105 ILCS 5/17-1.5
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 17 - Budgets--Tax Rates--Tax Warrants

Sec. 17-1.5. Limitation of administrative costs.(a) It is the purpose of this Section to establish limitations on the growth  of administrative expenditures in order to maximize the proportion of school  district resources available for the instructional program, building  maintenance, and safety services for the students of each district.(b) Definitions.  For the purposes of this Section:"Administrative expenditures" mean the annual expenditures of  school districts properly attributable to expenditure functions defined by the  rules of the State Board of Education as: 2320 (Executive Administration Services);  2330 (Special Area Administration Services); 2490 (Other Support Services -  School Administration); 2510 (Direction of Business Support Services); 2570  (Internal Services); and 2610 (Direction of Central  Support Services); provided, however, that "administrative expenditures" shall  not include early retirement or other pension system obligations required by  State law."School district" means all school districts having a population of less than  500,000.(c) For the 1998-99 school year and each school year thereafter, each school  district shall undertake budgetary and expenditure control actions so that the  increase in administrative expenditures for that school year over the prior  school year does not exceed 5%.  School districts with administrative expenditures per pupil  in the 25th  percentile and below for all districts of the same type,  as defined by the State Board of Education,  may waive the limitation imposed under this Section for any year following a  public hearing and with the  affirmative vote of at least two-thirds of the members of the school board of  the  district. Any district waiving the limitation shall notify the State Board  within 45 days of such action.(d) School districts shall file with the State Board of Education by  November 15, 1998 and  by each November 15th thereafter a one-page report that lists  (i) the actual  administrative expenditures for  the  prior year from the district's audited Annual Financial Report, and (ii) the  projected administrative expenditures for the current year from the budget adopted by the school board  pursuant to Section 17-1 of this Code.If a school district that is ineligible to waive the limitation imposed by  subsection (c) of this Section by board action exceeds the limitation  solely because of circumstances beyond  the control of the district and the district has exhausted all available and  reasonable remedies to comply with the limitation, the district may request a  waiver pursuant to Section 2-3.25g.  The waiver application shall specify the  amount,  nature, and reason for the relief requested, as well as all remedies the  district has exhausted to comply with the limitation.   Any emergency relief so requested shall apply only to the specific  school year for which the request is made.  The State Board of Education shall  analyze all such waivers submitted and shall recommend that the General  Assembly disapprove any such waiver requested that is not due solely to  circumstances beyond the control of the district and for which the district has  not exhausted all available and reasonable remedies to comply with the  limitation.  The State Superintendent shall have  no authority to impose any sanctions pursuant to this Section for any  expenditures for which a waiver has been requested until such waiver has been  reviewed by the General Assembly.If the report and information required  under this  subsection (d) are not provided by the school district in a timely  manner, or are subsequently determined by  the State Superintendent of Education  to be incomplete or inaccurate, the State Superintendent shall notify the  district in writing of reporting deficiencies.  The school district shall,  within 60 days of the notice, address the reporting deficiencies identified.(e) If the State Superintendent determines that a school district has failed  to comply with the administrative expenditure limitation imposed in subsection  (c) of this Section,  the  State Superintendent shall notify the district of the violation and direct the  district to undertake corrective action to bring the district's budget into  compliance with the administrative expenditure limitation.  The district shall,  within 60 days of the notice, provide adequate assurance to the State  Superintendent that appropriate corrective actions have been or will be taken.  If the district fails to provide adequate assurance or fails to undertake the  necessary corrective actions, the State Superintendent may impose progressive  sanctions against the district that may culminate in withholding  all  subsequent payments of general State aid due the district under Section  18-8.05 of  this Code or evidence-based funding due the district under Section 18-8.15 of this Code  until the assurance is provided or the corrective actions taken.(f) The State Superintendent shall publish a list each year of the school  districts that violate the limitation imposed by subsection (c) of this  Section and a list of the districts that waive the limitation by board  action as provided in subsection (c) of this Section.   (Source: P.A. 100-465, eff. 8-31-17.)