Bill Text: IL HB2983 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the School Code. Makes changes with regard to the limitation of administrative costs. Defines "consumer price index", "expenditures per pupil", "general administration expenditures", and "school administration expenditures". Provides that for the 2022-2023 school year and each school year thereafter, each school district shall undertake budgetary and expenditure control actions so that the increase in each of the budgeted administrative expenditures per pupil (with the exception of the Chicago school district, whose limit is not changed), budgeted general administration expenditures per pupil, and budgeted school administration expenditures per pupil for that school year over the expenditures per pupil for the prior school year does not exceed the percentage increase, if any, in the consumer price index for the 12 months ending on the December 31 prior to the budgetary year or 5%, whichever one is less. Makes conforming changes and other changes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2983 Detail]
Download: Illinois-2021-HB2983-Introduced.html
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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The School Code is amended by changing Sections | ||||||||||||||||||||||||||
5 | 17-1.5 and 34-43.1 as follows:
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6 | (105 ILCS 5/17-1.5)
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7 | Sec. 17-1.5. Limitation of administrative costs.
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8 | (a) It is the purpose of this Section to establish | ||||||||||||||||||||||||||
9 | limitations on the growth
of administrative expenditures in | ||||||||||||||||||||||||||
10 | order to maximize the proportion of school
district resources | ||||||||||||||||||||||||||
11 | available for the instructional program, building
maintenance, | ||||||||||||||||||||||||||
12 | and safety services for the students of each district.
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13 | (b) Definitions. For the purposes of this Section:
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14 | "Administrative expenditures" mean the annual expenditures | ||||||||||||||||||||||||||
15 | of
school districts properly attributable to expenditure | ||||||||||||||||||||||||||
16 | functions defined by the
rules of the State Board of Education | ||||||||||||||||||||||||||
17 | as: 2320 (Executive Administration Services);
2330 (Special | ||||||||||||||||||||||||||
18 | Area Administration Services); 2490 (Other Support Services -
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19 | School Administration); 2510 (Direction of Business Support | ||||||||||||||||||||||||||
20 | Services); 2570
(Internal Services); and 2610 (Direction of | ||||||||||||||||||||||||||
21 | Central
Support Services); provided, however, that | ||||||||||||||||||||||||||
22 | "administrative expenditures" shall
not include early | ||||||||||||||||||||||||||
23 | retirement or other pension system obligations required by
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1 | State law.
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2 | "Consumer price index" means the Consumer Price Index for | ||||||
3 | All Urban Consumers for all items published by the Bureau of | ||||||
4 | Labor Statistics of the United States Department of Labor. | ||||||
5 | "Expenditures per pupil" means the total administrative | ||||||
6 | expenditures, general administration expenditures, or school | ||||||
7 | administration expenditures divided by the average number of | ||||||
8 | students reported to the State Board of Education as enrolled | ||||||
9 | in the school district on October 1 and March 1, in the | ||||||
10 | immediately preceding school year, as defined by "Average | ||||||
11 | Student Enrollment" under Section 18-8.15 of this Code. | ||||||
12 | "General administration expenditures" means the sum of all | ||||||
13 | annual expenditures of a school district that are attributable | ||||||
14 | to expenditure functions that are defined by the rules of the | ||||||
15 | State Board of Education as 2300 (Total Support Services - | ||||||
16 | General Administration); however, "general administration | ||||||
17 | expenditures" does not include early retirement or other | ||||||
18 | pension system obligations required by State law. | ||||||
19 | "School administration expenditures" means the sum of all | ||||||
20 | annual expenditures of a school district that are attributable | ||||||
21 | to expenditure functions that are defined by the rules of the | ||||||
22 | State Board of Education as 2400 (Total Support Services - | ||||||
23 | School Administration); however, "school administration | ||||||
24 | expenditures" does not include early retirement or other | ||||||
25 | pension system obligations required by State law. | ||||||
26 | "School district" means all school districts having a |
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1 | population of less than
500,000.
