conducting activities; provided that the teacher

shall be continuously aware of the non-certificated

persons' activities and shall be able to control or modify

them. The general superintendent shall determine

qualifications of such personnel and shall prescribe rules

for determining the duties and activities to be assigned to

such personnel;

10.5. To utilize volunteer personnel from a regional

School Crisis Assistance Team (S.C.A.T.), created as part

of the Safe to Learn Program established pursuant to

Section 25 of the Illinois Violence Prevention Act of 1995,

to provide assistance to schools in times of violence or

other traumatic incidents within a school community by

providing crisis intervention services to lessen the

effects of emotional trauma on individuals and the

community; the School Crisis Assistance Team Steering

Committee shall determine the qualifications for

volunteers;

11. To provide television studio facilities in not to

exceed one school building and to provide programs for

educational purposes, provided, however, that the board

shall not construct, acquire, operate, or maintain a

television transmitter; to grant the use of its studio

facilities to a licensed television station located in the

school district; and to maintain and operate not to exceed

one school radio transmitting station and provide programs

for educational purposes;

12. To offer, if deemed appropriate, outdoor education

courses, including field trips within the State of

Illinois, or adjacent states, and to use school educational

funds for the expense of the said outdoor educational

programs, whether within the school district or not;

13. During that period of the calendar year not

embraced within the regular school term, to provide and

conduct courses in subject matters normally embraced in the

program of the schools during the regular school term and

to give regular school credit for satisfactory completion

by the student of such courses as may be approved for

credit by the State Board of Education;

14. To insure against any loss or liability of the

board, the former School Board Nominating Commission,

Local School Councils, the Chicago Schools Academic

Accountability Council, or the former Subdistrict Councils

or of any member, officer, agent or employee thereof,

resulting from alleged violations of civil rights arising

from incidents occurring on or after September 5, 1967 or

from the wrongful or negligent act or omission of any such

person whether occurring within or without the school

premises, provided the officer, agent or employee was, at

the time of the alleged violation of civil rights or

wrongful act or omission, acting within the scope of his

employment or under direction of the board, the former

School Board Nominating Commission, the Chicago Schools

Academic Accountability Council, Local School Councils, or

the former Subdistrict Councils; and to provide for or

participate in insurance plans for its officers and

employees, including but not limited to retirement

annuities, medical, surgical and hospitalization benefits

in such types and amounts as may be determined by the

board; provided, however, that the board shall contract for

such insurance only with an insurance company authorized to

do business in this State. Such insurance may include

provision for employees who rely on treatment by prayer or

spiritual means alone for healing, in accordance with the

tenets and practice of a recognized religious

denomination;

15. To contract with the corporate authorities of any

municipality or the county board of any county, as the case

may be, to provide for the regulation of traffic in parking

areas of property used for school purposes, in such manner

as is provided by Section 11-209 of The Illinois Vehicle

Code, approved September 29, 1969, as amended;

16. (a) To provide, on an equal basis, access to a high

school campus and student directory information to the

official recruiting representatives of the armed forces of

Illinois and the United States for the purposes of

informing students of the educational and career

opportunities available in the military if the board has

provided such access to persons or groups whose purpose is

to acquaint students with educational or occupational

opportunities available to them. The board is not required

to give greater notice regarding the right of access to

recruiting representatives than is given to other persons

and groups. In this paragraph 16, "directory information"

means a high school student's name, address, and telephone

number.

(b) If a student or his or her parent or guardian

submits a signed, written request to the high school before

the end of the student's sophomore year (or if the student

is a transfer student, by another time set by the high

school) that indicates that the student or his or her

parent or guardian does not want the student's directory

information to be provided to official recruiting

representatives under subsection (a) of this Section, the

high school may not provide access to the student's

directory information to these recruiting representatives.

The high school shall notify its students and their parents

or guardians of the provisions of this subsection (b).

(c) A high school may require official recruiting

representatives of the armed forces of Illinois and the

United States to pay a fee for copying and mailing a

student's directory information in an amount that is not

more than the actual costs incurred by the high school.

