Illinois General Assembly - Full Text of HB2983
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Full Text of HB2983  102nd General Assembly

HB2983 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2983

 

Introduced 2/19/2021, by Rep. Thomas Morrison

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/17-1.5
105 ILCS 5/34-43.1  from Ch. 122, par. 34-43.1

    Amends the School Code. Makes changes with regard to the limitation of administrative costs. Defines "consumer price index", "expenditures per pupil", "general administration expenditures", and "school administration expenditures". Provides that for the 2022-2023 school year and each school year thereafter, each school district shall undertake budgetary and expenditure control actions so that the increase in each of the budgeted administrative expenditures per pupil (with the exception of the Chicago school district, whose limit is not changed), budgeted general administration expenditures per pupil, and budgeted school administration expenditures per pupil for that school year over the expenditures per pupil for the prior school year does not exceed the percentage increase, if any, in the consumer price index for the 12 months ending on the December 31 prior to the budgetary year or 5%, whichever one is less. Makes conforming changes and other changes.


LRB102 14981 CMG 20336 b

FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB2983LRB102 14981 CMG 20336 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
517-1.5 and 34-43.1 as follows:
 
6    (105 ILCS 5/17-1.5)
7    Sec. 17-1.5. Limitation of administrative costs.
8    (a) It is the purpose of this Section to establish
9limitations on the growth of administrative expenditures in
10order to maximize the proportion of school district resources
11available for the instructional program, building maintenance,
12and safety services for the students of each district.
13    (b) Definitions. For the purposes of this Section:
14    "Administrative expenditures" mean the annual expenditures
15of school districts properly attributable to expenditure
16functions defined by the rules of the State Board of Education
17as: 2320 (Executive Administration Services); 2330 (Special
18Area Administration Services); 2490 (Other Support Services -
19School Administration); 2510 (Direction of Business Support
20Services); 2570 (Internal Services); and 2610 (Direction of
21Central Support Services); provided, however, that
22"administrative expenditures" shall not include early
23retirement or other pension system obligations required by

 

 

HB2983- 2 -LRB102 14981 CMG 20336 b

1State law.
2    "Consumer price index" means the Consumer Price Index for
3All Urban Consumers for all items published by the Bureau of
4Labor Statistics of the United States Department of Labor.
5    "Expenditures per pupil" means the total administrative
6expenditures, general administration expenditures, or school
7administration expenditures divided by the average number of
8students reported to the State Board of Education as enrolled
9in the school district on October 1 and March 1, in the
10immediately preceding school year, as defined by "Average
11Student Enrollment" under Section 18-8.15 of this Code.
12    "General administration expenditures" means the sum of all
13annual expenditures of a school district that are attributable
14to expenditure functions that are defined by the rules of the
15State Board of Education as 2300 (Total Support Services -
16General Administration); however, "general administration
17expenditures" does not include early retirement or other
18pension system obligations required by State law.
19    "School administration expenditures" means the sum of all
20annual expenditures of a school district that are attributable
21to expenditure functions that are defined by the rules of the
22State Board of Education as 2400 (Total Support Services -
23School Administration); however, "school administration
24expenditures" does not include early retirement or other
25pension system obligations required by State law.
26    "School district" means all school districts having a

 

 

HB2983- 3 -LRB102 14981 CMG 20336 b

1population of less than 500,000.
2    (c) For the 1998-99 school year through the 2021-2022
3school year and each school year thereafter, each school
4district shall undertake budgetary and expenditure control
5actions so that the increase in administrative expenditures
6for that school year over the prior school year does not exceed
75%. For 2022-2023 school year and each school year thereafter,
8each school district shall undertake budgetary and expenditure
9control actions so that the increase in each of the budgeted
10administrative expenditures per pupil, budgeted general
11administration expenditures per pupil, and budgeted school
12administration expenditures per pupil for that school year
13over the expenditures per pupil for the prior school year does
14not exceed the percentage increase, if any, in the consumer
15price index for the 12 months ending on December 31 prior to
16the budgetary year or 5%, whichever one is less. For purposes
17of this Section, for the 2021-2022 school year, the general
18administration expenditures per pupil shall be the lesser of
19the actual expenditures per pupil of the school district for
20the prior school year or the amount reported by the United
21States Census Bureau in its 2001 Annual Survey of School
22System Finances as the Illinois average per pupil for Support
23Services Expenditure - General Administration (Function 2300),
24increased by the percentage increase, if any, in the consumer
25price index for 2002 through 2021 compounded. For purposes of
26this Section, for the 2021-2022 school year, the school

