99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4272

Introduced 8/12/2015, by Rep. Christian L. Mitchell - Cynthia Soto - Arthur Turner - Elizabeth Hernandez - Kelly M. Cassidy, et al.

SYNOPSIS AS INTRODUCED:
New Act
40 ILCS 5/1-103.3
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
105 ILCS 5/2-3.28 from Ch. 122, par. 2-3.28
105 ILCS 5/2-3.84a new
105 ILCS 5/18-8.05
30 ILCS 805/8.39 new

Creates the Fund Education First Act. Beginning with fiscal year 2017, requires the General Assembly to appropriate for the general State aid formula under the School Code an amount that is equal to or exceeds the sum of: (i) the total amount appropriated for the general State aid formula during the fiscal year immediately preceding the fiscal year for which the appropriation is being made; and (ii) 55% of total new general funds available for spending from estimated growth in revenues and funds available because of budgeted program growth and decline in the fiscal year for which the appropriation is being made; but in no event shall the sum be less than a certain percentage required under the Act. Requires a continuing appropriation if the General Assembly fails to make sufficient appropriations to fund the general State aid formula. Amends the Illinois Pension Code. In the Downstate Teacher Article, changes the funding goal to 100% and shifts certain costs accruing after July 1, 2016 to local employers. Amends the School Code to make changes concerning a system for accounting for revenues and expenditures and general State aid. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB4272LRB099 13722 NHT 37684 b
1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Fund
5Education First Act.
6 Section 5. Educational appropriations. Beginning with
7fiscal year 2017 and in each fiscal year thereafter, subject to
8the provisions of Section 10 of this Act, the General Assembly
9shall appropriate for the general State aid formula set forth
10in subsection (E) of Section 18-8.05 of the School Code an
11amount that is equal to or exceeds the sum of: (i) the total
12amount appropriated for the general State aid formula set forth
13in subsection (E) of Section 18-8.05 of the School Code during
14the fiscal year immediately preceding the fiscal year for which
15the appropriation is being made; and (ii) 55% of total new
16general funds available for spending from estimated growth in
17revenues and funds available because of budgeted program growth
18and decline in the fiscal year for which the appropriation is
19being made; but in no event shall the sum be less than the
20percentage required under Section 10 of this Act. The
21Commission on Government Forecasting and Accountability shall
22certify the amount of total new general funds available for
23spending.

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1 Section 10. State and federal funding. State funding for
2the general State aid formula set forth in subsection (E) of
3Section 18-8.05 of the School Code shall be appropriated
4pursuant to Section 5 of this Act so that the sum of State and
5federal spending represents no less than 51% of the total
6revenues available from local, State, and federal sources for
7elementary and secondary education programs for the current
8fiscal year, as estimated by the State Superintendent of
9Education.
10 Section 15. Continuing appropriation. If the General
11Assembly fails to make appropriations to the State Board of
12Education in fiscal year 2017 or in any fiscal year thereafter
13sufficient to fund the general State aid formula set forth in
14subsection (E) of Section 18-8.05 of the School Code, this Act
15shall constitute a continuing appropriation of all amounts
16necessary for that purpose.
17 Section 20. Governor's budget. Beginning with fiscal year
182017 and in each fiscal year thereafter, the Governor shall
19include in his or her annual budget an allocation for
20elementary and secondary education that conforms to the
21provisions of this Act.
22 Section 80. The Illinois Pension Code is amended by

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1changing Sections 1-103.3 and 16-158 as follows:
2 (40 ILCS 5/1-103.3)
3 Sec. 1-103.3. Application of 1994 amendment; funding
4standard; certification of State contributions paid and
5proportionate share.
6 (a) The provisions of Public Act 88-593 this amendatory Act
7of 1994 that change the method of calculating, certifying, and
8paying the required State contributions to the retirement
9systems established under Articles 2, 14, 15, 16, and 18 shall
10first apply to the State contributions required for State
11fiscal year 1996.
12 (b) (Blank) The General Assembly declares that a funding
13ratio (the ratio of a retirement system's total assets to its
14total actuarial liabilities) of 90% is an appropriate goal for
15State-funded retirement systems in Illinois, and it finds that
16a funding ratio of 90% is now the generally-recognized norm
17throughout the nation for public employee retirement systems
18that are considered to be financially secure and funded in an
19appropriate and responsible manner.
20 (c) Every 5 years, beginning in 1999, the Commission on
21Government Forecasting and Accountability, in consultation
22with the affected retirement systems and the Governor's Office
23of Management and Budget (formerly Bureau of the Budget), shall
24consider and determine whether the funding goals 90% funding
25ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code

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1continue subsection (b) continues to represent an appropriate
2funding goals goal for those State-funded retirement systems in
3Illinois, and it shall report its findings and recommendations
4on this subject to the Governor and the General Assembly.
5(Source: P.A. 93-1067, eff. 1-15-05.)
6 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
7 (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9 Sec. 16-158. Contributions by State and other employing
10units.
11 (a) The State shall make contributions to the System by
12means of appropriations from the Common School Fund and other
13State funds of amounts which, together with other employer
14contributions, employee contributions, investment income, and
15other income, will be sufficient to meet the cost of
16maintaining and administering the System on a 100% 90% funded
17basis in accordance with actuarial recommendations by the end
18of State fiscal year 2066.
19 Beginning with State fiscal year 2017, the State's required
20contributions to the System under subsection (b-3) shall be
21limited to the amounts required to amortize the total cost of
22the benefits of the System arising before July 1, 2016. The
23State shall also pay any employer contributions required from
24the State as the actual employer of participants under this
25Article.

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1 The Board shall determine the amount of State and employer
2contributions required for each fiscal year on the basis of the
3actuarial tables and other assumptions adopted by the Board and
4the recommendations of the actuary, using the formulas provided
5in this Section formula in subsection (b-3).
6 (a-1) Annually, on or before November 15 through until
7November 15, 2011, the Board shall certify to the Governor the
8amount of the required State contribution for the coming fiscal
9year. The certification under this subsection (a-1) shall
10include a copy of the actuarial recommendations upon which it
11is based and shall specifically identify the System's projected
12State normal cost for that fiscal year.
13 On or before May 1, 2004, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2005, taking
16into account the amounts appropriated to and received by the
17System under subsection (d) of Section 7.2 of the General
18Obligation Bond Act.
19 On or before July 1, 2005, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2006, taking
22into account the changes in required State contributions made
23by this amendatory Act of the 94th General Assembly.
24 On or before April 1, 2011, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2011, applying

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1the changes made by Public Act 96-889 to the System's assets
2and liabilities as of June 30, 2009 as though Public Act 96-889
3was approved on that date.
4 On or before July 1, 2016, the Board shall, if necessary,
5recalculate and recertify to the Governor the amount of the
6required State contribution to the System for State fiscal year
72017, taking into account the changes in required State
8contributions made by this amendatory Act of the 99th General
9Assembly.
10 (a-5) On or before November 1 of each year, beginning
11November 1, 2012, the Board shall submit to the State Actuary,
12the Governor, and the General Assembly a proposed certification
13of the amount of the required State contribution to the System
14for the next fiscal year, along with all of the actuarial
15assumptions, calculations, and data upon which that proposed
16certification is based. On or before January 1 of each year,
17beginning January 1, 2013, the State Actuary shall issue a
18preliminary report concerning the proposed certification and
19identifying, if necessary, recommended changes in actuarial
20assumptions that the Board must consider before finalizing its
21certification of the required State contributions. On or before
22January 15, 2013 and each January 15 thereafter, the Board
23shall certify to the Governor and the General Assembly the
24amount of the required State contribution for the next fiscal
25year. The certification shall include a copy of the actuarial
26recommendations upon which it is based and shall specifically

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1identify the System's projected State normal cost for that
2fiscal year. The Board's certification must note any deviations
3from the State Actuary's recommended changes, the reason or
4reasons for not following the State Actuary's recommended
5changes, and the fiscal impact of not following the State
6Actuary's recommended changes on the required State
7contribution.
8 (a-10) Before July 1, 2016 and on or before each January 15
9thereafter, the Board shall certify to the State Board of
10Education and the State Comptroller the predicted amount to be
11saved by the State in the next State fiscal year by the
12shifting of costs from the State to the actual employers under
13this amendatory Act of the 99th General Assembly.
14 (b) Through State fiscal year 1995, the State contributions
15shall be paid to the System in accordance with Section 18-7 of
16the School Code.
17 (b-1) Beginning in State fiscal year 1996, on the 15th day
18of each month, or as soon thereafter as may be practicable, the
19Board shall submit vouchers for payment of State contributions
20to the System, in a total monthly amount of one-twelfth of the
21required annual State contribution certified under subsection
22(a-1). From the effective date of this amendatory Act of the
2393rd General Assembly through June 30, 2004, the Board shall
24not submit vouchers for the remainder of fiscal year 2004 in
25excess of the fiscal year 2004 certified contribution amount
26determined under this Section after taking into consideration

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1the transfer to the System under subsection (a) of Section
26z-61 of the State Finance Act. These vouchers shall be paid by
3the State Comptroller and Treasurer by warrants drawn on the
4funds appropriated to the System for that fiscal year.
5 If in any month the amount remaining unexpended from all
6other appropriations to the System for the applicable fiscal
7year (including the appropriations to the System under Section
88.12 of the State Finance Act and Section 1 of the State
9Pension Funds Continuing Appropriation Act) is less than the
10amount lawfully vouchered under this subsection, the
11difference shall be paid from the Common School Fund under the
12continuing appropriation authority provided in Section 1.1 of
13the State Pension Funds Continuing Appropriation Act.
14 (b-2) Allocations from the Common School Fund apportioned
15to school districts not coming under this System shall not be
16diminished or affected by the provisions of this Article.
17 (b-3) For State fiscal years 2017 through 2066, the minimum
18contribution to the System to be made by the State under this
19subsection (b-3) for each fiscal year shall be an amount
20determined by the Board to be sufficient to amortize the
21unfunded accrued liability that is attributable to benefits
22that accrued before July 1, 2016 as a level percentage of
23payroll over the years remaining to and including fiscal year
242066, determined under the projected unit credit actuarial cost
25method.
26 For State fiscal year 2066 and thereafter, the minimum

