Full Text of HB4789 100th General Assembly
HB4789eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The School Code is amended by changing Sections | 5 | | 17-1.5 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 | 9 | | limitations on the growth
of administrative expenditures in | 10 | | order to maximize the proportion of school
district resources | 11 | | available for the instructional program, building
maintenance, | 12 | | and safety services for the students of each district.
| 13 | | (b) Definitions. For the purposes of this Section:
| 14 | | "Administrative expenditures" mean the annual expenditures | 15 | | of
school districts properly attributable to expenditure | 16 | | functions defined by the
rules of the State Board of Education | 17 | | as: 2320 (Executive Administration Services);
2330 (Special | 18 | | Area Administration Services); 2490 (Other Support Services -
| 19 | | School Administration); 2510 (Direction of Business Support | 20 | | Services); 2570
(Internal Services); and 2610 (Direction of | 21 | | Central
Support Services); provided, however, that | 22 | | "administrative expenditures" shall
not include early | 23 | | retirement or other pension system obligations required by
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| 1 | | State law.
| 2 | | "Consumer price index" means the Consumer Price Index for | 3 | | All Urban Consumers for all items published by the Bureau of | 4 | | Labor Statistics of the United States Department of Labor. | 5 | | "Expenditures per pupil" means the total administrative | 6 | | expenditures, general administration expenditures, or school | 7 | | administration expenditures divided by the average number of | 8 | | students reported to the State Board of Education as enrolled | 9 | | in the school district on October 1 and March 1, in the | 10 | | immediately preceding school year, as defined by "Average | 11 | | Student Enrollment" under Section 18-8.15 of this Code. | 12 | | "General administration expenditures" means the sum of all | 13 | | annual expenditures of a school district that are attributable | 14 | | to expenditure functions that are defined by the rules of the | 15 | | State Board of Education as 2300 (Total Support Services - | 16 | | General Administration); however, "general administration | 17 | | expenditures" does not include early retirement or other | 18 | | pension system obligations required by State law. | 19 | | "School administration expenditures" means the sum of all | 20 | | annual expenditures of a school district that are attributable | 21 | | to expenditure functions that are defined by the rules of the | 22 | | State Board of Education as 2400 (Total Support Services - | 23 | | School Administration); however, "school administration | 24 | | expenditures" does not include early retirement or other | 25 | | pension system obligations required by State law. | 26 | | "School district" means all school districts having a |
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| 1 | | population of less than
500,000.
| 2 | | (c) For the 1998-99 school year through the 2018-2019 | 3 | | school year and each school year thereafter , each school
| 4 | | district shall undertake budgetary and expenditure control | 5 | | actions so that the
increase in administrative expenditures for | 6 | | that school year over the prior
school year does not exceed 5%. | 7 | | For 2019-2020 school year and each school year thereafter, each | 8 | | school district shall undertake budgetary and expenditure | 9 | | control actions so that the increase in each of the budgeted | 10 | | administrative expenditures per pupil, budgeted general | 11 | | administration expenditures per pupil, and budgeted school | 12 | | administration expenditures per pupil for that school year over | 13 | | the expenditures per pupil for the prior school year does not | 14 | | exceed the percentage increase, if any, in the consumer price | 15 | | index for the 12 months ending on December 31 prior to the | 16 | | budgetary year or 5%, whichever one is less. For purposes of | 17 | | this Section, for the 2018-2019 school year, the general | 18 | | administration expenditures per pupil shall be the lesser of | 19 | | the actual expenditures per pupil of the school district for | 20 | | the prior school year or the amount reported by the United | 21 | | States Census Bureau in its 2001 Annual Survey of School System | 22 | | Finances as the Illinois average per pupil for Support Services | 23 | | Expenditure - General Administration (Function 2300), | 24 | | increased by the percentage increase, if any, in the consumer | 25 | | price index for 2001 through 2018 compounded. For purposes of | 26 | | this Section, for the 2018-2019 school year, the school |
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| 1 | | administration expenditures per pupil shall be the amount | 2 | | reported by the United States Census Bureau in its 2015 Annual | 3 | | Survey of School System Finances as the national average per | 4 | | pupil for Support Services Expenditure - School Administration | 5 | | (Function 2400), increased by the percentage increase, if any, | 6 | | in the consumer price index for 2016, 2017, and 2018 | 7 | | compounded. For the 2019-2020 school year and each subsequent | 8 | | school year, the State Board of Education shall publish on its | 9 | | Internet website the current year allowable percentage | 10 | | increase and a list of school districts that qualify to waive | 11 | | each of the applicable limitations under subsection (c-5) of | 12 | | this Section. | 13 | | (c-5)
School districts with administrative expenditures , | 14 | | general administration expenditures, or school administration | 15 | | expenditures per pupil
in the 25th
percentile and below for all | 16 | | districts of the same type,
as defined by the State Board of | 17 | | Education,
may waive the applicable limitation imposed under | 18 | | this Section for any year following a
public hearing and with | 19 | | the
affirmative vote of at least two-thirds of the members of | 20 | | the school board of
the
district. Any district waiving a the | 21 | | limitation shall notify the State Board
within 45 days of such | 22 | | action.
