SENATE BILL 712

82nd GENERAL ASSEMBLY
State of Illinois

1981 and 1982

INTRODUCED_April 14, 1981.  BY  Senator Sangmeister

 

 

 

 

 

 

                                SYNOPSIS:               (Ch. 120, pars. 2-201 and 9-901; Ch. 122, pars.
                                                                17-2, 17-3.2, 18-8, 34-53, new pars. 17-17,
                                                                17-17.1, 17-17.2, 18-8A, and rep. pars. 17-2.1,
                                                                17-3, 17-3.1, 17-4, 17-8;  and Ch. 127, new par.
                                                                141.92)

                                                                Creates a State income tax to be used
                                exclusively for school aid.  Amends various Acts to provide
                                for  its  levy  at  the  rate  of  2.64%  of  net  income  for
                                individuals and 4.22% of net income for corporations, and for
                                its administration and distribution.  Eliminates the
                                Educational Fund levy.  Effective July 1, 1983, with the
                                first taxable year ending December 31, 1984.

 

                                                                                            LRB8204373JMtc

                                                                                                Fiscal Note Act
                                                                                               may be applicable

 

                                                            A BILL FOR

 

 

 

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1           AN ACT creating a State income tax for school aid and 55
2 amending certain Acts relating thereto. 57
3 Be it enacted by the people of the State of Illinois. 61
4 represented in the General Assembly:
5           Section 1. Sections 201 and  901 of the “Illinois Income 63
6  Tax Act”, approved July 1, 1969, as amended, are amended to  64
7  read as follows:
           (Ch. 120, par. 2-201) 66
8           Sec. 201. Tax Imposed.  (a) In general. A tax measured   68
9 by net income is hereby imposed on every individual,  69
10 corporation, trust and estate for each taxable year ending 70
11 after July 31, 1969 on the privilege of earning or receiving
12 income in or as a resident of this State. Such tax shall be 71
13 in addition to all other occupation or privilege taxes 72
14 imposed by this State or by any municipal corporation or 73
15 political subdivision thereof.
16           (b)  Rates. The tax  imposed by subsection (a) of this 75
17 section shall be--
18           (1) in the case of an individual, trust or estate, an 77
19 amount equal to 2 ½% of the taxpayer’s net income for the 78
20 taxable year, and an additional amount equal to 2.64% of net 79
21 income for the taxable year, to be used exclusively for 80
22 school aid, and  
23           (2) in the case of a corporation, an amount equal to 4% 82
24 of the taxpayer’s net income for the taxable year and an 83
25 additional amount equal to 4.22% of net income for the 84
26 taxable year, to be used exclusively for school aid.
27           (c) Beginning on July, 1, 1979 and thereafter, in 86
28 addition to such income tax, there is also hereby imposed the  87
29 Personal Property Tax Replacement Income Tax measured by net 88
30 income on every corporation (including corporations for which 89
31 there is in effect for the taxable year an election under
32 Section 1372 of the Internal Revenue Code), partnership and 90

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1 trust, for each taxable year ending after June 30, 1979. 91
2 Such taxes are imposed on the privilege of earning or 92
3 receiving income in or as a resident of this State. The
4 Personal Property Tax Replacement Income Tax shall be in 94
5 addition to the income tax imposed by subsections (a) and (b) 95
6 of this Section and in addition to all other occupation or
7 privilege taxes imposed by this State or by any municipal 96
8 corporation or political subdivision thereof. 97
9           (d) Additional Personal Property Tax Replacement Income 99
10 Tax Rates. The personal property tax replacement income tax 100
11 imposed by this subsection and subsection (c ) of this Section 101
12 in the case of a corporation, other than a corporation for 102
13 which there is in effect for the taxable year an election 103
14 under Section 1372 of the Internal Revenue Code, shall be an 104
15 additional amount equal to 2.85% of such taxpayer’s net 105
16 income for the taxable year, except that beginning on January
17 1, 1981, and thereafter, the rate of 2.85% specified in this 106
18 subsection shall be reduced to 2.5%, and in the case of a 108
19 partnership, trust or a corporation for which there is in
20 effect for the taxable year an election under Section 1372 of 109
21 the Internal Revenue Code shall be an additional amount equal  110
22 to 1.5% of such taxpayer’s net income for the taxable year. 111
23           (e) For purposes of the additional tax imposed by 113
24 subsections (c) and (d) of this section:  (1) Net income for a 115
25 taxable year which begins before July 1, 1979 and ends after 116
26 June 30, 1979 shall be that amount which bears the same ratio
27 to the taxpayer’s net income for the entire taxable year as 117
28 the number of days in such year after June 30,1979 bears to 118
29 the total number of days in such year, unless the taxpayer 119
30 elects to apportion net income for such taxable year in the 120
31 manner provided by paragraph (2).
32           (2) If the taxpayer so elects, in the case of a taxable 122
33 year beginning before July 1, 1979 and ending after June 30, 123
34 1979 there shall be taken into account in computing base 124
35 income only those items earned, received, paid, incurred or 125

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1 accrued after June 30, 1979 , and the standard exemption 126
2 provided by section 204 shall be limited to that amount which  127
3 bears the same ratio to the total exemption allowable under
4 such section (determined without regard to this section) as 128
5 the number of days after June 30, 1979 in the taxable year 129
6 bears to 365. The election provided by this paragraph shall 130
7 be made in such manner and at such time as the Department may 131
8 by forms or regulations prescribe, but shall be made not 132
9 later than the due date (including any extensions thereof) 133
10 for the filing of the return for the taxable year, and shall
11 be irrevocable. 134
12           ( f )  (1) The additional tax imposed upon a corporation, 136
13 other than a corporation for which there is in effect for the 137
14 taxable year an election ender Section 1372 of the Internal 138
15 Revenue Code, by subsection (c) and (d) of this section for a  139
16 taxable year which begins before January 1, 1981 and ends
17 after December 31, 1980 , shall be calculated by applying the 140
18 2.85% rate to that part of the taxpayer’s net income which 141
19 bears the same ratio to the taxpayer’s net income for the 142
20 entire taxable year as the number of days in such year prior
21 to January 1, 1981 bears to the total number of days in such 143
22 year and by applying the 2.5% rate to that part of the  144
23 taxpayer’s net income which bears the same ratio to the 145
24 taxpayer’s net income for the entire taxable year as  the 146
25 number of days in such year after December 31, 1980 bears to
26 the total number of days in such year, unless the taxpayer 147
27 elects to apportion net income for such taxable year in the 148
28 manner provided by paragraph (2)
29           (2) If a taxpayer so elects, the additional tax imposed  150
30 for a taxable year beginning before January 1, 1981 and 151
31 ending after December 31, 1980 may be calculated by adding 152
32 together the following amounts:
33           (A) The amount resulting from applying the 2.85% rate to 154
34 that part of the taxpayer’s total net income attributable to 155
35 the portion of the taxable year prior to January 1, 1981 ; and 156