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1contribution to the System to be made by the State under this
2subsection (b-3) for each fiscal year shall be an amount
3determined by the Board to be sufficient to amortize, over a
430-year rolling amortization period, any unfunded liability
5arising on or after July 1, 2065 that is attributable to
6benefits that accrued before July 1, 2016.
7 For State fiscal years 2012 through 2016 2045, the minimum
8contribution to the System to be made by the State for each
9fiscal year shall be an amount determined by the System to be
10sufficient to bring the total assets of the System up to 90% of
11the total actuarial liabilities of the System by the end of
12State fiscal year 2045. In making these determinations, the
13required State contribution shall be calculated each year as a
14level percentage of payroll over the years remaining to and
15including fiscal year 2045 and shall be determined under the
16projected unit credit actuarial cost method.
17 For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20so that by State fiscal year 2011, the State is contributing at
21the rate required under this Section; except that in the
22following specified State fiscal years, the State contribution
23to the System shall not be less than the following indicated
24percentages of the applicable employee payroll, even if the
25indicated percentage will produce a State contribution in
26excess of the amount otherwise required under this subsection

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1and subsection (a), and notwithstanding any contrary
2certification made under subsection (a-1) before the effective
3date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
4in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
52003; and 13.56% in FY 2004.
6 Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2006 is
8$534,627,700.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2007 is
11$738,014,500.
12 For each of State fiscal years 2008 through 2009, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15from the required State contribution for State fiscal year
162007, so that by State fiscal year 2011, the State is
17contributing at the rate otherwise required under this Section.
18 Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2010 is
20$2,089,268,000 and shall be made from the proceeds of bonds
21sold in fiscal year 2010 pursuant to Section 7.2 of the General
22Obligation Bond Act, less (i) the pro rata share of bond sale
23expenses determined by the System's share of total bond
24proceeds, (ii) any amounts received from the Common School Fund
25in fiscal year 2010, and (iii) any reduction in bond proceeds
26due to the issuance of discounted bonds, if applicable.

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1 Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2011 is
3the amount recertified by the System on or before April 1, 2011
4pursuant to subsection (a-1) of this Section and shall be made
5from the proceeds of bonds sold in fiscal year 2011 pursuant to
6Section 7.2 of the General Obligation Bond Act, less (i) the
7pro rata share of bond sale expenses determined by the System's
8share of total bond proceeds, (ii) any amounts received from
9the Common School Fund in fiscal year 2011, and (iii) any
10reduction in bond proceeds due to the issuance of discounted
11bonds, if applicable. This amount shall include, in addition to
12the amount certified by the System, an amount necessary to meet
13employer contributions required by the State as an employer
14under paragraph (e) of this Section, which may also be used by
15the System for contributions required by paragraph (a) of
16Section 16-127.
17 Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21 Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 100% 90%. A reference in this Article
4to the "required State contribution" or any substantially
5similar term does not include or apply to any amounts payable
6to the System under Section 25 of the Budget Stabilization Act.
7 Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter through State
10fiscal year 2016, as calculated under this Section and
11certified under subsection (a-1), shall not exceed an amount
12equal to (i) the amount of the required State contribution that
13would have been calculated under this Section for that fiscal
14year if the System had not received any payments under
15subsection (d) of Section 7.2 of the General Obligation Bond
16Act, minus (ii) the portion of the State's total debt service
17payments for that fiscal year on the bonds issued in fiscal
18year 2003 for the purposes of that Section 7.2, as determined
19and certified by the Comptroller, that is the same as the
20System's portion of the total moneys distributed under
21subsection (d) of Section 7.2 of the General Obligation Bond
22Act. In determining this maximum for State fiscal years 2008
23through 2010, however, the amount referred to in item (i) shall
24be increased, as a percentage of the applicable employee
25payroll, in equal increments calculated from the sum of the
26required State contribution for State fiscal year 2007 plus the

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1applicable portion of the State's total debt service payments
2for fiscal year 2007 on the bonds issued in fiscal year 2003
3for the purposes of Section 7.2 of the General Obligation Bond
4Act, so that, by State fiscal year 2011, the State is
5contributing at the rate otherwise required under this Section.
6 (b-10) Subject to the limitations provided in subsection
7(b-15), beginning with State fiscal year 2017, the minimum
8required contribution of each employer under this Article shall
9be sufficient to produce an annual amount equal to:
10 (i) the employer's normal cost for that fiscal year;
11 plus
12 (ii) the amount required for that fiscal year to
13 amortize that employer's portion of the unfunded accrued
14 liability associated with the cost of benefits accrued on
15 or after July 1, 2016 as a level percentage of payroll over
16 a 30-year rolling amortization period, as determined for
17 each employer by the Board.
18 Each employer under this Article shall make these
19contributions in the amounts determined and the manner
20prescribed from time to time by the Board.
21 (b-15) The System shall determine the employer's normal
22cost under item (i) of subsection (b-10) as a percentage of
23projected payroll applicable to all employers, based on
24actuarial assumptions applicable to the System as a whole.
25 The System shall determine the employer's portion of the
26unfunded accrued liability under item (ii) of subsection (b-10)

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1separately for each employer, as a percentage of that
2employer's projected payroll, based on the liabilities
3attributable to that employer and the actuarial assumptions
4applicable to the System as a whole.
5 For use in determining the employer's contribution for
6unfunded accrued liability under item (ii), the System shall
7maintain a separate account for each employer. The separate
8account shall be maintained in such form and detail as the
9System determines to be appropriate. The separate account shall
10reflect the following items to the extent that they are
11attributable to that employer and arise on or after July 1,
122016: employer contributions, State contributions under
13subsection (b-20), employee contributions, investment returns,
14payments of benefits, and that employer's proportionate share
15of the System's administrative expenses.
16 In the event that the Board determines that there is a
17deficiency or surplus in the account of an employer with
18respect to the projected liabilities attributable to that
19employer arising on or after July 1, 2016, the Board shall
20determine the employer's contribution rate under item (ii) of
21subsection (b-10) so as to address that deficiency or surplus
22over a reasonable period of time as determined by the Board.
23 (c) Payment of the required State contributions and of all
24pensions, retirement annuities, death benefits, refunds, and
25other benefits granted under or assumed by this System, and all
26expenses in connection with the administration and operation

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1thereof, are obligations of the State.
2 If members are paid from special trust or federal funds
3which are administered by the employing unit, whether school
4district or other unit, the employing unit shall pay to the
5System from such funds the full accruing retirement costs based
6upon that service, which, beginning July 1, 2014, shall be at a
7rate, expressed as a percentage of salary, equal to the total
8minimum contribution to the System to be made by the State for
9that fiscal year, including both normal cost and unfunded
10liability components, expressed as a percentage of payroll, as
11determined by the System under subsection (b-3) of this
12Section. Employer contributions, based on salary paid to
13members from federal funds, may be forwarded by the
14distributing agency of the State of Illinois to the System
15prior to allocation, in an amount determined in accordance with
16guidelines established by such agency and the System. Any
17contribution for fiscal year 2015 collected as a result of the
18change made by this amendatory Act of the 98th General Assembly
19shall be considered a State contribution under subsection (b-3)
20of this Section.
21 (d) Effective July 1, 1986, any employer of a teacher as
22defined in paragraph (8) of Section 16-106 shall pay the
23employer's normal cost of benefits based upon the teacher's
24service, in addition to employee contributions, as determined
25by the System. Such employer contributions shall be forwarded
26monthly in accordance with guidelines established by the

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1System.
2 However, with respect to benefits granted under Section
316-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
4of Section 16-106, the employer's contribution shall be 12%
5(rather than 20%) of the member's highest annual salary rate
6for each year of creditable service granted, and the employer
7shall also pay the required employee contribution on behalf of
8the teacher. For the purposes of Sections 16-133.4 and
916-133.5, a teacher as defined in paragraph (8) of Section
1016-106 who is serving in that capacity while on leave of
11absence from another employer under this Article shall not be
12considered an employee of the employer from which the teacher
13is on leave.
14 (e) Beginning July 1, 1998, every employer of a teacher
15shall pay to the System an employer contribution computed as
16follows:
17 (1) Beginning July 1, 1998 through June 30, 1999, the
18 employer contribution shall be equal to 0.3% of each
19 teacher's salary.
20 (2) Beginning July 1, 1999 and thereafter, the employer
21 contribution shall be equal to 0.58% of each teacher's
22 salary.
23The school district or other employing unit may pay these
24employer contributions out of any source of funding available
25for that purpose and shall forward the contributions to the
26System on the schedule established for the payment of member

