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• What are "Administrative Costs?"

  Administrative costs are school district expenditures properly attributable to the expenditure functions specified in Section 17-1.5 of the School Code (105 ILCS 5/17-1.5).   The following functions are included under "administrative expenditures" as prescribed by statute:

  • 2320  Executive Administration Services (example: Superintendent & Assistants)
  • 2330  Special Area Administration Services (example: Supervisor - Federal Programs, Special Programs & Title Programs)
  • 2490  Other Support Services - School Administration (example:  Department Heads and Deans [not principals])
  • 2510  Direction of Business Support Services (example:  Chief School Business Officials and Business Manager)
  • 2570  Internal Services (example:   Distributing supplies, duplicating, etc. for the school system)
  • 2610  Direction of Central Support Services (example:  Director / Manager of Planning, Information Services, Staff Services, etc.)

  These total expenditures should include salaries, employee benefits, purchased services, supplies and materials, capital outlay, and other objects.  Explanations and descriptions may be found within 23 Illinois Administrative Code – Part 100 (Requirements for Accounting, Budgeting, Financial Reporting, and Auditing).

• What type of retirement costs should be deducted?

  The Limitation of Administrative Costs legislation states that state-mandated retirement costs are not included, e.g., payments to the Teachers' Retirement System (TRS) and the Illinois Municipal Retirement System (IMRF).

  What districts are affected by this legislation?

  All school districts except Chicago School District 299 are affected by the legislation. However, school districts with administrative expenditures per pupil in the 25th percentile and below (the fourth quartile) for all districts of the same type (elementary, high school, unit) may waive the limitation. 

• How do districts find out if they rank in the 25th percentile?

  Districts may contact the School Business Services Department of the State Board of Education at 217.785.8779 or access the information on-line at http://www.isbe.net/sfms/AdminCaps/AdminCaps.htm

• How were these rankings calculated?

  The rankings are based on school district's administrative costs per pupil. The administrative costs per pupil are calculated by dividing the administrative costs by the 9 months average daily attendance. The figures are derived from the most recently available Annual Financial Report and General State Aid Claim.

• If a district is in the lowest 25th percentile, how is the cap waived?

  A public hearing must first be conducted. After the hearing, the local school board must approve the waiver by a two-thirds vote. The district must then notify the State Board of Education within 45 days. The law does not provide specific details for how the hearing should be conducted.  We recommend the same process used for budget hearings be applied in this case.

• If a district is in the lowest 25th percentile, should it waive the cap?

  Districts should first determine that the administrative costs will increase more than 5% prior to waiving the cap.  The State Board of Education is required by statute to publish a list of all school districts waiving the cap.

• Why do some districts' level of administrative costs seem high compared to other districts' levels of administrative costs?

  Some districts, in the past, have included costs in the administrative functions which may be more appropriately charged to other functions, e.g., instructional supplies. Also, district enrollment impacts the level of administrative costs per pupil.

• What may ISBE do if a district violates the 5% limit?

  In accordance with Section 17-1.5 of the School Code, the State Superintendent may impose progressive sanctions against districts for non-compliance that may culminate in withholding all subsequent payments of General State Aid due the district. The State Board of Education is required by statute to publish a list of all school districts violating the limitation.

• Are there any options if a district is not in the lowest 25th percentile and its administrative costs increase beyond the control of the district?

  A district may request a waiver pursuant to Section 2-3.25g of the School Code if exceeding the limitation is 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. 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 School Business Services at the ISBE at 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.​​

• ​FY 22 Actual Expenditures / FY 23 Budgeted Expenditures​
  
  • ​FY 22 Actual Expenditures / FY 23 Budgeted Expenditures Violations
  • FY 22 Actual Expenditures / FY 23 Budgeted Expenditures ​Waivers​
    
• ​FY 21 Actual Expenditures / FY 22 Budgeted Expenditures​
  
  • ​FY 21 Actual Expenditures / FY 22 Budgeted Expenditures Violations
  • FY 21 Actual Expenditures / FY 22 Budgeted Expenditures ​Waivers​
    
• ​FY 20 Actual Expenditures / FY 21 Budgeted Expenditures​
  
  • ​FY 20 Actual Expenditures / FY 21 Budgeted Expenditures Violations
  • FY 20 Actual Expenditures / FY 21 Budgeted Expenditures ​Waivers​
    
• ​FY 19 Actual Expenditures / FY 20 Budgeted Expenditures​
  
  • ​FY 19 Actual Expenditures / FY 20 Budgeted Expenditures Violations
  • FY 19 Actual Expenditures / FY 20 Budgeted Expenditures ​Waivers​
    
• ​FY 18 Actual Expenditures / FY 19 Budgeted Expenditures​
  
  • ​FY 18 Actual Expenditures / FY 19 Budgeted Expenditures Violations
  • FY 18 Actual Expenditures / FY 19 Budgeted Expenditures ​Waivers​
    
