HB4789 Summary

• Amends the School Code to modify administrative expenditure limitations for school districts with populations under 500,000, effective from 1998-99 through 2018-2019 school year with a 5% annual increase cap.

• Beginning with 2019-2020 school year, caps increases in administrative expenditures, general administration expenditures, and school administration expenditures per pupil at the lesser of the consumer price index increase or 5% annually.

• Establishes baseline per-pupil expenditure amounts for 2018-2019 using U.S. Census Bureau data on national averages for the 10 largest school districts, adjusted by compounded consumer price index increases for 2016-2018.

• Allows school districts in the 25th percentile and below for their district type to waive limitations through public hearing and two-thirds school board vote, with notice to the State Board of Education within 45 days.

• Applies similar administrative expenditure limitation requirements to the Chicago Board of Education starting 2019-2020 school year, limiting increases in general and school administration expenditures per pupil to the lesser of consumer price index increase or 5%.