HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1085, 1898, 2144,        PRINTER'S NO. 2330
        2211

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 947 Session of 1983


        INTRODUCED BY ITKIN, FISCHER, GALLAGHER, PRESTON, IRVIS, COWELL,
           PISTELLA, PETRONE, SEVENTY, DAWIDA AND O'DONNELL, MAY 3, 1983

        AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
           DECEMBER 13, 1983

                                     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," further providing for the duties of
     6     the school director district reapportionment commission and
     7     clarification of the number of school director districts
     8     within a first class A school district; further providing for
     9     exceptional children; providing for the transfer of certain
    10     funds; deleting the time limitation on the conveyance of
    11     property to historical societies; FURTHER PROVIDING FOR        <--
    12     REVISED COMPUTATIONS OF CERTAIN PAYMENTS; and conforming
    13     provisions on school subsidies to existing law.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Section 302.1(c)(4), (5), (6) and (8) of the act
    17  of March 10, 1949 (P.L.30, No.14), known as the Public School
    18  Code of 1949, added December 19, 1975 (P.L.511, No.150), are
    19  amended to read:
    20     Section 302.1.  School Board in First Class A School
    21  Districts; Apportionment of Seats, and Numbers, Terms, and


     1  Methods for Election of School Directors in First Class A School
     2  Districts.--* * *
     3     (c)  Apportionment.--
     4     * * *
     5     (4)  [Each] No later than September in the second year
     6  following the year in which [such] Federal census data is
     7  officially [reported] gathered, a school director district
     8  reapportionment commission shall be [constituted in like manner
     9  and with like composition as the initial school director
    10  district apportionment commission herein set forth.] appointed.
    11  Said reapportionment commission shall consist of seven members,
    12  three to be appointed by the mayor of the most populous
    13  municipality in the school district, three by the city council
    14  of such municipality and one by the mayor of any other
    15  municipality of the school district with the approval of the
    16  legislative body thereof. The duties of the reapportionment
    17  commission shall be from the official data of the United States
    18  Bureau of the Census, to define the lines that divide the
    19  existing school director districts to make any new school
    20  director districts as nearly equal in population as practicable,
    21  and as compact and contiguous as possible, and to best provide
    22  for racial balance on the board of school directors of said
    23  school district. The number of school directors or school
    24  director districts shall not be increased or decreased. In
    25  addition, the reapportionment commission shall make every effort
    26  to maintain neighborhood boundary lines of communities of like
    27  interest whenever practicable. Such reapportionment commission
    28  shall file its plan no later than [forty-five] ninety days after
    29  either the commission has been [duly certified] appointed or the
    30  specified population data for the first class A school district
    19830H0947B2330                  - 2 -

     1  as determined by the Federal decennial census are available,
     2  whichever is later in time.
     3     (5)  The school district shall appropriate sufficient funds
     4  for the compensation and expenses of members and staff appointed
     5  by such apportionment and reapportionment commissions, and other
     6  necessary expenses. The members of such commissions shall be
     7  entitled to such compensation for their services as the school
     8  district from time to time shall determine[, but no part thereof
     9  shall be paid until a plan is filed].
    10     (6)  If an apportionment or reapportionment plan is not filed
    11  by the commission within the time prescribed by this section,
    12  the court of common pleas of the county in which the district is
    13  located shall immediately proceed on its own motion to apportion
    14  or reapportion the school director districts, in accordance with
    15  the standards set forth in subsection (c)(4).
    16     * * *
    17     (8)  The county board of elections shall place upon the
    18  ballot to be submitted to the voters of each first class A
    19  school district under the act of June 3, 1937 (P.L.1333,
    20  No.320), known as the "Pennsylvania Election Code," the
    21  following question:
    22     Shall the apportionment plan submitted by
    23     the school director district apportionment      Yes
    24     commission for the election of members of
    25     the Board of Public Education of the school     No
    26     district of....................be approved?
    27  Since the voters have accepted the apportionment plan, the
    28  number of school director districts contained in the
    29  apportionment plan shall be the permanent number of school
    30  director districts in said school district, and said permanent
    19830H0947B2330                  - 3 -