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2 | (c) For the 1998-99 school year through the 2021-2022 | ||||||
3 | school year and each school year thereafter , each school
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4 | district shall undertake budgetary and expenditure control | ||||||
5 | actions so that the
increase in administrative expenditures | ||||||
6 | for that school year over the prior
school year does not exceed | ||||||
7 | 5%. For 2022-2023 school year and each school year thereafter, | ||||||
8 | each school district shall undertake budgetary and expenditure | ||||||
9 | control actions so that the increase in each of the budgeted | ||||||
10 | administrative expenditures per pupil, budgeted general | ||||||
11 | administration expenditures per pupil, and budgeted school | ||||||
12 | administration expenditures per pupil for that school year | ||||||
13 | over the expenditures per pupil for the prior school year does | ||||||
14 | not exceed the percentage increase, if any, in the consumer | ||||||
15 | price index for the 12 months ending on December 31 prior to | ||||||
16 | the budgetary year or 5%, whichever one is less. For purposes | ||||||
17 | of this Section, for the 2021-2022 school year, the general | ||||||
18 | administration expenditures per pupil shall be the lesser of | ||||||
19 | the actual expenditures per pupil of the school district for | ||||||
20 | the prior school year or the amount reported by the United | ||||||
21 | States Census Bureau in its 2001 Annual Survey of School | ||||||
22 | System Finances as the Illinois average per pupil for Support | ||||||
23 | Services Expenditure - General Administration (Function 2300), | ||||||
24 | increased by the percentage increase, if any, in the consumer | ||||||
25 | price index for 2002 through 2021 compounded. For purposes of | ||||||
26 | this Section, for the 2021-2022 school year, the school |
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1 | administration expenditures per pupil shall be the amount | ||||||
2 | reported by the United States Census Bureau in its 2015 Annual | ||||||
3 | Survey of School System Finances as the national average per | ||||||
4 | pupil for Support Services Expenditure - School Administration | ||||||
5 | (Function 2400), increased by the percentage increase, if any, | ||||||
6 | in the consumer price index for 2019, 2020, and 2021 | ||||||
7 | compounded. For the 2021-2022 school year and each subsequent | ||||||
8 | school year, the State Board of Education shall publish on its | ||||||
9 | Internet website the current year allowable percentage | ||||||
10 | increase and a list of school districts that qualify to waive | ||||||
11 | each of the applicable limitations under subsection (c-5) of | ||||||
12 | this Section. | ||||||
13 | (c-5)
School districts with administrative expenditures , | ||||||
14 | general administration expenditures, or school administration | ||||||
15 | expenditures per pupil
in the 25th
percentile and below for | ||||||
16 | all districts of the same type,
as defined by the State Board | ||||||
17 | of Education,
may waive the applicable limitation imposed | ||||||
18 | under this Section for any year following a
public hearing and | ||||||
19 | with the
affirmative vote of at least two-thirds of the | ||||||
20 | members of the school board of
the
district. Any district | ||||||
21 | waiving a the limitation shall notify the State Board
within | ||||||
22 | 45 days of such action.
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23 | (d) School districts shall file with the State Board of | ||||||
24 | Education by
November 15, 1998 and
by each November 15th | ||||||
25 | thereafter a one-page report that lists
(i) the actual
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26 | administrative expenditures , general administration |
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1 | expenditures, and school administration expenditures for
the
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2 | prior year from the district's audited Annual Financial | ||||||
3 | Report , with the relevant average number of students reported | ||||||
4 | to the State Board of Education, as set forth in the definition | ||||||
5 | of "expenditures per pupil" under this Section , and (ii) the
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6 | projected administrative expenditures , general administration | ||||||
7 | expenditures, and school administration expenditures for the | ||||||
8 | current year from the budget adopted by the school board
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9 | pursuant to Section 17-1 of this Code , with the relevant | ||||||
10 | average number of students reported to the State Board of | ||||||
11 | Education, as set forth in the definition of "expenditures per | ||||||
12 | pupil" under this Section, (iii) the administrative | ||||||
13 | expenditures per pupil, general administration expenditures | ||||||
14 | per pupil, and school administration expenditures per pupil | ||||||
15 | for the prior year and the current year, and (iv) the | ||||||
16 | percentage increase in current year per pupil expenditures | ||||||
17 | over prior year per pupil expenditures .
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18 | If a school district that is ineligible to waive a the | ||||||
19 | limitation imposed by
subsection (c) of this Section by board | ||||||
20 | action exceeds that the limitation
solely because of | ||||||
21 | circumstances beyond
the control of the district and the | ||||||
22 | district has exhausted all available and
reasonable remedies | ||||||
23 | to comply with the applicable limitation, the district may | ||||||
24 | request a
waiver pursuant to Section 2-3.25g of this Code . The | ||||||
25 | waiver application shall specify the
amount,
nature, and | ||||||
26 | reason for the relief requested, as well as all remedies the
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1 | district has exhausted to comply with the limitation.