• ​FY 17 Actual Expenditures / FY 18 Budgeted Expenditures​
  
  • ​FY 17 Actual Expenditures / FY 18 Budgeted Expenditures Violations
  • FY 17 Actual Expenditures / FY 18 Budgeted Expenditures ​Waivers​
    
• ​FY 16 Actual Expenditures / FY 17 Budgeted Expenditures​
  
  • ​FY 16 Actual Expenditures / FY 17 Budgeted Expenditures Violations
  • FY 16 Actual Expenditures / FY 17 Budgeted Expenditures ​Waivers​
    
• ​FY 15 Actual Expenditures / FY 16 Budgeted Expenditures​
  
  • ​FY 15 Actual Expenditures / FY 16 Budgeted Expenditures Violations
  • FY 15 Actual Expenditures / FY 16 Budgeted Expenditures ​Waivers​
    
• FY14 Actual Expenditures / FY15 Budgeted Expenditures
  
  • FY14 Actual Expenditures / FY15 Budgeted Expenditures Violations
  • FY14 Actual Expenditures / FY15 Budgeted ExpendituresWaivers
• FY13 Actual Expenditures / FY14 Budgeted Expenditures
  • FY13 Actual Expenditures / FY14 Budgeted Expenditures Violations
  • FY13 Actual Expenditures / FY14 Budgeted Expenditures Waivers
• FY12 Actual Expenditures / FY13 Budgeted Expenditures
  • FY12 Actual Expenditures / FY13 Budgeted Expenditures Violations
  • FY12 Actual Expenditures / FY13 Budgeted Expenditures Waivers
• FY11 Actual Expenditures / FY12 Budgeted Expenditures
  • FY11 Actual Expenditures / FY12 Budgeted Expenditures Violations
  • FY11 Actual Expenditures / FY12 Budgeted Expenditures Waivers
• FY10 Actual Expenditures / FY11 Budgeted Expenditures
  • FY10 Actual Expenditures / FY11 Budgeted Expenditures Violations
  • FY10 Actual Expenditures / FY11 Budgeted Expenditures Waivers
• FY09 Actual Expenditures / FY10 Budgeted Expenditures
  • FY09 Actual Expenditures / FY10 Budgeted Expenditures Violations
  • FY09 Actual Expenditures / FY10 Budgeted Expenditures Waivers
• FY08 Actual Expenditures / FY09 Budgeted Expenditures
  • FY08 Actual Expenditures / FY09 Budgeted Expenditures Violations
  • FY08 Actual Expenditures / FY09 Budgeted Expenditures Waivers
• FY07 Actual Expenditures / FY08 Budgeted Expenditures
  • FY07 Actual Expenditures / FY08 Budgeted Expenditures Violations
  • FY07 Actual Expenditures / FY08 Budgeted Expenditures Waivers
• FY06 Actual Expenditures / FY07 Budgeted Expenditures
  • FY06 Actual Expenditures / FY07 Budgeted Expenditures Violations
  • FY06 Actual Expenditures / FY07 Budgeted Expenditures Waivers
• FY05 Actual Expenditures / FY06 Budgeted Expenditures
  • FY05 Actual Expenditures / FY06 Budgeted Expenditures Violations
  • FY05 Actual Expenditures / FY06 Budgeted Expenditures Waivers
• FY04 Actual Expenditures / FY05 Budgeted Expenditures
  • FY04 Actual Expenditures / FY05 Budgeted Expenditures Violations
  • FY04 Actual Expenditures / FY05 Budgeted Expenditures Waivers
• FY03 Actual Expenditures / FY04 Budgeted Expenditures
  • FY03 Actual Expenditures / FY04 Budgeted Expenditures Violations
  • FY03 Actual Expenditures / FY04 Budgeted Expenditures Waivers
• FY02 Actual Expenditures / FY03 Budgeted Expenditures
  • FY02 Actual Expenditures / FY03 Budgeted Expenditures Violations
  • FY02 Actual Expenditures / FY03 Budgeted Expenditures Waivers
• FY01 Actual Expenditures / FY02 Budgeted Expenditures
  • FY01 Actual Expenditures / FY02 Budgeted Expenditures Violations
  • FY01 Actual Expenditures / FY02 Budgeted Expenditures Waivers
• FY00 Actual Expenditures / FY01 Budgeted Expenditures
  • FY00 Actual Expenditures / FY01 Budgeted Expenditures Violations
  • FY00 Actual Expenditures / FY01 Budgeted Expenditures Waivers
• FY99 Actual Expenditures / FY00 Budgeted Expenditures
  • FY99 Actual Expenditures / FY00 Budgeted Expenditures Violations
  • FY99 Actual Expenditures / FY00 Budgeted Expenditures Waivers
• FY98 Actual Expenditures / FY99 Budgeted Expenditures
  • FY98 Actual Expenditures / FY99 Budgeted Expenditures ​Violations
  • FY98 Actual Expenditures / FY99 Budgeted Expenditures Waivers​​​​​