Bill Text: IL HB3053 | 2019-2020 | 101st General Assembly | Engrossed


Bill Title: Amends the School Code. Creates the School District Efficiency Commission. Provides for the membership and support of the Commission. Requires the Commission to make recommendations to the Governor and the General Assembly on the number of school districts in this State, the optimal amount of enrollment for a school district, and where reorganization and realignment of school districts would be beneficial in this State; specifies the topics on which the recommendations must focus. Provides that, on or before May 1, 2020, the Commission must vote on its recommendations and submit a report to the Governor and the General Assembly. Provides that if the Commission adopts the report recommendations by an affirmative vote of at least 11 of its members, then the Commission's recommendations for reorganization of school districts into unit school districts must be placed on the ballots of the designated school districts in the next general election in the same manner as petitions approved by a regional superintendent of schools, except without financial incentives. Provides that the Commission is dissolved the day after the report is filed with the Governor and the General Assembly. Repeals the provision on February 1, 2021. Makes a conforming change in the Conversion and Formation of School Districts Article. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 13-8)

Status: (Engrossed) 2019-07-03 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB3053 Detail]

Download: Illinois-2019-HB3053-Engrossed.html



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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be referred to as the
5Classrooms First Act.
6 Section 5. The School Code is amended by changing 11E-135
7and by adding Section 11E-140 as follows:
8 (105 ILCS 5/11E-135)
9 Sec. 11E-135. Incentives. Except as provided under Section
1011E-140, for For districts reorganizing under this Article and
11for a district or districts that annex all of the territory of
12one or more entire other school districts in accordance with
13Article 7 of this Code, the following payments shall be made
14from appropriations made for these purposes:
15 (a)(1) For a combined school district, as defined in
16Section 11E-20 of this Code, or for a unit district, as defined
17in Section 11E-25 of this Code, for its first year of
18existence, the general State aid and supplemental general State
19aid calculated under Section 18-8.05 of this Code or the
20evidence-based funding calculated under Section 18-8.15 of
21this Code, as applicable, shall be computed for the new
22district and for the previously existing districts for which

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1property is totally included within the new district. If the
2computation on the basis of the previously existing districts
3is greater, a supplementary payment equal to the difference
4shall be made for the first 4 years of existence of the new
5district.
6 (2) For a school district that annexes all of the territory
7of one or more entire other school districts as defined in
8Article 7 of this Code, for the first year during which the
9change of boundaries attributable to the annexation becomes
10effective for all purposes, as determined under Section 7-9 of
11this Code, the general State aid and supplemental general State
12aid calculated under Section 18-8.05 of this Code or the
13evidence-based funding calculated under Section 18-8.15 of
14this Code, as applicable, shall be computed for the annexing
15district as constituted after the annexation and for the
16annexing and each annexed district as constituted prior to the
17annexation; and if the computation on the basis of the annexing
18and annexed districts as constituted prior to the annexation is
19greater, then a supplementary payment equal to the difference
20shall be made for the first 4 years of existence of the
21annexing school district as constituted upon the annexation.
22 (3) For 2 or more school districts that annex all of the
23territory of one or more entire other school districts, as
24defined in Article 7 of this Code, for the first year during
25which the change of boundaries attributable to the annexation
26becomes effective for all purposes, as determined under Section

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17-9 of this Code, the general State aid and supplemental
2general State aid calculated under Section 18-8.05 of this Code
3or the evidence-based funding calculated under Section 18-8.15
4of this Code, as applicable, shall be computed for each
5annexing district as constituted after the annexation and for
6each annexing and annexed district as constituted prior to the
7annexation; and if the aggregate of the general State aid and
8supplemental general State aid or evidence-based funding, as
9applicable, as so computed for the annexing districts as
10constituted after the annexation is less than the aggregate of
11the general State aid and supplemental general State aid or
12evidence-based funding, as applicable, as so computed for the
13annexing and annexed districts, as constituted prior to the
14annexation, then a supplementary payment equal to the
15difference shall be made and allocated between or among the
16annexing districts, as constituted upon the annexation, for the
17first 4 years of their existence. The total difference payment
18shall be allocated between or among the annexing districts in
19the same ratio as the pupil enrollment from that portion of the
20annexed district or districts that is annexed to each annexing
21district bears to the total pupil enrollment from the entire
22annexed district or districts, as such pupil enrollment is
23determined for the school year last ending prior to the date
24when the change of boundaries attributable to the annexation
25becomes effective for all purposes. The amount of the total
26difference payment and the amount thereof to be allocated to

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1the annexing districts shall be computed by the State Board of
2Education on the basis of pupil enrollment and other data that
3shall be certified to the State Board of Education, on forms
4that it shall provide for that purpose, by the regional
5superintendent of schools for each educational service region
6in which the annexing and annexed districts are located.
7 (4) For a school district conversion, as defined in Section
811E-15 of this Code, or a multi-unit conversion, as defined in
9subsection (b) of Section 11E-30 of this Code, if in their
10first year of existence the newly created elementary districts
11and the newly created high school district, from a school
12district conversion, or the newly created elementary district
13or districts and newly created combined high school - unit
14district, from a multi-unit conversion, qualify for less
15general State aid under Section 18-8.05 of this Code or
16evidence-based funding under Section 18-8.15 of this Code than
17would have been payable under Section 18-8.05 or 18-8.15, as
18applicable, for that same year to the previously existing
19districts, then a supplementary payment equal to that
20difference shall be made for the first 4 years of existence of
21the newly created districts. The aggregate amount of each
22supplementary payment shall be allocated among the newly
23created districts in the proportion that the deemed pupil
24enrollment in each district during its first year of existence
25bears to the actual aggregate pupil enrollment in all of the
26districts during their first year of existence. For purposes of

