Illinois General Assembly - Illinois Compiled Statutes

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105 ILCS 5/34-43.1

(105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)

Sec. 34-43.1.

(A) Limitation of noninstructional costs. It is the
purpose of this Section to establish for the Board of Education and the
general superintendent of schools requirements and standards which maximize
the proportion of school district resources in direct support of
educational, program, and building maintenance and safety services for the
pupils of the district, and which correspondingly minimize the amount and
proportion of such resources associated with centralized administration,
administrative support services, and other noninstructional services.

The Board
of Education shall undertake budgetary and expenditure control actions which
limit the administrative expenditures of the Board of Education to levels,
as provided for in this Section, which represent an average of the
administrative expenses of all school districts in this State not subject
to Article 34.

(B) Certification of expenses by the State Superintendent of Education.
The State Superintendent of Education shall annually certify, on or before
May 1, to the Board of Education, for the
applicable school year, the following information:

(1) the annual expenditures of all school districts

of the State not subject to Article 34 properly attributable to expenditure functions defined by the rules and regulations of the State Board of Education as: 2210 (Improvement of Instructional Services); 2300 (Support Services - General Administration) excluding, however, 2320 (Executive Administrative Services); 2490 (Other Support Services - School Administration); 2500 (Support Services - Business); 2600 (Support Services - Central);

(2) the total annual expenditures of all school

districts not subject to Article 34 attributable to the Education Fund, the Operations, Building and Maintenance Fund, the Transportation Fund and the Illinois Municipal Retirement Fund of the several districts, as defined by the rules and regulations of the State Board of Education; and

(3) a ratio, to be called the statewide average of

administrative expenditures, derived by dividing the expenditures certified pursuant to paragraph (B)(1) by the expenditures certified pursuant to paragraph (B)(2).

For purposes of the annual certification of expenditures and ratios
required by this Section, the "applicable year" of certification shall
initially be the 1986-87 school year and, in sequent years, each
succeeding school year.

The State Superintendent of Education shall consult with the Board of
Education to ascertain whether particular expenditure items allocable to
the administrative functions enumerated in paragraph (B)(1) are
appropriately or necessarily higher in the applicable school district than
in the rest of the State due to noncomparable factors.  The State
Superintendent shall also review the relevant cost proportions in other
large urban school districts.  The State Superintendent shall also review
the expenditure categories in paragraph (B)(1) to ascertain whether they
contain school-level expenses.  If he or she finds that adjustments to the
formula are appropriate or necessary to establish a more fair and
comparable standard for administrative cost for the Board of Education or
to exclude school-level expenses, the State Superintendent shall recommend
to the Board of Education adjusting certain costs in
determining the budget and expenditure items properly attributable to the
functions or otherwise adjust the formula.

(C) Administrative expenditure limitations.  The annual budget of the
Board of Education, as adopted and implemented, and the
related annual expenditures for the school year, shall reflect a limitation
on administrative outlays as required by the following provisions, taking
into account any adjustments established by the State Superintendent of
Education: (1) the budget and expenditures of the Board of Education shall reflect
a ratio of administrative expenditures to total expenditures equal to or
less than the statewide average of administrative expenditures certified by
the State Superintendent of Education for the applicable year pursuant to
paragraph (B)(3); (2) if for any school year the budget of the Board of
Education reflects a ratio of administrative expenditures to total
expenditures which exceeds the applicable statewide average, the Board of
Education shall reduce expenditure items allocable to the administrative
functions enumerated in paragraph (B)(1) such that the Board of Education's
ratio of administrative expenditures to total expenditures is equal to or
less than the applicable statewide average ratio.

For purposes of this Section, the ratio of administrative expenditures to
the total expenditures of the Board of Education, as applied to the budget
of the Board of Education, shall mean: the budgeted expenditure items of
the Board of Education properly attributable to the expenditure functions
identified in paragraph (B)(1) divided by the total budgeted expenditures of
the Board of Education properly attributable to the Board of Education
funds corresponding to those funds identified in paragraph (B)(2),
exclusive of any monies budgeted for payment to the Public School Teachers'
Pension and Retirement System, attributable to payments due from the
General Funds of the State of Illinois.

The annual
expenditure of the Board of Education for 2320 shall be no greater than the 2320
expenditure for the immediately preceding school year or the 1988-89 school
year, whichever is less.  This annual expenditure limitation may be
adjusted in each year in an amount not to exceed any change effective
during the applicable school year in salary to be paid under the collective
bargaining agreement with instructional personnel to which the Board is a
party and in benefit costs either required by law or such collective
bargaining agreement.

(D) Cost control measures.  In undertaking actions to control or reduce
expenditure items necessitated by the administrative expenditure
limitations of this Section, the Board of Education shall give priority
consideration to reductions or cost controls with the least effect upon
direct services to students or instructional services for pupils, and upon
the safety and well-being of pupils, and, as applicable, with the
particular costs or functions to which the Board of Education is higher
than the statewide average.

For purposes of assuring that the cost control priorities of this
subsection (D) are met, the State Superintendent of Education shall, with
the assistance of the Board of Education, review the cost allocation
practices of the Board of Education.  No position closed shall be
reopened using State or federal categorical funds.

(E) Report of Audited Information. The Board of Education shall file with the
State Board of Education the Annual Financial Report and its audit, as
required by the rules of the State Board of Education.  Such reports shall
be filed no later than February 15 following the end of the school year of
the Board of Education.

As part of the required Annual Financial Report, the Board of Education
shall provide a detailed accounting of the central level, district, bureau
and department  costs and personnel included within expenditure functions
included in paragraph (B)(1).  The nature and detail of the reporting
required for these functions shall be prescribed by the State Board of
Education in rules and regulations.  A copy of this detailed accounting
shall also be provided annually to the
public.  This report shall contain a reconciliation to the board of
education's adopted budget for that fiscal year, specifically delineating
administrative functions.

If the information required under this Section is not provided by the
Board of Education in a timely manner, or is initially or subsequently
determined by the State Superintendent of Education to be incomplete or
inaccurate, the  State Superintendent shall, in writing, notify the Board
of Education of reporting deficiencies.  The Board of Education shall,
within 60 days of such notice, address the reporting deficiencies
identified.   If the State Superintendent of Education does not receive
satisfactory response to these reporting deficiencies within 60 days, the
next payment of evidence-based funding due the Board of Education under Section 18-8.15 and all subsequent payments shall be withheld by the State
Superintendent of Education until the enumerated deficiencies have
been addressed.

Utilizing the  Annual Financial Report, the State Superintendent of
Education shall certify annually on or before May 1 
the Board of Education's ratio of administrative expenditures to total
expenditures.  Such  certification shall indicate the extent to which the
administrative expenditure ratio of the Board of Education conformed to the
limitations required in subsection (C) of this Section, taking into account
any adjustments of the limitations which may have been recommended by the
State Superintendent of Education to the  Board of Education.  In
deriving  the administrative expenditure ratio of the Chicago Board of
Education, the State Superintendent of Education shall utilize the
definition  of this ratio prescribed in subsection (C) of this Section,
except that the actual expenditures of the Board of Education shall be
substituted for budgeted expenditure items.

(Source: P.A. 102-894, eff. 5-20-22.)