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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. LRB9008867NTmbA LRB9008867NTmbA 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 -2- LRB9008867NTmbA 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 -3- LRB9008867NTmbA 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 -4- LRB9008867NTmbA 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.)