Any | ||||||
2 | emergency relief so requested shall apply only to the specific
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3 | school year for which the request is made. The State Board of | ||||||
4 | Education shall
analyze all such waivers submitted and shall | ||||||
5 | recommend that the General
Assembly disapprove any such waiver | ||||||
6 | requested that is not due solely to
circumstances beyond the | ||||||
7 | control of the district and for which the district has
not | ||||||
8 | exhausted all available and reasonable remedies to comply with | ||||||
9 | the
limitation. The State Superintendent shall have
no | ||||||
10 | authority to impose any sanctions pursuant to this Section for | ||||||
11 | any
expenditures for which a waiver has been requested until | ||||||
12 | such waiver has been
reviewed by the General Assembly. Except | ||||||
13 | for a new district formed under Article 11E of this Code, any | ||||||
14 | district that has current year expenditures per pupil but no | ||||||
15 | prior year expenditures per pupil for a limitation must | ||||||
16 | request a waiver under Section 2-3.25g of this Code.
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17 | If the report and information required
under this
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18 | subsection (d) are not provided by the school district in a | ||||||
19 | timely
manner, or are subsequently determined by
the State | ||||||
20 | Superintendent of Education
to be incomplete or inaccurate, | ||||||
21 | the State Superintendent shall notify the
district in writing | ||||||
22 | of reporting deficiencies. The school district shall,
within | ||||||
23 | 60 days of the notice, address the reporting deficiencies | ||||||
24 | identified.
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25 | (e) If the State Superintendent determines that a school | ||||||
26 | district has failed
to comply with the administrative |
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1 | expenditure , the general administration expenditure, or the | ||||||
2 | school administration expenditure limitation imposed in | ||||||
3 | subsection
(c) of this Section,
the
State Superintendent shall | ||||||
4 | notify the district of the violation and direct the
district | ||||||
5 | to undertake corrective action to bring the district's budget | ||||||
6 | into
compliance with the applicable administrative expenditure | ||||||
7 | limitation. The district shall,
within 60 days of the notice, | ||||||
8 | provide adequate assurance to the State
Superintendent that | ||||||
9 | appropriate corrective actions have been or will be taken.
If | ||||||
10 | the district fails to provide adequate assurance or fails to | ||||||
11 | undertake the
necessary corrective actions, the State | ||||||
12 | Superintendent may impose progressive
sanctions against the | ||||||
13 | district that may culminate in withholding
all
subsequent | ||||||
14 | payments of general State aid due the district under Section
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15 | 18-8.05 of
this Code or evidence-based funding due the | ||||||
16 | district under Section 18-8.15 of this Code
until the | ||||||
17 | assurance is provided or the corrective actions taken.
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18 | (f) The State Superintendent shall publish a list each | ||||||
19 | year of the school
districts that violate any the limitation | ||||||
20 | imposed by subsection (c) of this
Section and a list of the | ||||||
21 | districts that waive a the limitation by board
action as | ||||||
22 | provided in subsection (c-5) (c) of this Section.
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23 | (g) For any school district that violates a limitation | ||||||
24 | imposed by subsection (c) of this Section for a minimum of 2 | ||||||
25 | out of 3 years, the State Superintendent of Education may | ||||||
26 | withhold payments of evidence-based funding due to the school |
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1 | district under Section 18-8.15 of this Code in an amount equal | ||||||
2 | to the amount the school district exceeded the limitation | ||||||
3 | imposed. | ||||||
4 | (Source: P.A. 100-465, eff. 8-31-17.)
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5 | (105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)
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6 | Sec. 34-43.1. In this Section, "consumer price index", | ||||||
7 | "expenditures per pupil", "general administration | ||||||
8 | expenditures", and "school administration expenditures" have | ||||||
9 | the meanings given to those terms under Section 17-1.5 of this | ||||||
10 | Code. | ||||||
11 | (A) Limitation of noninstructional costs. It is the
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12 | purpose of this Section to establish for the Board of | ||||||
13 | Education and the
general superintendent of schools | ||||||
14 | requirements and standards which maximize
the proportion | ||||||
15 | of school district resources in direct support of
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16 | educational, program, and building maintenance and safety | ||||||
17 | services for the
pupils of the district, and which | ||||||
18 | correspondingly minimize the amount and
proportion of such | ||||||
19 | resources associated with centralized administration,
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20 | administrative support services, and other | ||||||
21 | noninstructional services.
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22 | For the 1989-90 school year and for all subsequent | ||||||
23 | school years, the Board
of Education shall undertake | ||||||
24 | budgetary and expenditure control actions which
limit the | ||||||
25 | administrative expenditures of the Board of Education to |
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1 | levels,
as provided for in this Section, which represent | ||||||
2 | an average of the
administrative expenses of all school | ||||||
3 | districts in this State not subject
to Article 34.
