State of Illinois
90th General Assembly
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90_HB2488

      105 ILCS 5/17-1.5
          Amends the School Code.  Makes a  grammatical  change  in
      provisions   establishing   administrative  cost  limitations
      applicable  to  school  districts  with  a  population  under
      500,000.
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                                               LRB9008871THpk
 1        AN ACT to amend  the  School  Code  by  changing  Section
 2    17-1.5.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.   The  School  Code  is  amended  by  changing
 6    Section 17-1.5 as follows:
 7        (105 ILCS 5/17-1.5)
 8        Sec. 17-1.5.  Limitation of administrative costs.
 9        (a)  It  is  the  purpose  of  this  Section to establish
10    limitations on the growth of administrative  expenditures  in
11    order to maximize the proportion of school district resources
12    that  are  available  for the instructional program, building
13    maintenance, and safety services for  the  students  of  each
14    district.
15        (b)  Definitions.  For the purposes of this Section:
16        "Administrative    expenditures"    mean    the    annual
17    expenditures  of  school  districts  properly attributable to
18    expenditure functions defined by the rules of the State Board
19    of Education as: 2310 (Board  of  Education  Services);  2320
20    (Executive  Administration  Services);    2330  (Special Area
21    Administration Services);  2490  (Other  Support  Services  -
22    School  Administration);  2510 (Direction of Business Support
23    Services); 2520 (Fiscal Services); 2570 (Internal  Services);
24    2600   (Total   Support   Services   -   Central);   and  all
25    expenditures  properly  attributable  for  the  Service  Area
26    Direction of functions 2540 (Operations  and  Maintenance  of
27    Plant  Services),  2550  (Pupil Transportation Services), and
28    2560 (Food Services).
29        "Instructional expenditures" mean the annual expenditures
30    of school  districts  properly  attributable  to  expenditure
31    functions  defined  by  the  rules  of  the  State  Board  of
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 1    Education   as:   1100   (Regular  Programs);  1200  (Special
 2    Education  Programs);  1250  (Educational   Deprived/Remedial
 3    Programs);  1300  (Adult/Continuing Education Programs); 1400
 4    (Vocational Programs); 1500 (Interscholastic Programs);  1600
 5    (Summer  School  Programs);  1650  (Gifted    Programs); 1800
 6    (Bilingual Programs);  and  1900  (Truants'  Alternative  and
 7    Optional Programs).
 8        "School  district"  means  all  school districts having a
 9    population of less than 500,000.
10        (c)  For the 1998-99 school year  and  each  school  year
11    thereafter,  each  school  district shall undertake budgetary
12    and expenditure control  actions  so  that  the  increase  in
13    administrative  expenditures  for  that  school year over the
14    prior school year do not exceed  the  lesser  of  5%  or  the
15    percentage  increase  in  instructional expenditures for that
16    school year over the prior school  year.    School  districts
17    with  administrative  expenditures  per  pupil  in  the  25th
18    percentile  and  below for all districts of the same type, as
19    defined by the  State  Board  of  Education,  may  waive  the
20    limitation  imposed  under this Section for any year with the
21    affirmative vote of at least two-thirds of the members of the
22    school board of the district.
23        (d)  School districts shall file with the State Board  of
24    Education  by  October  15,  1998  and   by each October 15th
25    thereafter a  one-page  report  that  lists  (i)  the  actual
26    administrative  expenditures  and  the  actual  instructional
27    expenditures  for  the prior year from the district's audited
28    Annual   Financial   Report,   and   (ii)    the    projected
29    administrative  expenditures  and the projected instructional
30    expenditures for the current year from the budget adopted  by
31    the  school  board pursuant to Section 17-1 of this Code.  If
32    the report and information required under this subsection (d)
33    is not provided by the school district in a timely manner, or
34    is  initially  or  subsequently  determined  by   the   State
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 1    Superintendent  of  Education to be incomplete or inaccurate,
 2    the State Superintendent shall notify the district in writing
 3    of reporting deficiencies.  The school district shall, within
 4    60 days of the notice,  address  the  reporting  deficiencies
 5    identified.    If the State Superintendent does not receive a
 6    satisfactory response to these reporting deficiencies  within
 7    these  60 days, the next payment of general State aid due the
 8    district under Section 18-8 of this Code, and all  subsequent
 9    payments,  may  be  withheld until the deficiencies have been
10    addressed.
11        (e)  If the State Superintendent determines that a school
12    district  has  failed  to  comply  with  the   administrative
13    expenditure  limitation  imposed  in  subsection  (c) of this
14    Section by adopting a budget in violation of  the  limitation
15    or by having actual administrative expenditures for the prior
16    year  in  excess  of the limitation, the State Superintendent
17    shall notify the district of the  violation  and  direct  the
18    district   to   undertake  corrective  action  to  bring  the
19    district's budget into  compliance  with  the  administrative
20    expenditure  limitation.   The district shall, within 60 days
21    of the  notice,  provide  adequate  assurance  to  the  State
22    Superintendent  that appropriate corrective actions have been
23    or will be taken.  If the district fails to provide  adequate
24    assurance  or  fails  to  undertake  the necessary corrective
25    actions, the State Superintendent may withhold all subsequent
26    payments of general State aid due the district under  Section
27    18-8  of  this  Code  until  the assurance is provided or the
28    corrective actions taken.
29        (f)  The State Superintendent shall publish a  list  each
30    year  of  the  school  districts  that violate the limitation
31    imposed by subsection (c) of this Section.  The  State  Board
32    of  Education  may  recommend to the General Assembly and the
33    Governor any additional sanctions or  remedial  actions  that
34    they  determine  necessary  to  deter non-compliance with the
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 1    limitation.
 2    (Source: P.A. 90-548, eff. 1-1-98.)

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