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1           (B) The amount resulting from applying the 2.5% rate to 158
2 that part of taxpayer’s total net income not attributable to 159
3 the portion of the taxable year prior to January 1, 1981 . 160
4 For purposes of this paragraph, the part of the taxpayer’s 162
5 total net income which is attributable to the portion of its 163
6 taxable year prior to January 1, 1981 , is calculated by taking 164
7   into account only those items earned, received, paid, 165
8 incurred or accrued prior to January 1, 1981, and by limiting
9 the standard exemption provided by Section 204 to that amount 166
10 which bears the same ratio to the total exemption  otherwise 167
11 allowable under such section as the number of days in that 168
12 portion of taxpayer’s taxable year prior to January 1, 1981 169
13 bears to the total number of days in such year. The election
14 provided by this paragraph shall be made in such manner and 170
15 at such time as the Department may by forms or regulations 171
16   prescribe, but shall be made not later than the due date 172
17 (including any extensions thereof) for the filing of the  173
18 return for the taxable year, and shall be irrevocable.  174
           (Ch. 120, par. 9-901) 176
19           Sec. 901. Collection Authority.          (a) In general. The 178
20 Department shall collect the taxes imposed by this Act, and 179
21 shall pay all moneys received by it under this Act except 180
22 moneys collected pursuant to Section 201 (c) and (d) of this 181
23 Act and moneys collected to be used exclusively for school 182
24 aid as provided by Section 201 (b) (1) and (2) of this Act,
25 into the General Revenue Fund in the State Treasury.  Money 184
26 collected pursuant to Section 201 (c) and (d) of this Act 185
27 shall be paid into the “Personal Property Tax Replacement
28 Fund”, a special fund in the State Treasury.  Money collected 186
29 for school aid pursuant to Section 201 (b) (1) and (2) of this 187
30 Act shall be paid into the School Income Tax Fund, a special  188
31 fund in the State Treasury.
32           (b) Local Governmental Distributive Fund. Effective 190
33 August 1, 1969 , the Treasurer shall transfer each month from 191
34 the General Revenue Fund to a special fund in the State 192

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1 treasury, to be known as the “Local Government Distributive 193
2 Fund”, an amount equal to 1/12 of the net revenue realized 194
3 from the tax imposed by Section 201, subsections (a) and (b) 195
4 of this Act during the preceding month. Net revenue realized 196
5 for a month shall be defined as the revenue from the tax
6 imposed by Section 201, subsections (a) and (b) of the 197
7 Illinois Income Tax Act”, deposited in the General Revenue 198
8 Fund during the month minus the amount paid out in state 199
9 warrants during the same month as refunds to taxpayers for 200
10 overpayment of liability under the tax imposed by Section 201
11 201, subsection (a) and (b) of the “Illinois Income Tax Act”.
13           Section 2. Sections 17-2, 17-3.2, 18-8 and 34-53 of “The 204
14 School Code”, approved March 18, 1961 , as amended, are 205
15 amended, and Sections 17-17, 17-17.1, 17-17.2 and 18-8A are 206
16 added thereto, the amended and added Sections to read as
17   follows:
          (Ch.122, par. 17-2) 208
18           Sec. 17-2. Tax levies – Purposes – Rates.  Except as 211
19 otherwise provided in Articles 12 and 13  of this Act , the 212
20 following maximum rates shall apply to all taxes levied after
21 August 10, 1965 , in districts having a population of less 213
22 than 500,000 inhabitants, including those districts organized 214
23 under Article 11 of “The School Code”, approved March 18, 215
24 1961, as amended. The school board of any district having a 216
25 population of less than 500,000 inhabitants may levy a tax 217
26 annually, at not to exceed the maximum rates and for the
27 specified purposes, upon all the taxable property of the 218
28 district at the value, as equalized or assessed by the 219
29 Department of Revenue as follows: 220
30           (1) districts maintaining only grades 1 through 8, .92%  222
31 for educational purposes and .25% for operations, building 223
32 and maintaining purposes; 224
33            (2) districts maintenance only grades 9 through 12, .92%  226
34 for educational purposes and .25% for operations, building 227
35 and maintenance purposes; 228

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1           (3) districts maintaining grades 1 though 12, 1.60% for 230
2 educational purposes and .375% for operations, building and 231
3 maintenance purposes;
4           (4) all districts,  .06% for a capital improvements fund 233
5 (which is in addition to the levy for operations, building 234
6 and maintenance purposes) and such fund is to be levied, 235
7 accumulated and spent only in accordance with Section 17-2 .3 236
8 of this Act;
9           (5)  districts providing transportation for pupils,  .12% 238
10 for transportation purposes; 239
11           (6) districts providing summer classes,  .15% for 241
12 educational purposes, subject to Section 17-2.1 of this Act. 242
13           Whenever any special charter school district operating 244
14 grades 1 through 12, has organized or shall organize under 245
15 the general school law, the district so organized may 246
16 continue to levy taxes at not to exceed the rate at which 247
17 taxes were last actually extended by the special charter 248
18 district, except that if such rate at which taxes were last 249
19 actually extended by such special charter district was less
20 than the maximum rate for districts maintaining grades 1 250
21 through 12 authorized under this Section, such special  251
22 charter district nevertheless may levy taxes at a rate not to 252
23 exceed the maximum rate for districts maintaining grades 1 253
24 through 12 authorized under this Section, and except that if 254
25 any such district maintains only grades 1 through 8, the  255
26 board may levy, for educational purposes, at a rate not to
27 exceed the maximum rate for elementary districts authorized 256
28 under this Section.
29            Maximum rates before or after established in excess of 258
30 those prescribed shall not be affected by the amendatory Act 259
31 of 1965.
           ( Ch. 122, par. 17-3.2) 261
32           Sec.  17-3.2.  Additional or supplemental budget. 264
33 Whenever the voters of a school district have voted in favor
34 of an increase in the annual tax rate for educational or 265