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1each allocation:
2 (A) the deemed pupil enrollment of the newly created
3 high school district from a school district conversion
4 shall be an amount equal to its actual pupil enrollment for
5 its first year of existence multiplied by 1.25;
6 (B) the deemed pupil enrollment of each newly created
7 elementary district from a school district conversion
8 shall be an amount equal to its actual pupil enrollment for
9 its first year of existence reduced by an amount equal to
10 the product obtained when the amount by which the newly
11 created high school district's deemed pupil enrollment
12 exceeds its actual pupil enrollment for its first year of
13 existence is multiplied by a fraction, the numerator of
14 which is the actual pupil enrollment of the newly created
15 elementary district for its first year of existence and the
16 denominator of which is the actual aggregate pupil
17 enrollment of all of the newly created elementary districts
18 for their first year of existence;
19 (C) the deemed high school pupil enrollment of the
20 newly created combined high school - unit district from a
21 multi-unit conversion shall be an amount equal to its
22 actual grades 9 through 12 pupil enrollment for its first
23 year of existence multiplied by 1.25; and
24 (D) the deemed elementary pupil enrollment of each
25 newly created district from a multi-unit conversion shall
26 be an amount equal to each district's actual grade K

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1 through 8 pupil enrollment for its first year of existence,
2 reduced by an amount equal to the product obtained when the
3 amount by which the newly created combined high school -
4 unit district's deemed high school pupil enrollment
5 exceeds its actual grade 9 through 12 pupil enrollment for
6 its first year of existence is multiplied by a fraction,
7 the numerator of which is the actual grade K through 8
8 pupil enrollment of each newly created district for its
9 first year of existence and the denominator of which is the
10 actual aggregate grade K through 8 pupil enrollment of all
11 such newly created districts for their first year of
12 existence.
13 The aggregate amount of each supplementary payment under
14this subdivision (4) and the amount thereof to be allocated to
15the newly created districts shall be computed by the State
16Board of Education on the basis of pupil enrollment and other
17data, which shall be certified to the State Board of Education,
18on forms that it shall provide for that purpose, by the
19regional superintendent of schools for each educational
20service region in which the newly created districts are
21located.
22 (5) For a partial elementary unit district, as defined in
23subsection (a) or (c) of Section 11E-30 of this Code, if, in
24the first year of existence, the newly created partial
25elementary unit district qualifies for less general State aid
26and supplemental general State aid under Section 18-8.05 of

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1this Code or less evidence-based funding under Section 18-8.15
2of this Code, as applicable, than would have been payable under
3those Sections for that same year to the previously existing
4districts that formed the partial elementary unit district,
5then a supplementary payment equal to that difference shall be
6made to the partial elementary unit district for the first 4
7years of existence of that newly created district.
8 (6) For an elementary opt-in, as described in subsection
9(d) of Section 11E-30 of this Code, the general State aid or
10evidence-based funding difference shall be computed in
11accordance with paragraph (5) of this subsection (a) as if the
12elementary opt-in was included in an optional elementary unit
13district at the optional elementary unit district's original
14effective date. If the calculation in this paragraph (6) is
15less than that calculated in paragraph (5) of this subsection
16(a) at the optional elementary unit district's original
17effective date, then no adjustments may be made. If the
18calculation in this paragraph (6) is more than that calculated
19in paragraph (5) of this subsection (a) at the optional
20elementary unit district's original effective date, then the
21excess must be paid as follows:
22 (A) If the effective date for the elementary opt-in is
23 one year after the effective date for the optional
24 elementary unit district, 100% of the calculated excess
25 shall be paid to the optional elementary unit district in
26 each of the first 4 years after the effective date of the

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1 elementary opt-in.
2 (B) If the effective date for the elementary opt-in is
3 2 years after the effective date for the optional
4 elementary unit district, 75% of the calculated excess
5 shall be paid to the optional elementary unit district in
6 each of the first 4 years after the effective date of the
7 elementary opt-in.
8 (C) If the effective date for the elementary opt-in is
9 3 years after the effective date for the optional
10 elementary unit district, 50% of the calculated excess
11 shall be paid to the optional elementary unit district in
12 each of the first 4 years after the effective date of the
13 elementary opt-in.
14 (D) If the effective date for the elementary opt-in is
15 4 years after the effective date for the optional
16 elementary unit district, 25% of the calculated excess
17 shall be paid to the optional elementary unit district in
18 each of the first 4 years after the effective date of the
19 elementary opt-in.
20 (E) If the effective date for the elementary opt-in is
21 5 years after the effective date for the optional
22 elementary unit district, the optional elementary unit
23 district is not eligible for any additional incentives due
24 to the elementary opt-in.
25 (6.5) For a school district that annexes territory detached
26from another school district whereby the enrollment of the

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1annexing district increases by 90% or more as a result of the
2annexation, for the first year during which the change of
3boundaries attributable to the annexation becomes effective
4for all purposes as determined under Section 7-9 of this Code,
5the general State aid and supplemental general State aid or
6evidence-based funding, as applicable, calculated under this
7Section shall be computed for the district gaining territory
8and the district losing territory as constituted after the
9annexation and for the same districts as constituted prior to
10the annexation; and if the aggregate of the general State aid
11and supplemental general State aid or evidence-based funding,
12as applicable, as so computed for the district gaining
13territory and the district losing territory as constituted
14after the annexation is less than the aggregate of the general
15State aid and supplemental general State aid or evidence-based
16funding, as applicable, as so computed for the district gaining
17territory and the district losing territory as constituted
18prior to the annexation, then a supplementary payment shall be
19made to the annexing district for the first 4 years of
20existence after the annexation, equal to the difference
21multiplied by the ratio of student enrollment in the territory
22detached to the total student enrollment in the district losing
23territory for the year prior to the effective date of the
24annexation. The amount of the total difference and the
25proportion paid to the annexing district shall be computed by
26the State Board of Education on the basis of pupil enrollment

