• Prohibits school districts from spending more than five percent of funds from all sources for costs of general administration, instructional resources supervision, and supervision of instruction, beginning fiscal year 1999-2000
• Requires State Board of Education to fine districts failing to comply
• Requires districts to publish percentage of funds expended on administrative costs annually, report expenditure information to State Board of Education, and undertake performance audits and fiscal efficiency reviews every five years.
• Requires districts to develop systems which indicate the intended contribution of each projected expenditure to the achievement of specific performance objectives.