Legislative Reference:	S/B 105 ILCS 5/11E-135(a), 135(b), 135(c) and 135(d) Funding Source	FY05 $3,518,800 FY06 $7,700,000 FY07 $7,850,000 FY08 $7,850,000
Program Goal:	To assure that all schools achieve and maintain financial health.

Purpose:

Purpose To encourage school district reorganization through consolidation or annexation, the following financial incentives are available: • Funding of Reorganization Feasibility Studies, available through   Regional Offices of Education; • Supplemental state aid payments for four years to a new or annexing district; • Supplementary state support for four years for new districts to pay the difference in salaries; • Funds to pay the difference between selected negative fund balances among the previously existing districts; and • Additional funds of $4,000<

Reimbursement/ /Distribution Method

Financial incentive distributions are made to eligible districts during the fall of the year. Funds to conduct reorganization studies are disbursed throughout the fiscal year. The fiscal year 2008 costs of district consolidation/annexation based on first, second, third, and fourth-year reorganization payments.