CORRECTIVE REPRINT
PRIOR PRINTER'S NOS. 648, 1298 PRINTER'S NO. 1322
No. 593 Session of 1977
INTRODUCED BY MESSRS. GALLAGHER, PANCOAST, LINCOLN, BURNS, WISE,
DAVIES, DiCARLO, MILANOVICH, GARZIA, BERLIN AND
W. D. HUTCHINSON, MARCH 14, 1977
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 5, 1977
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," changing and adding definitions and
6 further providing for subsidies.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 SECTION 1. SECTION 917-A, ACT OF MARCH 10, 1949 (P.L.30, <--
10 NO.14), KNOWN AS THE "PUBLIC SCHOOL CODE OF 1949," ADDED MAY 4,
11 1970 (P.L.311, NO.102), IS REPEALED.
12 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
13 SECTION 917-A.1. COMMONWEALTH PAYMENTS.--(A) FOR THE SCHOOL
14 YEAR 1977-1978 AND EACH YEAR THEREAFTER THE COMMONWEALTH SHALL
15 PAY TO INTERMEDIATE UNITS AN AMOUNT EQUAL TO THE PRODUCT OF THE
16 STATEWIDE MEDIAN ACTUAL INSTRUCTION EXPENSE PER WEIGHTED AVERAGE
17 DAILY MEMBERSHIP (WADM) BY THE PRODUCT OF FORTY-FIVE ONE
18 HUNDREDTHS OF ONE PERCENT (0.45%) AND THE AVERAGE DAILY
1 MEMBERSHIP OF ALL SCHOOL DISTRICTS IN THE COMMONWEALTH, AS
2 DETERMINED BY THE SECRETARY OF EDUCATION ACCORDING TO THE LATEST
3 AVAILABLE ACTUAL DATA.
4 (B) FOR THE SCHOOL YEAR 1977-1978 AND EACH SCHOOL YEAR
5 THEREAFTER, EACH INTERMEDIATE UNIT SHALL BE PAID THE AMOUNT IT
6 RECEIVED FROM THE COMMONWEALTH FOR THE 1976-1977 SCHOOL YEAR.
7 (C) IN ADDITION TO THE AMOUNT PAID TO EACH INTERMEDIATE UNIT
8 UNDER SUBSECTION (B), EACH INTERMEDIATE UNIT SHALL BE PAID FOR
9 THE 1977-1978 SCHOOL YEAR AND EACH YEAR THEREAFTER AN AMOUNT
10 DETERMINED BY SUBTRACTING THE TOTAL PAYMENTS UNDER SUBSECTION
11 (B) FROM THE TOTAL ALLOCATION UNDER SUBSECTION (A) DIVIDED BY
12 THE AVERAGE DAILY MEMBERSHIP (ADM) OF ALL SCHOOL DISTRICTS IN
13 THE COMMONWEALTH MULTIPLIED BY THE AVERAGE DAILY MEMBERSHIP
14 (ADM) OF ALL COMPONENT SCHOOL DISTRICTS IN THE INTERMEDIATE
15 UNIT, AS DETERMINED BY THE SECRETARY OF EDUCATION ACCORDING TO
16 THE LATEST ACTUAL DATA AVAILABLE.
17 (D) IN JANUARY OF EACH YEAR, THE SECRETARY OF EDUCATION
18 SHALL DETERMINE FOR EACH INTERMEDIATE UNIT THE AMOUNT TO BE
19 RECEIVED FOR THE SUCCEEDING FISCAL YEAR.
20 SECTION 3. SECTION 919-A OF THE ACT, ADDED MAY 4, 1970
21 (P.L.311, NO.102), IS REPEALED.