     1  number of school director districts shall neither be increased
     2  nor decreased by any future reapportionment commission nor by
     3  the court of common pleas of the county in which the school
     4  district is located. The ballot question shall not be considered
     5  in the case of a reapportionment plan submitted by a
     6  reapportionment commission or the court of common pleas.
     7  [In the event the voters shall reject the apportionment plan,
     8  the nomination of school directors under this section shall be
     9  void and the present board shall continue, but a second
    10  referendum, upon the petition of fifteen per cent of the
    11  registered voters of the school district, may be held after two
    12  years from the date of the first election.]
    13     * * *
    14     Section 2.  Section 707(10) of the act, amended October 25,
    15  1967 (P.L.486, No.232), is amended to read:
    16     Section 707.  Sale of Unused and Unnecessary Lands and
    17  Buildings.--The board of school directors of any district is
    18  hereby vested with the necessary power and authority to sell
    19  unused and unnecessary lands and buildings, by any of the
    20  following methods and subject to the following provisions:
    21     * * *
    22     (10)  Notwithstanding the foregoing provisions of this
    23  section, any school district may[, at any time prior to July 1,
    24  1969,] convey any unused and unnecessary lands and buildings
    25  which are of historical significance and importance to any
    26  legally constituted historical society for historical purposes
    27  without consideration or for such consideration and on such
    28  terms or exchange or otherwise as may be agreed upon without
    29  complying with the other provisions of this section.
    30     Section 3.  Section 1376 of the act, amended May 31, 1979
    19830H0947B2330                  - 4 -

     1  (P.L.33, No.11), is amended to read:
     2     Section 1376.  Cost of Tuition and Maintenance of Certain
     3  Exceptional Children in Approved Institutions.--(a)  When any
     4  child between the ages of six (6) and twenty-one (21) years of
     5  age and resident in this Commonwealth, who is blind or deaf, or
     6  afflicted with cerebral palsy and/or brain damage and/or
     7  muscular dystrophy and/or mentally retarded and/or socially and
     8  emotionally disturbed, is enrolled, with the approval of the
     9  Department of Education, as a pupil in [any of the schools or
    10  institutions] an approved school for the blind or deaf, or
    11  cerebral palsied and/or brain damaged and/or muscular
    12  dystrophied and/or mentally retarded, and/or socially and
    13  emotionally disturbed, [under the supervision of, subject to the
    14  review of or] approved by the Department of Education, in
    15  accordance with standards and regulations promulgated by the
    16  Council of Basic Education, the school district in which such
    17  child is resident shall pay twenty per centum (20%) of the
    18  actual audited cost of tuition and maintenance of such child in
    19  such school [or institution], as determined by the Department of
    20  Education; and the Commonwealth shall pay, out of funds
    21  appropriated to the department for special education, eighty per
    22  centum (80%) of the cost of their tuition and maintenance, as
    23  determined by the Department. If the residence of such child in
    24  a particular school district cannot be determined, the
    25  Commonwealth shall pay, out of moneys appropriated to the
    26  department for special education, the whole cost of tuition and
    27  maintenance of such child. [In no event shall the total cost of
    28  tuition and maintenance for blind, deaf, cerebral palsied and/or
    29  brain damaged and/or muscular dystrophied and/or socially and
    30  emotionally disturbed and/or mentally retarded residential
    19830H0947B2330                  - 5 -

     1  students exceed nine thousand five hundred dollars ($9,500) for
     2  the school year 1979-1980 and ten thousand five hundred dollars
     3  ($10,500) for the school year 1980-1981 and each year thereafter
     4  for tuition of blind, deaf, cerebral palsied and/or muscular
     5  dystrophied day students exceed five thousand six hundred
     6  dollars ($5,600) for the school year 1979-1980 and six thousand
     7  one hundred dollars ($6,100) for the school year 1980-1981 and
     8  each year thereafter and for tuition of brain damaged and/or
     9  socially and emotionally disturbed and/or mentally retarded day
    10  students exceed four thousand six hundred dollars ($4,600) for
    11  the school year 1979-1980 and five thousand one hundred dollars
    12  ($5,100) for the school year 1980-1981 and each year
    13  thereafter.] The Department of Education shall be provided with
    14  such financial data from [private] approved schools as may be
    15  necessary to determine the reasonableness of [charges] costs for
    16  tuition and room and board [of the institution made on]
    17  concerning Pennsylvania resident approved reimbursed students.
    18  The Department of Education shall evaluate such data and shall
    19  disallow any [charge] cost deemed unreasonable. Any [charges]
    20  costs deemed unreasonable by the Department of Education for
    21  disallowance shall be considered an adjudication within the
    22  meaning of Title 2 of the Pa.C.S. (relating to administrative
    23  law and procedure) and regulations promulgated thereunder.
    24     (b)  When any person less than six (6) or more than twenty-
    25  one (21) years of age and resident in this Commonwealth, who is
    26  blind or deaf, or afflicted with cerebral palsy and/or brain
    27  damage and/or muscular dystrophy, is enrolled, with the approval
    28  of the Department of Education, as a pupil in [any of the
    29  schools or institutions] an approved school for the blind or
    30  deaf, or cerebral palsied and/or brain damaged and/or muscular
    19830H0947B2330                  - 6 -