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1contributions.
2 These employer contributions are intended to offset a
3portion of the cost to the System of the increases in
4retirement benefits resulting from this amendatory Act of 1998.
5 Each employer of teachers is entitled to a credit against
6the contributions required under this subsection (e) with
7respect to salaries paid to teachers for the period January 1,
82002 through June 30, 2003, equal to the amount paid by that
9employer under subsection (a-5) of Section 6.6 of the State
10Employees Group Insurance Act of 1971 with respect to salaries
11paid to teachers for that period.
12 The additional 1% employee contribution required under
13Section 16-152 by this amendatory Act of 1998 is the
14responsibility of the teacher and not the teacher's employer,
15unless the employer agrees, through collective bargaining or
16otherwise, to make the contribution on behalf of the teacher.
17 If an employer is required by a contract in effect on May
181, 1998 between the employer and an employee organization to
19pay, on behalf of all its full-time employees covered by this
20Article, all mandatory employee contributions required under
21this Article, then the employer shall be excused from paying
22the employer contribution required under this subsection (e)
23for the balance of the term of that contract. The employer and
24the employee organization shall jointly certify to the System
25the existence of the contractual requirement, in such form as
26the System may prescribe. This exclusion shall cease upon the

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1termination, extension, or renewal of the contract at any time
2after May 1, 1998.
3 (f) If the amount of a teacher's salary for any school year
4used to determine final average salary exceeds the member's
5annual full-time salary rate with the same employer for the
6previous school year by more than 6%, the teacher's employer
7shall pay to the System, in addition to all other payments
8required under this Section and in accordance with guidelines
9established by the System, the present value of the increase in
10benefits resulting from the portion of the increase in salary
11that is in excess of 6%. This present value shall be computed
12by the System on the basis of the actuarial assumptions and
13tables used in the most recent actuarial valuation of the
14System that is available at the time of the computation. If a
15teacher's salary for the 2005-2006 school year is used to
16determine final average salary under this subsection (f), then
17the changes made to this subsection (f) by Public Act 94-1057
18shall apply in calculating whether the increase in his or her
19salary is in excess of 6%. For the purposes of this Section,
20change in employment under Section 10-21.12 of the School Code
21on or after June 1, 2005 shall constitute a change in employer.
22The System may require the employer to provide any pertinent
23information or documentation. The changes made to this
24subsection (f) by this amendatory Act of the 94th General
25Assembly apply without regard to whether the teacher was in
26service on or after its effective date.

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1 Whenever it determines that a payment is or may be required
2under this subsection, the System shall calculate the amount of
3the payment and bill the employer for that amount. The bill
4shall specify the calculations used to determine the amount
5due. If the employer disputes the amount of the bill, it may,
6within 30 days after receipt of the bill, apply to the System
7in writing for a recalculation. The application must specify in
8detail the grounds of the dispute and, if the employer asserts
9that the calculation is subject to subsection (g) or (h) of
10this Section, must include an affidavit setting forth and
11attesting to all facts within the employer's knowledge that are
12pertinent to the applicability of that subsection. Upon
13receiving a timely application for recalculation, the System
14shall review the application and, if appropriate, recalculate
15the amount due.
16 The employer contributions required under this subsection
17(f) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest will be
20charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25 (g) This subsection (g) applies only to payments made or
26salary increases given on or after June 1, 2005 but before July

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11, 2011. The changes made by Public Act 94-1057 shall not
2require the System to refund any payments received before July
331, 2006 (the effective date of Public Act 94-1057).
4 When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases paid to teachers
6under contracts or collective bargaining agreements entered
7into, amended, or renewed before June 1, 2005.
8 When assessing payment for any amount due under subsection
9(f), the System shall exclude salary increases paid to a
10teacher at a time when the teacher is 10 or more years from
11retirement eligibility under Section 16-132 or 16-133.2.
12 When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases resulting from
14overload work, including summer school, when the school
15district has certified to the System, and the System has
16approved the certification, that (i) the overload work is for
17the sole purpose of classroom instruction in excess of the
18standard number of classes for a full-time teacher in a school
19district during a school year and (ii) the salary increases are
20equal to or less than the rate of pay for classroom instruction
21computed on the teacher's current salary and work schedule.
22 When assessing payment for any amount due under subsection
23(f), the System shall exclude a salary increase resulting from
24a promotion (i) for which the employee is required to hold a
25certificate or supervisory endorsement issued by the State
26Teacher Certification Board that is a different certification

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1or supervisory endorsement than is required for the teacher's
2previous position and (ii) to a position that has existed and
3been filled by a member for no less than one complete academic
4year and the salary increase from the promotion is an increase
5that results in an amount no greater than the lesser of the
6average salary paid for other similar positions in the district
7requiring the same certification or the amount stipulated in
8the collective bargaining agreement for a similar position
9requiring the same certification.
10 When assessing payment for any amount due under subsection
11(f), the System shall exclude any payment to the teacher from
12the State of Illinois or the State Board of Education over
13which the employer does not have discretion, notwithstanding
14that the payment is included in the computation of final
15average salary.
16 (h) When assessing payment for any amount due under
17subsection (f), the System shall exclude any salary increase
18described in subsection (g) of this Section given on or after
19July 1, 2011 but before July 1, 2014 under a contract or
20collective bargaining agreement entered into, amended, or
21renewed on or after June 1, 2005 but before July 1, 2011.
22Notwithstanding any other provision of this Section, any
23payments made or salary increases given after June 30, 2014
24shall be used in assessing payment for any amount due under
25subsection (f) of this Section.
26 (i) The System shall prepare a report and file copies of

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1the report with the Governor and the General Assembly by
2January 1, 2007 that contains all of the following information:
3 (1) The number of recalculations required by the
4 changes made to this Section by Public Act 94-1057 for each
5 employer.
6 (2) The dollar amount by which each employer's
7 contribution to the System was changed due to
8 recalculations required by Public Act 94-1057.
9 (3) The total amount the System received from each
10 employer as a result of the changes made to this Section by
11 Public Act 94-4.
12 (4) The increase in the required State contribution
13 resulting from the changes made to this Section by Public
14 Act 94-1057.
15 (j) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19 As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26 (k) For purposes of determining the required State

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1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
66-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
7 Section 85. The School Code is amended by changing Sections
82-3.28 and 18-8.05 and by adding Section 2-3.84a as follows:
9 (105 ILCS 5/2-3.28) (from Ch. 122, par. 2-3.28)
10 Sec. 2-3.28. Rules and regulations of budget and accounting
11systems. To prescribe rules and regulations defining what shall
12constitute a budget and accounting system required under this
13Act. The rules and regulations shall prescribe the minimum
14extent of verification, the type of audit, the extent of the
15audit report and shall require compliance with statutory
16requirements and standards and such requirements as the State
17Board of Education deems necessary for an adequate budget and
18accounting system. For the 2016-2017 school year and
19thereafter, the rules and regulations shall prescribe a system
20for accounting for revenues and expenditures at the individual
21school level that includes without limitation the following:
22 (1) accounting for expenditures for school
23 administration, regular instruction, special education
24 instruction, instructional programs for children of

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1 limited English-speaking ability, instructional support
2 services, and pupil support services;
3 (2) salary expenditures reflecting actual staff
4 salaries at each school;
5 (3) accounting for operations, including
6 non-instructional pupil services, facilities, and business
7 services; and
8 (4) such other requirements as the State Board of
9 Education deems necessary to provide for a uniform and
10 transparent system of accounting at the school level.
11(Source: P.A. 81-1508.)
12 (105 ILCS 5/2-3.84a new)
13 Sec. 2-3.84a. Additional appropriation for general State
14aid. The predicted cost-shifting savings certified to the State
15Board of Education by the Board of Trustees of the Teachers'
16Retirement System of the State of Illinois under subsection
17(a-10) of Section 16-158 of the Illinois Pension Code shall be
18included in the State Board of Education's budget as a separate
19line item appropriation from the General Revenue Fund to the
20State Board of Education for additional general State aid under
21subsection (E) of Section 18-8.05 of the School Code and must
22be appropriated as such. This appropriated amount for general
23State aid must supplement, not supplant, funds appropriated
24from the Common School Fund for general State aid. On a
25continuing monthly basis, the State Board of Education shall

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1prepare and submit vouchers for 1/12 of the amount
2appropriated. The State Comptroller shall cause his or her
3warrants to be drawn for the amount due and payable to the
4State Board of Education.
5 (105 ILCS 5/18-8.05)
6 Sec. 18-8.05. Basis for apportionment of general State
7financial aid and supplemental general State aid to the common
8schools for the 1998-1999 and subsequent school years.
9(A) General Provisions.
10 (1) The provisions of this Section apply to the 1998-1999
11and subsequent school years. The system of general State
12financial aid provided for in this Section is designed to
13assure that, through a combination of State financial aid and
14required local resources, the financial support provided each
15pupil in Average Daily Attendance equals or exceeds a
16prescribed per pupil Foundation Level. This formula approach
17imputes a level of per pupil Available Local Resources and
18provides for the basis to calculate a per pupil level of
19general State financial aid that, when added to Available Local
20Resources, equals or exceeds the Foundation Level. The amount
21of per pupil general State financial aid for school districts,
22in general, varies in inverse relation to Available Local
23Resources. Per pupil amounts are based upon each school
24district's Average Daily Attendance as that term is defined in

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1this Section.
2 (2) In addition to general State financial aid, school
3districts with specified levels or concentrations of pupils
4from low income households are eligible to receive supplemental
5general State financial aid grants as provided pursuant to
6subsection (H). The supplemental State aid grants provided for
7school districts under subsection (H) shall be appropriated for
8distribution to school districts as part of the same line item
9in which the general State financial aid of school districts is
10appropriated under this Section.
11 (3) To receive financial assistance under this Section,
12school districts are required to file claims with the State
13Board of Education, subject to the following requirements:
14 (a) Any school district which fails for any given
15 school year to maintain school as required by law, or to
16 maintain a recognized school is not eligible to file for
17 such school year any claim upon the Common School Fund. In
18 case of nonrecognition of one or more attendance centers in
19 a school district otherwise operating recognized schools,
20 the claim of the district shall be reduced in the
21 proportion which the Average Daily Attendance in the
22 attendance center or centers bear to the Average Daily
23 Attendance in the school district. A "recognized school"
24 means any public school which meets the standards as
25 established for recognition by the State Board of
26 Education. A school district or attendance center not