 

 

HB2983- 4 -LRB102 14981 CMG 20336 b

1administration expenditures per pupil shall be the amount
2reported by the United States Census Bureau in its 2015 Annual
3Survey of School System Finances as the national average per
4pupil for Support Services Expenditure - School Administration
5(Function 2400), increased by the percentage increase, if any,
6in the consumer price index for 2019, 2020, and 2021
7compounded. For the 2021-2022 school year and each subsequent
8school year, the State Board of Education shall publish on its
9Internet website the current year allowable percentage
10increase and a list of school districts that qualify to waive
11each of the applicable limitations under subsection (c-5) of
12this Section.
13    (c-5) School districts with administrative expenditures,
14general administration expenditures, or school administration
15expenditures per pupil in the 25th percentile and below for
16all districts of the same type, as defined by the State Board
17of Education, may waive the applicable limitation imposed
18under this Section for any year following a public hearing and
19with the affirmative vote of at least two-thirds of the
20members of the school board of the district. Any district
21waiving a the limitation shall notify the State Board within
2245 days of such action.
23    (d) School districts shall file with the State Board of
24Education by November 15, 1998 and by each November 15th
25thereafter a one-page report that lists (i) the actual
26administrative expenditures, general administration

 

 

HB2983- 5 -LRB102 14981 CMG 20336 b

1expenditures, and school administration expenditures for the
2prior year from the district's audited Annual Financial
3Report, with the relevant average number of students reported
4to the State Board of Education, as set forth in the definition
5of "expenditures per pupil" under this Section, and (ii) the
6projected administrative expenditures, general administration
7expenditures, and school administration expenditures for the
8current year from the budget adopted by the school board
9pursuant to Section 17-1 of this Code, with the relevant
10average number of students reported to the State Board of
11Education, as set forth in the definition of "expenditures per
12pupil" under this Section, (iii) the administrative
13expenditures per pupil, general administration expenditures
14per pupil, and school administration expenditures per pupil
15for the prior year and the current year, and (iv) the
16percentage increase in current year per pupil expenditures
17over prior year per pupil expenditures.
18    If a school district that is ineligible to waive a the
19limitation imposed by subsection (c) of this Section by board
20action exceeds that the limitation solely because of
21circumstances beyond the control of the district and the
22district has exhausted all available and reasonable remedies
23to comply with the applicable limitation, the district may
24request a waiver pursuant to Section 2-3.25g of this Code. The
25waiver application shall specify the amount, nature, and
26reason for the relief requested, as well as all remedies the

 

 

HB2983- 6 -LRB102 14981 CMG 20336 b

1district has exhausted to comply with the limitation. Any
2emergency relief so requested shall apply only to the specific
3school year for which the request is made. The State Board of
4Education shall analyze all such waivers submitted and shall
5recommend that the General Assembly disapprove any such waiver
6requested that is not due solely to circumstances beyond the
7control of the district and for which the district has not
8exhausted all available and reasonable remedies to comply with
9the limitation. The State Superintendent shall have no
10authority to impose any sanctions pursuant to this Section for
11any expenditures for which a waiver has been requested until
12such waiver has been reviewed by the General Assembly. Except
13for a new district formed under Article 11E of this Code, any
14district that has current year expenditures per pupil but no
15prior year expenditures per pupil for a limitation must
16request a waiver under Section 2-3.25g of this Code.
17    If the report and information required under this
18subsection (d) are not provided by the school district in a
19timely manner, or are subsequently determined by the State
20Superintendent of Education to be incomplete or inaccurate,
21the State Superintendent shall notify the district in writing
22of reporting deficiencies. The school district shall, within
2360 days of the notice, address the reporting deficiencies
24identified.
25    (e) If the State Superintendent determines that a school
26district has failed to comply with the administrative