     1  dystrophied, [under the supervision of or] approved by the
     2  Department of Education, the Commonwealth shall pay to such
     3  school [or institution], out of moneys appropriated to the
     4  department for special education, the actual audited cost of
     5  tuition and maintenance of such person, as determined by the
     6  Department of Education, subject to review and approval in
     7  accordance with standards and regulations promulgated by the
     8  Council of Basic Education, and in addition, in the case of any
     9  child less than six (6) years of age, who is blind, the cost, as
    10  determined by the Department of Education of instructing the
    11  parent of such blind child in caring for such child. [In no
    12  event shall the total cost of tuition and maintenance for
    13  residential students exceed nine thousand five hundred dollars
    14  ($9,500) for the school year 1979-1980 and ten thousand five
    15  hundred dollars ($10,500) for the school year 1980-1981 and each
    16  year thereafter for tuition of deaf or blind and/or cerebral
    17  palsied and/or muscular dystrophied day students, exceed five
    18  thousand six hundred dollars ($5,600) for the school year 1979-
    19  1980 and six thousand one hundred dollars ($6,100) for the
    20  school year 1980-1981 and each year thereafter and for tuition
    21  of brain damaged day students four thousand six hundred dollars
    22  ($4,600) for the school year 1979-1980 and five thousand one
    23  hundred dollars ($5,100) for the school year 1980-1981 and each
    24  year thereafter.
    25     (c)  When any child between the ages of six (6) and twenty-
    26  one (21) years of age, resident in this Commonwealth, who is
    27  socially and emotionally disturbed, is enrolled with the
    28  approval of the Department of Education as a pupil in any
    29  approved day school under supervision of or approved by the
    30  Department of Education, the school district in which such child
    19830H0947B2330                  - 7 -

     1  is resident shall pay twenty percent (20%) of the cost of
     2  tuition of such child in such school as determined by the
     3  Department of Education, and the Commonwealth shall pay out of
     4  funds appropriated to the Department for Special Education
     5  eighty percent (80%) of the cost of tuition of such child as
     6  determined by the department: Provided, however, That in no
     7  event shall the cost of tuition of such child exceed four
     8  thousand six hundred dollars ($4,600) for the school year 1979-
     9  1980 and five thousand one hundred dollars ($5,100) for the
    10  school year 1980-1981 and each year thereafter.]
    11     (c)  Each approved school prior to the start of the school
    12  year shall submit to the department such information as the
    13  department may require in order to establish an estimate of
    14  reimbursable costs. Based upon this information, any other data
    15  deemed necessary by the department and in accordance with
    16  department standards, the department shall develop for each
    17  approved school an estimate of reimbursable costs. Based upon
    18  such estimate, the department shall provide each approved school
    19  with quarterly payments in advance of department audit. The
    20  department may withhold a portion of such payments not exceeding
    21  five percent (5%) of such payment, pending final audit. In no
    22  event shall either the advance payments or final reimbursement
    23  made by the department following audit exceed the appropriation
    24  available for approved schools.
    25     (d)  No private institution receiving payment in accordance
    26  with this section shall impose any charge on the student and/or
    27  parents who are Pennsylvania approved reimbursable residents for
    28  a program of individualized instruction and maintenance
    29  appropriate to the child's needs; except that charges for
    30  [programs] services not part of [the normal school year] such
    19830H0947B2330                  - 8 -

