Limitation of Administrative Costs
School District's budgeted administrative expenditures can
not increase more than 5% over their prior year actual administrative
expenditures, per Section 17-1.5 (Limitation of Administration
Costs) of the School Code. The following functions are included
under administrative expenditures:
2320 Executive Administration
Services
2330 Special Area Administration
Services
2490 Other Support Services
- School Administration
2510 Direction of Business
Support Services
2570 Internal Services
2610 Direction of Central
Support Services
"Administrative expenditures" do
not include early retirement or other pension system obligations
required by law.
The Limitation of Administrative Costs Worksheet must be
filed with the State Board of Education by November 15 of
each fiscal year and report the Actual Administrative Expenditures
for the previous fiscal year and the budgeted or proposed
Administrative Expenditures for the current fiscal year.
School districts with administrative expenditures per pupil
in the 25th percentile and below (the fourth quartile) for
all districts of the same type (elementary, secondary [high
school], or unit) may waive the limitation imposed under Section
17-1.5 for any year following a public hearing. Waiver of
this limitation requires the affirmative vote of at least
two-thirds of the members of the school board for each applicable
year. Any district waiving the limitation shall notify the
State Board within 45 days of such action. Adoption of the
waiver limitation does not relieve a district of the requirement
to file the one-page report discussed above by November 15
of the fiscal year.
If a school district that is ineligible to waive the limitation
on administrative expenditures by board action exceeds the
limitation imposed by Section 17-1.5 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
of the School Code. If approved, this waiver shall only apply
to the specific school year for which the request is made.
For more information on the waiver process, districts may
contact the Rules and Waivers
Division at ISBE at 217.782.5270 or view the detailed information
at the above link.
If the report and information required by Section 17-1.5
are not submitted on time or are determined to be incomplete
or inaccurate, the district shall be notified in writing of
the reporting deficiencies. The school district shall, within
60 calendar days of the notice, address the deficiencies identified.
If the district fails to provide adequate assurance or to
undertake the necessary corrective actions, the State Superintendent
may impose progressive sanctions against the district, which
may culminate in withholding all subsequent payments of General
State Aid until the assurance is provided or the corrective
actions are taken.
History and Code References
Limitation of Administrative Costs Worksheet
(Updated 11/07)
Sample Resolution 
(Updated 8/07)
Administrative Costs/Pupil rankings of school districts (based
on FY 06 data) (Updated 8/07)
Ranking Ranges for Quartiles
(Updated 8/07)
Frequently Asked Questions (FAQs)
If you have any questions, please contact Michelle
Heninger, 217.785.8779.
In accordance with Section 17-1.5 of the School Code (Limitation
of Administrative Costs) the State Board of Education must
publish each year a list of the school districts that violate
the limitation and a list of the school districts that waive
the limitation by board action.
House Bill 452, Public Act 90-548, added
Section 17-1.5 to the School Code effective January 1, 1998.
Section 17-1.5 was amended by House Bill 1640, Public Act 90-0653,
effective July 1998. This legislation establishes limitations
on the growth of administrative expenditures in all school districts
having a population of less than 500,000. The City of Chicago
School District 299 is the only district exempted from the provisions
of this Section. School District 299, however, has been
subject to a limitation on its administrative expenditures since
the 1989-90 school year under the provisions of Section 34-43.1
of the School Code. |
