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| Public Act 096-0911 
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| SB2548 Enrolled | LRB096 15686 MJR 30922 b |  | 
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|     AN ACT concerning education.
  
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|     Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
  
 
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|     Section 5. The Public Community College Act is amended  by  | 
| changing Section 2-16.02 as follows:
 
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|     (110 ILCS 805/2-16.02)  (from Ch. 122, par. 102-16.02)
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|     Sec. 2-16.02. Grants. Any community college district that  | 
| maintains a
community college recognized by the State Board  | 
| shall receive, when eligible,
grants enumerated in this  | 
| Section.  Funded semester credit hours or other
measures or both  | 
| as specified by the State Board shall be used to distribute
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| grants to community colleges.  Funded semester credit hours  | 
| shall be defined,
for purposes of this Section, as the greater  | 
| of
(1) the number of semester credit hours, or equivalent, in  | 
| all funded
instructional categories of  students who have been  | 
| certified as being in
attendance at midterm during the  | 
| respective terms of the base fiscal year or
(2) the average of  | 
| semester credit hours, or equivalent, in all funded
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| instructional categories of students who have been certified as  | 
| being in
attendance at midterm during the respective terms of  | 
| the base fiscal year and
the 2 prior fiscal years.  For purposes  | 
| of this Section, "base fiscal year"
means the fiscal year 2  | 
| years prior to the fiscal year for which the grants are
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|  | 
| appropriated.  Such students shall have been residents of  | 
| Illinois and shall
have been enrolled in courses that are part  | 
| of instructional program categories
approved by the State Board  | 
| and that are applicable toward an associate degree
or  | 
| certificate.
Courses that are eligible for reimbursement are  | 
| those courses for which
the district pays 50% or more of the  | 
| program costs from unrestricted
revenue sources, with the  | 
| exception of courses offered by contract with
the Department of  | 
| Corrections in correctional institutions. For the
purposes of  | 
| this Section, "unrestricted revenue sources" means those
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| revenues in which the provider of the revenue imposes no  | 
| financial
limitations upon the district as it relates to the  | 
| expenditure of the funds.  Base operating grants shall be paid  | 
| based on rates per funded
semester credit hour or equivalent  | 
| calculated by the State Board for funded
instructional  | 
| categories using cost of instruction, enrollment, inflation,  | 
| and
other relevant factors. A portion of the base operating  | 
| grant shall be
allocated on the basis of non-residential gross  | 
| square footage of space
maintained by the district.
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|     Equalization grants shall be calculated by the State Board  | 
| by determining a
local revenue factor for each district by:  (A)  | 
| adding (1)
each district's Corporate Personal Property  | 
| Replacement Fund
allocations from the base
fiscal year or the  | 
| average of the base fiscal year and prior year, whichever is
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| less, divided by the applicable statewide average tax rate to  | 
| (2) the
district's most recently audited
year's equalized  | 
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| assessed valuation or the average of the most recently audited
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| year and prior year, whichever is less, (B) then dividing by  | 
| the district's
audited full-time equivalent resident students  | 
| for the base fiscal year or the
average for the base  fiscal  | 
| year and the 2 prior fiscal years, whichever is
greater, and  | 
| (C) then multiplying by the applicable statewide average tax
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| rate.  The State Board
shall calculate a statewide weighted  | 
| average threshold by applying
the same methodology to the  | 
| totals of all districts' Corporate Personal
Property Tax  | 
| Replacement Fund allocations, equalized assessed valuations,  | 
| and
audited full-time equivalent district resident students  | 
| and multiplying by the
applicable statewide average tax rate.   | 
| The difference between the statewide
weighted average  | 
| threshold and the local revenue
factor, multiplied by the  | 
| number of full-time equivalent resident students,
shall  | 
| determine the amount of equalization funding that each district  | 
| is
eligible to receive.  A percentage factor, as determined by  | 
| the State Board,
may be applied to the statewide threshold as a  | 
| method for allocating
equalization funding.  A minimum  | 
| equalization grant of an amount per district
as determined by  | 
| the State Board shall be established for any community college
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| district which qualifies for an equalization grant based upon  | 
| the preceding
criteria, but becomes ineligible for  | 
| equalization funding, or would have
received a grant of less  | 
| than the minimum equalization grant, due to threshold
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| prorations applied to reduce equalization funding.
As of July  | 
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| 1, 2004, a community college district must maintain a
minimum  | 
| required combined in-district tuition and universal fee rate  | 
| per
semester credit hour equal to 85% of the State-average  | 
| combined rate, as
determined by the State Board, for  | 
| equalization funding. As of July 1,
2004, a community college  | 
| district must maintain a minimum required
operating tax rate  | 
| equal to at least 95% of its maximum authorized tax
rate to  | 
| qualify for equalization funding. This 95% minimum tax rate
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| requirement shall be based upon the maximum operating tax rate  | 
| as
limited by the Property Tax Extension Limitation Law.
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|     The State Board shall distribute such other grants as may  | 
| be
authorized or appropriated by the General Assembly.
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|     Each community college district entitled to State grants  | 
| under this
Section must submit a report of its enrollment to  | 
| the State Board not later
than 30 days following the end of  | 
| each semester, quarter, or term in a
format prescribed by the  | 
| State Board.  These semester credit hours, or
equivalent, shall  | 
| be certified by each district on forms provided by the
State  | 
| Board.  Each district's certified semester credit hours, or  | 
| equivalent,
are subject to audit pursuant to Section 3-22.1.
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|     The State Board shall certify, prepare, and submit monthly  | 
| vouchers to the State Comptroller
during August, November,  | 
| February, and May of each fiscal year vouchers setting
forth an  | 
| amount equal to one-twelfth 25% of the grants approved by the  | 
| State Board for base
operating grants and equalization grants.   | 
| The State Board shall prepare and
submit to the State  | 
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| Comptroller vouchers for payments of other grants as
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| appropriated by the General Assembly.  If the amount  | 
| appropriated for grants
is different from the amount provided  | 
| for such grants under this Act, the
grants shall be  | 
| proportionately reduced or increased accordingly.
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|     For the purposes of this Section, "resident student" means  | 
| a student in a
community college district who maintains  | 
| residency in that district or
meets other residency definitions  | 
| established by the State Board, and who
was enrolled either in  | 
| one of the approved instructional program categories
in that  | 
| district, or in another community college district to which the
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| resident's district is paying tuition under Section 6-2 or with  | 
| which the
resident's district has entered into a cooperative  | 
| agreement in lieu of such
tuition.
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|     For the purposes of this Section, a "full-time equivalent"  | 
| student is
equal to 30 semester credit hours.
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|     The Illinois Community College Board Contracts and Grants  | 
| Fund is hereby
created in the State Treasury.  Items of income  | 
| to this fund shall include
any grants, awards, endowments, or  | 
| like proceeds, and where appropriate,
other funds made  | 
| available through contracts with governmental, public, and
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| private agencies or persons.  The General Assembly shall from  | 
| time to time
make appropriations payable from such fund for the  | 
| support, improvement,
and expenses of the State Board and  | 
| Illinois community college
districts.
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| (Source: P.A. 93-21, eff. 7-1-03.)
 
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