22 SECTION 4. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
23 SECTION 919-A.1. CAPITAL SUBSIDY.--ALL LEASES FOR OFFICE
24 SPACE, CLASSROOMS, WAREHOUSE SPACE AND SIMILAR FACILITIES SHALL
25 BE PRE-APPROVED BY THE SECRETARY OF EDUCATION. FOR THE 1977-1978
26 SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, IN ADDITION TO ANY
27 PAYMENTS REQUIRED UNDER SECTION 917-A.1, THE COMMONWEALTH SHALL
28 ALLOCATE TO THE INTERMEDIATE UNITS ON ACCOUNT OF APPROVED LEASES
29 AN AMOUNT TO BE DETERMINED AS FOLLOWS: BY OBTAINING THE PRODUCT
30 OF THE NUMBER OF STUDENTS IN AVERAGE DAILY MEMBERSHIP (ADM)
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1 MULTIPLIED BY THE MEDIAN ACTUAL INSTRUCTION EXPENSE PER WEIGHTED
2 AVERAGE DAILY MEMBERSHIP OF ALL THE SCHOOL DISTRICTS, TO BE
3 FURTHER MULTIPLIED BY THREE ONE-HUNDREDTHS OF ONE PERCENT
4 (0.03%), BASED ON THE LATEST ACTUAL DATA AVAILABLE TO THE
5 SECRETARY OF EDUCATION.
6 THE DISTRIBUTION TO EACH INTERMEDIATE UNIT SHALL BE COMPUTED
7 BY APPLYING THE INTERMEDIATE UNIT AID RATIO TO EACH APPROVED
8 LEASE PAYMENT. THE AID RATIO COMPUTED INITIALLY SHALL APPLY AS A
9 MINIMUM FOR THE DURATION OF THE LEASE: PROVIDED, HOWEVER, THAT
10 NO INTERMEDIATE UNIT SHALL RECEIVE LESS ON ACCOUNT OF APPROVED
11 LEASES THAN IT RECEIVED FOR THE 1976-1977 SCHOOL YEAR.
12 WHERE THE ALLOCATIONS UNDER THIS SECTION DO NOT SATISFY LEASE
13 REIMBURSEMENT REQUIREMENTS, EACH INTERMEDIATE UNIT SHALL RECEIVE
14 A PRO RATA SHARE OF THE AMOUNT DETERMINED BY THE ABOVE FORMULA.
15 Section 1 5. Clauses (9), (12) and (15) of section 2501 OF <--
16 THE act, of March 10, 1949 (P.L.30, No.14), known as the "Public <--
17 School Code of 1949," clause (9) amended June 12, 1968 (P.L.192,
18 No.96), clauses (12) and (15) amended June 26, 1974 (P.L.370,
19 No.125), are amended and the section is amended by adding
20 clauses to read:
21 Section 2501. Definitions.--For the purposes of this article
22 the following terms shall have the following meanings:
23 * * *
24 (9) ["Valuation."] "Real Property Valuation." A school
25 district's or vocational school district's real property
26 valuation, to be used for purposes of computing the basic
27 account standard reimbursement fraction, the subsidiary account
28 reimbursement fraction, and the aid ratio shall be the valuation
29 placed upon its taxable real property by the State Tax
30 Equalization Board.
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1 (9.1) "Personal Income Valuation." A school district's
2 personal income valuation for purposes of reimbursement to a
3 school district under subsections (d), (e), and (f) of section
4 2502, and section 2592 shall be the valuation of the total
5 personal income determined under Article III of the act of March
6 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
7 for each school district each year by the Secretary of Revenue
8 and certified to the Secretary of Education.
9 (9.2) "Equalized Millage." A school district's tax effort
10 to be used for purposes of determining the base earned for
11 reimbursement and used for reimbursement under subsections (d)
12 and (e) of section 2502, shall be the amount of local school
13 taxes collected during the year for which reimbursement is being
14 computed, divided by the most recent real property valuation of
15 the school district.
16 (9.3) "Median Equalized Millage." For the school year 1976-
17 1977 and each year thereafter, the Secretary of Education shall
18 annually calculate the equalized millage for which an equal
19 number of districts are above and below for that year.
20 * * *
21 (12) "State's Share of Total Cost." For the school year
22 1966-1967 and each school year thereafter, the State's share of
23 total reimbursable cost shall be fifty percent (50%). Total
24 reimbursable cost shall be the lesser of actual expense per WADM
25 as defined in clause (11.1) or a maximum amount to be fixed by
26 the General Assembly [from time to time] each year to represent
27 the estimated [average actual] median actual instruction expense
28 per WADM in the year for which the reimbursement is to be
29 payable. For the school year commencing the first day of July
30 [1973] 1976 and each school year thereafter the maximum amount
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1 shall be [seven hundred fifty dollars ($750)] the median actual
2 instruction expense per WADM in the year for which the
3 reimbursement is to be payable. The Secretary of Education
4 annually shall calculate the State [average "actual] "median
5 actual instruction expense per weighted average daily
6 membership" and shall supply the same to the General Assembly
7 [to assist the General Assembly in evaluating the adequacy of
8 such maximum amount].
9 (12.1) "Median Actual Instruction Expense Per Weighted
10 Average Daily Membership." For the school year 1976-1977 and
11 each school year thereafter, the Secretary of Education shall
12 annually calculate the actual instruction expense per weighted
13 average daily membership for which an equal number of districts
14 are above and below for that year.