(d) Information received by an official recruiting

representative under this Section may be used only to

provide information to students concerning educational and

career opportunities available in the military and may not

be released to a person who is not involved in recruiting

students for the armed forces of Illinois or the United

States;

17. (a) To sell or market any computer program

developed by an employee of the school district, provided

that such employee developed the computer program as a

direct result of his or her duties with the school district

or through the utilization of the school district resources

or facilities. The employee who developed the computer

program shall be entitled to share in the proceeds of such

sale or marketing of the computer program. The distribution

of such proceeds between the employee and the school

district shall be as agreed upon by the employee and the

school district, except that neither the employee nor the

school district may receive more than 90% of such proceeds.

The negotiation for an employee who is represented by an

exclusive bargaining representative may be conducted by

such bargaining representative at the employee's request.

(b) For the purpose of this paragraph 17:

(1) "Computer" means an internally programmed,

general purpose digital device capable of

automatically accepting data, processing data and

supplying the results of the operation.

(2) "Computer program" means a series of coded

instructions or statements in a form acceptable to a

computer, which causes the computer to process data in

order to achieve a certain result.

(3) "Proceeds" means profits derived from

marketing or sale of a product after deducting the

expenses of developing and marketing such product;

18. To delegate to the general superintendent of

schools, by resolution, the authority to approve contracts

and expenditures in amounts of $10,000 or less;

19. Upon the written request of an employee, to

withhold from the compensation of that employee any dues,

payments or contributions payable by such employee to any

labor organization as defined in the Illinois Educational

Labor Relations Act. Under such arrangement, an amount

shall be withheld from each regular payroll period which is

equal to the pro rata share of the annual dues plus any

payments or contributions, and the board shall transmit

such withholdings to the specified labor organization

within 10 working days from the time of the withholding;

19a. Upon receipt of notice from the comptroller of a

municipality with a population of 500,000 or more, a county

with a population of 3,000,000 or more, the Cook County

Forest Preserve District, the Chicago Park District, the

Metropolitan Water Reclamation District, the Chicago

Transit Authority, or a housing authority of a municipality

with a population of 500,000 or more that a debt is due and

owing the municipality, the county, the Cook County Forest

Preserve District, the Chicago Park District, the

Metropolitan Water Reclamation District, the Chicago

Transit Authority, or the housing authority by an employee

of the Chicago Board of Education, to withhold, from the

compensation of that employee, the amount of the debt that

is due and owing and pay the amount withheld to the

municipality, the county, the Cook County Forest Preserve

District, the Chicago Park District, the Metropolitan

Water Reclamation District, the Chicago Transit Authority,

or the housing authority; provided, however, that the

amount deducted from any one salary or wage payment shall

not exceed 25% of the net amount of the payment. Before the

Board deducts any amount from any salary or wage of an

employee under this paragraph, the municipality, the

county, the Cook County Forest Preserve District, the

Chicago Park District, the Metropolitan Water Reclamation

District, the Chicago Transit Authority, or the housing

authority shall certify that (i) the employee has been

afforded an opportunity for a hearing to dispute the debt

that is due and owing the municipality, the county, the

Cook County Forest Preserve District, the Chicago Park

District, the Metropolitan Water Reclamation District, the

Chicago Transit Authority, or the housing authority and

(ii) the employee has received notice of a wage deduction

order and has been afforded an opportunity for a hearing to

object to the order. For purposes of this paragraph, "net

amount" means that part of the salary or wage payment

remaining after the deduction of any amounts required by

law to be deducted and "debt due and owing" means (i) a

specified sum of money owed to the municipality, the

county, the Cook County Forest Preserve District, the

Chicago Park District, the Metropolitan Water Reclamation

District, the Chicago Transit Authority, or the housing

authority for services, work, or goods, after the period

granted for payment has expired, or (ii) a specified sum of

money owed to the municipality, the county, the Cook County

Forest Preserve District, the Chicago Park District, the

Metropolitan Water Reclamation District, the Chicago

Transit Authority, or the housing authority pursuant to a

court order or order of an administrative hearing officer

after the exhaustion of, or the failure to exhaust,

judicial review;