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1and other data that must be submitted to the State Board of
2Education in accordance with Section 7-14A of this Code. The
3changes to this Section made by Public Act 95-707 are intended
4to be retroactive and applicable to any annexation taking
5effect on or after July 1, 2004. For annexations that are
6eligible for payments under this paragraph (6.5) and that are
7effective on or after July 1, 2004, but before January 11, 2008
8(the effective date of Public Act 95-707), the first required
9yearly payment under this paragraph (6.5) shall be paid in the
10fiscal year of January 11, 2008 (the effective date of Public
11Act 95-707). Subsequent required yearly payments shall be paid
12in subsequent fiscal years until the payment obligation under
13this paragraph (6.5) is complete.
14 (7) Claims for financial assistance under this subsection
15(a) may not be recomputed except as expressly provided under
16Section 18-8.05 or 18-8.15 of this Code.
17 (8) Any supplementary payment made under this subsection
18(a) must be treated as separate from all other payments made
19pursuant to Section 18-8.05 or 18-8.15 of this Code.
20 (b)(1) After the formation of a combined school district,
21as defined in Section 11E-20 of this Code, or a unit district,
22as defined in Section 11E-25 of this Code, a computation shall
23be made to determine the difference between the salaries
24effective in each of the previously existing districts on June
2530, prior to the creation of the new district. For the first 4
26years after the formation of the new district, a supplementary

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1State aid reimbursement shall be paid to the new district equal
2to the difference between the sum of the salaries earned by
3each of the certificated members of the new district, while
4employed in one of the previously existing districts during the
5year immediately preceding the formation of the new district,
6and the sum of the salaries those certificated members would
7have been paid during the year immediately prior to the
8formation of the new district if placed on the salary schedule
9of the previously existing district with the highest salary
10schedule.
11 (2) After the territory of one or more school districts is
12annexed by one or more other school districts as defined in
13Article 7 of this Code, a computation shall be made to
14determine the difference between the salaries effective in each
15annexed district and in the annexing district or districts as
16they were each constituted on June 30 preceding the date when
17the change of boundaries attributable to the annexation became
18effective for all purposes, as determined under Section 7-9 of
19this Code. For the first 4 years after the annexation, a
20supplementary State aid reimbursement shall be paid to each
21annexing district as constituted after the annexation equal to
22the difference between the sum of the salaries earned by each
23of the certificated members of the annexing district as
24constituted after the annexation, while employed in an annexed
25or annexing district during the year immediately preceding the
26annexation, and the sum of the salaries those certificated

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1members would have been paid during the immediately preceding
2year if placed on the salary schedule of whichever of the
3annexing or annexed districts had the highest salary schedule
4during the immediately preceding year.
5 (3) For each new high school district formed under a school
6district conversion, as defined in Section 11E-15 of this Code,
7the State shall make a supplementary payment for 4 years equal
8to the difference between the sum of the salaries earned by
9each certified member of the new high school district, while
10employed in one of the previously existing districts, and the
11sum of the salaries those certified members would have been
12paid if placed on the salary schedule of the previously
13existing district with the highest salary schedule.
14 (4) For each newly created partial elementary unit
15district, the State shall make a supplementary payment for 4
16years equal to the difference between the sum of the salaries
17earned by each certified member of the newly created partial
18elementary unit district, while employed in one of the
19previously existing districts that formed the partial
20elementary unit district, and the sum of the salaries those
21certified members would have been paid if placed on the salary
22schedule of the previously existing district with the highest
23salary schedule. The salary schedules used in the calculation
24shall be those in effect in the previously existing districts
25for the school year prior to the creation of the new partial
26elementary unit district.

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1 (5) For an elementary district opt-in, as described in
2subsection (d) of Section 11E-30 of this Code, the salary
3difference incentive shall be computed in accordance with
4paragraph (4) of this subsection (b) as if the opted-in
5elementary district was included in the optional elementary
6unit district at the optional elementary unit district's
7original effective date. If the calculation in this paragraph
8(5) is less than that calculated in paragraph (4) of this
9subsection (b) at the optional elementary unit district's
10original effective date, then no adjustments may be made. If
11the calculation in this paragraph (5) is more than that
12calculated in paragraph (4) of this subsection (b) at the
13optional elementary unit district's original effective date,
14then the excess must be paid as follows:
15 (A) If the effective date for the elementary opt-in is
16 one year after the effective date for the optional
17 elementary unit district, 100% of the calculated excess
18 shall be paid to the optional elementary unit district in
19 each of the first 4 years after the effective date of the
20 elementary opt-in.
21 (B) If the effective date for the elementary opt-in is
22 2 years after the effective date for the optional
23 elementary unit district, 75% of the calculated excess
24 shall be paid to the optional elementary unit district in
25 each of the first 4 years after the effective date of the
26 elementary opt-in.

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1 (C) If the effective date for the elementary opt-in is
2 3 years after the effective date for the optional
3 elementary unit district, 50% of the calculated excess
4 shall be paid to the optional elementary unit district in
5 each of the first 4 years after the effective date of the
6 elementary opt-in.
7 (D) If the effective date for the elementary opt-in is
8 4 years after the effective date for the partial elementary
9 unit district, 25% of the calculated excess shall be paid
10 to the optional elementary unit district in each of the
11 first 4 years after the effective date of the elementary
12 opt-in.
13 (E) If the effective date for the elementary opt-in is
14 5 years after the effective date for the optional
15 elementary unit district, the optional elementary unit
16 district is not eligible for any additional incentives due
17 to the elementary opt-in.
18 (5.5) After the formation of a cooperative high school by 2
19or more school districts under Section 10-22.22c of this Code,
20a computation shall be made to determine the difference between
21the salaries effective in each of the previously existing high
22schools on June 30 prior to the formation of the cooperative
23high school. For the first 4 years after the formation of the
24cooperative high school, a supplementary State aid
25reimbursement shall be paid to the cooperative high school
26equal to the difference between the sum of the salaries earned