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1 operations, building and maintenance purposes or both at an 266
2 election held after the adoption of the annual school budget 267
3 for any fiscal year, the board may adopt or pass during that 268
4 fiscal year an additional or supplemental budget under the
5 sole authority of this Section by a vote of a majority of the 269
6 full membership of the board, any other provision of this 270
7 Article to the contrary notwithstanding, in and by which such 271
8 additional or supplemental budget the board shall appropriate 272
9 such additional sums of money as it may find necessary to 273
10 defray expenses and liabilities of that district to be 274
11 incurred for educational or operations, building and
12 maintenance purposes or both of the district during that 275
13 fiscal year, but not in excess of the additional funds 276
14 estimated to be available by virtue of such voted increase in 277
15 the annual tax rate for educational or operations, building
16 and maintenance purposes or both.  Such additional or 278
17 supplemental budget shall be regarded as an amendment of the 279
18 annual school budget for the fiscal year in which it is  280
19 adopted, and the board may levy the additional tax for 281
20 educational or operations, building and maintenance purposes
21 or both to equal the amount of the additional sums of money 282
22 appropriated in that additional or supplemental budget, 283
23 immediately.
24           (Ch. 122, new par. 17-17) 285
25           Sec. 17-17.  Distribution of tax revenues.  On or before 287
26 July 1 of each year, the Department of Revenue shall prepare 288
27 and certify to the Comptroller the disbursement of sums of 289
28 money to school districts from money collected the preceding 290
29 year from the portion of the State income tax levy designated  
30 for exclusive use for school aid, The amount to be paid to 291
31 each district shall be determined by the amount of income 292
32 taxes collected exclusively for use for school aid from 293
33 individuals and corporations within each school district 294
34 during that fiscal year by the Department, modified by a  
35 population weighting which shall be devised by the State 295

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1 Board of Education and implemented upon approval of the  296
2 General Assembly, and excluding a deduction of 1% from the 297
3 taxes collected, which shall be retained by the State
4 Treasurer to cover the costs incurred by the Department in 298
5 administering the disbursement and enforcing the tax.  The 299
6 Department, at the time of each disbursement to the school 300
7 district, shall prepare and certify to the Comptroller the
8 amount so retained by the State Treasurer to be paid to the 301
9 school districts from the School Aid Fund according to the 302
10 individual school district’s income tax contribution to the 303
11 Fund, modified by a population weighting factor as
12 established by the State Board of Education.  Within 10 days 304
13 after receipt by the Comptroller of the disbursement 305
14 certification, the comptroller shall cause the warrants to be  306
15 drawn for the respective amount in accordance with the
16 directions contained in the certification. 307
17           The local school board of any district receiving funds  309
18 under this Section may apply those funds to any fund from 310
19 which that board is authorized to make expenditures by law, 311
          (Ch. 122, new par. 17-17.1)  313
20           Sec. 17-17.1.  Determination of individual school  315
21 district’s contribution of income tax paid exclusively for 316
22 school aid.  (a) Full-year resident.  The entire amount of 317
23 the person’s State income tax paid for the use for school aid 318
24 for the taxable year shall be allocated to that district
25 except the amount of tax which is attributable to income  319
26 derived from real property located outside the district. (b) 320
27 Part-time residents.  The amount of the person’s State income 321
28 tax paid for the taxable year for that part of the year the 322
29 person was a resident of the district shall be allocated to 
30 the district.
          (Ch. 122, new par. 17-17.2) 324
31           Sec. 17-17.2.  The Department of Revenue shall promulgate 326
32 any rules and regulations deemed necessary to implement the 327
33 provisions of this Article with regard to the State income  328

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1 tax for school aid. 328
          ( Ch. 122, par. 18-8) 330
2           Sec. 18-8.  Basis for apportionment to districts and 332
3 laboratory schools.)  A.  The amount to be apportioned shall 333
4 be determined for each educational service region by school 334
5 districts, as follows:
6           1.  General Provisions: (a)  In the computation of the 337
7 amounts to be apportioned, the average daily attendance of 338
8 all pupils in grades 9 thorough 12 shall be multiplied by 339
9 1.25.
10            (b)  The actual number of pupils in average daily 341
11 attendance shall be computed in a one-teacher school district 342
12 by dividing the total aggregate days of pupil attendance by 343
13 the actual number of days school is in session but not more 344
14 than 30 such pupils shall be accredited for such type of  345
15 district; and in districts of 2 or more teachers, or in 346
16 districts where records of attendance are kept by session
17 teachers, by taking the sum of the respective averages of the 347
18 units composing the groups. 348
19           ( c )  Pupils in average daily attendance shall be computed 351
20 upon the average of the best 6 months of pupils attendance of  352
21 the current school year except as district claims may be 353
22 later amended as provided hereinafter in this section.  Days
23 of attendance shall be kept by regular calendar months, 354
24 except any days of attendance in August shall be added to the 355
25 month of  September and any days of attendance in June shall 356
26 be added to the month of May.  Days of attendance by pupils 357
27 shall be counted only for sessions of not less than 5 clock 358
28 hours of school work per day under direct supervision of 359
29 teachers, with pupils of legal school age and in kindergarten
30 and grades 1 through 12.  360
31           (d) Pupils regularly enrolled in a public school for 362
32 only a part of the school day may be counted on the basis of 363
33 1/6 day for every class hour of instruction of 40 minutes or 364
34 more attended pursuant to such enrollment. 365