15 * * *
16 (14.1) "Market Value/Income Aid Ratio." For purposes of
17 reimbursement to a school district under subsections (d), (e),
18 and (f) of section 2502, and section 2592, shall be the
19 Commonwealth's method of determining the combined market value
20 and income wealth for each pupil, and shall be computed as
21 follows:
22 (a)(i) Divide the market value per weighted average daily
23 membership of the district by the market value per weighted
24 average daily membership of the State;
25 (ii) Determine the product of (a)(i) multiplied by the
26 district's share of total costs which is .5;
27 (iii) Subtract the resultant product in (a)(ii) from 1.000
28 to determine the market value portion of the aid ratio. as <--
29 follows:
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1 (District Market Value/WADM
2 Market Value Aid Ratio = 1 - _________________________ x.5)
3 (State Market Value/WADM
4 (b)(i) Divide the income per weighted average daily
5 membership of the district by the average personal income per
6 weighted average daily membership of the State;
7 (ii) Determine the product of (b)(i) multiplied by the
8 district's share of total costs which is .5;
9 (iii) Subtract the resultant product in (b)(ii) from 1.0000
10 to determine the income aid ratio. as follows: <--
11 (District Income/WADM <--
12 Income Aid Ratio = 1 - _____________________ x.5)
13 (State Income/WADM
14 (c) Add SIXTY PERCENT (60%) OF the market value aid ratio to <--
15 FORTY PERCENT (40%) OF the income aid ratio and divide the sum <--
16 by 2 to determine the market value/income aid ratio. as follows: <--
17 Market Value Aid Ratio + Income <--
18 Market Value/Income Aid Ratio
19 Aid Radio = _______________________________
20 2
21 (15) "Minimum Subsidy." [In] For the school year 1976-1977
22 and each school year thereafter, in no case shall a district
23 receive for each pupil in weighted average daily membership
24 [through the school year 1969-1970], an amount less than ten
25 percent (10%) of the actual cost of instruction or [fifty-five
26 dollars ($55)] ten percent (10%) of the base earned for
27 reimbursement whichever is the lesser amount. [For the school
28 year 1973-1974 and each school year thereafter, in no case shall
29 a district receive for each pupil in weighted average daily
30 membership an amount less than ten percent (10%) of the actual
19770H0593B1322 - 6 -
1 cost of instruction, or seventy-five dollars ($75) whichever is
2 the lesser amount.] For 1976-1977 and each school year
3 thereafter, a district whose actual instruction expense per
4 weighted average daily membership is more than two hundred
5 dollars ($200) less than the median actual instruction expense
6 per weighted average daily membership, and whose equalized
7 millage is within fifteen percent (15%) of the median equalized
8 millage, the reimbursement shall be two hundred dollars ($200)
9 below the median actual instruction expense per weighted average
10 daily membership times the district's aid ratio for each
11 weighted average daily membership.
12 * * *
13 (17.1) "Base Earned for Reimbursement." Shall be the lesser
14 of (a) the actual instruction expense per weighted average daily
15 membership of the district, or (b) the amount earned as follows:
16 (i) Where the equalized millage is thirty percent (30%) or
17 more above the median equalized millage, rounded to a whole
18 mill, the amount shall be the median actual instruction expense
19 per weighted average daily membership rounded to the nearest ten
20 dollars ($10) amount.
21 (ii) Where the equalized millage is fifteen percent (15%) or
22 more and less than thirty percent (30%) above above the median
23 equalized millage, rounded to a whole mill, the amount shall be
24 fifty dollars ($50) less than the median actual instruction
25 expense per weighted average daily membership.
26 (iii) Where the equalized millage is less than fifteen
27 percent (15%) above or below the median equalized millage,
28 rounded to a whole mill, the amount shall be one hundred dollars
29 ($100) less than the median actual instruction expense per
30 weighted average daily membership.
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1 (iv) Where the equalized millage is fifteen percent (15%) to
2 thirty percent (30%) below the median equalized millage, rounded
3 to a whole mill, the amount shall be one hundred fifty dollars
4 ($150) less than the median actual instruction expense per
5 weighted average daily membership.
6 (v) Where the equalized millage is more than thirty percent
7 (30%) below the median equalized millage, the amount shall be
8 two hundred dollars ($200) less than the median actual
9 instruction expense per weighted average daily membership.