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1by each of the certificated members of the cooperative high
2school while employed in one of the previously existing high
3schools during the year immediately preceding the formation of
4the cooperative high school and the sum of the salaries those
5certificated members would have been paid during the year
6immediately prior to the formation of the cooperative high
7school if placed on the salary schedule of the previously
8existing high school with the highest salary schedule.
9 (5.10) After the annexation of territory detached from
10another school district whereby the enrollment of the annexing
11district increases by 90% or more as a result of the
12annexation, a computation shall be made to determine the
13difference between the salaries effective in the district
14gaining territory and the district losing territory as they
15each were constituted on June 30 preceding the date when the
16change of boundaries attributable to the annexation became
17effective for all purposes as determined under Section 7-9 of
18this Code. For the first 4 years after the annexation, a
19supplementary State aid reimbursement shall be paid to the
20annexing district equal to the difference between the sum of
21the salaries earned by each of the certificated members of the
22annexing district as constituted after the annexation while
23employed in the district gaining territory or the district
24losing territory during the year immediately preceding the
25annexation and the sum of the salaries those certificated
26members would have been paid during such immediately preceding

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1year if placed on the salary schedule of whichever of the
2district gaining territory or district losing territory had the
3highest salary schedule during the immediately preceding year.
4To be eligible for supplementary State aid reimbursement under
5this Section, the intergovernmental agreement to be submitted
6pursuant to Section 7-14A of this Code must show that staff
7members were transferred from the control of the district
8losing territory to the control of the district gaining
9territory in the annexation. The changes to this Section made
10by Public Act 95-707 are intended to be retroactive and
11applicable to any annexation taking effect on or after July 1,
122004. For annexations that are eligible for payments under this
13paragraph (5.10) and that are effective on or after July 1,
142004, but before January 11, 2008 (the effective date of Public
15Act 95-707), the first required yearly payment under this
16paragraph (5.10) shall be paid in the fiscal year of January
1711, 2008 (the effective date of Public Act 95-707). Subsequent
18required yearly payments shall be paid in subsequent fiscal
19years until the payment obligation under this paragraph (5.10)
20is complete.
21 (5.15) After the deactivation of a school facility in
22accordance with Section 10-22.22b of this Code, a computation
23shall be made to determine the difference between the salaries
24effective in the sending school district and each receiving
25school district on June 30 prior to the deactivation of the
26school facility. For the lesser of the first 4 years after the

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1deactivation of the school facility or the length of the
2deactivation agreement, including any renewals of the original
3deactivation agreement, a supplementary State aid
4reimbursement shall be paid to each receiving district equal to
5the difference between the sum of the salaries earned by each
6of the certificated members transferred to that receiving
7district as a result of the deactivation while employed in the
8sending district during the year immediately preceding the
9deactivation and the sum of the salaries those certificated
10members would have been paid during the year immediately
11preceding the deactivation if placed on the salary schedule of
12the sending or receiving district with the highest salary
13schedule.
14 (6) The supplementary State aid reimbursement under this
15subsection (b) shall be treated as separate from all other
16payments made pursuant to Section 18-8.05 of this Code. In the
17case of the formation of a new district or cooperative high
18school or a deactivation, reimbursement shall begin during the
19first year of operation of the new district or cooperative high
20school or the first year of the deactivation, and in the case
21of an annexation of the territory of one or more school
22districts by one or more other school districts or the
23annexation of territory detached from a school district whereby
24the enrollment of the annexing district increases by 90% or
25more as a result of the annexation, reimbursement shall begin
26during the first year when the change in boundaries

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1attributable to the annexation becomes effective for all
2purposes as determined pursuant to Section 7-9 of this Code,
3except that for an annexation of territory detached from a
4school district that is effective on or after July 1, 2004, but
5before January 11, 2008 (the effective date of Public Act
695-707), whereby the enrollment of the annexing district
7increases by 90% or more as a result of the annexation,
8reimbursement shall begin during the fiscal year of January 11,
92008 (the effective date of Public Act 95-707). Each year that
10the new, annexing, or receiving district or cooperative high
11school, as the case may be, is entitled to receive
12reimbursement, the number of eligible certified members who are
13employed on October 1 in the district or cooperative high
14school shall be certified to the State Board of Education on
15prescribed forms by October 15 and payment shall be made on or
16before November 15 of that year.
17 (c)(1) For the first year after the formation of a combined
18school district, as defined in Section 11E-20 of this Code or a
19unit district, as defined in Section 11E-25 of this Code, a
20computation shall be made totaling each previously existing
21district's audited fund balances in the educational fund,
22working cash fund, operations and maintenance fund, and
23transportation fund for the year ending June 30 prior to the
24referendum for the creation of the new district. The new
25district shall be paid supplementary State aid equal to the sum
26of the differences between the deficit of the previously

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1existing district with the smallest deficit and the deficits of
2each of the other previously existing districts.
3 (2) For the first year after the annexation of all of the
4territory of one or more entire school districts by another
5school district, as defined in Article 7 of this Code,
6computations shall be made, for the year ending June 30 prior
7to the date that the change of boundaries attributable to the
8annexation is allowed by the affirmative decision issued by the
9regional board of school trustees under Section 7-6 of this
10Code, notwithstanding any effort to seek administrative review
11of the decision, totaling the annexing district's and totaling
12each annexed district's audited fund balances in their
13respective educational, working cash, operations and
14maintenance, and transportation funds. The annexing district
15as constituted after the annexation shall be paid supplementary
16State aid equal to the sum of the differences between the
17deficit of whichever of the annexing or annexed districts as
18constituted prior to the annexation had the smallest deficit
19and the deficits of each of the other districts as constituted
20prior to the annexation.
21 (3) For the first year after the annexation of all of the
22territory of one or more entire school districts by 2 or more
23other school districts, as defined by Article 7 of this Code,
24computations shall be made, for the year ending June 30 prior
25to the date that the change of boundaries attributable to the
26annexation is allowed by the affirmative decision of the