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1 having recognition status at the end of a school term is
2 entitled to receive State aid payments due upon a legal
3 claim which was filed while it was recognized.
4 (b) School district claims filed under this Section are
5 subject to Sections 18-9 and 18-12, except as otherwise
6 provided in this Section.
7 (c) If a school district operates a full year school
8 under Section 10-19.1, the general State aid to the school
9 district shall be determined by the State Board of
10 Education in accordance with this Section as near as may be
11 applicable.
12 (d) (Blank).
13 (4) Except as provided in subsections (H) and (L), the
14board of any district receiving any of the grants provided for
15in this Section may apply those funds to any fund so received
16for which that board is authorized to make expenditures by law.
17 School districts are not required to exert a minimum
18Operating Tax Rate in order to qualify for assistance under
19this Section.
20 (5) As used in this Section the following terms, when
21capitalized, shall have the meaning ascribed herein:
22 (a) "Average Daily Attendance": A count of pupil
23 attendance in school, averaged as provided for in
24 subsection (C) and utilized in deriving per pupil financial
25 support levels.
26 (b) "Available Local Resources": A computation of

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1 local financial support, calculated on the basis of Average
2 Daily Attendance and derived as provided pursuant to
3 subsection (D).
4 (c) "Corporate Personal Property Replacement Taxes":
5 Funds paid to local school districts pursuant to "An Act in
6 relation to the abolition of ad valorem personal property
7 tax and the replacement of revenues lost thereby, and
8 amending and repealing certain Acts and parts of Acts in
9 connection therewith", certified August 14, 1979, as
10 amended (Public Act 81-1st S.S.-1).
11 (d) "Foundation Level": A prescribed level of per pupil
12 financial support as provided for in subsection (B).
13 (e) "Operating Tax Rate": All school district property
14 taxes extended for all purposes, except Bond and Interest,
15 Summer School, Rent, Capital Improvement, and Vocational
16 Education Building purposes.
17(B) Foundation Level.
18 (1) The Foundation Level is a figure established by the
19State representing the minimum level of per pupil financial
20support that should be available to provide for the basic
21education of each pupil in Average Daily Attendance. As set
22forth in this Section, each school district is assumed to exert
23a sufficient local taxing effort such that, in combination with
24the aggregate of general State financial aid provided the
25district, an aggregate of State and local resources are

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1available to meet the basic education needs of pupils in the
2district.
3 (2) For the 1998-1999 school year, the Foundation Level of
4support is $4,225. For the 1999-2000 school year, the
5Foundation Level of support is $4,325. For the 2000-2001 school
6year, the Foundation Level of support is $4,425. For the
72001-2002 school year and 2002-2003 school year, the Foundation
8Level of support is $4,560. For the 2003-2004 school year, the
9Foundation Level of support is $4,810. For the 2004-2005 school
10year, the Foundation Level of support is $4,964. For the
112005-2006 school year, the Foundation Level of support is
12$5,164. For the 2006-2007 school year, the Foundation Level of
13support is $5,334. For the 2007-2008 school year, the
14Foundation Level of support is $5,734. For the 2008-2009 school
15year, the Foundation Level of support is $5,959.
16 (3) For the 2009-2010 school year and each school year
17thereafter, the Foundation Level of support is $6,119 or such
18greater amount as may be available under the Fund Education
19First Act or as established by law by the General Assembly. If
20the total amount appropriated for general State aid under
21subsection (E) of this Section in a particular fiscal year is
22sufficient to fund a greater Foundation Level of support than
23specified in this paragraph (3), then the Foundation Level
24shall be set by the State Board of Education, for that fiscal
25year only, at a higher amount.

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1(C) Average Daily Attendance.
2 (1) For purposes of calculating general State aid pursuant
3to subsection (E), an Average Daily Attendance figure shall be
4utilized. The Average Daily Attendance figure for formula
5calculation purposes shall be the monthly average of the actual
6number of pupils in attendance of each school district, as
7further averaged for the best 3 months of pupil attendance for
8each school district. In compiling the figures for the number
9of pupils in attendance, school districts and the State Board
10of Education shall, for purposes of general State aid funding,
11conform attendance figures to the requirements of subsection
12(F).
13 (2) The Average Daily Attendance figures utilized in
14subsection (E) shall be the requisite attendance data for the
15school year immediately preceding the school year for which
16general State aid is being calculated or the average of the
17attendance data for the 3 preceding school years, whichever is
18greater. The Average Daily Attendance figures utilized in
19subsection (H) shall be the requisite attendance data for the
20school year immediately preceding the school year for which
21general State aid is being calculated.
22(D) Available Local Resources.
23 (1) For purposes of calculating general State aid pursuant
24to subsection (E), a representation of Available Local
25Resources per pupil, as that term is defined and determined in

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1this subsection, shall be utilized. Available Local Resources
2per pupil shall include a calculated dollar amount representing
3local school district revenues from local property taxes and
4from Corporate Personal Property Replacement Taxes, expressed
5on the basis of pupils in Average Daily Attendance. Calculation
6of Available Local Resources shall exclude any tax amnesty
7funds received as a result of Public Act 93-26.
8 (2) In determining a school district's revenue from local
9property taxes, the State Board of Education shall utilize the
10equalized assessed valuation of all taxable property of each
11school district as of September 30 of the previous year. The
12equalized assessed valuation utilized shall be obtained and
13determined as provided in subsection (G).
14 (3) For school districts maintaining grades kindergarten
15through 12, local property tax revenues per pupil shall be
16calculated as the product of the applicable equalized assessed
17valuation for the district multiplied by 3.00%, and divided by
18the district's Average Daily Attendance figure. For school
19districts maintaining grades kindergarten through 8, local
20property tax revenues per pupil shall be calculated as the
21product of the applicable equalized assessed valuation for the
22district multiplied by 2.30%, and divided by the district's
23Average Daily Attendance figure. For school districts
24maintaining grades 9 through 12, local property tax revenues
25per pupil shall be the applicable equalized assessed valuation
26of the district multiplied by 1.05%, and divided by the

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1district's Average Daily Attendance figure.
2 For partial elementary unit districts created pursuant to
3Article 11E of this Code, local property tax revenues per pupil
4shall be calculated as the product of the equalized assessed
5valuation for property within the partial elementary unit
6district for elementary purposes, as defined in Article 11E of
7this Code, multiplied by 2.06% and divided by the district's
8Average Daily Attendance figure, plus the product of the
9equalized assessed valuation for property within the partial
10elementary unit district for high school purposes, as defined
11in Article 11E of this Code, multiplied by 0.94% and divided by
12the district's Average Daily Attendance figure.
13 (4) The Corporate Personal Property Replacement Taxes paid
14to each school district during the calendar year one year
15before the calendar year in which a school year begins, divided
16by the Average Daily Attendance figure for that district, shall
17be added to the local property tax revenues per pupil as
18derived by the application of the immediately preceding
19paragraph (3). The sum of these per pupil figures for each
20school district shall constitute Available Local Resources as
21that term is utilized in subsection (E) in the calculation of
22general State aid.
23(E) Computation of General State Aid.
24 (1) For each school year, the amount of general State aid
25allotted to a school district shall be computed by the State

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1Board of Education as provided in this subsection.
2 (2) For any school district for which Available Local
3Resources per pupil is less than the product of 0.93 times the
4Foundation Level, general State aid for that district shall be
5calculated as an amount equal to the Foundation Level minus
6Available Local Resources, multiplied by the Average Daily
7Attendance of the school district.
8 (3) For any school district for which Available Local
9Resources per pupil is equal to or greater than the product of
100.93 times the Foundation Level and less than the product of
111.75 times the Foundation Level, the general State aid per
12pupil shall be a decimal proportion of the Foundation Level
13derived using a linear algorithm. Under this linear algorithm,
14the calculated general State aid per pupil shall decline in
15direct linear fashion from 0.07 times the Foundation Level for
16a school district with Available Local Resources equal to the
17product of 0.93 times the Foundation Level, to 0.05 times the
18Foundation Level for a school district with Available Local
19Resources equal to the product of 1.75 times the Foundation
20Level. The allocation of general State aid for school districts
21subject to this paragraph 3 shall be the calculated general
22State aid per pupil figure multiplied by the Average Daily
23Attendance of the school district.
24 (4) For any school district for which Available Local
25Resources per pupil equals or exceeds the product of 1.75 times
26the Foundation Level, the general State aid for the school

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1district shall be calculated as the product of $218 multiplied
2by the Average Daily Attendance of the school district.
3 (5) The amount of general State aid allocated to a school
4district for the 1999-2000 school year meeting the requirements
5set forth in paragraph (4) of subsection (G) shall be increased
6by an amount equal to the general State aid that would have
7been received by the district for the 1998-1999 school year by
8utilizing the Extension Limitation Equalized Assessed
9Valuation as calculated in paragraph (4) of subsection (G) less
10the general State aid allotted for the 1998-1999 school year.
11This amount shall be deemed a one time increase, and shall not
12affect any future general State aid allocations.
13(F) Compilation of Average Daily Attendance.
14 (1) Each school district shall, by July 1 of each year,
15submit to the State Board of Education, on forms prescribed by
16the State Board of Education, attendance figures for the school
17year that began in the preceding calendar year. The attendance
18information so transmitted shall identify the average daily
19attendance figures for each month of the school year. Beginning
20with the general State aid claim form for the 2002-2003 school
21year, districts shall calculate Average Daily Attendance as
22provided in subdivisions (a), (b), and (c) of this paragraph
23(1).
24 (a) In districts that do not hold year-round classes,
25 days of attendance in August shall be added to the month of