 

 

HB2983- 7 -LRB102 14981 CMG 20336 b

1expenditure, the general administration expenditure, or the
2school administration expenditure limitation imposed in
3subsection (c) of this Section, the State Superintendent shall
4notify the district of the violation and direct the district
5to undertake corrective action to bring the district's budget
6into compliance with the applicable administrative expenditure
7limitation. The district shall, within 60 days of the notice,
8provide adequate assurance to the State Superintendent that
9appropriate corrective actions have been or will be taken. If
10the district fails to provide adequate assurance or fails to
11undertake the necessary corrective actions, the State
12Superintendent may impose progressive sanctions against the
13district that may culminate in withholding all subsequent
14payments of general State aid due the district under Section
1518-8.05 of this Code or evidence-based funding due the
16district under Section 18-8.15 of this Code until the
17assurance is provided or the corrective actions taken.
18    (f) The State Superintendent shall publish a list each
19year of the school districts that violate any the limitation
20imposed by subsection (c) of this Section and a list of the
21districts that waive a the limitation by board action as
22provided in subsection (c-5) (c) of this Section.
23    (g) For any school district that violates a limitation
24imposed by subsection (c) of this Section for a minimum of 2
25out of 3 years, the State Superintendent of Education may
26withhold payments of evidence-based funding due to the school

 

 

HB2983- 8 -LRB102 14981 CMG 20336 b

1district under Section 18-8.15 of this Code in an amount equal
2to the amount the school district exceeded the limitation
3imposed.
4(Source: P.A. 100-465, eff. 8-31-17.)
 
5    (105 ILCS 5/34-43.1)  (from Ch. 122, par. 34-43.1)
6    Sec. 34-43.1. In this Section, "consumer price index",
7"expenditures per pupil", "general administration
8expenditures", and "school administration expenditures" have
9the meanings given to those terms under Section 17-1.5 of this
10Code.
11        (A) Limitation of noninstructional costs. It is the
12    purpose of this Section to establish for the Board of
13    Education and the general superintendent of schools
14    requirements and standards which maximize the proportion
15    of school district resources in direct support of
16    educational, program, and building maintenance and safety
17    services for the pupils of the district, and which
18    correspondingly minimize the amount and proportion of such
19    resources associated with centralized administration,
20    administrative support services, and other
21    noninstructional services.
22        For the 1989-90 school year and for all subsequent
23    school years, the Board of Education shall undertake
24    budgetary and expenditure control actions which limit the
25    administrative expenditures of the Board of Education to

 

 

HB2983- 9 -LRB102 14981 CMG 20336 b

1    levels, as provided for in this Section, which represent
2    an average of the administrative expenses of all school
3    districts in this State not subject to Article 34.
4        For the 2022-2023 school year and for all subsequent
5    school years, the Board of Education shall also undertake
6    budgetary and expenditure control actions so that the
7    increase in each of the general administration
8    expenditures per pupil and school administration
9    expenditures per pupil for that school year over the
10    immediately preceding school year expenditures per pupil
11    does not exceed the percentage increase, if any, in the
12    consumer price index for the 12 months ending on December
13    31 prior to the budgetary year or 5%, whichever one is
14    less.
15        For purposes of this Section, for the 2021-2022 school
16    year, the general administration expenditures per pupil
17    shall be the amount reported by the United States Census
18    Bureau in its 2001 Annual Survey of School System Finances
19    as the average of the Support Services Expenditure -
20    General Administration (Function 2300) per pupil for the
21    district, increased by the percentage increase, if any, in
22    the consumer price index for the years 2002 through 2021
23    compounded. The school administration expenditures per
24    pupil shall be the amount reported by the United States
25    Census Bureau in its 2015 Annual Survey of School System
26    Finances as the average of the Support Services

 

 

