Since the early 1970s, financial penalties have been levied in California school districts if their administrator-to-teacher ratio is in excess of a standard set by law. A study was conducted to determine whether the provisions of administrator-teacher maximum ratio are effective for calculating, monitoring, and reporting administrative costs. California's current law was found to be ineffective because (among other factors) it reflects unclear legislative intent and results in unintended consequences. Research shows the cost of implementing statutory provisions of the law to be around $250,000 annually. Research also shows that "input controls" imposed by the law measure only the quantity and not quality of what is controlled and could prove counterproductive. The best methodology for controlling school district administration would be to annually publish three alternative indicators that reflect administrator salaries, total cost of administration, and the number of administrators per 1,000 students. Rankings of alternative measurements of administration and details of recommendations to the California state legislature are included. (EJS)