| 23 | | (d) School districts shall file with the State Board of | 24 | | Education by
November 15, 1998 and
by each November 15th | 25 | | thereafter a one-page report that lists
(i) the actual
| 26 | | administrative expenditures , general administration |
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| 1 | | expenditures, and school administration expenditures for
the
| 2 | | prior year from the district's audited Annual Financial Report , | 3 | | with the relevant average number of students reported to the | 4 | | State Board of Education, as set forth in the definition of | 5 | | "expenditures per pupil" under this Section , and (ii) the
| 6 | | projected administrative expenditures , general administration | 7 | | expenditures, and school administration expenditures for the | 8 | | current year from the budget adopted by the school board
| 9 | | pursuant to Section 17-1 of this Code , with the relevant | 10 | | average number of students reported to the State Board of | 11 | | Education, as set forth in the definition of "expenditures per | 12 | | pupil" under this Section, (iii) the administrative | 13 | | expenditures per pupil, general administration expenditures | 14 | | per pupil, and school administration expenditures per pupil for | 15 | | the prior year and the current year, and (iv) the percentage | 16 | | increase in current year per pupil expenditures over prior year | 17 | | per pupil expenditures .
| 18 | | If a school district that is ineligible to waive a the | 19 | | limitation imposed by
subsection (c) of this Section by board | 20 | | action exceeds that the limitation
solely because of | 21 | | circumstances beyond
the control of the district and the | 22 | | district has exhausted all available and
reasonable remedies to | 23 | | comply with the applicable limitation, the district may request | 24 | | a
waiver pursuant to Section 2-3.25g of this Code . The waiver | 25 | | application shall specify the
amount,
nature, and reason for | 26 | | the relief requested, as well as all remedies the
district has |
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| 1 | | exhausted to comply with the limitation.
Any emergency relief | 2 | | so requested shall apply only to the specific
school year for | 3 | | which the request is made. The State Board of Education shall
| 4 | | analyze all such waivers submitted and shall recommend that the | 5 | | General
Assembly disapprove any such waiver requested that is | 6 | | not due solely to
circumstances beyond the control of the | 7 | | district and for which the district has
not exhausted all | 8 | | available and reasonable remedies to comply with the
| 9 | | limitation. The State Superintendent shall have
no authority to | 10 | | impose any sanctions pursuant to this Section for any
| 11 | | expenditures for which a waiver has been requested until such | 12 | | waiver has been
reviewed by the General Assembly. Except for a | 13 | | new district formed under Article 11E of this Code, any | 14 | | district that has current year expenditures per pupil but no | 15 | | prior year expenditures per pupil for a limitation must request | 16 | | a waiver under Section 2-3.25g of this Code.
| 17 | | If the report and information required
under this
| 18 | | subsection (d) are not provided by the school district in a | 19 | | timely
manner, or are subsequently determined by
the State | 20 | | Superintendent of Education
to be incomplete or inaccurate, the | 21 | | State Superintendent shall notify the
district in writing of | 22 | | reporting deficiencies. The school district shall,
within 60 | 23 | | days of the notice, address the reporting deficiencies | 24 | | identified.
| 25 | | (e) If the State Superintendent determines that a school | 26 | | district has failed
to comply with the administrative |
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| 1 | | expenditure , the general administration expenditure, or the | 2 | | school administration expenditure limitation imposed in | 3 | | subsection
(c) of this Section,
the
State Superintendent shall | 4 | | notify the district of the violation and direct the
district to | 5 | | undertake corrective action to bring the district's budget into
| 6 | | compliance with the applicable administrative expenditure | 7 | | limitation. The district shall,
within 60 days of the notice, | 8 | | provide adequate assurance to the State
Superintendent that | 9 | | appropriate corrective actions have been or will be taken.