20. The board is encouraged to employ a sufficient

number of certified school counselors to maintain a

student/counselor ratio of 250 to 1 by July 1, 1990. Each

counselor shall spend at least 75% of his work time in

direct contact with students and shall maintain a record of

such time;

21. To make available to students vocational and career

counseling and to establish 5 special career counseling

days for students and parents. On these days

representatives of local businesses and industries shall

be invited to the school campus and shall inform students

of career opportunities available to them in the various

businesses and industries. Special consideration shall be

given to counseling minority students as to career

opportunities available to them in various fields. For the

purposes of this paragraph, minority student means a person

who is any of the following:

(a) American Indian or Alaska Native (a person having

origins in any of the original peoples of North and South

America, including Central America, and who maintains

tribal affiliation or community attachment).

(b) Asian (a person having origins in any of the

original peoples of the Far East, Southeast Asia, or the

Indian subcontinent, including, but not limited to,

Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,

the Philippine Islands, Thailand, and Vietnam).

(c) Black or African American (a person having origins

in any of the black racial groups of Africa). Terms such as

"Haitian" or "Negro" can be used in addition to "Black or

African American".

(d) Hispanic or Latino (a person of Cuban, Mexican,

Puerto Rican, South or Central American, or other Spanish

culture or origin, regardless of race).

(e) Native Hawaiian or Other Pacific Islander (a person

having origins in any of the original peoples of Hawaii,

Guam, Samoa, or other Pacific Islands).

Counseling days shall not be in lieu of regular school

days;

22. To report to the State Board of Education the

annual student dropout rate and number of students who

graduate from, transfer from or otherwise leave bilingual

programs;

23. Except as otherwise provided in the Abused and

Neglected Child Reporting Act or other applicable State or

federal law, to permit school officials to withhold, from

any person, information on the whereabouts of any child

removed from school premises when the child has been taken

into protective custody as a victim of suspected child

abuse. School officials shall direct such person to the

Department of Children and Family Services, or to the local

law enforcement agency if appropriate;

24. To develop a policy, based on the current state of

existing school facilities, projected enrollment and

efficient utilization of available resources, for capital

improvement of schools and school buildings within the

district, addressing in that policy both the relative

priority for major repairs, renovations and additions to

school facilities, and the advisability or necessity of

building new school facilities or closing existing schools

to meet current or projected demographic patterns within

the district;

25. To make available to the students in every high

school attendance center the ability to take all courses

necessary to comply with the Board of Higher Education's

college entrance criteria effective in 1993;

26. To encourage mid-career changes into the teaching

profession, whereby qualified professionals become

certified teachers, by allowing credit for professional

employment in related fields when determining point of

entry on teacher pay scale;

27. To provide or contract out training programs for

administrative personnel and principals with revised or

expanded duties pursuant to this Act in order to assure

they have the knowledge and skills to perform their duties;

28. To establish a fund for the prioritized special

needs programs, and to allocate such funds and other lump

sum amounts to each attendance center in a manner

consistent with the provisions of part 4 of Section 34-2.3.

Nothing in this paragraph shall be construed to require any

additional appropriations of State funds for this purpose;

29. (Blank);

30. Notwithstanding any other provision of this Act or

any other law to the contrary, to contract with third

parties for services otherwise performed by employees,

including those in a bargaining unit, and to layoff those

employees upon 14 days written notice to the affected

employees. Those contracts may be for a period not to

exceed 5 years and may be awarded on a system-wide basis.