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4 | For the 2022-2023 school year and for all subsequent | ||||||
5 | school years, the Board of Education shall also undertake | ||||||
6 | budgetary and expenditure control actions so that the | ||||||
7 | increase in each of the general administration | ||||||
8 | expenditures per pupil and school administration | ||||||
9 | expenditures per pupil for that school year over the | ||||||
10 | immediately preceding school year expenditures per pupil | ||||||
11 | does not exceed the percentage increase, if any, in the | ||||||
12 | consumer price index for the 12 months ending on December | ||||||
13 | 31 prior to the budgetary year or 5%, whichever one is | ||||||
14 | less. | ||||||
15 | For purposes of this Section, for the 2021-2022 school | ||||||
16 | year, the general administration expenditures per pupil | ||||||
17 | shall be the amount reported by the United States Census | ||||||
18 | Bureau in its 2001 Annual Survey of School System Finances | ||||||
19 | as the average of the Support Services Expenditure - | ||||||
20 | General Administration (Function 2300) per pupil for the | ||||||
21 | district, increased by the percentage increase, if any, in | ||||||
22 | the consumer price index for the years 2002 through 2021 | ||||||
23 | compounded. The school administration expenditures per | ||||||
24 | pupil shall be the amount reported by the United States | ||||||
25 | Census Bureau in its 2015 Annual Survey of School System | ||||||
26 | Finances as the average of the Support Services |
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1 | Expenditure - School Administration (Function 2400) per | ||||||
2 | pupil for the 10 largest school districts in the United | ||||||
3 | States, increased by the percentage increase, if any, in | ||||||
4 | the consumer price index for 2019, 2020, and 2021 | ||||||
5 | compounded. | ||||||
6 | On or before May 1, 2022 and annually thereafter, the | ||||||
7 | State Superintendent of Education shall certify to the | ||||||
8 | Board of Education the allowable percentage increase | ||||||
9 | applicable to the following year general administration | ||||||
10 | expenditures per pupil and school administration | ||||||
11 | expenditures per pupil. | ||||||
12 | (B) Certification of expenses by the State | ||||||
13 | Superintendent of Education.
The State Superintendent of | ||||||
14 | Education shall annually certify, on or before
May 1, to | ||||||
15 | the Board of Education and the School Finance Authority , | ||||||
16 | for the
applicable school year, the following information:
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17 | (1) the annual expenditures of all school | ||||||
18 | districts of the State not
subject to Article 34 | ||||||
19 | properly attributable to expenditure functions
defined | ||||||
20 | by the rules and regulations of the State Board of | ||||||
21 | Education as:
2210 (Improvement of Instructional | ||||||
22 | Services); 2300 (Support Services -
General | ||||||
23 | Administration) excluding, however, 2320 (Executive | ||||||
24 | Administrative
Services); 2490 (Other Support Services - | ||||||
25 | School Administration); 2500
(Support Services - | ||||||
26 | Business); 2600 (Support Services - Central);
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1 | (2) the total annual expenditures of all school | ||||||
2 | districts not subject to
Article 34 attributable to | ||||||
3 | the Education Fund, the Operations, Building and
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4 | Maintenance Fund, the Transportation Fund and the | ||||||
5 | Illinois Municipal
Retirement Fund of the several | ||||||
6 | districts, as defined by the rules and
regulations of | ||||||
7 | the State Board of Education; and
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8 | (3) a ratio, to be called the statewide average of | ||||||
9 | administrative
expenditures, derived by dividing the | ||||||
10 | expenditures certified pursuant to
paragraph (B)(1) by | ||||||
11 | the expenditures certified pursuant to paragraph | ||||||
12 | (B)(2).
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13 | For purposes of the annual certification of | ||||||
14 | expenditures and ratios
required by this Section, the | ||||||
15 | "applicable year" of certification shall
initially be the | ||||||
16 | 1986-87 school year and, in sequent years, each
succeeding | ||||||
17 | school year.
