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90_HB2907
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.
LRB9011002THpk
LRB9011002THpk
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.)