The board may not operate more than 30 contract schools,

provided that the board may operate an additional 5

contract turnaround schools pursuant to item (5.5) of

subsection (d) of Section 34-8.3 of this Code;

31. To promulgate rules establishing procedures

governing the layoff or reduction in force of employees and

the recall of such employees, including, but not limited

to, criteria for such layoffs, reductions in force or

recall rights of such employees and the weight to be given

to any particular criterion. Such criteria shall take into

account factors including, but not be limited to,

qualifications, certifications, experience, performance

ratings or evaluations, and any other factors relating to

an employee's job performance;

32. To develop a policy to prevent nepotism in the

hiring of personnel or the selection of contractors;

33. To enter into a partnership agreement, as required

by Section 34-3.5 of this Code, and, notwithstanding any

other provision of law to the contrary, to promulgate

policies, enter into contracts, and take any other action

necessary to accomplish the objectives and implement the

requirements of that agreement; and

34. To establish a Labor Management Council to the

board comprised of representatives of the board, the chief

executive officer, and those labor organizations that are

the exclusive representatives of employees of the board and

to promulgate policies and procedures for the operation of

the Council.

The specifications of the powers herein granted are not to

be construed as exclusive but the board shall also exercise all

other powers that they may be requisite or proper for the

maintenance and the development of a public school system, not

inconsistent with the other provisions of this Article or

provisions of this Code which apply to all school districts.

In addition to the powers herein granted and authorized to

be exercised by the board, it shall be the duty of the board to

review or to direct independent reviews of special education

expenditures and services. The board shall file a report of

such review with the General Assembly on or before May 1, 1990.

(Source: P.A. 99-143, eff. 7-27-15.)

(105 ILCS 5/34-18.30)

Sec. 34-18.30. Dependents of military personnel; no

tuition charge. If, at the time of enrollment, a dependent of

United States military personnel is housed in temporary housing

located outside of the school district, but will be living

within the district within 60 days after the time of initial

enrollment, the dependent must be allowed to enroll, subject to

the requirements of this Section, and must not be charged

tuition. Any United States military personnel attempting to

enroll a dependent under this Section shall provide proof that

the dependent will be living within the district within 60 days

after the time of initial enrollment. Proof of residency may

include, but is not limited to, postmarked mail addressed to

the military personnel and sent to an address located within

the district, a lease agreement for occupancy of a residence

located within the district, or proof of ownership of a

residence located within the district. Non-resident dependents

of United States military personnel attending school on a

tuition-free basis may be counted for the purposes of

determining the apportionment of State aid provided under

Section 18-8.05 or 18-8.15 of this Code.

(Source: P.A. 95-331, eff. 8-21-07.)

(105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)

Sec. 34-43.1. (A) Limitation of noninstructional costs. It

is the purpose of this Section to establish for the Board of

Education and the general superintendent of schools

requirements and standards which maximize the proportion of

school district resources in direct support of educational,

program, and building maintenance and safety services for the

pupils of the district, and which correspondingly minimize the

amount and proportion of such resources associated with

centralized administration, administrative support services,

and other noninstructional services.

For the 1989-90 school year and for all subsequent school

years, the Board of Education shall undertake budgetary and

expenditure control actions which limit the administrative

expenditures of the Board of Education to levels, as provided

for in this Section, which represent an average of the

administrative expenses of all school districts in this State

not subject to Article 34.

(B) Certification of expenses by the State Superintendent

of Education. The State Superintendent of Education shall

annually certify, on or before May 1, to the Board of Education

and the School Finance Authority, for the applicable school

year, the following information:

(1) the annual expenditures of all school districts of

the State not subject to Article 34 properly attributable

to expenditure functions defined by the rules and

regulations of the State Board of Education as: 2210

(Improvement of Instructional Services); 2300 (Support

Services - General Administration) excluding, however,

2320 (Executive Administrative Services); 2490 (Other

Support Services - School Administration); 2500 (Support

Services - Business); 2600 (Support Services - Central);

(2) the total annual expenditures of all school

districts not subject to Article 34 attributable to the

Education Fund, the Operations, Building and Maintenance

Fund, the Transportation Fund and the Illinois Municipal

Retirement Fund of the several districts, as defined by the

rules and regulations of the State Board of Education; and

(3) a ratio, to be called the statewide average of

administrative expenditures, derived by dividing the

expenditures certified pursuant to paragraph (B)(1) by the

expenditures certified pursuant to paragraph (B)(2).

For purposes of the annual certification of expenditures

and ratios required by this Section, the "applicable year" of

certification shall initially be the 1986-87 school year and,

in sequent years, each succeeding school year.