HB2983- 10 -LRB102 14981 CMG 20336 b

1    Expenditure - School Administration (Function 2400) per
2    pupil for the 10 largest school districts in the United
3    States, increased by the percentage increase, if any, in
4    the consumer price index for 2019, 2020, and 2021
5    compounded.
6        On or before May 1, 2022 and annually thereafter, the
7    State Superintendent of Education shall certify to the
8    Board of Education the allowable percentage increase
9    applicable to the following year general administration
10    expenditures per pupil and school administration
11    expenditures per pupil.
12        (B) Certification of expenses by the State
13    Superintendent of Education. The State Superintendent of
14    Education shall annually certify, on or before May 1, to
15    the Board of Education and the School Finance Authority,
16    for the applicable school year, the following information:
17            (1) the annual expenditures of all school
18        districts of the State not subject to Article 34
19        properly attributable to expenditure functions defined
20        by the rules and regulations of the State Board of
21        Education as: 2210 (Improvement of Instructional
22        Services); 2300 (Support Services - General
23        Administration) excluding, however, 2320 (Executive
24        Administrative Services); 2490 (Other Support Services -
25         School Administration); 2500 (Support Services -
26        Business); 2600 (Support Services - Central);

 

 

HB2983- 11 -LRB102 14981 CMG 20336 b

1            (2) the total annual expenditures of all school
2        districts not subject to Article 34 attributable to
3        the Education Fund, the Operations, Building and
4        Maintenance Fund, the Transportation Fund and the
5        Illinois Municipal Retirement Fund of the several
6        districts, as defined by the rules and regulations of
7        the State Board of Education; and
8            (3) a ratio, to be called the statewide average of
9        administrative expenditures, derived by dividing the
10        expenditures certified pursuant to paragraph (B)(1) by
11        the expenditures certified pursuant to paragraph
12        (B)(2).
13        For purposes of the annual certification of
14    expenditures and ratios required by this Section, the
15    "applicable year" of certification shall initially be the
16    1986-87 school year and, in sequent years, each succeeding
17    school year.
18        The State Superintendent of Education shall consult
19    with the Board of Education to ascertain whether
20    particular expenditure items allocable to the
21    administrative functions enumerated in paragraph (B)(1)
22    are appropriately or necessarily higher in the applicable
23    school district than in the rest of the State due to
24    noncomparable factors. The State Superintendent shall also
25    review the relevant cost proportions in other large urban
26    school districts. The State Superintendent shall also

 

 

HB2983- 12 -LRB102 14981 CMG 20336 b

1    review the expenditure categories in paragraph (B)(1) to
2    ascertain whether they contain school-level expenses. If
3    he or she finds that adjustments to the formula are
4    appropriate or necessary to establish a more fair and
5    comparable standard for administrative cost for the Board
6    of Education or to exclude school-level expenses, the
7    State Superintendent shall recommend to the School Finance
8    Authority rules and regulations adjusting particular
9    subcategories in this paragraph subsection (B) or
10    adjusting certain costs in determining the budget and
11    expenditure items properly attributable to the functions
12    or otherwise adjust the formula.
13        (C) Administrative expenditure limitations. The annual
14    budget of the Board of Education, as adopted and
15    implemented, and the related annual expenditures for the
16    school year, shall reflect a limitation on administrative
17    outlays as required by the following provisions, taking
18    into account any adjustments established by the State
19    Superintendent of Education: (1) the budget and
20    expenditures of the Board of Education for the 1989-90
21    school year shall reflect a ratio of administrative
22    expenditures to total expenditures equal to or less than
23    the statewide average of administrative expenditures for
24    the 1986-87 school year as certified by the State
25    Superintendent of Education pursuant to paragraph (B)(3);
26    (2) for the 1990-91 school year and for all subsequent

 

 