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1regional board of school trustees under Section 7-6 of this
2Code, notwithstanding any action for administrative review of
3the decision, totaling each annexing and annexed district's
4audited fund balances in their respective educational, working
5cash, operations and maintenance, and transportation funds.
6The annexing districts as constituted after the annexation
7shall be paid supplementary State aid, allocated as provided in
8this paragraph (3), in an aggregate amount equal to the sum of
9the differences between the deficit of whichever of the
10annexing or annexed districts as constituted prior to the
11annexation had the smallest deficit and the deficits of each of
12the other districts as constituted prior to the annexation. The
13aggregate amount of the supplementary State aid payable under
14this paragraph (3) shall be allocated between or among the
15annexing districts as follows:
16 (A) the regional superintendent of schools for each
17 educational service region in which an annexed district is
18 located prior to the annexation shall certify to the State
19 Board of Education, on forms that it shall provide for that
20 purpose, the value of all taxable property in each annexed
21 district, as last equalized or assessed by the Department
22 of Revenue prior to the annexation, and the equalized
23 assessed value of each part of the annexed district that
24 was annexed to or included as a part of an annexing
25 district;
26 (B) using equalized assessed values as certified by the

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1 regional superintendent of schools under clause (A) of this
2 paragraph (3), the combined audited fund balance deficit of
3 each annexed district as determined under this Section
4 shall be apportioned between or among the annexing
5 districts in the same ratio as the equalized assessed value
6 of that part of the annexed district that was annexed to or
7 included as a part of an annexing district bears to the
8 total equalized assessed value of the annexed district; and
9 (C) the aggregate supplementary State aid payment
10 under this paragraph (3) shall be allocated between or
11 among, and shall be paid to, the annexing districts in the
12 same ratio as the sum of the combined audited fund balance
13 deficit of each annexing district as constituted prior to
14 the annexation, plus all combined audited fund balance
15 deficit amounts apportioned to that annexing district
16 under clause (B) of this subsection, bears to the aggregate
17 of the combined audited fund balance deficits of all of the
18 annexing and annexed districts as constituted prior to the
19 annexation.
20 (4) For the new elementary districts and new high school
21district formed through a school district conversion, as
22defined in Section 11E-15 of this Code or the new elementary
23district or districts and new combined high school - unit
24district formed through a multi-unit conversion, as defined in
25subsection (b) of Section 11E-30 of this Code, a computation
26shall be made totaling each previously existing district's

HB3053 Engrossed- 22 -LRB101 07321 AXK 52361 b
1audited fund balances in the educational fund, working cash
2fund, operations and maintenance fund, and transportation fund
3for the year ending June 30 prior to the referendum
4establishing the new districts. In the first year of the new
5districts, the State shall make a one-time supplementary
6payment equal to the sum of the differences between the deficit
7of the previously existing district with the smallest deficit
8and the deficits of each of the other previously existing
9districts. A district with a combined balance among the 4 funds
10that is positive shall be considered to have a deficit of zero.
11The supplementary payment shall be allocated among the newly
12formed high school and elementary districts in the manner
13provided by the petition for the formation of the districts, in
14the form in which the petition is approved by the regional
15superintendent of schools or State Superintendent of Education
16under Section 11E-50 of this Code.
17 (5) For each newly created partial elementary unit
18district, as defined in subsection (a) or (c) of Section 11E-30
19of this Code, a computation shall be made totaling the audited
20fund balances of each previously existing district that formed
21the new partial elementary unit district in the educational
22fund, working cash fund, operations and maintenance fund, and
23transportation fund for the year ending June 30 prior to the
24referendum for the formation of the partial elementary unit
25district. In the first year of the new partial elementary unit
26district, the State shall make a one-time supplementary payment

HB3053 Engrossed- 23 -LRB101 07321 AXK 52361 b
1to the new district equal to the sum of the differences between
2the deficit of the previously existing district with the
3smallest deficit and the deficits of each of the other
4previously existing districts. A district with a combined
5balance among the 4 funds that is positive shall be considered
6to have a deficit of zero.
7 (6) For an elementary opt-in as defined in subsection (d)
8of Section 11E-30 of this Code, the deficit fund balance
9incentive shall be computed in accordance with paragraph (5) of
10this subsection (c) as if the opted-in elementary was included
11in the optional elementary unit district at the optional
12elementary unit district's original effective date. If the
13calculation in this paragraph (6) is less than that calculated
14in paragraph (5) of this subsection (c) at the optional
15elementary unit district's original effective date, then no
16adjustments may be made. If the calculation in this paragraph
17(6) is more than that calculated in paragraph (5) of this
18subsection (c) at the optional elementary unit district's
19original effective date, then the excess must be paid as
20follows:
21 (A) If the effective date for the elementary opt-in is
22 one year after the effective date for the optional
23 elementary unit district, 100% of the calculated excess
24 shall be paid to the optional elementary unit district in
25 the first year after the effective date of the elementary
26 opt-in.

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1 (B) If the effective date for the elementary opt-in is
2 2 years after the effective date for the optional
3 elementary unit district, 75% of the calculated excess
4 shall be paid to the optional elementary unit district in
5 the first year after the effective date of the elementary
6 opt-in.
7 (C) If the effective date for the elementary opt-in is
8 3 years after the effective date for the optional
9 elementary unit district, 50% of the calculated excess
10 shall be paid to the optional elementary unit district in
11 the first year after the effective date of the elementary
12 opt-in.
13 (D) If the effective date for the elementary opt-in is
14 4 years after the effective date for the optional
15 elementary unit district, 25% of the calculated excess
16 shall be paid to the optional elementary unit district in
17 the first year after the effective date of the elementary
18 opt-in.
19 (E) If the effective date for the elementary opt-in is
20 5 years after the effective date for the optional
21 elementary unit district, the optional elementary unit
22 district is not eligible for any additional incentives due
23 to the elementary opt-in.
24 (6.5) For the first year after the annexation of territory
25detached from another school district whereby the enrollment of
26the annexing district increases by 90% or more as a result of

