105 ILCS 5/34-43.1
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 34 - Cities Of Over 500,000 Inhabitants - Board Of Education

 (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.For the 1989-90 school year and for all subsequent school years, 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 and the School Finance Authority, 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 School Finance Authority rules and regulations adjusting particular  subcategories in this subsection (B) or 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 for  the 1989-90 school year  shall reflect a ratio of administrative  expenditures to total expenditures equal to or less than the statewide  average of administrative expenditures for the 1986-87 school year as  certified by the State Superintendent of Education pursuant to paragraph  (B)(3); (2) for the 1990-91 school year and for all subsequent school  years, 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); (3) 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  (Executive Administrative Services) for the 1989-90 school year shall be no  greater than the 2320 expenditure for the 1988-89 school year.  The annual  expenditure of the Board of Education for 2320 for the 1990-91 school year  and each subsequent school year 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, and the State Superintendent of  Education shall thereafter recommend to the School Finance Authority rules  and regulations which define administrative areas which most impact upon  the direct and instructional needs of students and upon the safety and  well-being of the pupils of the district.  No position closed shall be  reopened using State or federal categorical funds.(E) Report of Audited Information.  For the 1988-89 school year and for  all subsequent school years, 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, beginning with the report to be filed no later  than February 15, 1990 for the 1988-89 school year.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 School Finance Authority and 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 general State aid or evidence-based funding due the Board of Education under Section  18-8 or Section 18-8.15, as applicable, 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 on or before May 1 to the School  Finance Authority  the Board of Education's ratio of administrative expenditures to total  expenditures for the 1988-89 school year and for each succeeding school  year.  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  School Finance Authority.  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.(F) Approval and adjustments to administrative  expenditure limitations.  The School Finance Authority organized under Article 34A shall monitor the  Board of Education's adherence to the requirements of this Section.  As  part of its responsibility the School Finance Authority shall determine  whether the Board of Education's budget for the next school year, and the  expenditures for a prior school year, comply with the limitation of  administrative expenditures required by this Section.  The Board of  Education and the State Board of Education shall provide such information  as is  required by the School Finance Authority in order for the Authority  to determine compliance with the provisions of this Section.  If the  Authority determines that the budget proposed by the  Board of Education  does not meet the cost control requirements of this Section, the Board of  Education shall undertake budgetary reductions, consistent with the  requirements of this Section, to bring the proposed budget into compliance  with such cost control limitations.If, in formulating cost control and cost reduction alternatives, the  Board of Education believes that meeting the cost control requirements of  this Section related to the budget for the ensuing year would impair the  education, safety, or well-being of the pupils of the school district, the  Board of Education may request that the School Finance Authority make  adjustments to the limitations required by this Section.  The Board of  Education shall specify the amount, nature, and reasons for the relief  required and shall also identify cost reductions which can be made in  expenditure functions not enumerated in paragraph (B)(1), which would serve  the purposes of this Section.The School Finance Authority shall consult with the State Superintendent  of Education concerning the reasonableness from an educational  administration perspective of the adjustments sought by the Board of  Education.  The School Finance Authority shall provide an opportunity for  the public to comment upon the reasonableness of the Board's request.  If,  after such consultation, the School Finance Authority determines that all  or a portion of the adjustments sought by the Board of Education are  reasonably appropriate or necessary, the Authority may grant such relief  from the provisions of this Section which the Authority deems appropriate.  Adjustments so granted apply only to the specific school year  for which  the request was made.In the event that the School Finance Authority determines that the Board  of Education has failed to achieve the required administrative expenditure  limitations for a prior school year, or if the Authority determines that  the Board of Education  has not met the requirements of subsection (F), the  Authority shall make recommendations to the Board of Education concerning  appropriate corrective actions.   If the Board of Education fails to  provide adequate assurance to the Authority that appropriate corrective  actions have been or will be taken, the Authority may, within 60 days  thereafter, require the board to adjust its current budget to correct for  the prior year's shortage or may recommend to the members of the General  Assembly and the Governor such  sanctions or remedial actions as will serve  to deter any further such failures on the part of the Board of Education.To assist the Authority in its monitoring responsibilities, the Board of  Education  shall provide such reports and information as are from time to  time required by the Authority.(G) Independent reviews of administrative expenditures.  The School  Finance Authority may direct independent reviews of the administrative and  administrative support expenditures  and services and other  non-instructional expenditure functions of the Board of Education.  The  Board of Education shall afford full cooperation to the School Finance  Authority in such review activity.  The purpose of such  reviews shall be  to verify specific targets for improved operating efficiencies of the Board  of Education, to identify other areas of potential efficiencies, and to  assure full and proper compliance by the Board of Education with all  requirements of this Section.In the conduct of reviews under this subsection, the Authority may  request the assistance and consultation of the State Superintendent of  Education with regard to questions of efficiency and effectiveness in  educational administration.(H) Reports to Governor and General Assembly.  On or before May 1, 1991  and no less frequently than yearly thereafter, the School Finance Authority  shall provide to the Governor, the State Board of Education, and the  members of the General Assembly an annual report, as outlined in Section  34A-606, which includes the following information: (1) documenting the  compliance or non-compliance of the Board of Education with the  requirements of this Section; (2) summarizing the costs, findings, and  recommendations of any reviews directed by the School Finance Authority,  and the response to such recommendations made by the Board of Education;  and (3) recommending sanctions or legislation necessary to fulfill the  intent of this Section.  (Source: P.A. 100-465, eff. 8-31-17.)