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1           ( e )  Days of attendance may be less than 5 clock hours on 367
2 the opening and closing of the school term, and upon the 368
3 first day of pupil attendance, if preceded by a day or days 369
4 utilized as an institute or teachers’ workshop 370
5           (f)  A session of 4 or more clock hours may be counted as 372
6 a day of attendance upon certification by the regional  373
7 superintendent, and approved by the State Superintendent of  374
8 Education to the extent that the district has been forced to 375
9 use daily multiple sessions.
10           (g )  A session of 3 or more clock hours may be counted as 377
11 a day of attendance when the remainder of the school day is 378
12 utilized for an in-service training program for teachers, up 379
13 to a maximum of 5 days per school year of which a maximum of 380
14 4 days of such 5 days may be used for parent–teacher 381
15 conferences, provided a district conducts an in-service 382
16 training program for teachers which has been approved by the
17 State Superintendent of Education; or, in lieu of 4 such 383
18 days, 2 full days may be devoted to parent-teacher 384
19 conferences, in which event each such day may be counted as a 385
20 day of attendance.  Any days so used shall not be considered 386
21 for computing average daily attendance.
22           (h)   A session of not less than 1 clock hour teaching of  388
23 hospitalized or homebound pupils on-site or by telephone to 389
24 the classroom may be counted as ½ day of attendance 390
25 however these pupils must receive 4 or more clock hours of 391
26 instruction to be counted for a full day of attendance. 392
27           (i)  A session of at least 4 clock hours may be counted 394
28 as a day of attendance for first grade pupils, and a session 395
29 of 2 or more hours may be counted as ½ day of attendance by 396
30 kindergarten pupils.
31           (j)  For handicapped children below the age of 6 years 398 398
32 who cannot attend two or more clock hours because of handicap 399
33 or immaturity, a session of not less than one clock hour may 400
34 be counted as ½ day of attendance; however for such 401
35 children whose educational needs so require a session of 4 or  402

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1 more clock hours may be counted as a full day of attendance.  402
2           (k)  A recognized kindergarten shall not have more than  404
3 ½ day of attendance counted in any 1 day.  However, 405
4 kindergartens may count 2  ½ days of attendance in any 5 406
5 consecutive school days.  Where a kindergarten pupil attends
6 school for 2 half days on anyone school day, such pupil 407
7 shall have the following day as a day absent from school,  408
8 unless the school district obtains permission in writing from 409
9 the State Superintendent of Education.  Only the first year 410
10 of attendance in one kindergarten shall be counted except in 411
11 case of children who entered the kindergarten in their fifth
12 year whose educational  development requires a second year of 412
13 kindergarten as determined under the rules and regulations of 413
14 the State Board of Education.
15           (1)  Days of attendance by tuition pupils shall be  415
16 accredited only to the districts that pay the tuition to a 416
17 recognized school.
18 (m)  For the school year beginning July 1, 1979 , the 418
19 greater of the weighted average daily attendance for the 419
20 1978-79 school year or the average of the weighted average 420
21 daily attendance for the 1977-78 and 1978-79 school years 421
22 shall be used to compute the State aid entitlement.  For any
23 school year beginning July 1, 1980 , or thereafter, the 422
24 greater of the immediately preceding year’s weighted average 423
25 daily attendance or the average of the weighted average daily 424
26 attendance of the immediately preceding year and the previous 425
27 2 years shall be used.
28           (n)  The number of pupils in a district listed as 427
29 eligible under Title I of the Elementary and Secondary 428
30 Education Act of 1965 shall result in an increase in the 429
31 weighted average daily attendance calculated as follows: The 430
32 number of pupils eligible under Title I shall increase the 431
33 weighted ADA by .50 for each student adjusted by dividing the 432
34 percent of pupils eligible for Title I in the district by the
35 ratio of pupils eligible for Title I in the State to the best 433

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1 6 months’ weighted average daily attendance in the State.  In 434
2 no case may the adjustment under this paragraph result in a 435
3 greater weighting than .675 per eligible Title I student. 436
4            (o)  Any school district which fails for nay given school 438
5 year to maintain school as required by law, or to maintain a 439
6 recognized school is not eligible to file for such school  440
7 year any claim upon the common school fund.  In case of  441
8 non-recognition of one or more attendance centers in a school 442
9 district otherwise operating recognized schools, the claim of
10 the district shall be reduced in the proportion which the 443
11 average daily attendance in the attendance center or centers 444
12 bear to the average daily attendance in the school district.  445
13 A “recognized school” means any public school which meets the 446
14 standards as established for recognition by the State Board 447
15 of Education.  A school district or attendance center not 448
16 having recognition statues at the end of a school term is
17 entitled to receive State aid payments due upon a legal claim 449
18 which was filed while it was recognized. 450
19           (p)  School districts claims filed under this Section are 452
20 subject to Sections 18-9,18-12, except as herein 453
21 otherwise provided.
22           (q)  The State Board of Education shall secure from the 456
23 Department of Revenue the value as equalized or assessed by 457
24 the Department of Revenue of all taxable property of every 458
25 school district together with the applicable tax rate used in 459
26 extending taxes for the funds of the district as of September 460
27 30 of the previous year.  In a new district which has not had 461
28 any tax rates yet determined for extension of taxes, a 462
29 leveled uniform rate shall be computed from the latest amount 463
30 of  the fund taxes extended on the several areas within such 464
31 new district.
32           (r)  If a school district operates a full year school  466
33 under Section 10-19.1 of this Act. The general state aid to 467
34 the school district shall be determined by the state board of 468
35 Education in accordance with this Section as near as may be 470

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1 applicable. 470
2           2.  Limit in annual increases:  For the school year 472
3 beginning July 1, 1978 , a district may not have an 473
4 entitlement in excess of a 35% increase over the prior year’s
5 entitlement as adjusted for weighted ADA excluding ESEA-Title 474
6 I weightings, but may in subsequent years continue to receive 476
7 35% increase until the district is reimbursed the full
8 amount of the annual entitlement.  For purposes of 479
9 determining “prior year’s entitlement” under the subsection,
10 for computing the 1976-1977 State aid claims and subsequent 480
11 year’s claims in the event of proration of those claims, the 481
12 General Assembly declares by this clarifying amendatory Act 482
13 of 1977 that “prior year’s entitlement” means the amount of 483
14 the school district’s actual State aid claim for the prior 484
15 year as prorated to the appropriation level for that year.
16           3.  Supplementary claim:  Any newly organized school 486
17 district, any district that has annexed a district or any 487
18 portion of a district, and any district that has had a 488
19 detachment of territory shall file a supplementary state aid 489
20 claim on forms provided by the State Board of Education.
21           4.  Impaction.  Impaction payments shall be made as 491
22 provided for in Section 18-4.2 of this Act. 492
23           5.  Summer school.  Summer school payments shall be made 494
24 as provided in Section 18-4.3 of this Act.  495
25            6.  Computation of State aid:  The State grant shall be 497
26 determined as follows:
27           (a)  The State shall guarantee the amount of money that a 499
28 district’s operating tax rate as limited in other Sections of 500
29 this Act would produce if every district maintaining grades 501
30 kindergarten through 12 had an equalized assessed valuation 502
31 equal to $51,695 per weighted ADA pupil; every district 503
32 maintaining grades kindergarten through 8 had an equalized 504
33 assessed valuation of $78,656 per weighted ADA pupil; and 505
34 every district maintaining grades 9 through 12 had an
35 equalized assessed valuation of &139,333 per weighted ADA 506