The State Superintendent of Education shall consult with

the Board of Education to ascertain whether particular

expenditure items allocable to the administrative functions

enumerated in paragraph (B)(1) are appropriately or

necessarily higher in the applicable school district than in

the rest of the State due to noncomparable factors. The State

Superintendent shall also review the relevant cost proportions

in other large urban school districts. The State Superintendent

shall also review the expenditure categories in paragraph

(B)(1) to ascertain whether they contain school-level

expenses. If he or she finds that adjustments to the formula

are appropriate or necessary to establish a more fair and

comparable standard for administrative cost for the Board of

Education or to exclude school-level expenses, the State

Superintendent shall recommend to the School Finance Authority

rules and regulations adjusting particular subcategories in

this subsection (B) or adjusting certain costs in determining

the budget and expenditure items properly attributable to the

functions or otherwise adjust the formula.

(C) Administrative expenditure limitations. The annual

budget of the Board of Education, as adopted and implemented,

and the related annual expenditures for the school year, shall

reflect a limitation on administrative outlays as required by

the following provisions, taking into account any adjustments

established by the State Superintendent of Education: (1) the

budget and expenditures of the Board of Education for the

1989-90 school year shall reflect a ratio of administrative

expenditures to total expenditures equal to or less than the

statewide average of administrative expenditures for the

1986-87 school year as certified by the State Superintendent of

Education pursuant to paragraph (B)(3); (2) for the 1990-91

school year and for all subsequent school years, the budget and

expenditures of the Board of Education shall reflect a ratio of

administrative expenditures to total expenditures equal to or

less than the statewide average of administrative expenditures

certified by the State Superintendent of Education for the

applicable year pursuant to paragraph (B)(3); (3) if for any

school year the budget of the Board of Education reflects a

ratio of administrative expenditures to total expenditures

which exceeds the applicable statewide average, the Board of

Education shall reduce expenditure items allocable to the

administrative functions enumerated in paragraph (B)(1) such

that the Board of Education's ratio of administrative

expenditures to total expenditures is equal to or less than the

applicable statewide average ratio.

For purposes of this Section, the ratio of administrative

expenditures to the total expenditures of the Board of

Education, as applied to the budget of the Board of Education,

shall mean: the budgeted expenditure items of the Board of

Education properly attributable to the expenditure functions

identified in paragraph (B)(1) divided by the total budgeted

expenditures of the Board of Education properly attributable to

the Board of Education funds corresponding to those funds

identified in paragraph (B)(2), exclusive of any monies

budgeted for payment to the Public School Teachers' Pension and

Retirement System, attributable to payments due from the

General Funds of the State of Illinois.

The annual expenditure of the Board of Education for 2320

(Executive Administrative Services) for the 1989-90 school

year shall be no greater than the 2320 expenditure for the

1988-89 school year. The annual expenditure of the Board of

Education for 2320 for the 1990-91 school year and each

subsequent school year shall be no greater than the 2320

expenditure for the immediately preceding school year or the

1988-89 school year, whichever is less. This annual expenditure

limitation may be adjusted in each year in an amount not to

exceed any change effective during the applicable school year

in salary to be paid under the collective bargaining agreement

with instructional personnel to which the Board is a party and

in benefit costs either required by law or such collective

bargaining agreement.

(D) Cost control measures. In undertaking actions to

control or reduce expenditure items necessitated by the

administrative expenditure limitations of this Section, the

Board of Education shall give priority consideration to

reductions or cost controls with the least effect upon direct

services to students or instructional services for pupils, and

upon the safety and well-being of pupils, and, as applicable,

with the particular costs or functions to which the Board of

Education is higher than the statewide average.

For purposes of assuring that the cost control priorities

of this subsection (D) are met, the State Superintendent of

Education shall, with the assistance of the Board of Education,

review the cost allocation practices of the Board of Education,

and the State Superintendent of Education shall thereafter

recommend to the School Finance Authority rules and regulations

which define administrative areas which most impact upon the

direct and instructional needs of students and upon the safety

and well-being of the pupils of the district. No position

closed shall be reopened using State or federal categorical

funds.