If | 10 | | the district fails to provide adequate assurance or fails to | 11 | | undertake the
necessary corrective actions, the State | 12 | | Superintendent may impose progressive
sanctions against the | 13 | | district that may culminate in withholding
all
subsequent | 14 | | payments of general State aid due the district under Section
| 15 | | 18-8.05 of
this Code or evidence-based funding due the district | 16 | | under Section 18-8.15 of this Code
until the assurance is | 17 | | provided or the corrective actions taken.
| 18 | | (f) The State Superintendent shall publish a list each year | 19 | | of the school
districts that violate any the limitation imposed | 20 | | by subsection (c) of this
Section and a list of the districts | 21 | | that waive a the limitation by board
action as provided in | 22 | | subsection (c-5) (c) of this Section.
| 23 | | (g) For any school district that violates a limitation | 24 | | imposed by subsection (c) of this Section for a minimum of 2 | 25 | | out of 3 years, the State Superintendent of Education may | 26 | | withhold payments of evidence-based funding due to the school |
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| 1 | | district under Section 18-8.15 of this Code in an amount equal | 2 | | to the amount the school district exceeded the limitation | 3 | | imposed. | 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 | 8 | | expenditures", and "school administration expenditures" have | 9 | | the meanings given to those terms under Section 17-1.5 of this | 10 | | Code. | 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 |
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| 1 | | levels,
as provided for in this Section, which represent an | 2 | | average of the
administrative expenses of all school | 3 | | districts in this State not subject
to Article 34.
| 4 | | For the 2019-2020 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 2018-2019 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 2001 through 2018 | 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 Expenditure - |
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| 1 | | School Administration (Function 2400) per pupil for the | 2 | | 10 largest school districts in the United States, increased | 3 | | by the percentage increase, if any, in the consumer price | 4 | | index for 2016, 2017, and 2018 compounded. | 5 | | On or before May 1, 2019 and annually thereafter, the | 6 | | State Superintendent of Education shall certify to the | 7 | | Board of Education the allowable percentage increase | 8 | | applicable to the following year general administration | 9 | | expenditures per pupil and school administration | 10 | | expenditures per pupil. | 11 | | (B) Certification of expenses by the State | 12 | | Superintendent of Education.
The State Superintendent of | 13 | | Education shall annually certify, on or before
May 1, to | 14 | | the Board of Education and the School Finance Authority , | 15 | | for the
applicable school year, the following information:
| 16 | | (1) the annual expenditures of all school | 17 | | districts of the State not
subject to Article 34 | 18 | | properly attributable to expenditure functions
defined | 19 | | by the rules and regulations of the State Board of | 20 | | Education as:
2210 (Improvement of Instructional | 21 | | Services); 2300 (Support Services -
General | 22 | | Administration) excluding, however, 2320 (Executive | 23 | | Administrative
Services); 2490 (Other Support Services - | 24 | | School Administration); 2500
(Support Services - | 25 | | Business); 2600 (Support Services - Central);
| 26 | | (2) the total annual expenditures of all school |
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| 1 | | districts not subject to
Article 34 attributable to the | 2 | | Education Fund, the Operations, Building and
| 3 | | Maintenance Fund, the Transportation Fund and the | 4 | | Illinois Municipal
Retirement Fund of the several | 5 | | districts, as defined by the rules and
regulations of | 6 | | the State Board of Education; and
| 7 | | (3) a ratio, to be called the statewide average of | 8 | | administrative
expenditures, derived by dividing the | 9 | | expenditures certified pursuant to
paragraph (B)(1) by | 10 | | the expenditures certified pursuant to paragraph | 11 | | (B)(2).