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1 September and any days of attendance in June shall be added
2 to the month of May.
3 (b) In districts in which all buildings hold year-round
4 classes, days of attendance in July and August shall be
5 added to the month of September and any days of attendance
6 in June shall be added to the month of May.
7 (c) In districts in which some buildings, but not all,
8 hold year-round classes, for the non-year-round buildings,
9 days of attendance in August shall be added to the month of
10 September and any days of attendance in June shall be added
11 to the month of May. The average daily attendance for the
12 year-round buildings shall be computed as provided in
13 subdivision (b) of this paragraph (1). To calculate the
14 Average Daily Attendance for the district, the average
15 daily attendance for the year-round buildings shall be
16 multiplied by the days in session for the non-year-round
17 buildings for each month and added to the monthly
18 attendance of the non-year-round buildings.
19 Except as otherwise provided in this Section, days of
20attendance by pupils shall be counted only for sessions of not
21less than 5 clock hours of school work per day under direct
22supervision of: (i) teachers, or (ii) non-teaching personnel or
23volunteer personnel when engaging in non-teaching duties and
24supervising in those instances specified in subsection (a) of
25Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
26of legal school age and in kindergarten and grades 1 through

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112.
2 Days of attendance by tuition pupils shall be accredited
3only to the districts that pay the tuition to a recognized
4school.
5 (2) Days of attendance by pupils of less than 5 clock hours
6of school shall be subject to the following provisions in the
7compilation of Average Daily Attendance.
8 (a) Pupils regularly enrolled in a public school for
9 only a part of the school day may be counted on the basis
10 of 1/6 day for every class hour of instruction of 40
11 minutes or more attended pursuant to such enrollment,
12 unless a pupil is enrolled in a block-schedule format of 80
13 minutes or more of instruction, in which case the pupil may
14 be counted on the basis of the proportion of minutes of
15 school work completed each day to the minimum number of
16 minutes that school work is required to be held that day.
17 (b) (Blank).
18 (c) A session of 4 or more clock hours may be counted
19 as a day of attendance upon certification by the regional
20 superintendent, and approved by the State Superintendent
21 of Education to the extent that the district has been
22 forced to use daily multiple sessions.
23 (d) A session of 3 or more clock hours may be counted
24 as a day of attendance (1) when the remainder of the school
25 day or at least 2 hours in the evening of that day is
26 utilized for an in-service training program for teachers,

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1 up to a maximum of 5 days per school year, provided a
2 district conducts an in-service training program for
3 teachers in accordance with Section 10-22.39 of this Code;
4 or, in lieu of 4 such days, 2 full days may be used, in
5 which event each such day may be counted as a day required
6 for a legal school calendar pursuant to Section 10-19 of
7 this Code; (1.5) when, of the 5 days allowed under item
8 (1), a maximum of 4 days are used for parent-teacher
9 conferences, or, in lieu of 4 such days, 2 full days are
10 used, in which case each such day may be counted as a
11 calendar day required under Section 10-19 of this Code,
12 provided that the full-day, parent-teacher conference
13 consists of (i) a minimum of 5 clock hours of
14 parent-teacher conferences, (ii) both a minimum of 2 clock
15 hours of parent-teacher conferences held in the evening
16 following a full day of student attendance, as specified in
17 subsection (F)(1)(c), and a minimum of 3 clock hours of
18 parent-teacher conferences held on the day immediately
19 following evening parent-teacher conferences, or (iii)
20 multiple parent-teacher conferences held in the evenings
21 following full days of student attendance, as specified in
22 subsection (F)(1)(c), in which the time used for the
23 parent-teacher conferences is equivalent to a minimum of 5
24 clock hours; and (2) when days in addition to those
25 provided in items (1) and (1.5) are scheduled by a school
26 pursuant to its school improvement plan adopted under

HB4272- 38 -LRB099 13722 NHT 37684 b
1 Article 34 or its revised or amended school improvement
2 plan adopted under Article 2, provided that (i) such
3 sessions of 3 or more clock hours are scheduled to occur at
4 regular intervals, (ii) the remainder of the school days in
5 which such sessions occur are utilized for in-service
6 training programs or other staff development activities
7 for teachers, and (iii) a sufficient number of minutes of
8 school work under the direct supervision of teachers are
9 added to the school days between such regularly scheduled
10 sessions to accumulate not less than the number of minutes
11 by which such sessions of 3 or more clock hours fall short
12 of 5 clock hours. Any full days used for the purposes of
13 this paragraph shall not be considered for computing
14 average daily attendance. Days scheduled for in-service
15 training programs, staff development activities, or
16 parent-teacher conferences may be scheduled separately for
17 different grade levels and different attendance centers of
18 the district.
19 (e) A session of not less than one clock hour of
20 teaching hospitalized or homebound pupils on-site or by
21 telephone to the classroom may be counted as 1/2 day of
22 attendance, however these pupils must receive 4 or more
23 clock hours of instruction to be counted for a full day of
24 attendance.
25 (f) A session of at least 4 clock hours may be counted
26 as a day of attendance for first grade pupils, and pupils

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1 in full day kindergartens, and a session of 2 or more hours
2 may be counted as 1/2 day of attendance by pupils in
3 kindergartens which provide only 1/2 day of attendance.
4 (g) For children with disabilities who are below the
5 age of 6 years and who cannot attend 2 or more clock hours
6 because of their disability or immaturity, a session of not
7 less than one clock hour may be counted as 1/2 day of
8 attendance; however for such children whose educational
9 needs so require a session of 4 or more clock hours may be
10 counted as a full day of attendance.
11 (h) A recognized kindergarten which provides for only
12 1/2 day of attendance by each pupil shall not have more
13 than 1/2 day of attendance counted in any one day. However,
14 kindergartens may count 2 1/2 days of attendance in any 5
15 consecutive school days. When a pupil attends such a
16 kindergarten for 2 half days on any one school day, the
17 pupil shall have the following day as a day absent from
18 school, unless the school district obtains permission in
19 writing from the State Superintendent of Education.
20 Attendance at kindergartens which provide for a full day of
21 attendance by each pupil shall be counted the same as
22 attendance by first grade pupils. Only the first year of
23 attendance in one kindergarten shall be counted, except in
24 case of children who entered the kindergarten in their
25 fifth year whose educational development requires a second
26 year of kindergarten as determined under the rules and

HB4272- 40 -LRB099 13722 NHT 37684 b
1 regulations of the State Board of Education.
2 (i) On the days when the assessment that includes a
3 college and career ready determination is administered
4 under subsection (c) of Section 2-3.64a-5 of this Code, the
5 day of attendance for a pupil whose school day must be
6 shortened to accommodate required testing procedures may
7 be less than 5 clock hours and shall be counted towards the
8 176 days of actual pupil attendance required under Section
9 10-19 of this Code, provided that a sufficient number of
10 minutes of school work in excess of 5 clock hours are first
11 completed on other school days to compensate for the loss
12 of school work on the examination days.
13 (j) Pupils enrolled in a remote educational program
14 established under Section 10-29 of this Code may be counted
15 on the basis of one-fifth day of attendance for every clock
16 hour of instruction attended in the remote educational
17 program, provided that, in any month, the school district
18 may not claim for a student enrolled in a remote
19 educational program more days of attendance than the
20 maximum number of days of attendance the district can claim
21 (i) for students enrolled in a building holding year-round
22 classes if the student is classified as participating in
23 the remote educational program on a year-round schedule or
24 (ii) for students enrolled in a building not holding
25 year-round classes if the student is not classified as
26 participating in the remote educational program on a

HB4272- 41 -LRB099 13722 NHT 37684 b
1 year-round schedule.
2(G) Equalized Assessed Valuation Data.
3 (1) For purposes of the calculation of Available Local
4Resources required pursuant to subsection (D), the State Board
5of Education shall secure from the Department of Revenue the
6value as equalized or assessed by the Department of Revenue of
7all taxable property of every school district, together with
8(i) the applicable tax rate used in extending taxes for the
9funds of the district as of September 30 of the previous year
10and (ii) the limiting rate for all school districts subject to
11property tax extension limitations as imposed under the
12Property Tax Extension Limitation Law.
13 The Department of Revenue shall add to the equalized
14assessed value of all taxable property of each school district
15situated entirely or partially within a county that is or was
16subject to the provisions of Section 15-176 or 15-177 of the
17Property Tax Code (a) an amount equal to the total amount by
18which the homestead exemption allowed under Section 15-176 or
1915-177 of the Property Tax Code for real property situated in
20that school district exceeds the total amount that would have
21been allowed in that school district if the maximum reduction
22under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
23all other counties in tax year 2003 or (ii) $5,000 in all
24counties in tax year 2004 and thereafter and (b) an amount
25equal to the aggregate amount for the taxable year of all