(E) Report of Audited Information. For the 1988-89 school

year and for all subsequent school years, the Board of

Education shall file with the State Board of Education the

Annual Financial Report and its audit, as required by the rules

of the State Board of Education. Such reports shall be filed no

later than February 15 following the end of the school year of

the Board of Education, beginning with the report to be filed

no later than February 15, 1990 for the 1988-89 school year.

As part of the required Annual Financial Report, the Board

of Education shall provide a detailed accounting of the central

level, district, bureau and department costs and personnel

included within expenditure functions included in paragraph

(B)(1). The nature and detail of the reporting required for

these functions shall be prescribed by the State Board of

Education in rules and regulations. A copy of this detailed

accounting shall also be provided annually to the School

Finance Authority and the public. This report shall contain a

reconciliation to the board of education's adopted budget for

that fiscal year, specifically delineating administrative

functions.

If the information required under this Section is not

provided by the Board of Education in a timely manner, or is

initially or subsequently determined by the State

Superintendent of Education to be incomplete or inaccurate, the

State Superintendent shall, in writing, notify the Board of

Education of reporting deficiencies. The Board of Education

shall, within 60 days of such notice, address the reporting

deficiencies identified. If the State Superintendent of

Education does not receive satisfactory response to these

reporting deficiencies within 60 days, the next payment of

general State aid or evidence-based funding due the Board of

Education under Section 18-8 or Section 18-8.15, as applicable,

and all subsequent payments, shall be withheld by the State

Superintendent of Education until the enumerated deficiencies

have been addressed.

Utilizing the Annual Financial Report, the State

Superintendent of Education shall certify on or before May 1 to

the School Finance Authority the Board of Education's ratio of

administrative expenditures to total expenditures for the

1988-89 school year and for each succeeding school year. Such

certification shall indicate the extent to which the

administrative expenditure ratio of the Board of Education

conformed to the limitations required in subsection (C) of this

Section, taking into account any adjustments of the limitations

which may have been recommended by the State Superintendent of

Education to the School Finance Authority. In deriving the

administrative expenditure ratio of the Chicago Board of

Education, the State Superintendent of Education shall utilize

the definition of this ratio prescribed in subsection (C) of

this Section, except that the actual expenditures of the Board

of Education shall be substituted for budgeted expenditure

items.

(F) Approval and adjustments to administrative expenditure

limitations. The School Finance Authority organized under

Article 34A shall monitor the Board of Education's adherence to

the requirements of this Section. As part of its responsibility

the School Finance Authority shall determine whether the Board

of Education's budget for the next school year, and the

expenditures for a prior school year, comply with the

limitation of administrative expenditures required by this

Section. The Board of Education and the State Board of

Education shall provide such information as is required by the

School Finance Authority in order for the Authority to

determine compliance with the provisions of this Section. If

the Authority determines that the budget proposed by the Board

of Education does not meet the cost control requirements of

this Section, the Board of Education shall undertake budgetary

reductions, consistent with the requirements of this Section,

to bring the proposed budget into compliance with such cost

control limitations.

If, in formulating cost control and cost reduction

alternatives, the Board of Education believes that meeting the

cost control requirements of this Section related to the budget

for the ensuing year would impair the education, safety, or

well-being of the pupils of the school district, the Board of

Education may request that the School Finance Authority make

adjustments to the limitations required by this Section. The

Board of Education shall specify the amount, nature, and

reasons for the relief required and shall also identify cost

reductions which can be made in expenditure functions not

enumerated in paragraph (B)(1), which would serve the purposes

of this Section.

The School Finance Authority shall consult with the State

Superintendent of Education concerning the reasonableness from

an educational administration perspective of the adjustments

sought by the Board of Education. The School Finance Authority

shall provide an opportunity for the public to comment upon the

reasonableness of the Board's request. If, after such

consultation, the School Finance Authority determines that all

or a portion of the adjustments sought by the Board of

Education are reasonably appropriate or necessary, the

Authority may grant such relief from the provisions of this

Section which the Authority deems appropriate. Adjustments so

granted apply only to the specific school year for which the

request was made.