| 12 | | For purposes of the annual certification of | 13 | | expenditures and ratios
required by this Section, the | 14 | | "applicable year" of certification shall
initially be the | 15 | | 1986-87 school year and, in sequent years, each
succeeding | 16 | | school year.
| 17 | | The State Superintendent of Education shall consult | 18 | | with the Board of
Education to ascertain whether particular | 19 | | expenditure items allocable to
the administrative | 20 | | functions enumerated in paragraph (B)(1) are
appropriately | 21 | | or necessarily higher in the applicable school district | 22 | | than
in the rest of the State due to noncomparable factors. | 23 | | The State
Superintendent shall also review the relevant | 24 | | cost proportions in other
large urban school districts. The | 25 | | State Superintendent shall also review
the expenditure | 26 | | categories in paragraph (B)(1) to ascertain whether they
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| 1 | | contain school-level expenses. If he or she finds that | 2 | | adjustments to the
formula are appropriate or necessary to | 3 | | establish a more fair and
comparable standard for | 4 | | administrative cost for the Board of Education or
to | 5 | | exclude school-level expenses, the State Superintendent | 6 | | shall recommend
to the School Finance Authority rules and | 7 | | regulations adjusting particular
subcategories in this | 8 | | paragraph subsection (B) or adjusting certain costs in
| 9 | | determining the budget and expenditure items properly | 10 | | attributable to the
functions or otherwise adjust the | 11 | | formula.
| 12 | | (C) Administrative expenditure limitations. The annual | 13 | | budget of the
Board of Education, as adopted and | 14 | | implemented, and the
related annual expenditures for the | 15 | | school year, shall reflect a limitation
on administrative | 16 | | outlays as required by the following provisions, taking
| 17 | | into account any adjustments established by the State | 18 | | Superintendent of
Education: (1) the budget and | 19 | | expenditures of the Board of Education for
the 1989-90 | 20 | | school year shall reflect a ratio of administrative
| 21 | | expenditures to total expenditures equal to or less than | 22 | | the statewide
average of administrative expenditures for | 23 | | the 1986-87 school year as
certified by the State | 24 | | Superintendent of Education pursuant to paragraph
(B)(3); | 25 | | (2) for the 1990-91 school year and for all subsequent | 26 | | school
years, the budget and expenditures of the Board of |
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| 1 | | Education shall reflect
a ratio of administrative | 2 | | expenditures to total expenditures equal to or
less than | 3 | | the statewide average of administrative expenditures | 4 | | certified by
the State Superintendent of Education for the | 5 | | applicable year pursuant to
paragraph (B)(3); (2.5) for the | 6 | | 2019-2020 school year and for all subsequent school years, | 7 | | the budget and expenditures of the Board of Education shall | 8 | | reflect an annual increase in each of the general | 9 | | administration expenditures per pupil and school | 10 | | administration expenditures per pupil over the immediately | 11 | | preceding school year expenditures per pupil equal to or | 12 | | less than the percentage increase, if any, in the consumer | 13 | | price index for the 12 months ending on the previous | 14 | | December 31 or 5%, whichever one is less, as certified by | 15 | | the State Superintendent of Education under paragraph (A) | 16 | | of this Section; (3) if for any school year the budget of | 17 | | the Board of
Education reflects a ratio of administrative | 18 | | expenditures to total
expenditures which exceeds the | 19 | | applicable statewide average, the Board of
Education shall | 20 | | reduce expenditure items allocable to the administrative
| 21 | | functions enumerated in paragraph (B)(1) such that the | 22 | | Board of Education's
ratio of administrative expenditures | 23 | | to total expenditures is equal to or
less than the | 24 | | applicable statewide average ratio ; and (4) beginning with | 25 | | the 2019-2020 school year, if for any school year the | 26 | | budget of the Board of Education reflects an annual |
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| 1 | | increase in either general administration expenditures per | 2 | | pupil or school administration expenditures per pupil | 3 | | greater than the percentage increase, if any, in the | 4 | | consumer price index for the 12 months ending on the | 5 | | previous December 31 or 5%, whichever one is less, as | 6 | | certified by the State Superintendent of Education for the | 7 | | applicable school year under paragraph (A) of this Section, | 8 | | the Board of Education shall reduce expenditure items | 9 | | allocable to general administration expenditures or school | 10 | | administration expenditures to ensure the expenditures per | 11 | | pupil are equal to or less than the allowable increase | 12 | | amount .
