Findings of a review of school district administrative spending conducted by the Mississippi Legislature's Performance Evaluation and Expenditure Review (PEER) Committee are presented in this report. Findings indicate that Mississippi school districts paid $94 million in salaries to central office administrators and principals in fiscal year 1992. Some districts spent relatively high amounts per pupil on central office administrators' and principals' salaries. Spending per pupil varied almost 700% between the highest- and lowest-spending districts. However, when students' socioeconomic backgrounds are taken into account, students in districts with high administrative costs did not perform significantly better on standardized tests than those in districts spending less per student. Districts could save more than $8 million in administrative salaries through a proposed cap on administrative salary spending (i.e., $200-225 per pupil). Slightly more could be saved by combining the cap with countywide consolidation of districts. Savings could then be redirected to improve classroom instruction. Seven specific recommendations are offered. The report includes 16 exhibits and appendices that list administrative job titles and the total salary expense for the specified employees in each district, the per-pupil spending for these employees in each district, and the number of employees in these positions per 1,000 students. (LMI)