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90_SB1304
105 ILCS 5/17-1.5
Amends the School Code. In provisions placing a
limitation on administrative costs, provides that the
definition of "administrative expenditures" does not include
administrative expenditures that are associated with a new
school building until all of the grades that are to be
located in that building have been phased in.
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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 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). However, "administrative expenditures"
29 does not include any administrative expenditures that would
30 otherwise be included in this definition that are associated
31 with a new school building until all of the grades that are
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1 to be located in that building have been phased in.
2 "Instructional expenditures" mean the annual expenditures
3 of school districts properly attributable to expenditure
4 functions defined by the rules of the State Board of
5 Education as: 1100 (Regular Programs); 1200 (Special
6 Education Programs); 1250 (Educational Deprived/Remedial
7 Programs); 1300 (Adult/Continuing Education Programs); 1400
8 (Vocational Programs); 1500 (Interscholastic Programs); 1600
9 (Summer School Programs); 1650 (Gifted Programs); 1800
10 (Bilingual Programs); and 1900 (Truants' Alternative and
11 Optional Programs).
12 "School district" means all school districts having a
13 population of less than 500,000.
14 (c) For the 1998-99 school year and each school year
15 thereafter, each school district shall undertake budgetary
16 and expenditure control actions so that the increase in
17 administrative expenditures for that school year over the
18 prior school year do not exceed the lesser of 5% or the
19 percentage increase in instructional expenditures for that
20 school year over the prior school year. School districts
21 with administrative expenditures per pupil in the 25th
22 percentile and below for all districts of the same type, as
23 defined by the State Board of Education, may waive the
24 limitation imposed under this Section for any year with the
25 affirmative vote of at least two-thirds of the members of the
26 school board of the district.
27 (d) School districts shall file with the State Board of
28 Education by October 15, 1998 and by each October 15th
29 thereafter a one-page report that lists (i) the actual
30 administrative expenditures and the actual instructional
31 expenditures for the prior year from the district's audited
32 Annual Financial Report, and (ii) the projected
33 administrative expenditures and the projected instructional
34 expenditures for the current year from the budget adopted by
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1 the school board pursuant to Section 17-1 of this Code. If
2 the report and information required under this subsection (d)
3 is not provided by the school district in a timely manner, or
4 is initially or subsequently determined by the State
5 Superintendent of Education to be incomplete or inaccurate,
6 the State Superintendent shall notify the district in writing
7 of reporting deficiencies. The school district shall, within
8 60 days of the notice, address the reporting deficiencies
9 identified. If the State Superintendent does not receive a
10 satisfactory response to these reporting deficiencies within
11 these 60 days, the next payment of general State aid due the
12 district under Section 18-8 of this Code, and all subsequent
13 payments, may be withheld until the deficiencies have been
14 addressed.
15 (e) If the State Superintendent determines that a school
16 district has failed to comply with the administrative
17 expenditure limitation imposed in subsection (c) of this
18 Section by adopting a budget in violation of the limitation
19 or by having actual administrative expenditures for the prior
20 year in excess of the limitation, the State Superintendent
21 shall notify the district of the violation and direct the
22 district to undertake corrective action to bring the
23 district's budget into compliance with the administrative
24 expenditure limitation. The district shall, within 60 days
25 of the notice, provide adequate assurance to the State
26 Superintendent that appropriate corrective actions have been
27 or will be taken. If the district fails to provide adequate
28 assurance or fails to undertake the necessary corrective
29 actions, the State Superintendent may withhold all subsequent
30 payments of general State aid due the district under Section
31 18-8 of this Code until the assurance is provided or the
32 corrective actions taken.
33 (f) The State Superintendent shall publish a list each
34 year of the school districts that violate the limitation
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1 imposed by subsection (c) of this Section. The State Board
2 of Education may recommend to the General Assembly and the
3 Governor any additional sanctions or remedial actions that
4 they determine necessary to deter non-compliance with the
5 limitation.
6 (Source: P.A. 90-548, eff. 1-1-98.)
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