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18 | The State Superintendent of Education shall consult | ||||||
19 | with the Board of
Education to ascertain whether | ||||||
20 | particular expenditure items allocable to
the | ||||||
21 | administrative functions enumerated in paragraph (B)(1) | ||||||
22 | are
appropriately or necessarily higher in the applicable | ||||||
23 | school district than
in the rest of the State due to | ||||||
24 | noncomparable factors. The State
Superintendent shall also | ||||||
25 | review the relevant cost proportions in other
large urban | ||||||
26 | school districts. The State Superintendent shall also |
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1 | review
the expenditure categories in paragraph (B)(1) to | ||||||
2 | ascertain whether they
contain school-level expenses. If | ||||||
3 | he or she finds that adjustments to the
formula are | ||||||
4 | appropriate or necessary to establish a more fair and
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5 | comparable standard for administrative cost for the Board | ||||||
6 | of Education or
to exclude school-level expenses, the | ||||||
7 | State Superintendent shall recommend
to the School Finance | ||||||
8 | Authority rules and regulations adjusting particular
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9 | subcategories in this paragraph subsection (B) or | ||||||
10 | adjusting certain costs in
determining the budget and | ||||||
11 | expenditure items properly attributable to the
functions | ||||||
12 | or otherwise adjust the formula.
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13 | (C) Administrative expenditure limitations. The annual | ||||||
14 | budget of the
Board of Education, as adopted and | ||||||
15 | implemented, and the
related annual expenditures for the | ||||||
16 | school year, shall reflect a limitation
on administrative | ||||||
17 | outlays as required by the following provisions, taking
| ||||||
18 | into account any adjustments established by the State | ||||||
19 | Superintendent of
Education: (1) the budget and | ||||||
20 | expenditures of the Board of Education for
the 1989-90 | ||||||
21 | school year shall reflect a ratio of administrative
| ||||||
22 | expenditures to total expenditures equal to or less than | ||||||
23 | the statewide
average of administrative expenditures for | ||||||
24 | the 1986-87 school year as
certified by the State | ||||||
25 | Superintendent of Education pursuant to paragraph
(B)(3); | ||||||
26 | (2) for the 1990-91 school year and for all subsequent |
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1 | school
years, the budget and expenditures of the Board of | ||||||
2 | Education shall reflect
a ratio of administrative | ||||||
3 | expenditures to total expenditures equal to or
less than | ||||||
4 | the statewide average of administrative expenditures | ||||||
5 | certified by
the State Superintendent of Education for the | ||||||
6 | applicable year pursuant to
paragraph (B)(3); (2.5) for | ||||||
7 | the 2022-2023 school year and for all subsequent school | ||||||
8 | years, the budget and expenditures of the Board of | ||||||
9 | Education shall reflect an annual increase in each of the | ||||||
10 | general administration expenditures per pupil and school | ||||||
11 | administration expenditures per pupil over the immediately | ||||||
12 | preceding school year expenditures per pupil equal to or | ||||||
13 | less than the percentage increase, if any, in the consumer | ||||||
14 | price index for the 12 months ending on the previous | ||||||
15 | December 31 or 5%, whichever one is less, as certified by | ||||||
16 | the State Superintendent of Education under paragraph (A) | ||||||
17 | of this Section; (3) if for any school year the budget of | ||||||
18 | the Board of
Education reflects a ratio of administrative | ||||||
19 | expenditures to total
expenditures which exceeds the | ||||||
20 | applicable statewide average, the Board of
Education shall | ||||||
21 | reduce expenditure items allocable to the administrative
| ||||||
22 | functions enumerated in paragraph (B)(1) such that the | ||||||
23 | Board of Education's
ratio of administrative expenditures | ||||||
24 | to total expenditures is equal to or
less than the | ||||||
25 | applicable statewide average ratio ; and (4) beginning with | ||||||
26 | the 2022-2023 school year, if for any school year the |
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| |||||||
1 | budget of the Board of Education reflects an annual | ||||||
2 | increase in either general administration expenditures per | ||||||
3 | pupil or school administration expenditures per pupil | ||||||
4 | greater than the percentage increase, if any, in the | ||||||
5 | consumer price index for the 12 months ending on the | ||||||
6 | previous December 31 or 5%, whichever one is less, as | ||||||
7 | certified by the State Superintendent of Education for the | ||||||
8 | applicable school year under paragraph (A) of this | ||||||
9 | Section, the Board of Education shall reduce expenditure | ||||||
10 | items allocable to general administration expenditures or | ||||||
11 | school administration expenditures to ensure the | ||||||
12 | expenditures per pupil are equal to or less than the | ||||||
13 | allowable increase amount .
| ||||||
14 | For purposes of this Section, the ratio of | ||||||
15 | administrative expenditures to
the total expenditures of | ||||||
16 | the Board of Education, as applied to the budget
of the | ||||||
17 | Board of Education, shall mean: the budgeted expenditure | ||||||
18 | items of
the Board of Education properly attributable to | ||||||
19 | the expenditure functions
identified in paragraph (B)(1) | ||||||
20 | divided by the total budgeted expenditures of
the Board of | ||||||
21 | Education properly attributable to the Board of Education
| ||||||
22 | funds corresponding to those funds identified in paragraph | ||||||
23 | (B)(2),
exclusive of any monies budgeted for payment to | ||||||
24 | the Public School Teachers'
Pension and Retirement System, | ||||||
25 | attributable to payments due from the
General Funds of the | ||||||
26 | State of Illinois.