In the event that the School Finance Authority determines

that the Board of Education has failed to achieve the required

administrative expenditure limitations for a prior school

year, or if the Authority determines that the Board of

Education has not met the requirements of subsection (F), the

Authority shall make recommendations to the Board of Education

concerning appropriate corrective actions. If the Board of

Education fails to provide adequate assurance to the Authority

that appropriate corrective actions have been or will be taken,

the Authority may, within 60 days thereafter, require the board

to adjust its current budget to correct for the prior year's

shortage or may recommend to the members of the General

Assembly and the Governor such sanctions or remedial actions as

will serve to deter any further such failures on the part of

the Board of Education.

To assist the Authority in its monitoring

responsibilities, the Board of Education shall provide such

reports and information as are from time to time required by

the Authority.

(G) Independent reviews of administrative expenditures.

The School Finance Authority may direct independent reviews of

the administrative and administrative support expenditures and

services and other non-instructional expenditure functions of

the Board of Education. The Board of Education shall afford

full cooperation to the School Finance Authority in such review

activity. The purpose of such reviews shall be to verify

specific targets for improved operating efficiencies of the

Board of Education, to identify other areas of potential

efficiencies, and to assure full and proper compliance by the

Board of Education with all requirements of this Section.

In the conduct of reviews under this subsection, the

Authority may request the assistance and consultation of the

State Superintendent of Education with regard to questions of

efficiency and effectiveness in educational administration.

(H) Reports to Governor and General Assembly. On or before

May 1, 1991 and no less frequently than yearly thereafter, the

School Finance Authority shall provide to the Governor, the

State Board of Education, and the members of the General

Assembly an annual report, as outlined in Section 34A-606,

which includes the following information: (1) documenting the

compliance or non-compliance of the Board of Education with the

requirements of this Section; (2) summarizing the costs,

findings, and recommendations of any reviews directed by the

School Finance Authority, and the response to such

recommendations made by the Board of Education; and (3)

recommending sanctions or legislation necessary to fulfill the

intent of this Section.

(Source: P.A. 86-124; 86-1477.)

(105 ILCS 5/34-53) (from Ch. 122, par. 34-53)

Sec. 34-53. Tax levies; purpose; rates. For the purpose of

establishing and supporting free schools for not fewer than 9

months in each year and defraying their expenses the board may

levy annually, upon all taxable property of such district for

educational purposes a tax for the fiscal years 1996 and each

succeeding fiscal year at a rate of not to exceed the sum of

(i) 3.07% (or such other rate as may be set by law independent

of the rate difference described in (ii) below) and (ii) the

difference between .50% and the rate per cent of taxes extended

for a School Finance Authority organized under Article 34A of

the School Code, for the calendar year in which the applicable

fiscal year of the board begins as determined by the county

clerk and certified to the board pursuant to Section 18-110 of

the Property Tax Code, of the value as equalized or assessed by

the Department of Revenue for the year in which such levy is

made.

Beginning on the effective date of this amendatory Act of

the 99th General Assembly, for the purpose of making an

employer contribution to the Public School Teachers' Pension

and Retirement Fund of Chicago, the board may levy annually for

taxable years prior to 2017, upon all taxable property located

within the district, a tax at a rate not to exceed 0.383%.

Beginning with the 2017 taxable year, for the purpose of making

an employer contribution to the Public School Teachers' Pension

and Retirement Fund of Chicago, the board may levy annually,

upon all taxable property within the district, a tax at a rate

not to exceed 0.567%. The proceeds from this additional tax

shall be paid, as soon as possible after collection, directly

to Public School Teachers' Pension and Retirement Fund of

Chicago and not to the Board of Education. The rate under this

paragraph is not a new rate for the purposes of the Property

Tax Extension Limitation Law. Notwithstanding any other

provision of law, for the 2016 tax year only, the board shall

certify the rate to the county clerk on the effective date of

this amendatory Act of the 99th General Assembly, and the

county clerk shall extend that rate against all taxable

property located within the district as soon after receiving

the certification as possible.