10 Section 2 6. Subsections (d) (f) and (g) of section 2502 of <--
11 the act, subsection (d) amended June 26, 1974 (P.L.370, No.125),
12 and subsections (f) and (g) amended August 18, 1971 (P.L.339,
13 No.88), are amended to read:
14 Section 2502. Payments on Account of Instruction.--
15 * * *
16 (d) For the school year [commencing the first day of July
17 within the year of the effective date of this amendment] 1976-
18 1977 and each school year thereafter, each school district shall
19 be paid by the Commonwealth on account of instruction of the
20 district's pupils an amount to be determined by multiplying the
21 market value/income aid ratio times the actual instruction
22 expense per weighted average daily membership or by [five
23 hundred fifty dollars ($550),] the base earned for
24 reimbursement, whichever is less, and by the weighted average
25 daily membership for the district. [For the school year 1973-
26 1974 and each school year thereafter each school district shall
27 be paid by the Commonwealth on account of instruction of the
28 district's pupils an amount to be determined by multiplying the
29 aid ratio times the actual instruction expense per weighted
30 average daily membership or by seven hundred fifty dollars
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1 ($750), whichever is less.] For the school year 1976-1977 any
2 school district which, as a result of the impact on payments
3 under subsections (d), (e) and (f) and under section 2592 by
4 reason of the market value/income aid ratio or the application
5 of equalized millage to the base earned for reimbursement, shall
6 suffer a reduction in subsidy entitlement, shall be held
7 harmless from this impact and shall receive an amount which is
8 no less than that received for 1976-1977 under such subsections
9 and under section 2592.
10 * * *
11 (f) For the school year commencing the first day of July
12 within the year of the effective date of this amendment, and
13 each school year thereafter, each school district so entitled
14 shall be paid, in addition to any other subsidy to which it is
15 entitled, an amount for density or sparsity of population.
16 Except as provided in clause (17) of section 2501 and as
17 provided below, this amount shall be paid on account of
18 expenditures in excess of four hundred dollars ($400) per
19 weighted average daily membership, not to exceed for the school
20 year 1966-1967 one hundred dollars ($100), for the school year
21 1967-1968 one hundred fifty dollars ($150), for the school year
22 1968-1969 two hundred dollars ($200), for the school year 1969-
23 1970 and each school year thereafter two hundred fifty dollars
24 ($250), an amount to be determined by multiplying the excess
25 expenditures by the market value/income aid ratio or by three
26 hundred seventy-five thousandths (.375) whichever is greater,
27 and by the number of weighted average daily membership, such
28 amount to be in addition to any other payment for such pupils:
29 Provided, however, a school district entitled to additional
30 payment for density or sparsity of population may, in lieu of
19770H0593B1322 - 9 -
1 the above payment, elect for any school year to be paid and the
2 Commonwealth shall pay such additional entitlement on account of
3 excess expenditures per weighted average daily membership in
4 excess of four hundred dollars ($400) a sum of thirty dollars
5 ($30) per weighted average daily membership, such amount to be
6 in addition to any other payments for such pupils.
7 The payment for the density factor for those qualifying
8 school districts with a WADM in excess of fifty thousand
9 (50,000) shall be the actual cost of instruction per WADM
10 multiplied by fifteen percent (15%) through the 1969-1970 school
11 year THROUGH THE 1975-1976 SCHOOL YEAR OR BY TWENTY-THREE <--
12 PERCENT (23%) FOR THE 1976-1977 SCHOOL YEAR or by nineteen
13 percent (19%) for the 1970-1971 school year THROUGH THE 1975- <--
14 1976 SCHOOL YEAR OR BY TWENTY-THREE PERCENT (23%) FOR THE 1976-
15 1977 SCHOOL YEAR and thereafter and by the WADM of the district.
16 (g) It is hereby stated to be the objective of the
17 Commonwealth to provide to each child educated in the schools of
18 Pennsylvania, a minimum [education of five hundred fifty dollars
19 ($550) per pupil in weighted average daily membership.
20 To this end, and except as hereinafter provided, for the
21 1970-1971 school year, each district whose actual cost of
22 instruction per weighted average daily membership is less than
23 five hundred fifty dollars ($550), shall receive an additional
24 payment (provided such amount is positive) by subtracting from
25 the product of five hundred fifty dollars ($550) times the WADM,
26 the sum of the payment provided in section 2502(d) plus the
27 payment for density or sparsity under subsection (f) of section
28 2502, plus the payment for poverty under section 2502.3 and the
29 product of the most recent market value of the district as
30 released by the State Tax Equalization Board multiplied by
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1 sixteen and twenty-four one-hundredths mills (.01624)]
2 educational imput that is within two hundred dollars ($200) of
3 the median actual instruction expense per WADM, for the school
4 year 1976-1977 and each school year thereafter.
5 Section 3 7. This act shall take effect immediately. <--
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