     1  program may be made if agreed to by the parents.
     2     [(e)  Where the private institution provides a vocational
     3  education program to the students enrolled therein as an
     4  established and integral part of its on-going approved program
     5  and where the department deems such program to be necessary
     6  because of the unavailability of an appropriate program for such
     7  students, the maximum rate payable shall be increased by the
     8  audited cost of the program per approved Pennsylvania resident
     9  enrolled in the program.
    10     (f)  Where the private institution provides special education
    11  programs for multihandicapped students which is adjudged
    12  necessary by the Department of Education, the maximum rate
    13  payable shall be increased by seventy-five percent (75%) for the
    14  second severe handicap, eighty-five percent (85%) for the third
    15  severe handicap and one hundred percent (100%) for more than
    16  three severe handicaps.]
    17     Section 4.  The act is amended by adding a section to read:
    18     Section 1377.1.  Transfer of Funds for Transferal Programs.--
    19  When, during the course of a school year or after the end of a
    20  school year, programs for exceptional children are caused to be
    21  transferred from schools or institutions for the blind or deaf,
    22  or cerebral palsied or brain damaged or muscular dystrophied or
    23  mentally retarded, or socially and emotionally disturbed, as
    24  provided for in sections 1376 and 1376.1, to school districts or
    25  intermediate units, as provided for in sections 2509 and 2509.1,
    26  and when such transfers necessitate the transfer of funds from
    27  the appropriation to the Department of Education for special
    28  education for approved private schools to the appropriation to
    29  the Department of Education for payments on account of special
    30  education of exceptional children in public schools, the
    19830H0947B2330                  - 9 -

     1  Secretary of Education shall be empowered to transfer such
     2  funds, upon approval of the Secretary of the Budget and written
     3  notification to the State Treasurer, and the chairmen of the
     4  House and Senate Appropriations and Education Committees.
     5     Section 5.  Section 2501(9.2), (14), (15) and (17.1) of the
     6  act, (9.2) added August 24, 1977 (P.L.199, No.59), (14) added
     7  February 1, 1966 (1965 P.L.1642, No.580), (15) amended June 30,
     8  1980 (P.L.279, No.80) and (17.1) amended July 13, 1979 (P.L.94,
     9  No.41), are amended and clauses are added to read:
    10     Section 2501.  Definitions.--For the purposes of this article
    11  the following terms shall have the following meanings:
    12     * * *
    13     (9.2)  "Equalized Millage." A school district's tax effort to
    14  be used for [purposes of determining the base earned for
    15  reimbursement and used for] reimbursement under subsections (d)
    16  and (e) of section 2502 and section 2502.11, shall be the amount
    17  of local school taxes collected during the year for which
    18  reimbursement is being computed, divided by the most recent real
    19  property valuation of the school district.
    20     * * *
    21     (14)  "Aid Ratio." [shall represent the Commonwealth's share
    22  of reimbursable cost as defined in clause (12).] The aid ratio
    23  shall be determined in the following manner: (a) divide the
    24  market value per weighted average daily membership of the
    25  district by the market value per weighted average daily
    26  membership of the State; (b) determine the product of (a)
    27  multiplied by [district's share of total cost] 0.50; (c)
    28  subtract the resultant product in (b) from one (1.0000) to
    29  determine the aid ratio.
    30                         District MV/WADM
    19830H0947B2330                 - 10 -

     1  Aid Ratio = 1.0000 -   ---------------              X 0.50
     2                         State MV/WADM
     3     * * *
     4     (15)  "Minimum Subsidy." For the school years 1976-1977 and
     5  1977-1978, in no case shall a district receive for each pupil in
     6  weighted average daily membership, an amount less than ten
     7  percent (10%) of the actual cost of instruction or ten percent
     8  (10%) of the base earned for reimbursement whichever is the
     9  lesser amount. For the 1978-1979 school year [and each school
    10  year thereafter] through the 1980-1981 school year, no school
    11  district shall receive for each pupil in weighted average daily
    12  membership an amount less than fifteen percent (15%) of the base
    13  earned for reimbursement or actual instructional expense per
    14  WADM, whichever is the lesser amount. For [1976-1977 each school
    15  year thereafter] the 1976-1977 school year through the 1980-1981
    16  school year, a district whose actual instruction expense per
    17  weighted average daily membership is more than two hundred
    18  dollars ($200) less than the median actual instruction expense
    19  per weighted average daily membership, and whose equalized
    20  millage is within fifteen percent (15%) of the median equalized
    21  millage, the reimbursement shall be two hundred dollars ($200)
    22  below the median actual instruction expense per weighted average
    23  daily membership times the district's aid ratio for each
    24  weighted average daily membership. For the 1982-1983 school year
    25  and each school year thereafter, no school district shall
    26  receive for each pupil in weighted average daily membership an
    27  amount less than fifteen percent (15%) of the factor for
    28  educational expense.
    29     * * *
    30     (17.1)  "Base Earned for Reimbursement."  [Shall] For the
    19830H0947B2330                 - 11 -

