EDUCATION FINANCE

Amends the State Finance Act. Creates the School District Property Tax Relief Fund. Requires the General Assembly, in FY06, to appropriate $3.5 billion from the education appropriation minimum to the School District Property Tax Relief Fund and to appropriate additional amounts each fiscal year thereafter. Requires the Department of Revenue to annually determine and certify the total amount of property tax relief grants that each school district will receive from the Fund. Sets forth procedures for appropriating these grants. Creates the Higher Education Operating Assistance Fund for the purpose of making grants to colleges and universities. Requires the General Assembly to annually appropriate $500 million to the Fund. Sets forth requirements for appropriating and using moneys from the Fund. Amends the Illinois Income Tax Act. Provides that for taxable years beginning after January 1, 2005, the rate of income tax for individuals, trusts, and estates is increased from 3% to 5% of the taxpayer's net income and the rate of income tax for corporations is increased from 4.8% to 8% of the taxpayer's net income. Provides that the amount of net revenues attributable to those increases shall not be used to calculate the amount transferred into the Local Governmental Distributive Fund. Beginning July 1, 2005, requires 100% of the amount attributable to the income tax increases be deposited into the Education Assistance Fund. Amends the Property Tax Code. Requires the county clerk to abate the extension for educational purposes for each school district in the county by the amount of the property tax relief grants received by each of those school districts. Amends the School Code. In the State aid formula provisions, increases the foundation level of support and grant amount for supplemental general State aid. Changes the distribution of moneys from the Education Assistance Fund. Establishes the Education Assistance Fund Board to make biennial recommendations to the General Assembly concerning appropriations from the Education Assistance Fund. Amends the Public Community College Act. Establishes supplemental base operating grants for all community college districts. Effective immediately.