| 13 | | For purposes of this Section, the ratio of | 14 | | administrative expenditures to
the total expenditures of | 15 | | the Board of Education, as applied to the budget
of the | 16 | | Board of Education, shall mean: the budgeted expenditure | 17 | | items of
the Board of Education properly attributable to | 18 | | the expenditure functions
identified in paragraph (B)(1) | 19 | | divided by the total budgeted expenditures of
the Board of | 20 | | Education properly attributable to the Board of Education
| 21 | | funds corresponding to those funds identified in paragraph | 22 | | (B)(2),
exclusive of any monies budgeted for payment to the | 23 | | Public School Teachers'
Pension and Retirement System, | 24 | | attributable to payments due from the
General Funds of the | 25 | | State of Illinois.
| 26 | | The annual expenditure of the Board of Education for |
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| 1 | | 2320
(Executive Administrative Services) for the 1989-90 | 2 | | school year shall be no
greater than the 2320 expenditure | 3 | | for the 1988-89 school year. The annual
expenditure of the | 4 | | Board of Education for 2320 for the 1990-91 school year
and | 5 | | each subsequent school year shall be no greater than the | 6 | | 2320
expenditure for the immediately preceding school year | 7 | | or the 1988-89 school
year, whichever is less. This annual | 8 | | expenditure limitation may be
adjusted in each year in an | 9 | | amount not to exceed any change effective
during the | 10 | | applicable school year in salary to be paid under the | 11 | | collective
bargaining agreement with instructional | 12 | | personnel to which the Board is a
party and in benefit | 13 | | costs either required by law or such collective
bargaining | 14 | | agreement.
| 15 | | (D) Cost control measures. In undertaking actions to | 16 | | control or reduce
expenditure items necessitated by the | 17 | | administrative expenditure , general administration | 18 | | expenditure, and school administration expenditure
| 19 | | limitations of this Section, the Board of Education shall | 20 | | give priority
consideration to reductions or cost controls | 21 | | with the least effect upon
direct services to students or | 22 | | instructional services for pupils, and upon
the safety and | 23 | | well-being of pupils, and, as applicable, with the
| 24 | | particular costs or functions to which the Board of | 25 | | Education is higher
than the statewide average.
| 26 | | For purposes of assuring that the cost control |
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| 1 | | priorities of this paragraph
subsection (D) are met, the | 2 | | State Superintendent of Education shall, with
the | 3 | | assistance of the Board of Education, review the cost | 4 | | allocation
practices of the Board of Education, and the | 5 | | State Superintendent of
Education shall thereafter | 6 | | recommend to the School Finance Authority rules
and | 7 | | regulations which define administrative , general | 8 | | administration, and school administration areas which most | 9 | | impact upon
the direct and instructional needs of students | 10 | | and upon the safety and
well-being of the pupils of the | 11 | | district. No position closed shall be
reopened using State | 12 | | or federal categorical funds.
| 13 | | (E) Report of Audited Information. For the 1988-89 | 14 | | school year and for
all subsequent school years, the Board | 15 | | of Education shall file with the
State Board of Education | 16 | | the Annual Financial Report and its audit, as
required by | 17 | | the rules of the State Board of Education. Such reports | 18 | | shall
be filed no later than February 15 following the end | 19 | | of the school year of
the Board of Education, beginning | 20 | | with the report to be filed no later
than February 15, 1990 | 21 | | for the 1988-89 school year.
| 22 | | As part of the required Annual Financial Report, the | 23 | | Board of Education
shall provide a detailed accounting of | 24 | | the central level, district, bureau
and department costs | 25 | | and personnel included within expenditure functions
| 26 | | included in paragraphs (A) and paragraph (B)(1) of this |
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| 1 | | Section . The nature and detail of the reporting
required | 2 | | for these functions shall be prescribed by the State Board | 3 | | of
Education in rules and regulations. A copy of this | 4 | | detailed accounting
shall also be provided annually to the | 5 | | School Finance Authority and the
public. This report shall | 6 | | contain a reconciliation to the Board of Education's board | 7 | | of
education's adopted budget for that fiscal year, | 8 | | specifically delineating
administrative functions.