     1  school year 1982-1983 and every school year thereafter, for
     2  purposes of calculations under section 2502.8 of the act, base
     3  earned for reimbursement shall be the lesser of [(a)] the actual
     4  instruction expense per weighted average daily membership of the
     5  district, or [(b)] the amount earned as follows:
     6     (i)  Subtract the individual school district's equalized
     7  millage from the highest equalized millage in the State.
     8     (ii)  Divide the amount determined in subclause (i) by the
     9  difference between the highest and lowest equalized millage in
    10  the State.
    11     (iii)  Multiply the quotient determined in subclause (ii) by
    12  two hundred dollars ($200) and round to the nearest whole dollar
    13  amount.
    14     (iv)  Subtract the amount determined in subclause (iii) from
    15  the median actual instruction expense per weighted average daily
    16  membership in the year for which reimbursement is being
    17  computed.
    18     (18)  "Equalized Subsidy for Basic Education." For the school
    19  year 1982-1983 and each school year thereafter, each school
    20  district shall be paid by the Commonwealth an equalized subsidy
    21  for basic education, which shall consist of payments on account
    22  of instruction, as provided for in subsections (d) and (e) of
    23  section 2502, and an economic supplement, as provided for in
    24  section 2502.11.
    25     (19)  "Factor for Educational Expense." For the school year
    26  1982-1983 and each school year thereafter, the factor for
    27  educational expense used to compute school district entitlements
    28  to payments on account of instruction, as provided for in
    29  subsection (d) of section 2502, shall be one thousand six
    30  hundred fifty-six dollars ($1,656) unless later changed by
    19830H0947B2330                 - 12 -

     1  statute.
     2     Section 6.  Section 2502(d) of the act, amended August 24,
     3  1977 (P.L.199, No.59), is amended to read:
     4     Section 2502.  Payments on Account of Instruction.--* * *
     5     (d)  For the school year 1976 and 1977 [and each school year
     6  thereafter] through the 1980-1981 school year, each school
     7  district shall be paid by the Commonwealth on account of
     8  instruction of the district's pupils an amount to be determined
     9  by multiplying the market value/income aid ratio times the
    10  actual instruction expense per weighted average daily membership
    11  or by the base earned for reimbursement, whichever is less, and
    12  by the weighted average daily membership for the district. For
    13  the school year 1976-1977 any school district which, as a result
    14  of the impact on payments under subsections (d), (e) and (f) and
    15  under section 2592 by reason of the market value/income aid
    16  ratio or the application of equalized millage to the base earned
    17  for reimbursement, shall suffer a reduction in subsidy
    18  entitlement, shall be held harmless from this impact and shall
    19  receive an amount which is no less than that received for 1976-
    20  1977 under such subsections and under section 2592. For the
    21  1982-1983 school year and each school year thereafter, each
    22  school district shall be paid by the Commonwealth on account of
    23  instruction of the district's pupils an amount to be determined
    24  by multiplying the district's market value/income aid ratio by
    25  the factor for educational expense, one thousand six hundred
    26  fifty-six dollars ($1,656), and by the weighted average daily
    27  membership of the district.
    28     * * *
    29     Section 7.  Section 2502.5 of the act, amended June 26, 1974
    30  (P.L.370, No.125), is amended to read:
    19830H0947B2330                 - 13 -