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1 | The annual expenditure of the Board of Education for | ||||||
2 | 2320
(Executive Administrative Services) for the 1989-90 | ||||||
3 | school year shall be no
greater than the 2320 expenditure | ||||||
4 | for the 1988-89 school year. The annual
expenditure of the | ||||||
5 | Board of Education for 2320 for the 1990-91 school year
| ||||||
6 | and each subsequent school year shall be no greater than | ||||||
7 | the 2320
expenditure for the immediately preceding school | ||||||
8 | year or the 1988-89 school
year, whichever is less. This | ||||||
9 | annual expenditure limitation may be
adjusted in each year | ||||||
10 | in an amount not to exceed any change effective
during the | ||||||
11 | applicable school year in salary to be paid under the | ||||||
12 | collective
bargaining agreement with instructional | ||||||
13 | personnel to which the Board is a
party and in benefit | ||||||
14 | costs either required by law or such collective
bargaining | ||||||
15 | agreement.
| ||||||
16 | (D) Cost control measures. In undertaking actions to | ||||||
17 | control or reduce
expenditure items necessitated by the | ||||||
18 | administrative expenditure , general administration | ||||||
19 | expenditure, and school administration expenditure
| ||||||
20 | limitations of this Section, the Board of Education shall | ||||||
21 | give priority
consideration to reductions or cost controls | ||||||
22 | with the least effect upon
direct services to students or | ||||||
23 | instructional services for pupils, and upon
the safety and | ||||||
24 | well-being of pupils, and, as applicable, with the
| ||||||
25 | particular costs or functions to which the Board of | ||||||
26 | Education is higher
than the statewide average.
|
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| |||||||
1 | For purposes of assuring that the cost control | ||||||
2 | priorities of this paragraph
subsection (D) are met, the | ||||||
3 | State Superintendent of Education shall, with
the | ||||||
4 | assistance of the Board of Education, review the cost | ||||||
5 | allocation
practices of the Board of Education, and the | ||||||
6 | State Superintendent of
Education shall thereafter | ||||||
7 | recommend to the School Finance Authority rules
and | ||||||
8 | regulations which define administrative , general | ||||||
9 | administration, and school administration areas which most | ||||||
10 | impact upon
the direct and instructional needs of students | ||||||
11 | and upon the safety and
well-being of the pupils of the | ||||||
12 | district. No position closed shall be
reopened using State | ||||||
13 | or federal categorical funds.
| ||||||
14 | (E) Report of Audited Information. For the 1988-89 | ||||||
15 | school year and for
all subsequent school years, the Board | ||||||
16 | of Education shall file with the
State Board of Education | ||||||
17 | the Annual Financial Report and its audit, as
required by | ||||||
18 | the rules of the State Board of Education. Such reports | ||||||
19 | shall
be filed no later than February 15 following the end | ||||||
20 | of the school year of
the Board of Education, beginning | ||||||
21 | with the report to be filed no later
than February 15, 1990 | ||||||
22 | for the 1988-89 school year.
| ||||||
23 | As part of the required Annual Financial Report, the | ||||||
24 | Board of Education
shall provide a detailed accounting of | ||||||
25 | the central level, district, bureau
and department costs | ||||||
26 | and personnel included within expenditure functions
|
| |||||||
| |||||||
1 | included in paragraphs (A) and paragraph (B)(1) of this | ||||||
2 | Section . The nature and detail of the reporting
required | ||||||
3 | for these functions shall be prescribed by the State Board | ||||||
4 | of
Education in rules and regulations. A copy of this | ||||||
5 | detailed accounting
shall also be provided annually to the | ||||||
6 | School Finance Authority and the
public. This report shall | ||||||
7 | contain a reconciliation to the Board of Education's board | ||||||
8 | of
education's adopted budget for that fiscal year, | ||||||
9 | specifically delineating
administrative functions.
