State of Illinois
90th General Assembly
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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.
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                                              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
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 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
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 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
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 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.)

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