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1 pupil.  The State Board of Education shall adjust the 507
2 equalized assessed valuation amounts stated in this
3 paragraph, if necessary, to conform to the amount of the 508
4 appropriation approved for any fiscal year.  509
5           (b)  The operating tax rate to be used shall consist of 511
6 all districts taxes extended for all purposes except community 512
7 college educational purposes for the payment of tuition under  513
8 Section 6-1 of the “ Public Community College Act”, Bond and  514 514
9 Interest, Summer School, Rent, Special Education Building , 515
10 Capital Improvement and Vocational Education Building .  Any  516 516
11 district may elect to exclude Transportation from the 517
12 calculation of its operating tax rate.
13           The operating tax rate of a district levying a net income  519
14 tax under the “ Illinois School District Income Tax Act”.  520
15 enacted by the Eighty-Second General Assembly, shall be 521
16 increased, for the calculation of aid under this Section, by 522
17 a rate which when applied to the equalized assessed valuation
18 of the district would yield an amount equal to the revenue  523
19 received by the district from its income tax during the  524
20 current fiscal year.
21           (c)  For calculation of aid under this Act a district  526
22 shall use the combined authorized tax rates of all funds not  527
23 exempt in (b) above, not to exceed 2.83% of the value of all 528
24 its taxable property as equalized or assessed by the 529
25 Department of Revenue for districts maintaining grades
26 kindergarten through 12; 1.86% of the value of all its  530
27 taxable property as equalized or assessed by the Department 531
28 of Revenue for districts maintaining grades kindergarten 532
29 through 8 only; 1.05% of the value of all its taxable
30 property as equalized or assessed  by the Department of 533
31 Revenue for districts maintaining grades 9 through 12 only. 534
32 A district may, however, as provided in Article 17, increase 535
33 its operating tax rate above the maximum rate provided in
34 this subsection without affecting the amount of State aid to 536
35 which it is entitled under this act. 537

                                                                  15         LRB8204373JMtc                    S712

1           For purposes of calculating a district’s State aid, no 539
2 district’s operating tax rate shall be increased  as a result  540
3 of an increase in the taxes extended by the county clerk 541
4 under Section 162 of the “Revenue Act of 1939” as amended in 542
5 1977.
6           (d) (1)  For districts maintaining grades kindergarten 544
7 through 12 with an operating tax rate as described in  545
8 subsections 6 (b) and (c) of less than 2.18%, and districts 546
9 maintaining grades kindergarten through 8 with an operating
10 tax rate of less than 1.28%, State aid shall be computed by 547
11 multiplying the difference between the guaranteed equalized 548
12 assessed valuation per weighted ADA pupil in subsection 6 (a) 549
13 and the equalized assessed valuation per weighted ADA pupil  550
14 in the district by the operating tax rate, multiplied by the
15 weighted average daily attendance of the district.  For the 552
16 school year 1980-81 only, a K-12 school district with an
17 operating tax rate less than 2.18% and more than 2.17% shall 553
18 be eligible for General State Aid computed as follows: 554
19           The actual 1978 operating tax rate plus 2/3 of the 556
20 difference between the actual 1978 operating tax rate and 557
21 2.83% multiplied by the difference between the guaranteed 558
22 equalized assessed valuation per weighted average daily
23 attendance pupil in subsection 6 (a) and the equalized 559
24 assessed valuation per weighted ADA pupil in the district,  560
25 and multiplied by the weighted average daily attendance of 561
26 the district.  However, special equalization K-12 school
27 districts with a 1978 operating tax rate less than 2.18% and 562
28 more than 2.17% shall have a deduction made to the total  563
29 claim in the amount of the 1978 equalized assessed valuation  564
30 multiplied by the difference between the actual 1978 565
31 operating tax rate and 2.18%.  Such additional payment shall
32 be treated as separate from all other payments made pursuant 566
33 to this Section 18-3.
34           (2) For districts maintaining grades kindergarten 568
35 through 12 with an operating tax rate as described in  569

                                                                  16         LRB8204373JMtc                    S712

1 subsection 6 (b) and (c) of 2.18% and above, the State aid 570
2 shall be computed as provided in subsection (d)  (1)  but as
3 through the district had an operating tax rate of 2.83% in 573
4 K-8 districts with an operating tax rate of 1.28% and above,
5 the State aid shall be computed as provided in subsection (d)  574
6 (1) but as though the district had an operating tax rate of  575
7 1.86%; and in 9-12 districts, the State aid shall be computed  576
8 by multiplying the difference between the guaranteed 577
9 equalized assessed valuation per weighted average daily 578
10 attendance pupil in subsection 6(a) and the equalized
11 assessed valuation per weighted average daily attendance 579
12 pupil in the district by the operating tax rate, not to 580
13 exceed 1.05%, multiplied by the weighted average daily 581
14 attendance of the district.
15           (3)  The State aid as computed in paragraph (2) of this 583 583
16 subsection (d) shall be subject to the following limitations:  584
17 for the 1979-80 school year, K-12 districts with an operating 585
18 tax rate of 2.18% and above but less than 2.83% and K-8 586
19 districts with an operating tax rate of 1.28% and above but
20 less than 1.86 %, shall use an operating tax rate equal to 587
21 their actual operating tax rate plus 1/3 of the difference  588
22 between their actual operating tax rate and the maximum 589
23 operating tax rate specified above; for the 1980-81 school 590
24 year, their actual operating tax rate plus 2/3 of the
25 difference.
26           (e)  The amount of State aid shall be computed under the  592
27  provisions of subsections 6 (a) through 6 (d) provided the 594
28 equalized assessed valuation per weighted ADA pupil is less
29 than .87 of the amounts in subsection 6 (a).  If the equalized 595
30 assessed valuation per weighted ADA pupil is equal to or 596
31 greater than .87 of the amounts in subsection 6 (a), the State 597
32 aid shall be computed under the provisions of subsection
33 6(f)
34           (f)  If the equalized assessed valuation pe r weighted ADA 599
35 pupil is equal to or greater than .87 of the amounts in  600