| ||||||
10 | If the information required under this Section is not | ||||||
11 | provided by the
Board of Education in a timely manner, or | ||||||
12 | is initially or subsequently
determined by the State | ||||||
13 | Superintendent of Education to be incomplete or
| ||||||
14 | inaccurate, the State Superintendent shall, in writing, | ||||||
15 | notify the Board
of Education of reporting deficiencies. | ||||||
16 | The Board of Education shall,
within 60 days of such | ||||||
17 | notice, address the reporting deficiencies
identified. If | ||||||
18 | the State Superintendent of Education does not receive
| ||||||
19 | satisfactory response to these reporting deficiencies | ||||||
20 | within 60 days, the
next payment of general State aid or | ||||||
21 | evidence-based funding due the Board of Education under | ||||||
22 | Section
18-8 or Section 18-8.15 of this Code , as | ||||||
23 | applicable, and all subsequent payments , shall be withheld | ||||||
24 | by the State
Superintendent of Education until the | ||||||
25 | enumerated deficiencies have
been addressed.
| ||||||
26 | Utilizing the Annual Financial Report, the State |
| |||||||
| |||||||
1 | Superintendent of
Education shall certify on or before May | ||||||
2 | 1 to the Board of Education School Finance Authority
the | ||||||
3 | Board of Education's ratio of administrative expenditures | ||||||
4 | to total
expenditures for the 1988-89 school year and for | ||||||
5 | each succeeding school
year and the Board of Education's | ||||||
6 | general administration expenditures and school | ||||||
7 | administration expenditures for the 2022-2023 school year | ||||||
8 | and for each subsequent school year . Such certification | ||||||
9 | shall indicate the extent to which the
administrative | ||||||
10 | expenditure ratio , general administration expenditures, | ||||||
11 | and school administration expenditures of the Board of | ||||||
12 | Education conformed to the
limitations required in | ||||||
13 | paragraph subsection (C) of this Section, taking into | ||||||
14 | account
any adjustments of the administrative expenditure | ||||||
15 | limitations which may have been recommended by the
State | ||||||
16 | Superintendent of Education to the School Finance | ||||||
17 | Authority . In
deriving the administrative expenditure | ||||||
18 | ratio of the Chicago Board of
Education, the State | ||||||
19 | Superintendent of Education shall utilize the
definition | ||||||
20 | of this ratio prescribed in paragraph subsection (C) of | ||||||
21 | this Section,
except that the actual expenditures of the | ||||||
22 | Board of Education shall be
substituted for budgeted | ||||||
23 | expenditure items. In deriving the general administration | ||||||
24 | expenditures per pupil and school administration | ||||||
25 | expenditures per pupil of the Board of Education, the | ||||||
26 | State Superintendent of Education shall utilize the |
| |||||||
| |||||||
1 | percentage increase under paragraph (C) of this Section, | ||||||
2 | except that the actual expenditures per pupil of the Board | ||||||
3 | of Education shall be substituted for budgeted | ||||||
4 | expenditures per pupil.
| ||||||
5 | (F) Approval and adjustments to administrative | ||||||
6 | expenditure limitations.
The School Finance Authority | ||||||
7 | organized under Article 34A shall monitor the
Board of | ||||||
8 | Education's adherence to the requirements of this Section. | ||||||
9 | As
part of its responsibility the School Finance Authority | ||||||
10 | shall determine
whether the Board of Education's budget | ||||||
11 | for the next school year, and the
expenditures for a prior | ||||||
12 | school year, comply with the limitation of
administrative | ||||||
13 | expenditures , general administration expenditures, and | ||||||
14 | school administration expenditures required by this | ||||||
15 | Section. The Board of
Education and the State Board of | ||||||
16 | Education shall provide such information
as is required by | ||||||
17 | the School Finance Authority in order for the Authority
to | ||||||
18 | determine compliance with the provisions of this Section. | ||||||
19 | If the
Authority determines that the budget proposed by | ||||||
20 | the Board of Education
does not meet the cost control | ||||||
21 | requirements of this Section, the Board of
Education shall | ||||||
22 | undertake budgetary reductions, consistent with the
| ||||||
23 | requirements of this Section, to bring the proposed budget | ||||||
24 | into compliance
with such cost control limitations.
| ||||||
25 | If, in formulating cost control and cost reduction | ||||||
26 | alternatives, the
Board of Education believes that meeting |
| |||||||
| |||||||
1 | the cost control requirements of
this Section related to | ||||||
2 | the budget for the ensuing year would impair the
| ||||||
3 | education, safety, or well-being of the pupils of the | ||||||
4 | school district, the
Board of Education may request that | ||||||
5 | the School Finance Authority make
adjustments to the | ||||||
6 | limitations required by this Section. The Board of
| ||||||
7 | Education shall specify the amount, nature, and reasons | ||||||
8 | for the relief
required and shall also identify cost | ||||||
9 | reductions which can be made in
expenditure functions not | ||||||
10 | enumerated in paragraphs (A) and paragraph (B)(1) of this | ||||||
11 | Section , which would serve
the purposes of this Section.