Nothing in this amendatory Act of 1995 shall in any way

impair or restrict the levy or extension of taxes pursuant to

any tax levies for any purposes of the board lawfully made

prior to the adoption of this amendatory Act of 1995.

Notwithstanding any other provision of this Code and in

addition to any other methods provided for increasing the tax

rate the board may, by proper resolution, cause a proposition

to increase the annual tax rate for educational purposes to be

submitted to the voters of such district at any general or

special election. The maximum rate for educational purposes

shall not exceed 4.00%. The election called for such purpose

shall be governed by Article 9 of this Act. If at such election

a majority of the votes cast on the proposition is in favor

thereof, the Board of Education may thereafter until such

authority is revoked in a like manner, levy annually the tax so

authorized.

For purposes of this Article, educational purposes for

fiscal years beginning in 1995 and each subsequent year shall

also include, but not be limited to, in addition to those

purposes authorized before this amendatory Act of 1995,

constructing, acquiring, leasing (other than from the Public

Building Commission of Chicago), operating, maintaining,

improving, repairing, and renovating land, buildings,

furnishings, and equipment for school houses and buildings, and

related incidental expenses, and provision of special

education, furnishing free textbooks and instructional aids

and school supplies, establishing, equipping, maintaining, and

operating supervised playgrounds under the control of the

board, school extracurricular activities, and stadia, social

center, and summer swimming pool programs open to the public in

connection with any public school; making an employer

contribution to the Public School Teachers' Pension and

Retirement Fund as required by Section 17-129 of the Illinois

Pension Code; and providing an agricultural science school,

including site development and improvements, maintenance

repairs, and supplies. Educational purposes also includes

student transportation expenses.

All collections of all taxes levied for fiscal years ending

before 1996 under this Section or under Sections 34-53.2,

34-53.3, 34-58, 34-60, or 34-62 of this Article as in effect

prior to this amendatory Act of 1995 may be used for any

educational purposes as defined by this amendatory Act of 1995

and need not be used for the particular purposes for which they

were levied. The levy and extension of taxes pursuant to this

Section as amended by this amendatory Act of 1995 shall not

constitute a new or increased tax rate within the meaning of

the Property Tax Extension Limitation Law or the One-year

Property Tax Extension Limitation Law.

The rate at which taxes may be levied for the fiscal year

beginning September 1, 1996, for educational purposes shall be

the full rate authorized by this Section for such taxes for

fiscal years ending after 1995.

(Source: P.A. 99-521, eff. 6-1-17.)

Section 970. The Educational Opportunity for Military

Children Act is amended by changing Section 25 as follows:

(105 ILCS 70/25)

Sec. 25. Tuition for children of active duty military

personnel who are transfer students. If a student who is a

child of active duty military personnel is (i) placed with a

non-custodial parent and (ii) as a result of placement, must

attend a non-resident school district, then the student must

not be charged the tuition of the school that the student

attends as a result of placement with the non-custodial parent

and the student must be counted in the calculation of average

daily attendance under Section 18-8.05 or 18-8.15 of the School

Code.

(Source: P.A. 98-673, eff. 6-30-14.)

Section 995. Inseverability. The provisions of this Act are

mutually dependent and inseverable. If any provision is held

invalid other than as applied to a particular person or

circumstance, then this entire Act is invalid.

Section 997. Savings clause. Any repeal or amendment made

by this Act shall not affect or impair any of the following:

suits pending or rights existing at the time this Act takes

effect; any grant or conveyance made or right acquired or cause

of action now existing under any Section, Article, or Act

repealed or amended by this Act; the validity of any bonds or

other obligations issued or sold and constituting valid

obligations of the issuing authority at the time this Act takes

effect; the validity of any contract; the validity of any tax

levied under any law in effect prior to the effective date of

this Act; or any offense committed, act done, penalty,

punishment, or forfeiture incurred or any claim, right, power,

or remedy accrued under any law in effect prior to the

effective date of this Act.