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1the annexation, a computation shall be made totaling the
2audited fund balances of the district gaining territory and the
3audited fund balances of the district losing territory in the
4educational fund, working cash fund, operations and
5maintenance fund, and transportation fund for the year ending
6June 30 prior to the date that the change of boundaries
7attributable to the annexation is allowed by the affirmative
8decision of the regional board of school trustees under Section
97-6 of this Code, notwithstanding any action for administrative
10review of the decision. The annexing district as constituted
11after the annexation shall be paid supplementary State aid
12equal to the difference between the deficit of whichever
13district included in this calculation as constituted prior to
14the annexation had the smallest deficit and the deficit of each
15other district included in this calculation as constituted
16prior to the annexation, multiplied by the ratio of equalized
17assessed value of the territory detached to the total equalized
18assessed value of the district losing territory. The regional
19superintendent of schools for the educational service region in
20which a district losing territory is located prior to the
21annexation shall certify to the State Board of Education the
22value of all taxable property in the district losing territory
23and the value of all taxable property in the territory being
24detached, as last equalized or assessed by the Department of
25Revenue prior to the annexation. To be eligible for
26supplementary State aid reimbursement under this Section, the

HB3053 Engrossed- 26 -LRB101 07321 AXK 52361 b
1intergovernmental agreement to be submitted pursuant to
2Section 7-14A of this Code must show that fund balances were
3transferred from the district losing territory to the district
4gaining territory in the annexation. The changes to this
5Section made by Public Act 95-707 are intended to be
6retroactive and applicable to any annexation taking effect on
7or after July 1, 2004. For annexations that are eligible for
8payments under this paragraph (6.5) and that are effective on
9or after July 1, 2004, but before January 11, 2008 (the
10effective date of Public Act 95-707), the required payment
11under this paragraph (6.5) shall be paid in the fiscal year of
12January 11, 2008 (the effective date of Public Act 95-707).
13 (7) For purposes of any calculation required under
14paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
15subsection (c), a district with a combined fund balance that is
16positive shall be considered to have a deficit of zero. For
17purposes of determining each district's audited fund balances
18in its educational fund, working cash fund, operations and
19maintenance fund, and transportation fund for the specified
20year ending June 30, as provided in paragraphs (1), (2), (3),
21(4), (5), (6), and (6.5) of this subsection (c), the balance of
22each fund shall be deemed decreased by an amount equal to the
23amount of the annual property tax theretofore levied in the
24fund by the district for collection and payment to the district
25during the calendar year in which the June 30 fell, but only to
26the extent that the tax so levied in the fund actually was

HB3053 Engrossed- 27 -LRB101 07321 AXK 52361 b
1received by the district on or before or comprised a part of
2the fund on such June 30. For purposes of determining each
3district's audited fund balances, a calculation shall be made
4for each fund to determine the average for the 3 years prior to
5the specified year ending June 30, as provided in paragraphs
6(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
7of the district's expenditures in the categories "purchased
8services", "supplies and materials", and "capital outlay", as
9those categories are defined in rules of the State Board of
10Education. If this 3-year average is less than the district's
11expenditures in these categories for the specified year ending
12June 30, as provided in paragraphs (1), (2), (3), (4), (5),
13(6), and (6.5) of this subsection (c), then the 3-year average
14shall be used in calculating the amounts payable under this
15Section in place of the amounts shown in these categories for
16the specified year ending June 30, as provided in paragraphs
17(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
18Any deficit because of State aid not yet received may not be
19considered in determining the June 30 deficits. The same basis
20of accounting shall be used by all previously existing
21districts and by all annexing or annexed districts, as
22constituted prior to the annexation, in making any computation
23required under paragraphs (1), (2), (3), (4), (5), (6), and
24(6.5) of this subsection (c).
25 (8) The supplementary State aid payments under this
26subsection (c) shall be treated as separate from all other

HB3053 Engrossed- 28 -LRB101 07321 AXK 52361 b
1payments made pursuant to Section 18-8.05 of this Code.
2 (d)(1) Following the formation of a combined school
3district, as defined in Section 11E-20 of this Code, a new unit
4district, as defined in Section 11E-25 of this Code, a new
5elementary district or districts and a new high school district
6formed through a school district conversion, as defined in
7Section 11E-15 of this Code, a new partial elementary unit
8district, as defined in Section 11E-30 of this Code, or a new
9elementary district or districts formed through a multi-unit
10conversion, as defined in subsection (b) of Section 11E-30 of
11this Code, or the annexation of all of the territory of one or
12more entire school districts by one or more other school
13districts, as defined in Article 7 of this Code, a
14supplementary State aid reimbursement shall be paid for the
15number of school years determined under the following table to
16each new or annexing district equal to the sum of $4,000 for
17each certified employee who is employed by the district on a
18full-time basis for the regular term of the school year:
19Reorganized District's RankReorganized District's Rank
20by type of district (unit,in Average Daily Attendance
21high school, elementary)By Quintile
22in Equalized Assessed Value
23Per Pupil by Quintile
243rd, 4th,
251st2ndor 5th

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1QuintileQuintileQuintile
2 1st Quintile1 year1 year1 year
3 2nd Quintile1 year2 years2 years
4 3rd Quintile2 years3 years3 years
5 4th Quintile2 years3 years3 years
6 5th Quintile2 years3 years3 years
7The State Board of Education shall make a one-time calculation
8of a reorganized district's quintile ranks. The average daily
9attendance used in this calculation shall be the best 3 months'
10average daily attendance for the district's first year. The
11equalized assessed value per pupil shall be the district's real
12property equalized assessed value used in calculating the
13district's first-year general State aid claim, under Section
1418-8.05 of this Code, or first-year evidence-based funding
15claim, under Section 18-8.15 of this Code, as applicable,
16divided by the best 3 months' average daily attendance.
17 No annexing or resulting school district shall be entitled
18to supplementary State aid under this subsection (d) unless the
19district acquires at least 30% of the average daily attendance
20of the district from which the territory is being detached or
21divided.
22 If a district results from multiple reorganizations that
23would otherwise qualify the district for multiple payments
24under this subsection (d) in any year, then the district shall
25receive a single payment only for that year based solely on the