                                                                  17         LRB8204373JMtc                    S712

1 subsection 6(a), the State aid per weighted ADA pupil shall 601
2 be computed by multiplying the product of .13 times the 602
3 maximum per pupil amount computed under the provisions of
4 subsections 6(a) through 6(d) by an amount equal to the 603
5 quotient of .87 times the equalized assessed valuation per 604
6 weighted ADA pupil in subsection 6(a) for that type of 605
7 district divided by the district equalized valuation per
8 weighted  ADA pupil except in no case shall the district 606
9 receive State aid per weighted ADA pupil of less than .07 607
10 times the maximum per pupil amount computed under the 608
11 provisions of subsections 6 (a) through 6 (d).
12           Notwithstanding any other provisions of this Act, any 610
13 district which receives less general State aid under this 611
14 Section during the 1980-81 school year as a result of the 612
15 formula revisions contained in this amendatory Act of 1980 613
16 when compared to it’s claim for 1980-81 computed under
17 subsections 1,2,3 and 4 of Section 18-8 for the 1979-80 614
18 School year, shall be eligible to receive an adjusted amount 615
19 equal to the difference between the claim amount computed 616
20 under the 1979-80 formula and the 1980-81 formula.
21           (g)  In addition to the above grants, summer school 618
22 grants shall be made based upon the calculation as provided 619
23 in subsection 5 of this Section.
24           (h)  The  board of any district receiving  any of the 621
25 grants provided for in this Section may apply those funds to 622
26 any fund so received for which that board is authorized to 623
27 make expenditures by law.
28           (i) (1)  In school districts with an average daily 625
29 attendance of 50,000 or more, one-third of the general state 626
30 aid in 1979-80, and each year in 1980-81, and the full amount in 627
31 1981-82 and each year there after which is provided under 628
32 subsection 1 (h) of this Section by the application of a base 629
33 Title 1 weighting factor of .375 shall be distributed to the 630
34 attendance centers within the district in proportion to the 631
35 number of pupils enrolled at each attendance center who are

                                                                   18         LRB8204373JMtc                    S712

1 eligible for counting and weighting as Title I students under 632
2 the provisions of subsection 1 (n).  The amount of State aid 633
3 provided under subsection 1 (n) of this Section by the 634
4 application of the Title I weighting factor in excess of .375 635
5 shall be distributed to the attendance centers within the 636
6 district in proportion to the total enrollment at each 637
7 attendance center.  The distribution of these portions of 638
8 general state aid among attendance centers according to these 639
9 requirements shall not be compensated for or contravened by
10 adjustments of the total of other funds appropriated to any 640
11 attendance centers.  Provided, however, the average per-pupil 641
12 expenditure for any attendance center in the district shall 642
13 not be less than 90% of the average per-pupil expenditure for 643
14 that attendance center for the preceding school year or, for 644
15 the 1981-82 school year, less than 70% of the average 645
16 per-pupil expenditure for that attendance center for the 646
17 1978-79 school year, whichever applies.  Each district
18 subject to the provisions of this paragraph shall submit an 647
19 acceptable plan to meet the educational needs of 648
20 disadvantaged children, in compliance with the requirements 649
21 of this paragraph, to the State Board of Education prior to
22 August 15 of each year. 650
23           The State Board of Education shall promulgate rules and 652
24 regulations to implement the provisions of this subsection 653
25 (i) (1).  No funds shall be released under subsection 1 (n) of 654
26 this Section or under this subsection 6 (i) (1) to any district 655
27 which has not submitted a plan which has been approved by the 656
28 State Board of Education.
29           (2) School districts with an average daily attendance of 658
30 more than 1,000 and less than 50,000 and having a Title I 659
31 weighting factor in excess of .50 shall submit a plan to the 660
32 State Board of Education prior to August 15 of each year for 661
33 the use of the funds resulting from the application of 662
34 subsection 1 (n) of this Section for the improvement of
35 instruction in which priority is given to meeting the 663

                                                                19         LRB8204373JMtc                    S712

1 education needs of disadvantaged children.  Such plan shall 664
2 be submitted in accordance with rules and regulations 665
3 promulgated by the State Board of Education.
4           (j)  For the purposes of calculating State aid under this 667
5 Section, with respect to any part of a school district within  668
6 a redevelopment project area in respect to which a 669
7 municipality has adopted tax increment allocation financing 670
8 pursuant to the Real Property Tax Increment Allocation 671
9 Redevelopment Act, Section 11-74.4-1 through 11-74.4-11 of  672
10 the Illinois Municipal Code, no part of the current equalized 673
11 assessed valuation of real property located in any such 674
12 project area which is attributable to an increase above the
13 total initial  equalized assessed valuation of such property 675
14 shall be used in computing the equalized assessed valuation 676
15 per weighted ADA   pupil in the district, until such time as  677
16 all redevelopment project costs have been paid, as provided 678
17 in Section 11-74.4-8 of that Act.  For the purpose of 679
18 computing the equalized assessed valuation per weighted ADA
19 pupil in the district the total initial equalized assessed 680
20 valuation or the current equalized assessed valuation, 681
21 whichever is lower, shall be used until such time as all 682
22 redevelopment project costs have been paid.
23           (k)  For a school district operating under the financial  684
24 supervision of an Authority created under Article 34A, the 685
25 State aid otherwise payable to that district under this 686
26 Section, other than State aid attributable to Title I  687
27 students, shall be reduced by an amount equal to the budget
28 for the operations of the Authority as certified by the  688
29 Authority to the State Board of Education, and an amount 689
30 equal to such reduction shall be paid to the Authority 690
31 created for such district for its operating expenses in the 691
32 manner provided in Section 18-11 of this Act.  The remainder
33 of State school for any such district shall be paid in 692
34 accordance with Article 34A when that Article provides for a 693
35 disposition other than that provided by this Article. 694