HB2983- 13 -LRB102 14981 CMG 20336 b

1    school years, the budget and expenditures of the Board of
2    Education shall reflect a ratio of administrative
3    expenditures to total expenditures equal to or less than
4    the statewide average of administrative expenditures
5    certified by the State Superintendent of Education for the
6    applicable year pursuant to paragraph (B)(3); (2.5) for
7    the 2022-2023 school year and for all subsequent school
8    years, the budget and expenditures of the Board of
9    Education shall reflect an annual increase in each of the
10    general administration expenditures per pupil and school
11    administration expenditures per pupil over the immediately
12    preceding school year expenditures per pupil equal to or
13    less than the percentage increase, if any, in the consumer
14    price index for the 12 months ending on the previous
15    December 31 or 5%, whichever one is less, as certified by
16    the State Superintendent of Education under paragraph (A)
17    of this Section; (3) if for any school year the budget of
18    the Board of Education reflects a ratio of administrative
19    expenditures to total expenditures which exceeds the
20    applicable statewide average, the Board of Education shall
21    reduce expenditure items allocable to the administrative
22    functions enumerated in paragraph (B)(1) such that the
23    Board of Education's ratio of administrative expenditures
24    to total expenditures is equal to or less than the
25    applicable statewide average ratio; and (4) beginning with
26    the 2022-2023 school year, if for any school year the

 

 

HB2983- 14 -LRB102 14981 CMG 20336 b

1    budget of the Board of Education reflects an annual
2    increase in either general administration expenditures per
3    pupil or school administration expenditures per pupil
4    greater than the percentage increase, if any, in the
5    consumer price index for the 12 months ending on the
6    previous December 31 or 5%, whichever one is less, as
7    certified by the State Superintendent of Education for the
8    applicable school year under paragraph (A) of this
9    Section, the Board of Education shall reduce expenditure
10    items allocable to general administration expenditures or
11    school administration expenditures to ensure the
12    expenditures per pupil are equal to or less than the
13    allowable increase amount.
14        For purposes of this Section, the ratio of
15    administrative expenditures to the total expenditures of
16    the Board of Education, as applied to the budget of the
17    Board of Education, shall mean: the budgeted expenditure
18    items of the Board of Education properly attributable to
19    the expenditure functions identified in paragraph (B)(1)
20    divided by the total budgeted expenditures of the Board of
21    Education properly attributable to the Board of Education
22    funds corresponding to those funds identified in paragraph
23    (B)(2), exclusive of any monies budgeted for payment to
24    the Public School Teachers' Pension and Retirement System,
25    attributable to payments due from the General Funds of the
26    State of Illinois.

 

 

HB2983- 15 -LRB102 14981 CMG 20336 b

1        The annual expenditure of the Board of Education for
2    2320 (Executive Administrative Services) for the 1989-90
3    school year shall be no greater than the 2320 expenditure
4    for the 1988-89 school year. The annual expenditure of the
5    Board of Education for 2320 for the 1990-91 school year
6    and each subsequent school year shall be no greater than
7    the 2320 expenditure for the immediately preceding school
8    year or the 1988-89 school year, whichever is less. This
9    annual expenditure limitation may be adjusted in each year
10    in an amount not to exceed any change effective during the
11    applicable school year in salary to be paid under the
12    collective bargaining agreement with instructional
13    personnel to which the Board is a party and in benefit
14    costs either required by law or such collective bargaining
15    agreement.
16        (D) Cost control measures. In undertaking actions to
17    control or reduce expenditure items necessitated by the
18    administrative expenditure, general administration
19    expenditure, and school administration expenditure
20    limitations of this Section, the Board of Education shall
21    give priority consideration to reductions or cost controls
22    with the least effect upon direct services to students or
23    instructional services for pupils, and upon the safety and
24    well-being of pupils, and, as applicable, with the
25    particular costs or functions to which the Board of
26    Education is higher than the statewide average.

 

 

HB2983- 16 -LRB102 14981 CMG 20336 b

1        For purposes of assuring that the cost control
2    priorities of this paragraph subsection (D) are met, the
3    State Superintendent of Education shall, with the
4    assistance of the Board of Education, review the cost
5    allocation practices of the Board of Education, and the
6    State Superintendent of Education shall thereafter
7    recommend to the School Finance Authority rules and
8    regulations which define administrative, general
9    administration, and school administration areas which most
10    impact upon the direct and instructional needs of students
11    and upon the safety and well-being of the pupils of the
12    district. No position closed shall be reopened using State
13    or federal categorical funds.
14        (E) Report of Audited Information. For the 1988-89
15    school year and for all subsequent school years, the Board
16    of Education shall file with the State Board of Education
17    the Annual Financial Report and its audit, as required by
18    the rules of the State Board of Education. Such reports
19    shall be filed no later than February 15 following the end
20    of the school year of the Board of Education, beginning
21    with the report to be filed no later than February 15, 1990
22    for the 1988-89 school year.
23        As part of the required Annual Financial Report, the
24    Board of Education shall provide a detailed accounting of
25    the central level, district, bureau and department costs
26    and personnel included within expenditure functions