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1most recent reorganization.
2 (2) For an elementary opt-in, as defined in subsection (d)
3of Section 11E-30 of this Code, the full-time certified staff
4incentive shall be computed in accordance with paragraph (1) of
5this subsection (d), equal to the sum of $4,000 for each
6certified employee of the elementary district that opts-in who
7is employed by the optional elementary unit district on a
8full-time basis for the regular term of the school year. The
9calculation from this paragraph (2) must be paid as follows:
10 (A) If the effective date for the elementary opt-in is
11 one year after the effective date for the optional
12 elementary unit district, 100% of the amount calculated in
13 this paragraph (2) shall be paid to the optional elementary
14 unit district for the number of years calculated in
15 paragraph (1) of this subsection (d) at the optional
16 elementary unit district's original effective date,
17 starting in the second year after the effective date of the
18 elementary opt-in.
19 (B) If the effective date for the elementary opt-in is
20 2 years after the effective date for the optional
21 elementary unit district, 75% of the amount calculated in
22 this paragraph (2) shall be paid to the optional elementary
23 unit district for the number of years calculated in
24 paragraph (1) of this subsection (d) at the optional
25 elementary unit district's original effective date,
26 starting in the second year after the effective date of the

HB3053 Engrossed- 31 -LRB101 07321 AXK 52361 b
1 elementary opt-in.
2 (C) If the effective date for the elementary opt-in is
3 3 years after the effective date for the optional
4 elementary unit district, 50% of the amount calculated in
5 this paragraph (2) shall be paid to the optional elementary
6 unit district for the number of years calculated in
7 paragraph (1) of this subsection (d) at the optional
8 elementary unit district's original effective date,
9 starting in the second year after the effective date of the
10 elementary opt-in.
11 (D) If the effective date for the elementary opt-in is
12 4 years after the effective date for the optional
13 elementary unit district, 25% of the amount calculated in
14 this paragraph (2) shall be paid to the optional elementary
15 unit district for the number of years calculated in
16 paragraph (1) of this subsection (d) at the optional
17 elementary unit district's original effective date,
18 starting in the second year after the effective date of the
19 elementary opt-in.
20 (E) If the effective date for the elementary opt-in is
21 5 years after the effective date for the optional
22 elementary unit district, the optional elementary unit
23 district is not eligible for any additional incentives due
24 to the elementary opt-in.
25 (2.5) Following the formation of a cooperative high school
26by 2 or more school districts under Section 10-22.22c of this

HB3053 Engrossed- 32 -LRB101 07321 AXK 52361 b
1Code, a supplementary State aid reimbursement shall be paid for
23 school years to the cooperative high school equal to the sum
3of $4,000 for each certified employee who is employed by the
4cooperative high school on a full-time basis for the regular
5term of any such school year. If a cooperative high school
6results from multiple agreements that would otherwise qualify
7the cooperative high school for multiple payments under this
8Section in any year, the cooperative high school shall receive
9a single payment for that year based solely on the most recent
10agreement.
11 (2.10) Following the annexation of territory detached from
12another school district whereby the enrollment of the annexing
13district increases 90% or more as a result of the annexation, a
14supplementary State aid reimbursement shall be paid to the
15annexing district equal to the sum of $4,000 for each certified
16employee who is employed by the annexing district on a
17full-time basis and shall be calculated in accordance with
18subsection (a) of this Section. To be eligible for
19supplementary State aid reimbursement under this Section, the
20intergovernmental agreement to be submitted pursuant to
21Section 7-14A of this Code must show that certified staff
22members were transferred from the control of the district
23losing territory to the control of the district gaining
24territory in the annexation. The changes to this Section made
25by Public Act 95-707 are intended to be retroactive and
26applicable to any annexation taking effect on or after July 1,

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12004. For annexations that are eligible for payments under this
2paragraph (2.10) and that are effective on or after July 1,
32004, but before January 11, 2008 (the effective date of Public
4Act 95-707), the first required yearly payment under this
5paragraph (2.10) shall be paid in the second fiscal year after
6January 11, 2008 (the effective date of Public Act 95-707). Any
7subsequent required yearly payments shall be paid in subsequent
8fiscal years until the payment obligation under this paragraph
9(2.10) is complete.
10 (2.15) Following the deactivation of a school facility in
11accordance with Section 10-22.22b of this Code, a supplementary
12State aid reimbursement shall be paid for the lesser of 3
13school years or the length of the deactivation agreement,
14including any renewals of the original deactivation agreement,
15to each receiving school district equal to the sum of $4,000
16for each certified employee who is employed by that receiving
17district on a full-time basis for the regular term of any such
18school year who was originally transferred to the control of
19that receiving district as a result of the deactivation.
20Receiving districts are eligible for payments under this
21paragraph (2.15) based on the certified employees transferred
22to that receiving district as a result of the deactivation and
23are not required to receive at least 30% of the deactivating
24district's average daily attendance as required under
25paragraph (1) of this subsection (d) to be eligible for
26payments.