                                                                  20         LRB8204373JMtc                    S712

1           (1)  For purpose of calculating State aid under this 696
2 Section for any school  year beginning July 1,1981 , or 697
3 thereafter, the equalized assessed valuation for a school  698
4 district used to compute State aid shall be determined by 699
5 adding to the real property equalized assessed valuation for
6 the district an amount computed by dividing the amount of  700
7 money received by the district under the provisions of  “An  701
8 Act in relation to the abolition of ad valorem personal  702
9 property tax and the replacement of revenues lost thereby”,
10 certified  August 14, 1979 , by the total tax rate for the 703
11 district.  For purposes of this subsection 1976 tax rates 704
12 shall be used for school districts in the county of cook and 705
13 1977 tax rates shall be used for school districts in all 706
14 other counties.  For the school year beginning July 1, 1981 , 707
15 for purposes of computing State aid, there shall be added to 708
16 the amount derived by the above computation two-thirds of the
17 difference between the ad valorem personal property equalized 709
18 assessed valuation extensions and collections for 1978.  For 710
19 the school year beginning July 1, 1982 , one-third of this 711
20 difference shall be added.
21           (m)  Notwithstanding any other provisions of this 713
22 Section,  if the equalized assessed valuation used to 714
23 calculate the State aid which a school district is entitled 715
24 to receive under this Section for the 1980-81 school year has
25 increased by 100% or more compared to the equalized assessed 716
26 valuation used to calculate the district’s State aid  717
27 entitlement for the 1979-80 school year, and over 50% of the 718
28 increase is due to an increase in the equalized assessed  719
29 valuation of personal property in the districts, and the
30 increase in the district’s equalized assessed valuation is 720
31 not due to a reorganization of school district boundaries,  721
32 then the school district’s State aid entitlement for the 722
33 1980-81 school year shall be not less than 80% of the
34 district’s 1979-80 entitlement. 723
35           In calculating the amount to be paid to the governing 725

                                                                  21         LRB8204373JMtc                    S712

1 board of a public university which operates a laboratory  726
2 school under this Section during the 1981-82 school year and  727
3 thereafter, the State Board of Education shall require by 728
4 rule such reporting requirements for the laboratory school by 729
5 the public university as it deems necessary to determine the 730
6 number of students who are residents of a district but attend 731
7 school at a public university laboratory school.  The State
8 board of Education shall then calculate the difference in the 732
9 amount  of aid the various school districts would be paid 733
10 under Part A of this Section without counting such students 734
11 in any way and the amount of aid the districts would be paid
12 if the students attending such laboratory schools were  735
13 included in the weighted average daily attendance of those 736
14 districts.  Upon request made by the governing board of the 737
15 public university which conducts the laboratory school, the
16 State Board shall pay the amount of such difference from 739
17 moneys appropriated for the purpose of this Section to the 740
18 governing board of the public university which conducts the
19 laboratory school.  As used in this Section, “laboratory 741
20 school” means a public school in actual operation  on the 742
21 effective date of this amendatory Act which is created and 743
22 operated by a public university and approved by the State 744
23 Board of Education.  The governing board of a public
24 university which receives funds from the State Board under 745
25 this paragraph may not increase the number of students 746
26 enrolled in its laboratory school from a single district, if 747
27 that district is already sending 50 or more student, except
28 under a mutual agreement between the school board of a 748
29 student’s district of residence and the university which  749
30 operates the laboratory school.  A laboratory school may not 750
31 have more than 1,000 students, excluding handicapped students 751
32 in a special education program.  Nothing in Part B of this  752
33 Section shall affect the right of school districts to claim
34 aid for weighted average daily attendance reported under part 753
35 A which have contracted to pay a university for weighted 754

                                                                  22         LRB8204373JMtc                    S712

1 average daily attendance prior to July 1, 1981 .  755
          (Ch. 122, new par. 18-8A)  757
2           Sec. 18-8A.  For purposes of calculating State aid under 759
3 Section 18-8 for the year after the implementation of the 760
4 State income tax for school aid, the value of the operating 761
5 tax rate for a district shall be determined by multiplying 762
6 the operating tax rate for the previous year by the income  763
7 received under Section17-17 in the current year and dividing
8 this product by the income received under the property taxes.  764
9           For the purpose of calculating State aid under Section 766
10 18-8 in years subsequent to the year after the adoption of  767
11 the State income tax for school aid, the value of the  768
12 operating tax rate for a school district shall be determined
13 by multiplying the value of the operating tax rate (as 769
14 determined under this Section for the previous year by the 770
15 income received under Section 17-17 in the current year and 771
16 dividing this product by the income received under Section  772
17 17-17 in the previous year
          (Ch. 122, par.34-35) 774
18           Sec. 34-35. Tax levies – purpose – Rates.  For the 776
19 Purpose of establishing and supporting free schools for not 777
20 fewer than 9 months in each year and defraying the expenses  778
21 thereof; for the purpose of building, renting buildings and 779
22 property for school purposes (other than buildings and 780
23 property rented from the Public Building Commission of 781
24 Chicago ), repairing and improving such school houses and
25 property, or procuring school lands, furniture, fuel, 782
26 libraries, apparatus, building and architectural supplies,  783
27 for the purchase, maintenance, repair and replacement of  784
28 fixtures generally used in school buildings, including but 785
29 not limited to heating and ventilating systems, mechanical 786
30 equipment, seats and desks, blackboards, window shades and
31 curtains, gymnasium and recreation apparatus and equipment, 787
32 auditorium and lunchroom equipment, and all expenses incident 788
33 there to each district described in this Article, the board  789