HB4272- 42 -LRB099 13722 NHT 37684 b
1additional exemptions under Section 15-175 of the Property Tax
2Code for owners with a household income of $30,000 or less. The
3county clerk of any county that is or was subject to the
4provisions of Section 15-176 or 15-177 of the Property Tax Code
5shall annually calculate and certify to the Department of
6Revenue for each school district all homestead exemption
7amounts under Section 15-176 or 15-177 of the Property Tax Code
8and all amounts of additional exemptions under Section 15-175
9of the Property Tax Code for owners with a household income of
10$30,000 or less. It is the intent of this paragraph that if the
11general homestead exemption for a parcel of property is
12determined under Section 15-176 or 15-177 of the Property Tax
13Code rather than Section 15-175, then the calculation of
14Available Local Resources shall not be affected by the
15difference, if any, between the amount of the general homestead
16exemption allowed for that parcel of property under Section
1715-176 or 15-177 of the Property Tax Code and the amount that
18would have been allowed had the general homestead exemption for
19that parcel of property been determined under Section 15-175 of
20the Property Tax Code. It is further the intent of this
21paragraph that if additional exemptions are allowed under
22Section 15-175 of the Property Tax Code for owners with a
23household income of less than $30,000, then the calculation of
24Available Local Resources shall not be affected by the
25difference, if any, because of those additional exemptions.
26 This equalized assessed valuation, as adjusted further by

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1the requirements of this subsection, shall be utilized in the
2calculation of Available Local Resources.
3 (2) The equalized assessed valuation in paragraph (1) shall
4be adjusted, as applicable, in the following manner:
5 (a) For the purposes of calculating State aid under
6 this Section, with respect to any part of a school district
7 within a redevelopment project area in respect to which a
8 municipality has adopted tax increment allocation
9 financing pursuant to the Tax Increment Allocation
10 Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
11 of the Illinois Municipal Code or the Industrial Jobs
12 Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
13 Illinois Municipal Code, no part of the current equalized
14 assessed valuation of real property located in any such
15 project area which is attributable to an increase above the
16 total initial equalized assessed valuation of such
17 property shall be used as part of the equalized assessed
18 valuation of the district, until such time as all
19 redevelopment project costs have been paid, as provided in
20 Section 11-74.4-8 of the Tax Increment Allocation
21 Redevelopment Act or in Section 11-74.6-35 of the
22 Industrial Jobs Recovery Law. For the purpose of the
23 equalized assessed valuation of the district, the total
24 initial equalized assessed valuation or the current
25 equalized assessed valuation, whichever is lower, shall be
26 used until such time as all redevelopment project costs

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1 have been paid.
2 (b) The real property equalized assessed valuation for
3 a school district shall be adjusted by subtracting from the
4 real property value as equalized or assessed by the
5 Department of Revenue for the district an amount computed
6 by dividing the amount of any abatement of taxes under
7 Section 18-170 of the Property Tax Code by 3.00% for a
8 district maintaining grades kindergarten through 12, by
9 2.30% for a district maintaining grades kindergarten
10 through 8, or by 1.05% for a district maintaining grades 9
11 through 12 and adjusted by an amount computed by dividing
12 the amount of any abatement of taxes under subsection (a)
13 of Section 18-165 of the Property Tax Code by the same
14 percentage rates for district type as specified in this
15 subparagraph (b).
16 (3) For the 1999-2000 school year and each school year
17thereafter, if a school district meets all of the criteria of
18this subsection (G)(3), the school district's Available Local
19Resources shall be calculated under subsection (D) using the
20district's Extension Limitation Equalized Assessed Valuation
21as calculated under this subsection (G)(3).
22 For purposes of this subsection (G)(3) the following terms
23shall have the following meanings:
24 "Budget Year": The school year for which general State
25 aid is calculated and awarded under subsection (E).
26 "Base Tax Year": The property tax levy year used to

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1 calculate the Budget Year allocation of general State aid.
2 "Preceding Tax Year": The property tax levy year
3 immediately preceding the Base Tax Year.
4 "Base Tax Year's Tax Extension": The product of the
5 equalized assessed valuation utilized by the County Clerk
6 in the Base Tax Year multiplied by the limiting rate as
7 calculated by the County Clerk and defined in the Property
8 Tax Extension Limitation Law.
9 "Preceding Tax Year's Tax Extension": The product of
10 the equalized assessed valuation utilized by the County
11 Clerk in the Preceding Tax Year multiplied by the Operating
12 Tax Rate as defined in subsection (A).
13 "Extension Limitation Ratio": A numerical ratio,
14 certified by the County Clerk, in which the numerator is
15 the Base Tax Year's Tax Extension and the denominator is
16 the Preceding Tax Year's Tax Extension.
17 "Operating Tax Rate": The operating tax rate as defined
18 in subsection (A).
19 If a school district is subject to property tax extension
20limitations as imposed under the Property Tax Extension
21Limitation Law, the State Board of Education shall calculate
22the Extension Limitation Equalized Assessed Valuation of that
23district. For the 1999-2000 school year, the Extension
24Limitation Equalized Assessed Valuation of a school district as
25calculated by the State Board of Education shall be equal to
26the product of the district's 1996 Equalized Assessed Valuation

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1and the district's Extension Limitation Ratio. Except as
2otherwise provided in this paragraph for a school district that
3has approved or does approve an increase in its limiting rate,
4for the 2000-2001 school year and each school year thereafter,
5the Extension Limitation Equalized Assessed Valuation of a
6school district as calculated by the State Board of Education
7shall be equal to the product of the Equalized Assessed
8Valuation last used in the calculation of general State aid and
9the district's Extension Limitation Ratio. If the Extension
10Limitation Equalized Assessed Valuation of a school district as
11calculated under this subsection (G)(3) is less than the
12district's equalized assessed valuation as calculated pursuant
13to subsections (G)(1) and (G)(2), then for purposes of
14calculating the district's general State aid for the Budget
15Year pursuant to subsection (E), that Extension Limitation
16Equalized Assessed Valuation shall be utilized to calculate the
17district's Available Local Resources under subsection (D). For
18the 2009-2010 school year and each school year thereafter, if a
19school district has approved or does approve an increase in its
20limiting rate, pursuant to Section 18-190 of the Property Tax
21Code, affecting the Base Tax Year, the Extension Limitation
22Equalized Assessed Valuation of the school district, as
23calculated by the State Board of Education, shall be equal to
24the product of the Equalized Assessed Valuation last used in
25the calculation of general State aid times an amount equal to
26one plus the percentage increase, if any, in the Consumer Price

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1Index for all Urban Consumers for all items published by the
2United States Department of Labor for the 12-month calendar
3year preceding the Base Tax Year, plus the Equalized Assessed
4Valuation of new property, annexed property, and recovered tax
5increment value and minus the Equalized Assessed Valuation of
6disconnected property. New property and recovered tax
7increment value shall have the meanings set forth in the
8Property Tax Extension Limitation Law.
9 Partial elementary unit districts created in accordance
10with Article 11E of this Code shall not be eligible for the
11adjustment in this subsection (G)(3) until the fifth year
12following the effective date of the reorganization.
13 (3.5) For the 2010-2011 school year and each school year
14thereafter, if a school district's boundaries span multiple
15counties, then the Department of Revenue shall send to the
16State Board of Education, for the purpose of calculating
17general State aid, the limiting rate and individual rates by
18purpose for the county that contains the majority of the school
19district's Equalized Assessed Valuation.
20 (4) For the purposes of calculating general State aid for
21the 1999-2000 school year only, if a school district
22experienced a triennial reassessment on the equalized assessed
23valuation used in calculating its general State financial aid
24apportionment for the 1998-1999 school year, the State Board of
25Education shall calculate the Extension Limitation Equalized
26Assessed Valuation that would have been used to calculate the

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1district's 1998-1999 general State aid. This amount shall equal
2the product of the equalized assessed valuation used to
3calculate general State aid for the 1997-1998 school year and
4the district's Extension Limitation Ratio. If the Extension
5Limitation Equalized Assessed Valuation of the school district
6as calculated under this paragraph (4) is less than the
7district's equalized assessed valuation utilized in
8calculating the district's 1998-1999 general State aid
9allocation, then for purposes of calculating the district's
10general State aid pursuant to paragraph (5) of subsection (E),
11that Extension Limitation Equalized Assessed Valuation shall
12be utilized to calculate the district's Available Local
13Resources.
14 (5) For school districts having a majority of their
15equalized assessed valuation in any county except Cook, DuPage,
16Kane, Lake, McHenry, or Will, if the amount of general State
17aid allocated to the school district for the 1999-2000 school
18year under the provisions of subsection (E), (H), and (J) of
19this Section is less than the amount of general State aid
20allocated to the district for the 1998-1999 school year under
21these subsections, then the general State aid of the district
22for the 1999-2000 school year only shall be increased by the
23difference between these amounts. The total payments made under
24this paragraph (5) shall not exceed $14,000,000. Claims shall
25be prorated if they exceed $14,000,000.