HB3053 Engrossed- 34 -LRB101 07321 AXK 52361 b
1 (3) The supplementary State aid reimbursement payable
2under this subsection (d) shall be separate from and in
3addition to all other payments made to the district pursuant to
4any other Section of this Article.
5 (4) During May of each school year for which a
6supplementary State aid reimbursement is to be paid to a new,
7annexing, or receiving school district or cooperative high
8school pursuant to this subsection (d), the school board or
9governing board shall certify to the State Board of Education,
10on forms furnished to the school board or governing board by
11the State Board of Education for purposes of this subsection
12(d), the number of certified employees for which the district
13or cooperative high school is entitled to reimbursement under
14this Section, together with the names, certificate numbers, and
15positions held by the certified employees.
16 (5) Upon certification by the State Board of Education to
17the State Comptroller of the amount of the supplementary State
18aid reimbursement to which a school district or cooperative
19high school is entitled under this subsection (d), the State
20Comptroller shall draw his or her warrant upon the State
21Treasurer for the payment thereof to the school district or
22cooperative high school and shall promptly transmit the payment
23to the school district or cooperative high school through the
24appropriate school treasurer.
25(Source: P.A. 100-465, eff. 8-31-17.)

HB3053 Engrossed- 35 -LRB101 07321 AXK 52361 b
1 (105 ILCS 5/11E-140 new)
2 Sec. 11E-140. School District Efficiency Commission.
3 (a) The School District Efficiency Commission is created.
4The Commission shall consist of all of the following voting
5members:
6 (1) The Lieutenant Governor or his or her appointee,
7 who shall serve as the chairperson.
8 (2) One member appointed by the State Board of
9 Education.
10 (3) One representative appointed by the Speaker of the
11 House of Representatives.
12 (4) One representative appointed by the Minority
13 Leader of the House of Representatives.
14 (5) One senator appointed by the President of the
15 Senate.
16 (6) One senator appointed by the Minority Leader of the
17 Senate.
18 (7) A representative of a statewide professional
19 teachers' organization appointed by the head of that
20 organization.
21 (8) A representative of a different statewide
22 professional teachers' organization appointed by the head
23 of that organization.
24 (9) A representative of a statewide organization that
25 represents school boards appointed by the head of that
26 organization.

HB3053 Engrossed- 36 -LRB101 07321 AXK 52361 b
1 (10) A representative of a statewide organization
2 representing principals appointed by the head of that
3 organization.
4 (11) A representative of an organization representing
5 professional teachers in a city having a population
6 exceeding 500,000 appointed by the head of that
7 organization.
8 (12) A representative of an association representing
9 school business officials appointed by the head of that
10 association.
11 (13) A representative of an association representing
12 school administrators appointed by the head of that
13 association.
14 (14) A member of the Chicago Board of Education
15 appointed by the Chicago Board of Education.
16 (15) A representative from an organization
17 representing administrators of special education appointed
18 by the head of that organization.
19 (16) A representative from a statewide parent
20 organization appointed by the head of that organization.
21 (17) A representative from an organization
22 representing high school districts appointed by the head of
23 that organization.
24 (18) A representative from a rural school district in
25 this State appointed by the Governor.
26 (19) A representative from a suburban school district

HB3053 Engrossed- 37 -LRB101 07321 AXK 52361 b
1 in this State appointed by the Governor.
2 (20) A representative of an association that
3 represents regional superintendents of schools appointed
4 by the head of that association.
5 Members shall serve without compensation, but shall be
6reimbursed for their reasonable and necessary expenses from
7funds appropriated for that purpose. Members shall be
8reimbursed for their travel expenses from appropriations to the
9State Board of Education made available for that purpose and
10subject to the rules of the appropriate travel control board.
11The Commission shall meet at the call of the chairperson, with
12the initial meeting of the Commission being held as soon as
13possible after the effective date of this amendatory Act of the
14101st General Assembly, and shall hold public hearings
15throughout this State. The State Board shall provide
16administrative assistance and necessary staff support services
17to the Commission.
18 (b) The Commission must make recommendations to the
19Governor and the General Assembly on the number of school
20districts in this State, the optimal amount of enrollment for a
21school district, and where reorganization and realignment of
22school districts would be beneficial in this State. The
23Commission's recommendations must focus on all of the following
24areas:
25 (1) Reducing the money spent on the duplication of
26 efforts.

HB3053 Engrossed- 38 -LRB101 07321 AXK 52361 b
1 (2) Improving the education of students by having fewer
2 obstacles between qualified teachers and their students.
3 (3) Lowering the property tax burden.
4 (4) Providing recommendations on what the net cost
5 savings of realignment is to this State.
6 (5) With a view toward reducing unnecessary
7 administrative costs, improving the education of students,
8 and lowering the property tax burden, drafting specific
9 recommendations to reduce the statewide total number of
10 school districts by no less than 25% through the
11 reorganization of school districts into unit districts
12 under Section 11E-25. Each recommendation under this
13 paragraph must include all of the following:
14 (A) A request to submit propositions at the next
15 general election for the purpose of voting for or
16 against the establishment of a combined unit district.
17 (B) A description of the territory comprising the
18 districts proposed to be dissolved and those to be
19 created, which, for an entire district, may be a
20 general reference to all of the territory included
21 within that district.
22 (C) A specification of the maximum tax rates the
23 proposed district or districts are authorized to levy
24 for various purposes and, if applicable, the
25 specifications related to the Property Tax Extension
26 Limitation Law, in accordance with Section 11E-80 of

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1 this Code.
2 (c) On or before May 1, 2020, the Commission must vote on
3its recommendations and file a report with the Governor and the
4General Assembly. If the Commission adopts the report
5recommendations by an affirmative vote of at least 11 of its
6members, then the Commission's specific recommendations for
7reorganization of school districts into unit districts under
8paragraph (5) of subsection (b) shall be placed on the ballots
9of the designated school districts in the next general election
10in the same manner as if the Commission's recommendations were
11petitions approved by a regional superintendent of schools
12under Section 11E-50, except that Section 11E-135 does not
13apply to school district reorganizations resulting from
14referenda submitted under this Section. The Commission is
15dissolved on the day after the report is filed with both the
16Governor and the General Assembly.
17 (d) This Section is repealed on February 1, 2021.
18 Section 99. Effective date. This Act takes effect upon
19becoming law.
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