| ||||||
12 | The School Finance Authority shall consult with the | ||||||
13 | State Superintendent
of Education concerning the | ||||||
14 | reasonableness from an educational
administration | ||||||
15 | perspective of the adjustments sought by the Board of
| ||||||
16 | Education. The School Finance Authority shall provide an | ||||||
17 | opportunity for
the public to comment upon the | ||||||
18 | reasonableness of the Board's request. If,
after such | ||||||
19 | consultation, the School Finance Authority determines that | ||||||
20 | all
or a portion of the adjustments sought by the Board of | ||||||
21 | Education are
reasonably appropriate or necessary, the | ||||||
22 | Authority may grant such relief
from the provisions of | ||||||
23 | this Section which the Authority deems appropriate.
| ||||||
24 | Adjustments so granted apply only to the specific school | ||||||
25 | year for which
the request was made.
| ||||||
26 | In the event that the School Finance Authority |
| |||||||
| |||||||
1 | determines that the Board
of Education has failed to | ||||||
2 | achieve the required administrative , general | ||||||
3 | administration, and school administration expenditure
| ||||||
4 | limitations for a prior school year, or if the Authority | ||||||
5 | determines that
the Board of Education has not met the | ||||||
6 | requirements of this paragraph subsection (F), the
| ||||||
7 | Authority shall make recommendations to the Board of | ||||||
8 | Education concerning
appropriate corrective actions. If | ||||||
9 | the Board of Education fails to
provide adequate assurance | ||||||
10 | to the Authority that appropriate corrective
actions have | ||||||
11 | been or will be taken, the Authority may, within 60 days
| ||||||
12 | thereafter, require the board to adjust its current budget | ||||||
13 | to correct for
the prior year's shortage or may recommend | ||||||
14 | to the members of the General
Assembly and the Governor | ||||||
15 | such sanctions or remedial actions as will serve
to deter | ||||||
16 | any further such failures on the part of the Board of | ||||||
17 | Education.
| ||||||
18 | To assist the Authority in its monitoring | ||||||
19 | responsibilities, the Board of
Education shall provide | ||||||
20 | such reports and information as are from time to
time | ||||||
21 | required by the Authority.
| ||||||
22 | (G) Independent reviews of administrative | ||||||
23 | expenditures. The School
Finance Authority may direct | ||||||
24 | independent reviews of the administrative and
| ||||||
25 | administrative support expenditures and services and other
| ||||||
26 | non-instructional expenditure functions of the Board of |
| |||||||
| |||||||
1 | Education. The
Board of Education shall afford full | ||||||
2 | cooperation to the School Finance
Authority in such review | ||||||
3 | activity. The purpose of such reviews shall be
to verify | ||||||
4 | specific targets for improved operating efficiencies of | ||||||
5 | the Board
of Education, to identify other areas of | ||||||
6 | potential efficiencies, and to
assure full and proper | ||||||
7 | compliance by the Board of Education with all
requirements | ||||||
8 | of this Section.
| ||||||
9 | In the conduct of reviews under this paragraph (G) | ||||||
10 | subsection , the Authority may
request the assistance and | ||||||
11 | consultation of the State Superintendent of
Education with | ||||||
12 | regard to questions of efficiency and effectiveness in
| ||||||
13 | educational administration.
| ||||||
14 | (H) Reports to Governor and General Assembly. On or | ||||||
15 | before May 1, 1991
and no less frequently than yearly | ||||||
16 | thereafter, the School Finance Authority
shall provide to | ||||||
17 | the Governor, the State Board of Education, and the
| ||||||
18 | members of the General Assembly an annual report, as | ||||||
19 | outlined in Section
34A-606, which includes the following | ||||||
20 | information: (1) documenting the
compliance or | ||||||
21 | non-compliance of the Board of Education with the
| ||||||
22 | requirements of this Section; (2) summarizing the costs, | ||||||
23 | findings, and
recommendations of any reviews directed by | ||||||
24 | the School Finance Authority,
and the response to such | ||||||
25 | recommendations made by the Board of Education;
and (3) | ||||||
26 | recommending sanctions or legislation necessary to fulfill |
| |||||||
| |||||||
1 | the
intent of this Section.
| ||||||
2 | (Source: P.A. 100-465, eff. 8-31-17.)
|