                                                                  23         LRB8204373JMtc                    S712

1 of education and the authorities of  such district or city, as 790
2 the case may be, may levy annually, upon all taxable property 791
3 of the district or city, a tax for building purposes and the 792
4 purchase of school grounds for the fiscal year 1971 and each
5 year thereafter at a rate not to exceed .45% of the value, as 793
6 equalized or assessed by the Department of Revenue for the 794
7 year in which the levy was made; and may levy annually upon 795
8 all   taxable   property   of   such   district   or   city   for 796
9 educational purpose a tax for the fiscal years 1971 through  797
10 1980  at a rate not to exceed 2.11% and each fiscal year 798
11 thereafter at a rate of not to exceed 1.61% of the value as    799
12 equalized or assessed by the Department of Revenue for the
13 year in which such levy is made; provided that the taxes so 801
14 levied for building purposes and the purchase of school
15 grounds and for educational purposes, respectively, shall not 802
16 exceed the estimated amounts of taxes to be levied for such 803
17 fiscal year for such purposes as determined by the provisions 804
18 of Sections 34-43 through 34-52 and set forth in the annual  805
19  school budget of the board: Provided, however, when bonds are 806
20 issued by the board as authorized by Section 34-22.1 the rate 807
21 of tax herein authorized to be levied for building purposes 808
22 and the purchase of school grounds shall be reduced each year
23 by the rate of tax necessary to be levied for each such year 809
24 to pay the principal of and interest upon such bonds when 810
25 issued.  Except sums expended or obligations incurred for 811
26 purposes described in any resolution and ordinance 812
27 authorizing bonds issued under Sections 34-22.1, 34-22.2 813
28 34-22.3, 34-22.4, 34-22.5 and 34-22.5, any sum expended or 814
29 obligations incurred for the purpose of building school 815
30 houses, renting buildings and property for school purposes
31 (other than buildings and property rented from the public  816
32 Building Commission of Chicago), for procuring school lands, 817
33 furniture, fuel, libraries and apparatus, for the 818
34 improvement, repair or benefit of school buildings and 819
35 property, for building and architectural supplies, for the

                                                                  24         LRB8204373JMtc                    S712

1 purchase, maintenance, repair and replacement of fixtures 820
2 generally used in school buildings, including but not limited  821
3 to heating and ventilating systems, mechanical equipment,  822
4 seats and desks, blackboards, window shades and curtains,  823
5 gymnasium and recreation apparatus and equipment, auditorium
6 and lunchroom equipment, and all expenses incident thereto 824
7 shall be paid from that portion of the tax levied for  825
8 building purposes and the purchase of school grounds.  The 826
9 board may provide by resolution that the payment of all or a  827
10 part of the salaries or wages of persons employed in 828
11 connection with the custody, heating or cleaning of school
12 grounds and buildings, and all or part of expenditures for 829
13 gas and electricity, water, telephone service, custodial 830
14 supplies and equipment, or any one or more of the preceding 831
15 items shall be paid from the tax for building purposes and 832
16 the purchase of school grounds, and in such event such  833
17 salaries or specified expenditures, or both, shall be so paid
18 until the next fiscal year after the repeal of such 834
19 resolution.  After the adoption of the annual school budget,  835
20 the board shall have the power to adopt or pass during such 836
21 fiscal year an additional or supplement budget under the 837
22 sole authority of this Section by a vote of a majority of the
23 full membership of the board, any other provision of this 838
24 Article to the contrary notwithstanding, in and by which such 839
25 additional or supplement budget the board may provide for 840
26 the appropriation from the building fund for the remainder of 841
27 said fiscal year of such items of expenditure authorized by 842
28 this Section as are expressly set forth in said resolution 843
29 and such additional or supplement budget shall be regarded 844
30 as an amendment of the annual school budget for that fiscal
31 year.  845
32 Except as hereinabove in this section expressly provided,  847
33 all taxes and tax rates herein authorized to be levied shall 848
34 be exclusive of taxes and  tax rates authorized to be levied 849
35 for free textbooks, school playground (or school playground 850

                                                                  25         LRB8204373JMtc                    S712

1 and recreational, as the case may be), public school  851
2 teachers’ pension and retirement fund, and working cash fund 852
3 purposes, and for the payment of bonded indebtedness or
4 interest thereon.  This    Act    does    not    prevent    the 853
5 appropriation for and payment from the tax for educational  854
6 purpose of any contribution to the public school teachers’ 855
7 pension and retirement fund and payments to persons retired,   856
8 as provided by law and such appropriations and payments are
9 hereby authorized, Educational purposes.  Building purposes 857
10 and the purchase of school grounds, free textbook and school 858
11 playground (or school playground and recreational as the case 859
12 may be)  purposes, respectively, shall include expenses of 860
13 administration incidental to each of such purposes.  Nothing 861
14 in this amendatory Act of 1980 shall in any way impair or  862
15 restrict the extension of taxes pursuant to levies lawfully 863
16 made prior to the adoption of this amendatory Act.
17           Notwithstanding any other provision of Chapter 122 and in 865
18 addition to the methods provided in this chapter for 866
19 increasing the tax rate, the Chicago Board of Education may, 867
20 by proper resolution, cause a proposition to increase the 868
21 annual tax rate for educational purposes to be submitted to 869
22 the voters of such districts at any general or special  870
23 election.  The maximum rate for educational purpose shall
24 not exceed 4.00%.  The election called for such purpose shall 871
25 be governed by Article 9 of this Act.  If at such election a 872
26 majority of the votes cast on the proposition is in favor 873
27 thereof, the Board of Education may thereafter until such 874
28 authority is revoked in a like manner, levy annually the tax 875
29 so authorized.
30           Section 3.  Section 5.92 is added to “An Act in relation 877
31 to State finance”, approved June 10, 1919 , as amended, the 878
32 added Section to read as follows:
          (Ch.127, new par.141.92)  880
33           Sec. 5.92. The School Income Tax Fund.   882
          ( Ch. 122, rep. Pars. 17-2.1,17-3,17-3.1,17-4 and 17-8 884

                                                                 26         LRB8204373JMtc                    S712

1           Section 4.  Sections 17-2.1,17-3,17-3.1,17-4 and 17-8  886
2 of “The School Code”, approved March 18,1961 , as amended,  887
3 are repealed.
4           Section 5.  This Act shall take effect July 1, 1983 , but 889
5 any taxes imposed under this Act may only apply to income 890
6 earned during the taxable year ending December 31, 1984 , and
7 subsequent taxable years.