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1(H) Supplemental General State Aid.
2 (1) In addition to the general State aid a school district
3is allotted pursuant to subsection (E), qualifying school
4districts shall receive a grant, paid in conjunction with a
5district's payments of general State aid, for supplemental
6general State aid based upon the concentration level of
7children from low-income households within the school
8district. Supplemental State aid grants provided for school
9districts under this subsection shall be appropriated for
10distribution to school districts as part of the same line item
11in which the general State financial aid of school districts is
12appropriated under this Section.
13 (1.5) This paragraph (1.5) applies only to those school
14years preceding the 2003-2004 school year. For purposes of this
15subsection (H), the term "Low-Income Concentration Level"
16shall be the low-income eligible pupil count from the most
17recently available federal census divided by the Average Daily
18Attendance of the school district. If, however, (i) the
19percentage decrease from the 2 most recent federal censuses in
20the low-income eligible pupil count of a high school district
21with fewer than 400 students exceeds by 75% or more the
22percentage change in the total low-income eligible pupil count
23of contiguous elementary school districts, whose boundaries
24are coterminous with the high school district, or (ii) a high
25school district within 2 counties and serving 5 elementary
26school districts, whose boundaries are coterminous with the

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1high school district, has a percentage decrease from the 2 most
2recent federal censuses in the low-income eligible pupil count
3and there is a percentage increase in the total low-income
4eligible pupil count of a majority of the elementary school
5districts in excess of 50% from the 2 most recent federal
6censuses, then the high school district's low-income eligible
7pupil count from the earlier federal census shall be the number
8used as the low-income eligible pupil count for the high school
9district, for purposes of this subsection (H). The changes made
10to this paragraph (1) by Public Act 92-28 shall apply to
11supplemental general State aid grants for school years
12preceding the 2003-2004 school year that are paid in fiscal
13year 1999 or thereafter and to any State aid payments made in
14fiscal year 1994 through fiscal year 1998 pursuant to
15subsection 1(n) of Section 18-8 of this Code (which was
16repealed on July 1, 1998), and any high school district that is
17affected by Public Act 92-28 is entitled to a recomputation of
18its supplemental general State aid grant or State aid paid in
19any of those fiscal years. This recomputation shall not be
20affected by any other funding.
21 (1.10) This paragraph (1.10) applies to the 2003-2004
22school year and each school year thereafter. For purposes of
23this subsection (H), the term "Low-Income Concentration Level"
24shall, for each fiscal year, be the low-income eligible pupil
25count as of July 1 of the immediately preceding fiscal year (as
26determined by the Department of Human Services based on the

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1number of pupils who are eligible for at least one of the
2following low income programs: Medicaid, the Children's Health
3Insurance Program, TANF, or Food Stamps, excluding pupils who
4are eligible for services provided by the Department of
5Children and Family Services, averaged over the 2 immediately
6preceding fiscal years for fiscal year 2004 and over the 3
7immediately preceding fiscal years for each fiscal year
8thereafter) divided by the Average Daily Attendance of the
9school district.
10 (2) Supplemental general State aid pursuant to this
11subsection (H) shall be provided as follows for the 1998-1999,
121999-2000, and 2000-2001 school years only:
13 (a) For any school district with a Low Income
14 Concentration Level of at least 20% and less than 35%, the
15 grant for any school year shall be $800 multiplied by the
16 low income eligible pupil count.
17 (b) For any school district with a Low Income
18 Concentration Level of at least 35% and less than 50%, the
19 grant for the 1998-1999 school year shall be $1,100
20 multiplied by the low income eligible pupil count.
21 (c) For any school district with a Low Income
22 Concentration Level of at least 50% and less than 60%, the
23 grant for the 1998-99 school year shall be $1,500
24 multiplied by the low income eligible pupil count.
25 (d) For any school district with a Low Income
26 Concentration Level of 60% or more, the grant for the

HB4272- 52 -LRB099 13722 NHT 37684 b
1 1998-99 school year shall be $1,900 multiplied by the low
2 income eligible pupil count.
3 (e) For the 1999-2000 school year, the per pupil amount
4 specified in subparagraphs (b), (c), and (d) immediately
5 above shall be increased to $1,243, $1,600, and $2,000,
6 respectively.
7 (f) For the 2000-2001 school year, the per pupil
8 amounts specified in subparagraphs (b), (c), and (d)
9 immediately above shall be $1,273, $1,640, and $2,050,
10 respectively.
11 (2.5) Supplemental general State aid pursuant to this
12subsection (H) shall be provided as follows for the 2002-2003
13school year:
14 (a) For any school district with a Low Income
15 Concentration Level of less than 10%, the grant for each
16 school year shall be $355 multiplied by the low income
17 eligible pupil count.
18 (b) For any school district with a Low Income
19 Concentration Level of at least 10% and less than 20%, the
20 grant for each school year shall be $675 multiplied by the
21 low income eligible pupil count.
22 (c) For any school district with a Low Income
23 Concentration Level of at least 20% and less than 35%, the
24 grant for each school year shall be $1,330 multiplied by
25 the low income eligible pupil count.
26 (d) For any school district with a Low Income

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1 Concentration Level of at least 35% and less than 50%, the
2 grant for each school year shall be $1,362 multiplied by
3 the low income eligible pupil count.
4 (e) For any school district with a Low Income
5 Concentration Level of at least 50% and less than 60%, the
6 grant for each school year shall be $1,680 multiplied by
7 the low income eligible pupil count.
8 (f) For any school district with a Low Income
9 Concentration Level of 60% or more, the grant for each
10 school year shall be $2,080 multiplied by the low income
11 eligible pupil count.
12 (2.10) Except as otherwise provided, supplemental general
13State aid pursuant to this subsection (H) shall be provided as
14follows for the 2003-2004 school year and each school year
15thereafter:
16 (a) For any school district with a Low Income
17 Concentration Level of 15% or less, the grant for each
18 school year shall be $355 multiplied by the low income
19 eligible pupil count.
20 (b) For any school district with a Low Income
21 Concentration Level greater than 15%, the grant for each
22 school year shall be $294.25 added to the product of $2,700
23 and the square of the Low Income Concentration Level, all
24 multiplied by the low income eligible pupil count.
25 For the 2003-2004 school year and each school year
26thereafter through the 2008-2009 school year only, the grant

HB4272- 54 -LRB099 13722 NHT 37684 b
1shall be no less than the grant for the 2002-2003 school year.
2For the 2009-2010 school year only, the grant shall be no less
3than the grant for the 2002-2003 school year multiplied by
40.66. For the 2010-2011 school year only, the grant shall be no
5less than the grant for the 2002-2003 school year multiplied by
60.33. Notwithstanding the provisions of this paragraph to the
7contrary, if for any school year supplemental general State aid
8grants are prorated as provided in paragraph (1) of this
9subsection (H), then the grants under this paragraph shall be
10prorated.
11 For the 2003-2004 school year only, the grant shall be no
12greater than the grant received during the 2002-2003 school
13year added to the product of 0.25 multiplied by the difference
14between the grant amount calculated under subsection (a) or (b)
15of this paragraph (2.10), whichever is applicable, and the
16grant received during the 2002-2003 school year. For the
172004-2005 school year only, the grant shall be no greater than
18the grant received during the 2002-2003 school year added to
19the product of 0.50 multiplied by the difference between the
20grant amount calculated under subsection (a) or (b) of this
21paragraph (2.10), whichever is applicable, and the grant
22received during the 2002-2003 school year. For the 2005-2006
23school year only, the grant shall be no greater than the grant
24received during the 2002-2003 school year added to the product
25of 0.75 multiplied by the difference between the grant amount
26calculated under subsection (a) or (b) of this paragraph

HB4272- 55 -LRB099 13722 NHT 37684 b
1(2.10), whichever is applicable, and the grant received during
2the 2002-2003 school year.
3 (3) School districts with an Average Daily Attendance of
4more than 1,000 and less than 50,000 that qualify for
5supplemental general State aid pursuant to this subsection
6shall submit a plan to the State Board of Education prior to
7October 30 of each year for the use of the funds resulting from
8this grant of supplemental general State aid for the
9improvement of instruction in which priority is given to
10meeting the education needs of disadvantaged children. Such
11plan shall be submitted in accordance with rules and
12regulations promulgated by the State Board of Education.
13 (4) School districts with an Average Daily Attendance of
1450,000 or more that qualify for supplemental general State aid
15pursuant to this subsection shall be required to distribute
16from funds available pursuant to this Section, no less than
17$261,000,000 in accordance with the following requirements:
18 (a) The required amounts shall be distributed to the
19 attendance centers within the district in proportion to the
20 number of pupils enrolled at each attendance center who are
21 eligible to receive free or reduced-price lunches or
22 breakfasts under the federal Child Nutrition Act of 1966
23 and under the National School Lunch Act during the
24 immediately preceding school year.
25 (b) The distribution of these portions of supplemental
26 and general State aid among attendance centers according to

HB4272- 56 -LRB099 13722 NHT 37684 b
1 these requirements shall not be compensated for or
2 contravened by adjustments of the total of other funds
3 appropriated to any attendance centers, and the Board of
4 Education shall utilize funding from one or several sources
5 in order to fully implement this provision annually prior
6 to the opening of school.
7 (c) Each attendance center shall be provided by the
8 school district a distribution of noncategorical funds and
9 other categorical funds to which an attendance center is
10 entitled under law in order that the general State aid and
11 supplemental general State aid provided by application of
12 this subsection supplements rather than supplants the
13 noncategorical funds and other categorical funds provided
14 by the school district to the attendance centers.
15 (d) Any funds made available under this subsection that
16 by reason of the provisions of this subsection are not
17 required to be allocated and provided to attendance centers
18 may be used and appropriated by the board of the district
19 for any lawful school purpose.
20 (e) Funds received by an attendance center pursuant to
21 this subsection shall be used by the attendance center at
22 the discretion of the principal and local school council
23 for programs to improve educational opportunities at
24 qualifying schools through the following programs and
25 services: early childhood education, reduced class size or
26 improved adult to student classroom ratio, enrichment

HB4272- 57 -LRB099 13722 NHT 37684 b
1 programs, remedial assistance, attendance improvement, and
2 other educationally beneficial expenditures which
3 supplement the regular and basic programs as determined by
4 the State Board of Education. Funds provided shall not be
5 expended for any political or lobbying purposes as defined
6 by board rule.
7 (f) Each district subject to the provisions of this
8 subdivision (H)(4) shall submit an acceptable plan to meet
9 the educational needs of disadvantaged children, in
10 compliance with the requirements of this paragraph, to the
11 State Board of Education prior to July 15 of each year.
12 This plan shall be consistent with the decisions of local
13 school councils concerning the school expenditure plans
14 developed in accordance with part 4 of Section 34-2.3. The
15 State Board shall approve or reject the plan within 60 days
16 after its submission. If the plan is rejected, the district
17 shall give written notice of intent to modify the plan
18 within 15 days of the notification of rejection and then
19 submit a modified plan within 30 days after the date of the
20 written notice of intent to modify. Districts may amend
21 approved plans pursuant to rules promulgated by the State
22 Board of Education.
23 Upon notification by the State Board of Education that
24 the district has not submitted a plan prior to July 15 or a
25 modified plan within the time period specified herein, the
26 State aid funds affected by that plan or modified plan