| 9 | | If the information required under this Section is not | 10 | | provided by the
Board of Education in a timely manner, or | 11 | | is initially or subsequently
determined by the State | 12 | | Superintendent of Education to be incomplete or
| 13 | | inaccurate, the State Superintendent shall, in writing, | 14 | | notify the Board
of Education of reporting deficiencies. | 15 | | The Board of Education shall,
within 60 days of such | 16 | | notice, address the reporting deficiencies
identified. If | 17 | | the State Superintendent of Education does not receive
| 18 | | satisfactory response to these reporting deficiencies | 19 | | within 60 days, the
next payment of general State aid or | 20 | | evidence-based funding due the Board of Education under | 21 | | Section
18-8 or Section 18-8.15 of this Code , as | 22 | | applicable, and all subsequent payments , shall be withheld | 23 | | by the State
Superintendent of Education until the | 24 | | enumerated deficiencies have
been addressed.
| 25 | | Utilizing the Annual Financial Report, the State | 26 | | Superintendent of
Education shall certify on or before May |
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| 1 | | 1 to the Board of Education School Finance Authority
the | 2 | | Board of Education's ratio of administrative expenditures | 3 | | to total
expenditures for the 1988-89 school year and for | 4 | | each succeeding school
year and the Board of Education's | 5 | | general administration expenditures and school | 6 | | administration expenditures for the 2019-2020 school year | 7 | | and for each subsequent school year . Such certification | 8 | | shall indicate the extent to which the
administrative | 9 | | expenditure ratio , general administration expenditures, | 10 | | and school administration expenditures of the Board of | 11 | | Education conformed to the
limitations required in | 12 | | paragraph subsection (C) of this Section, taking into | 13 | | account
any adjustments of the administrative expenditure | 14 | | limitations which may have been recommended by the
State | 15 | | Superintendent of Education to the School Finance | 16 | | Authority . In
deriving the administrative expenditure | 17 | | ratio of the Chicago Board of
Education, the State | 18 | | Superintendent of Education shall utilize the
definition | 19 | | of this ratio prescribed in paragraph subsection (C) of | 20 | | this Section,
except that the actual expenditures of the | 21 | | Board of Education shall be
substituted for budgeted | 22 | | expenditure items. In deriving the general administration | 23 | | expenditures per pupil and school administration | 24 | | expenditures per pupil of the Board of Education, the State | 25 | | Superintendent of Education shall utilize the percentage | 26 | | increase under paragraph (C) of this Section, except that |
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| 1 | | the actual expenditures per pupil of the Board of Education | 2 | | shall be substituted for budgeted expenditures per pupil.
| 3 | | (F) Approval and adjustments to administrative | 4 | | expenditure limitations.
The School Finance Authority | 5 | | organized under Article 34A shall monitor the
Board of | 6 | | Education's adherence to the requirements of this Section. | 7 | | As
part of its responsibility the School Finance Authority | 8 | | shall determine
whether the Board of Education's budget for | 9 | | the next school year, and the
expenditures for a prior | 10 | | school year, comply with the limitation of
administrative | 11 | | expenditures , general administration expenditures, and | 12 | | school administration expenditures required by this | 13 | | Section. The Board of
Education and the State Board of | 14 | | Education shall provide such information
as is required by | 15 | | the School Finance Authority in order for the Authority
to | 16 | | determine compliance with the provisions of this Section. | 17 | | If the
Authority determines that the budget proposed by the | 18 | | Board of Education
does not meet the cost control | 19 | | requirements of this Section, the Board of
Education shall | 20 | | undertake budgetary reductions, consistent with the
| 21 | | requirements of this Section, to bring the proposed budget | 22 | | into compliance
with such cost control limitations.