     1     Section 2502.5.  Limitation of Certain Payments.--(a)
     2  Notwithstanding any other provision of law, for the school year
     3  1970-1971 [and each school year thereafter] through the school
     4  year 1980-1981, no school district shall be paid under
     5  subsections (d) and (e) of section 2502 or section 2592,
     6  whichever is applicable, and subsection (f) of section 2502, and
     7  section 2502.3 and section 2502.4 of this act an amount in
     8  excess of one hundred percent (100%) of the total approved
     9  reimbursable instructional expenditures of such school district.
    10  The provisions of this [section] subsection shall not apply to
    11  any school district receiving any payment under subsection (g)
    12  of section 2502 of this act.
    13     (b)  Notwithstanding any other provisions of law, for the
    14  school year 1982-1983 and each school year thereafter, no school
    15  district shall be paid under subsections (d) and (e) of section
    16  2502 and section 2502.11 an amount in excess of one hundred
    17  percent (100%) of the total reimbursable instructional
    18  expenditures of the school district. For the 1982-1983 school
    19  year, all school districts qualifying for payments under
    20  subsections (d) and (e) of section 2502 and section 2502.11
    21  shall be limited to an increase payment on account of those
    22  sections which shall not exceed nine percent (9%) over the sums
    23  received on account of section 2502.9 for the 1981-1982 school
    24  year, nor shall any school district receive an increase of less
    25  than two percent (2%) of the 1982-1983 school year payments on
    26  account of the 1981-1982 school year.
    27     Section 8.  Section 2502.6 of the act, amended May 11, 1982
    28  (P.L.396, No.115), is amended to read:
    29     Section 2502.6.  Proportionate Reduction of Payments.--(a)
    30  If the sums appropriated for the 1978-1979 school year [and each
    19830H0947B2330                 - 14 -

     1  school year thereafter] through the 1981-1982 school year are
     2  not sufficient to pay in full the total amounts to which all
     3  qualified school districts, intermediate units and nonpublic
     4  schools are entitled to receive under the provisions of sections
     5  917.1-A, 919.1-A, 922.1-A, 923-A(d), 2501, 2502, 2502.3, 2502.4,
     6  and 2502.8 for such year, the allocations to the school
     7  districts, intermediate units and nonpublic schools shall be
     8  proportionately reduced to the extent necessary to bring the
     9  aggregate of the school district, intermediate unit and
    10  nonpublic school allocations within the limits of the amounts
    11  appropriated. However, no school district's gross allocation
    12  under the provisions of the sections referred to herein shall be
    13  less for the 1978-1979, 1979-1980, 1980-1981 or the 1981-1982
    14  school year than its gross allocation under such sections for
    15  the previous school year.
    16     (b)  If the sums appropriated for the 1982-1983 school year
    17  and each school year thereafter are not sufficient to pay in
    18  full the total amounts to which all qualified school districts,
    19  intermediate units and nonpublic schools are entitled to receive
    20  under the provisions of sections 917.1-A, 919.1-A, 922.1-A, 923-
    21  A(d) and 2502.8 for such year, the allocations to the school
    22  districts, intermediate units and nonpublic schools shall be
    23  proportionately reduced to the extent necessary to bring the
    24  aggregate of the school district, intermediate unit and
    25  nonpublic school allocations within the limits of the amounts
    26  appropriated.
    27     SECTION 9.  SECTION 2502.10 OF THE ACT, ADDED JUNE 25, 1982    <--
    28  (P.L.643, NO.182), IS AMENDED BY ADDING A SUBSECTION TO READ:
    29     SECTION 2502.10.  TEMPORARY SPECIAL AID TO SCHOOL DISTRICTS
    30  DUE TO REAL PROPERTY REASSESSMENTS.--* * *
    19830H0947B2330                 - 15 -