HB4272- 58 -LRB099 13722 NHT 37684 b
1 shall be withheld by the State Board of Education until a
2 plan or modified plan is submitted.
3 If the district fails to distribute State aid to
4 attendance centers in accordance with an approved plan, the
5 plan for the following year shall allocate funds, in
6 addition to the funds otherwise required by this
7 subsection, to those attendance centers which were
8 underfunded during the previous year in amounts equal to
9 such underfunding.
10 For purposes of determining compliance with this
11 subsection in relation to the requirements of attendance
12 center funding, each district subject to the provisions of
13 this subsection shall submit as a separate document by
14 December 1 of each year a report of expenditure data for
15 the prior year in addition to any modification of its
16 current plan. If it is determined that there has been a
17 failure to comply with the expenditure provisions of this
18 subsection regarding contravention or supplanting, the
19 State Superintendent of Education shall, within 60 days of
20 receipt of the report, notify the district and any affected
21 local school council. The district shall within 45 days of
22 receipt of that notification inform the State
23 Superintendent of Education of the remedial or corrective
24 action to be taken, whether by amendment of the current
25 plan, if feasible, or by adjustment in the plan for the
26 following year. Failure to provide the expenditure report

HB4272- 59 -LRB099 13722 NHT 37684 b
1 or the notification of remedial or corrective action in a
2 timely manner shall result in a withholding of the affected
3 funds.
4 The State Board of Education shall promulgate rules and
5 regulations to implement the provisions of this
6 subsection. No funds shall be released under this
7 subdivision (H)(4) to any district that has not submitted a
8 plan that has been approved by the State Board of
9 Education.
10(I) (Blank).
11(J) (Blank).
12(K) Grants to Laboratory and Alternative Schools.
13 In calculating the amount to be paid to the governing board
14of a public university that operates a laboratory school under
15this Section or to any alternative school that is operated by a
16regional superintendent of schools, the State Board of
17Education shall require by rule such reporting requirements as
18it deems necessary.
19 As used in this Section, "laboratory school" means a public
20school which is created and operated by a public university and
21approved by the State Board of Education. The governing board
22of a public university which receives funds from the State
23Board under this subsection (K) may not increase the number of

HB4272- 60 -LRB099 13722 NHT 37684 b
1students enrolled in its laboratory school from a single
2district, if that district is already sending 50 or more
3students, except under a mutual agreement between the school
4board of a student's district of residence and the university
5which operates the laboratory school. A laboratory school may
6not have more than 1,000 students, excluding students with
7disabilities in a special education program.
8 As used in this Section, "alternative school" means a
9public school which is created and operated by a Regional
10Superintendent of Schools and approved by the State Board of
11Education. Such alternative schools may offer courses of
12instruction for which credit is given in regular school
13programs, courses to prepare students for the high school
14equivalency testing program or vocational and occupational
15training. A regional superintendent of schools may contract
16with a school district or a public community college district
17to operate an alternative school. An alternative school serving
18more than one educational service region may be established by
19the regional superintendents of schools of the affected
20educational service regions. An alternative school serving
21more than one educational service region may be operated under
22such terms as the regional superintendents of schools of those
23educational service regions may agree.
24 Each laboratory and alternative school shall file, on forms
25provided by the State Superintendent of Education, an annual
26State aid claim which states the Average Daily Attendance of

HB4272- 61 -LRB099 13722 NHT 37684 b
1the school's students by month. The best 3 months' Average
2Daily Attendance shall be computed for each school. The general
3State aid entitlement shall be computed by multiplying the
4applicable Average Daily Attendance by the Foundation Level as
5determined under this Section.
6(L) Payments, Additional Grants in Aid and Other Requirements.
7 (1) For a school district operating under the financial
8supervision of an Authority created under Article 34A, the
9general State aid otherwise payable to that district under this
10Section, but not the supplemental general State aid, shall be
11reduced by an amount equal to the budget for the operations of
12the Authority as certified by the Authority to the State Board
13of Education, and an amount equal to such reduction shall be
14paid to the Authority created for such district for its
15operating expenses in the manner provided in Section 18-11. The
16remainder of general State school aid for any such district
17shall be paid in accordance with Article 34A when that Article
18provides for a disposition other than that provided by this
19Article.
20 (2) (Blank).
21 (3) Summer school. Summer school payments shall be made as
22provided in Section 18-4.3.
23(M) Education Funding Advisory Board.
24 The Education Funding Advisory Board, hereinafter in this

HB4272- 62 -LRB099 13722 NHT 37684 b
1subsection (M) referred to as the "Board", is hereby created.
2The Board shall consist of 5 members who are appointed by the
3Governor, by and with the advice and consent of the Senate. The
4members appointed shall include representatives of education,
5business, and the general public. One of the members so
6appointed shall be designated by the Governor at the time the
7appointment is made as the chairperson of the Board. The
8initial members of the Board may be appointed any time after
9the effective date of this amendatory Act of 1997. The regular
10term of each member of the Board shall be for 4 years from the
11third Monday of January of the year in which the term of the
12member's appointment is to commence, except that of the 5
13initial members appointed to serve on the Board, the member who
14is appointed as the chairperson shall serve for a term that
15commences on the date of his or her appointment and expires on
16the third Monday of January, 2002, and the remaining 4 members,
17by lots drawn at the first meeting of the Board that is held
18after all 5 members are appointed, shall determine 2 of their
19number to serve for terms that commence on the date of their
20respective appointments and expire on the third Monday of
21January, 2001, and 2 of their number to serve for terms that
22commence on the date of their respective appointments and
23expire on the third Monday of January, 2000. All members
24appointed to serve on the Board shall serve until their
25respective successors are appointed and confirmed. Vacancies
26shall be filled in the same manner as original appointments. If

HB4272- 63 -LRB099 13722 NHT 37684 b
1a vacancy in membership occurs at a time when the Senate is not
2in session, the Governor shall make a temporary appointment
3until the next meeting of the Senate, when he or she shall
4appoint, by and with the advice and consent of the Senate, a
5person to fill that membership for the unexpired term. If the
6Senate is not in session when the initial appointments are
7made, those appointments shall be made as in the case of
8vacancies.
9 The Education Funding Advisory Board shall be deemed
10established, and the initial members appointed by the Governor
11to serve as members of the Board shall take office, on the date
12that the Governor makes his or her appointment of the fifth
13initial member of the Board, whether those initial members are
14then serving pursuant to appointment and confirmation or
15pursuant to temporary appointments that are made by the
16Governor as in the case of vacancies.
17 The State Board of Education shall provide such staff
18assistance to the Education Funding Advisory Board as is
19reasonably required for the proper performance by the Board of
20its responsibilities.
21 For school years after the 2000-2001 school year, the
22Education Funding Advisory Board, in consultation with the
23State Board of Education, shall make recommendations as
24provided in this subsection (M) to the General Assembly for the
25foundation level under subdivision (B)(3) of this Section and
26for the supplemental general State aid grant level under

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1subsection (H) of this Section for districts with high
2concentrations of children from poverty. The recommended
3foundation level shall be determined based on a methodology
4which incorporates the basic education expenditures of
5low-spending schools exhibiting high academic performance. The
6Education Funding Advisory Board shall make such
7recommendations to the General Assembly on January 1 of odd
8numbered years, beginning January 1, 2001.
9(N) (Blank).
10(O) References.
11 (1) References in other laws to the various subdivisions of
12Section 18-8 as that Section existed before its repeal and
13replacement by this Section 18-8.05 shall be deemed to refer to
14the corresponding provisions of this Section 18-8.05, to the
15extent that those references remain applicable.
16 (2) References in other laws to State Chapter 1 funds shall
17be deemed to refer to the supplemental general State aid
18provided under subsection (H) of this Section.
19(P) Public Act 93-838 and Public Act 93-808 make inconsistent
20changes to this Section. Under Section 6 of the Statute on
21Statutes there is an irreconcilable conflict between Public Act
2293-808 and Public Act 93-838. Public Act 93-838, being the last
23acted upon, is controlling. The text of Public Act 93-838 is

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1the law regardless of the text of Public Act 93-808.
2(Q) State Fiscal Year 2015 Payments.
3 For payments made for State fiscal year 2015, the State
4Board of Education shall, for each school district, calculate
5that district's pro-rata share of a minimum sum of $13,600,000
6or additional amounts as needed from the total net General
7State Aid funding as calculated under this Section that shall
8be deemed attributable to the provision of special educational
9facilities and services, as defined in Section 14-1.08 of this
10Code, in a manner that ensures compliance with maintenance of
11State financial support requirements under the federal
12Individuals with Disabilities Education Act. Each school
13district must use such funds only for the provision of special
14educational facilities and services, as defined in Section
1514-1.08 of this Code, and must comply with any expenditure
16verification procedures adopted by the State Board of
17Education.
18(Source: P.A. 98-972, eff. 8-15-14; 99-2, eff. 3-26-15.)
19 Section 90. The State Mandates Act is amended by adding
20Section 8.39 as follows:
21 (30 ILCS 805/8.39 new)
22 Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the

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1implementation of any mandate created by the Fund Education
2First Act.
3 Section 99. Effective date. This Act takes effect upon
4becoming law.