 

 

HB2983- 17 -LRB102 14981 CMG 20336 b

1    included in paragraphs (A) and paragraph (B)(1) of this
2    Section. The nature and detail of the reporting required
3    for these functions shall be prescribed by the State Board
4    of Education in rules and regulations. A copy of this
5    detailed accounting shall also be provided annually to the
6    School Finance Authority and the public. This report shall
7    contain a reconciliation to the Board of Education's board
8    of education's adopted budget for that fiscal year,
9    specifically delineating administrative functions.
10        If the information required under this Section is not
11    provided by the Board of Education in a timely manner, or
12    is initially or subsequently determined by the State
13    Superintendent of Education to be incomplete or
14    inaccurate, the State Superintendent shall, in writing,
15    notify the Board of Education of reporting deficiencies.
16    The Board of Education shall, within 60 days of such
17    notice, address the reporting deficiencies identified. If
18    the State Superintendent of Education does not receive
19    satisfactory response to these reporting deficiencies
20    within 60 days, the next payment of general State aid or
21    evidence-based funding due the Board of Education under
22    Section 18-8 or Section 18-8.15 of this Code , as
23    applicable, and all subsequent payments, shall be withheld
24    by the State Superintendent of Education until the
25    enumerated deficiencies have been addressed.
26        Utilizing the Annual Financial Report, the State

 

 

HB2983- 18 -LRB102 14981 CMG 20336 b

1    Superintendent of Education shall certify on or before May
2    1 to the Board of Education School Finance Authority the
3    Board of Education's ratio of administrative expenditures
4    to total expenditures for the 1988-89 school year and for
5    each succeeding school year and the Board of Education's
6    general administration expenditures and school
7    administration expenditures for the 2022-2023 school year
8    and for each subsequent school year. Such certification
9    shall indicate the extent to which the administrative
10    expenditure ratio, general administration expenditures,
11    and school administration expenditures of the Board of
12    Education conformed to the limitations required in
13    paragraph subsection (C) of this Section, taking into
14    account any adjustments of the administrative expenditure
15    limitations which may have been recommended by the State
16    Superintendent of Education to the School Finance
17    Authority. In deriving the administrative expenditure
18    ratio of the Chicago Board of Education, the State
19    Superintendent of Education shall utilize the definition
20    of this ratio prescribed in paragraph subsection (C) of
21    this Section, except that the actual expenditures of the
22    Board of Education shall be substituted for budgeted
23    expenditure items. In deriving the general administration
24    expenditures per pupil and school administration
25    expenditures per pupil of the Board of Education, the
26    State Superintendent of Education shall utilize the

 

 

HB2983- 19 -LRB102 14981 CMG 20336 b

1    percentage increase under paragraph (C) of this Section,
2    except that the actual expenditures per pupil of the Board
3    of Education shall be substituted for budgeted
4    expenditures per pupil.
5        (F) Approval and adjustments to administrative
6    expenditure limitations. The School Finance Authority
7    organized under Article 34A shall monitor the Board of
8    Education's adherence to the requirements of this Section.
9    As part of its responsibility the School Finance Authority
10    shall determine whether the Board of Education's budget
11    for the next school year, and the expenditures for a prior
12    school year, comply with the limitation of administrative
13    expenditures, general administration expenditures, and
14    school administration expenditures required by this
15    Section. The Board of Education and the State Board of
16    Education shall provide such information as is required by
17    the School Finance Authority in order for the Authority to
18    determine compliance with the provisions of this Section.
19    If the Authority determines that the budget proposed by
20    the Board of Education does not meet the cost control
21    requirements of this Section, the Board of Education shall
22    undertake budgetary reductions, consistent with the
23    requirements of this Section, to bring the proposed budget
24    into compliance with such cost control limitations.
25        If, in formulating cost control and cost reduction
26    alternatives, the Board of Education believes that meeting