| 23 | | If, in formulating cost control and cost reduction | 24 | | alternatives, the
Board of Education believes that meeting | 25 | | the cost control requirements of
this Section related to | 26 | | the budget for the ensuing year would impair the
education, |
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| 1 | | safety, or well-being of the pupils of the school district, | 2 | | the
Board of Education may request that the School Finance | 3 | | Authority make
adjustments to the limitations required by | 4 | | this Section. The Board of
Education shall specify the | 5 | | amount, nature, and reasons for the relief
required and | 6 | | shall also identify cost reductions which can be made in
| 7 | | expenditure functions not enumerated in paragraphs (A) and | 8 | | paragraph (B)(1) of this Section , which would serve
the | 9 | | purposes of this Section.
| 10 | | The School Finance Authority shall consult with the | 11 | | State Superintendent
of Education concerning the | 12 | | reasonableness from an educational
administration | 13 | | perspective of the adjustments sought by the Board of
| 14 | | Education. The School Finance Authority shall provide an | 15 | | opportunity for
the public to comment upon the | 16 | | reasonableness of the Board's request. If,
after such | 17 | | consultation, the School Finance Authority determines that | 18 | | all
or a portion of the adjustments sought by the Board of | 19 | | Education are
reasonably appropriate or necessary, the | 20 | | Authority may grant such relief
from the provisions of this | 21 | | Section which the Authority deems appropriate.
Adjustments | 22 | | so granted apply only to the specific school year for which
| 23 | | the request was made.
| 24 | | In the event that the School Finance Authority | 25 | | determines that the Board
of Education has failed to | 26 | | achieve the required administrative , general |
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| 1 | | administration, and school administration expenditure
| 2 | | limitations for a prior school year, or if the Authority | 3 | | determines that
the Board of Education has not met the | 4 | | requirements of this paragraph subsection (F), the
| 5 | | Authority shall make recommendations to the Board of | 6 | | Education concerning
appropriate corrective actions. If | 7 | | the Board of Education fails to
provide adequate assurance | 8 | | to the Authority that appropriate corrective
actions have | 9 | | been or will be taken, the Authority may, within 60 days
| 10 | | thereafter, require the board to adjust its current budget | 11 | | to correct for
the prior year's shortage or may recommend | 12 | | to the members of the General
Assembly and the Governor | 13 | | such sanctions or remedial actions as will serve
to deter | 14 | | any further such failures on the part of the Board of | 15 | | Education.
| 16 | | To assist the Authority in its monitoring | 17 | | responsibilities, the Board of
Education shall provide | 18 | | such reports and information as are from time to
time | 19 | | required by the Authority.
| 20 | | (G) Independent reviews of administrative | 21 | | expenditures. The School
Finance Authority may direct | 22 | | independent reviews of the administrative and
| 23 | | administrative support expenditures and services and other
| 24 | | non-instructional expenditure functions of the Board of | 25 | | Education. The
Board of Education shall afford full | 26 | | cooperation to the School Finance
Authority in such review |
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| 1 | | activity. The purpose of such reviews shall be
to verify | 2 | | specific targets for improved operating efficiencies of | 3 | | the Board
of Education, to identify other areas of | 4 | | potential efficiencies, and to
assure full and proper | 5 | | compliance by the Board of Education with all
requirements | 6 | | of this Section.
| 7 | | In the conduct of reviews under this paragraph (G) | 8 | | subsection , the Authority may
request the assistance and | 9 | | consultation of the State Superintendent of
Education with | 10 | | regard to questions of efficiency and effectiveness in
| 11 | | educational administration.
| 12 | | (H) Reports to Governor and General Assembly. On or | 13 | | before May 1, 1991
and no less frequently than yearly | 14 | | thereafter, the School Finance Authority
shall provide to | 15 | | the Governor, the State Board of Education, and the
members | 16 | | of the General Assembly an annual report, as outlined in | 17 | | Section
34A-606, which includes the following information: | 18 | | (1) documenting the
compliance or non-compliance of the | 19 | | Board of Education with the
requirements of this Section; | 20 | | (2) summarizing the costs, findings, and
recommendations | 21 | | of any reviews directed by the School Finance Authority,
| 22 | | and the response to such recommendations made by the Board | 23 | | of Education;
and (3) recommending sanctions or | 24 | | legislation necessary to fulfill the
intent of this | 25 | | Section.
| 26 | | (Source: P.A. 100-465, eff. 8-31-17.)
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