     1     (D)  THE PROVISIONS OF THIS SUBSECTION SHALL APPLY TO ANY
     2  SCHOOL DISTRICT QUALIFYING FOR THE TEMPORARY AID PROVIDED FOR IN
     3  THIS SECTION AND RECEIVING ITS SECOND YEAR OF SUCH AID DURING
     4  THE 1982-1983 SCHOOL YEAR. FOR THE PURPOSE OF COMPUTING A SCHOOL
     5  DISTRICT'S EQUALIZED SUBSIDY FOR BASIC EDUCATION FOR THE 1982-
     6  1983 SCHOOL YEAR, AS PROVIDED FOR AND LIMITED BY 24 PA.C.S. §
     7  2903(B)(2) (RELATING TO LIMITATION OF CERTAIN PAYMENTS), THE
     8  DEPARTMENT OF EDUCATION SHALL ADJUST THE COMPUTATION OF PAYMENTS
     9  ON ACCOUNT OF SECTION 2502.9 OF THIS ACT FOR THE 1981-1982
    10  SCHOOL YEAR AS FOLLOWS: THE DEPARTMENT SHALL RECOMPUTE THE
    11  DISTRICT'S GUARANTEE, AS PROVIDED FOR IN SECTION 2502.9(A) OF
    12  THIS ACT, BY ADDING TO THE COMPUTATION OF THE GUARANTEE FOR THE
    13  1980-1981 SCHOOL YEAR THE AMOUNT OF THE SECOND YEAR PAYMENT OF
    14  TEMPORARY SPECIAL AID PROVIDED FOR IN THIS SECTION: PROVIDED,
    15  HOWEVER, THAT NO DISTRICT SHALL RECEIVE A LESSER SUBSIDY FOR THE
    16  1982-1983 SCHOOL YEAR AS A RESULT OF SUCH REVISED COMPUTATION,
    17  NOR A SUBSIDY IN EXCESS OF THE FULL AMOUNT TO WHICH IT WOULD BE
    18  ENTITLED UNDER THE PROVISIONS OF 24 PA.C.S. §§ 2902 (RELATING TO
    19  PAYMENTS ON ACCOUNT OF INSTRUCTION) AND 2905 (RELATING TO
    20  ECONOMIC SUPPLEMENT) AND THAT NO DISTRICT SHALL BE ENTITLED TO
    21  AN INCREASED SUBSIDY PAYMENT FOR THE 1981-1982 SCHOOL YEAR AS A
    22  RESULT OF SUCH REVISED COMPUTATION.
    23     Section 9 10.  The act is amended by adding a section          <--
    24  SECTIONS to read:                                                 <--
    25     Section 2502.11.  Economic Supplement.--(a)  For the school
    26  year 1982-1983 and each school year thereafter, each qualifying
    27  school district shall be paid, in addition to any other payments
    28  to which it is entitled, an economic supplement, based upon
    29  children in low-income families, local tax effort and population
    30  per square mile.
    19830H0947B2330                 - 16 -

     1     (b)  For the school year 1982-1983 and each school year
     2  thereafter, each qualifying school district shall be paid on
     3  account of children in low-income families an amount in
     4  accordance with the following table:
     5         Percentage of Low-Income Pupils            Grant Per
     6           In Average Daily Membership           Low-Income Pupil
     7                     10 - 19.9                       $100
     8                     20 - 39.9                       $300
     9                     40 or over                      $500
    10  For the 1982-1983 school year and each school year thereafter,
    11  low-income pupils are defined for purposes of this section as
    12  children aged five (5) to seventeen (17) years, inclusive, in
    13  families receiving a grant in excess of two thousand dollars
    14  ($2,000) from the Commonwealth on account of dependent children
    15  under Title IV of the Federal Social Security Act.
    16     (c)  For the school year 1982-1983 and each school year
    17  thereafter, any district which levies and collects local taxes
    18  for school purposes equal to or above the median equalized
    19  millage, as defined in section 2501(9.3), in the year for which
    20  reimbursement is determined shall qualify for and receive a
    21  payment based upon local tax effort and population per square
    22  mile in accordance with the following table, except for
    23  qualifying districts which include a central city of a Standard
    24  Metropolitan Statistical Area and have a district population of
    25  less than four thousand (4,000) persons per square mile, which
    26  districts shall receive three percent (3%) of their
    27  instructional expenditures:
    28         Population Per Square Mile       Payment as Percent of
    29         of the Qualifying District      Instructional Expenditure
    30             5,950 and over                          5
    19830H0947B2330                 - 17 -

