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(105 ILCS 5/17-1.5)
Sec. 17-1.5. Limitation of administrative costs.
(a) It is the purpose of this Section to establish limitations on the growth
of administrative expenditures in order to maximize the proportion of school
district resources available for the instructional program, building
maintenance, and safety services for the students of each district.
(b) Definitions. For the purposes of this Section:
"Administrative expenditures" mean the annual expenditures of
school districts properly attributable to expenditure functions defined by the
rules of the State Board of Education as: 2320 (Executive Administration Services);
2330 (Special Area Administration Services); 2490 (Other Support Services -
School Administration); 2510 (Direction of Business Support Services); 2570
(Internal Services); and 2610 (Direction of Central
Support Services); provided, however, that "administrative expenditures" shall
not include early retirement or other pension system obligations required by
State law.
"School district" means all school districts having a population of less than
500,000.
(c) For the 1998-99 school year and each school year thereafter, each school
district shall undertake budgetary and expenditure control actions so that the
increase in administrative expenditures for that school year over the prior
school year does not exceed 5%.
School districts with administrative expenditures per pupil
in the 25th
percentile and below for all districts of the same type,
as defined by the State Board of Education,
may waive the limitation imposed under this Section for any year following a
public hearing and with the
affirmative vote of at least two-thirds of the members of the school board of
the
district. Any district waiving the limitation shall notify the State Board
within 45 days of such action.
(d) School districts shall file with the State Board of Education by
November 15, 1998 and
by each November 15th thereafter a one-page report that lists
(i) the actual
administrative expenditures for
the
prior year from the district's audited Annual Financial Report, and (ii) the
projected administrative expenditures for the current year from the budget adopted by the school board
pursuant to Section 17-1 of this Code.
If a school district that is ineligible to waive the limitation imposed by
subsection (c) of this Section by board action exceeds the limitation
solely because of circumstances beyond
the control of the district and the district has exhausted all available and
reasonable remedies to comply with the limitation, the district may request a
waiver pursuant to Section 2-3.25g. The waiver application shall specify the
amount,
nature, and reason for the relief requested, as well as all remedies the
district has exhausted to comply with the limitation.
Any emergency relief so requested shall apply only to the specific
school year for which the request is made. The State Board of Education shall
analyze all such waivers submitted and shall recommend that the General
Assembly disapprove any such waiver requested that is not due solely to
circumstances beyond the control of the district and for which the district has
not exhausted all available and reasonable remedies to comply with the
limitation. The State Superintendent shall have
no authority to impose any sanctions pursuant to this Section for any
expenditures for which a waiver has been requested until such waiver has been
reviewed by the General Assembly.
If the report and information required
under this
subsection (d) are not provided by the school district in a timely
manner, or are subsequently determined by
the State Superintendent of Education
to be incomplete or inaccurate, the State Superintendent shall notify the
district in writing of reporting deficiencies. The school district shall,
within 60 days of the notice, address the reporting deficiencies identified.
(e) If the State Superintendent determines that a school district has failed
to comply with the administrative expenditure limitation imposed in subsection
(c) of this Section,
the
State Superintendent shall notify the district of the violation and direct the
district to undertake corrective action to bring the district's budget into
compliance with the administrative expenditure limitation. The district shall,
within 60 days of the notice, provide adequate assurance to the State
Superintendent that appropriate corrective actions have been or will be taken.
If the district fails to provide adequate assurance or fails to undertake the
necessary corrective actions, the State Superintendent may impose progressive
sanctions against the district that may culminate in withholding
all
subsequent payments of general State aid due the district under Section
18-8.05 of
this Code or evidence-based funding due the district under Section 18-8.15 of this Code
until the assurance is provided or the corrective actions taken.
(f) The State Superintendent shall publish a list each year of the school
districts that violate the limitation imposed by subsection (c) of this
Section and a list of the districts that waive the limitation by board
action as provided in subsection (c) of this Section.
(Source: P.A. 100-465, eff. 8-31-17.)
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