 

 

HB2983- 20 -LRB102 14981 CMG 20336 b

1    the cost control requirements of this Section related to
2    the budget for the ensuing year would impair the
3    education, safety, or well-being of the pupils of the
4    school district, the Board of Education may request that
5    the School Finance Authority make adjustments to the
6    limitations required by this Section. The Board of
7    Education shall specify the amount, nature, and reasons
8    for the relief required and shall also identify cost
9    reductions which can be made in expenditure functions not
10    enumerated in paragraphs (A) and paragraph (B)(1) of this
11    Section, which would serve the purposes of this Section.
12        The School Finance Authority shall consult with the
13    State Superintendent of Education concerning the
14    reasonableness from an educational administration
15    perspective of the adjustments sought by the Board of
16    Education. The School Finance Authority shall provide an
17    opportunity for the public to comment upon the
18    reasonableness of the Board's request. If, after such
19    consultation, the School Finance Authority determines that
20    all or a portion of the adjustments sought by the Board of
21    Education are reasonably appropriate or necessary, the
22    Authority may grant such relief from the provisions of
23    this Section which the Authority deems appropriate.
24    Adjustments so granted apply only to the specific school
25    year for which the request was made.
26        In the event that the School Finance Authority

 

 

HB2983- 21 -LRB102 14981 CMG 20336 b

1    determines that the Board of Education has failed to
2    achieve the required administrative, general
3    administration, and school administration expenditure
4    limitations for a prior school year, or if the Authority
5    determines that the Board of Education has not met the
6    requirements of this paragraph subsection (F), the
7    Authority shall make recommendations to the Board of
8    Education concerning appropriate corrective actions. If
9    the Board of Education fails to provide adequate assurance
10    to the Authority that appropriate corrective actions have
11    been or will be taken, the Authority may, within 60 days
12    thereafter, require the board to adjust its current budget
13    to correct for the prior year's shortage or may recommend
14    to the members of the General Assembly and the Governor
15    such sanctions or remedial actions as will serve to deter
16    any further such failures on the part of the Board of
17    Education.
18        To assist the Authority in its monitoring
19    responsibilities, the Board of Education shall provide
20    such reports and information as are from time to time
21    required by the Authority.
22        (G) Independent reviews of administrative
23    expenditures. The School Finance Authority may direct
24    independent reviews of the administrative and
25    administrative support expenditures and services and other
26    non-instructional expenditure functions of the Board of

 

 

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1    Education. The Board of Education shall afford full
2    cooperation to the School Finance Authority in such review
3    activity. The purpose of such reviews shall be to verify
4    specific targets for improved operating efficiencies of
5    the Board of Education, to identify other areas of
6    potential efficiencies, and to assure full and proper
7    compliance by the Board of Education with all requirements
8    of this Section.
9        In the conduct of reviews under this paragraph (G)
10    subsection, the Authority may request the assistance and
11    consultation of the State Superintendent of Education with
12    regard to questions of efficiency and effectiveness in
13    educational administration.
14        (H) Reports to Governor and General Assembly. On or
15    before May 1, 1991 and no less frequently than yearly
16    thereafter, the School Finance Authority shall provide to
17    the Governor, the State Board of Education, and the
18    members of the General Assembly an annual report, as
19    outlined in Section 34A-606, which includes the following
20    information: (1) documenting the compliance or
21    non-compliance of the Board of Education with the
22    requirements of this Section; (2) summarizing the costs,
23    findings, and recommendations of any reviews directed by
24    the School Finance Authority, and the response to such
25    recommendations made by the Board of Education; and (3)
26    recommending sanctions or legislation necessary to fulfill

 

 

HB2983- 23 -LRB102 14981 CMG 20336 b

1    the intent of this Section.
2(Source: P.A. 100-465, eff. 8-31-17.)