30 ILCS 740/2-2.04
2021 Illinois Compiled Statutes|Chapter 30 - FINANCE|30 ILCS 740/ - Downstate Public Transportation Act.|Article II - Downstate Public Transportation Assistance

 (from Ch. 111 2/3, par. 662.04)Sec. 2-2.04. "Eligible operating expenses" means all expenses required  for public transportation, including employee wages and benefits,  materials, fuels, supplies, rental of facilities, taxes other than income  taxes, payment made for debt service (including principal and interest) on   publicly owned equipment or facilities, and any other expenditure which is  an operating expense according to standard accounting practices for the   providing of public transportation. Eligible operating expenses shall not  include allowances: (a) for depreciation whether funded or unfunded; (b)  for amortization of any intangible costs; (c) for debt service on capital  acquired with the assistance of capital grant funds provided by the State  of Illinois; (d) for profits or return on investment; (e) for excessive  payment to associated entities; (f) for Comprehensive Employment Training  Act expenses; (g) for costs reimbursed under Sections 6 and 8 of the "Urban  Mass Transportation Act of 1964", as amended;  (h) for entertainment  expenses; (i) for charter expenses; (j) for fines and penalties; (k) for  charitable donations; (l) for interest expense on long term borrowing and  debt retirement other than on publicly owned equipment or facilities; (m)  for income taxes; or (n) for such other expenses as the Department may  determine consistent with federal Department of Transportation regulations  or requirements. In consultation with participants, the Department shall, by October 2008, promulgate or update rules, pursuant to the Illinois Administrative Procedure Act, concerning eligible expenses to ensure consistent application of the Act, and the Department shall provide written copies of those rules to all eligible recipients.  The Department shall review this process in the same manner no less frequently than every 5 years.With respect to participants other than any Metro-East Transit District  participant and those receiving federal research development and demonstration  funds pursuant to Section 6 of the "Urban Mass Transportation Act of 1964",  as amended, during the fiscal year ending June 30, 1979, the maximum eligible  operating expenses for any such participant in any fiscal year after Fiscal  Year 1980 shall be the amount appropriated for such participant for the  fiscal year ending June 30, 1980, plus in each year a 10% increase over  the maximum established for the preceding fiscal year.  For Fiscal Year  1980 the maximum eligible operating expenses for any such participant shall  be the amount of projected operating expenses upon which the appropriation  for such participant for Fiscal Year 1980 is based.With respect to participants receiving federal research development and  demonstration operating assistance funds for operating assistance pursuant  to Section 6 of the "Urban Mass Transportation Act of 1964", as amended,  during the fiscal year ending June 30, 1979, the maximum eligible operating  expenses for any such participant in any fiscal year after Fiscal Year 1980  shall not exceed such participant's eligible operating expenses for the  fiscal year ending June 30, 1980, plus in each year a 10% increase over  the maximum established for the preceding fiscal year.  For Fiscal Year  1980, the maximum eligible operating expenses for any such participant shall  be the eligible operating expenses incurred during such fiscal year, or  projected operating expenses upon which the appropriation for such participant  for the Fiscal Year 1980 is based; whichever is less.With respect to all participants other than any Metro-East Transit  District participant, the maximum eligible operating expenses for any such  participant in any fiscal year after Fiscal Year 1985 (except Fiscal Year 2008 and Fiscal Year 2009)  shall be the amount  appropriated for such participant for the fiscal year ending June 30, 1985,  plus in each year a 10% increase over the maximum established for the preceding  year.  For Fiscal Year 1985, the maximum eligible operating expenses for  any such participant shall be the amount of projected operating expenses  upon which the appropriation for such participant for Fiscal Year 1985 is  based.With respect to any mass transit district participant that has increased  its district boundaries by annexing counties since 1998 and is maintaining a  level of local financial support, including all income and revenues, equal to  or greater than the level in the State fiscal year ending June 30, 2001, the  maximum eligible operating expenses for any State fiscal year after 2002 (except State fiscal years   2006 through 2009) shall  be the amount appropriated for that participant for the State fiscal year  ending June 30, 2002, plus, in each State fiscal year, a 10% increase over the  preceding State fiscal year.  For State fiscal year 2002, the maximum eligible  operating expenses for any such participant shall be the amount of projected  operating expenses upon which the appropriation for that participant for State  fiscal year 2002 is based.  For that participant, eligible operating expenses  for State fiscal year 2002 in excess of the eligible operating expenses for the  State fiscal year ending June 30, 2001, plus 10%, must  be attributed to the  provision of services in the newly annexed counties.With respect to a participant that receives an initial appropriation in State  fiscal year 2002 or thereafter, the maximum eligible operating expenses for any State fiscal  year after 2003 (except State fiscal years   2006 through 2009) shall be the amount appropriated for that participant for the  State fiscal year in which it received its initial appropriation, plus, in each year, a 10% increase over  the preceding year.  For the initial State fiscal year in which a participant received an appropriation, the maximum eligible operating  expenses for any such participant shall be the amount of projected operating  expenses upon which the appropriation for that participant for that State fiscal  year is based.With respect to the District serving primarily the counties of Monroe and St. Clair, beginning July 1, 2005, the St. Clair County Transit District shall no longer be included for new appropriation funding purposes as part of the Metro-East Public Transportation Fund and instead shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund; provided, however, that nothing herein shall alter the eligibility of that District for previously appropriated funds to which it would otherwise be entitled.With respect to the District serving primarily Madison County, beginning July 1, 2008, the Madison County Transit District shall no longer be included for new appropriation funding purposes as part of the Metro-East Public Transportation Fund and instead shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund; provided, however, that nothing herein shall alter the eligibility of that District for previously appropriated funds to which it would otherwise be entitled.With respect to the fiscal year beginning July 1, 2007, and thereafter,  the following shall be included for new appropriation funding purposes as part of the Downstate Public Transportation Fund: Bond County; Bureau County; Coles County; Edgar County; Stephenson County and the City of Freeport; Henry County; Jo Daviess County; Kankakee and McLean Counties; Peoria County; Piatt County; Shelby County; Tazewell and Woodford Counties; Vermilion County; Williamson County; and Kendall County.  (Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08.)