     1             4,000 - 5,949                           3
     2             less than 4,000                         1
     3  Notwithstanding the provisions of this table, qualifying
     4  districts having a general population of five thousand nine
     5  hundred fifty (5,950) or more persons per square mile and at
     6  least thirty-five thousand (35,000) WADMs shall be paid nineteen
     7  percent (19%) of their instructional expenditures.
     8     SECTION 2502.12.  REVISED COMPUTATIONS OF CERTAIN PAYMENTS.--  <--
     9  FOR THE PURPOSE OF COMPUTING A SCHOOL DISTRICT'S EQUALIZED
    10  SUBSIDY FOR BASIC EDUCATION FOR THE 1982-1983 SCHOOL YEAR, AS
    11  PROVIDED FOR AND LIMITED BY 24 PA.C.S. § 2903(B)(2) (RELATING TO
    12  LIMITATION OF CERTAIN PAYMENTS), THE DEPARTMENT OF EDUCATION
    13  SHALL ADJUST THE COMPUTATION OF PAYMENTS ON ACCOUNT OF SECTION
    14  2502.9 OF THIS ACT FOR THE 1981-1982 SCHOOL YEAR AS FOLLOWS: THE
    15  DEPARTMENT SHALL RECOMPUTE THE DISTRICT'S GUARANTEE, AS PROVIDED
    16  FOR IN SECTION 2502.9(A) OF THIS ACT, FOR THE 1980-1981 SCHOOL
    17  YEAR, SO AS NOT TO ACCOUNT FOR THE SUBSIDY INCREASE LIMITATION
    18  IMPOSED BY THE ACT OF JULY 1, 1981 (P.L.628, NO.5A), KNOWN AS
    19  THE "GENERAL APPROPRIATION ACT OF 1981": PROVIDED, HOWEVER, THAT
    20  NO DISTRICT SHALL RECEIVE A LESSER SUBSIDY FOR THE 1982-1983
    21  SCHOOL YEAR UNDER THE PROVISIONS OF 24 PA.C.S. §§ 2902 (RELATING
    22  TO PAYMENTS ON ACCOUNT OF INSTRUCTION) AND 2905 (RELATING TO
    23  ECONOMIC SUPPLEMENT), OR SECTION 2502.10 OF THIS ACT, AS A
    24  RESULT OF SUCH REVISED COMPUTATION AND THAT NO DISTRICT SHALL BE
    25  ENTITLED TO AN INCREASED SUBSIDY PAYMENT FOR THE 1981-1982
    26  SCHOOL YEAR AS A RESULT OF SUCH REVISED COMPUTATION. IF THE
    27  AMOUNTS APPROPRIATED FOR THE EQUALIZED SUBSIDY FOR BASIC
    28  EDUCATION FOR THE 1982-1983 SCHOOL YEAR ARE INSUFFICIENT TO PAY
    29  IN FULL THE AMOUNTS TO WHICH DISTRICTS AFFECTED BY THE
    30  LIMITATION IN THE "GENERAL APPROPRIATION ACT OF 1981" ARE
    19830H0947B2330                 - 18 -

     1  ENTITLED, PAYMENTS TO SUCH DISTRICTS SHALL BE PROPORTIONATELY
     2  REDUCED TO THE EXTENT NECESSARY TO BRING THE PAYMENTS WITHIN THE
     3  LIMITS OF THE AMOUNTS APPROPRIATED: PROVIDED, HOWEVER, THAT
     4  COMPUTATION OF PAYMENTS TO BE MADE BEGINNING IN THE 1984-1985
     5  FISCAL YEAR SHALL BE BASED UPON A DISTRICT'S FULL ENTITLEMENT
     6  UNDER THE PROVISIONS OF THIS SECTION, ANY SUCH PROPORTIONATE
     7  REDUCTION NOTWITHSTANDING.
     8     Section 10 11.  Section 2517(d) of the act, amended May 11,    <--
     9  1982 (P.L.396, No.115), is amended to read:
    10     Section 2517.  Payments.--* * *
    11     (d)  Subsection (c) of this section shall apply to all
    12  payments to which a school district is entitled under any
    13  provision of sections 2502, 2502.3, 2502.4, 2502.8, 2502.9 and
    14  2592 for the school year 1981-1982 and to payments to which a
    15  school district is entitled under any provision of sections
    16  2502, 2502.8 and 2502.11 for the school year 1982-1983 and each
    17  school year thereafter.
    18     Section 11 12.  Part II of Title 24 of the Pennsylvania        <--
    19  Consolidated Statutes (relating to basic education) is repealed.
    20     Section 12 13.  Sections 4, 5, 6, 7, 8, 9 and 10, 10 AND 11    <--
    21  of this act shall be retroactive to July 1, 1983.
    22     Section 13 14.  This act shall take effect immediately.        <--






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