1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An 
2act relating to the public school system, including certain 
3provisions applicable as well to private and parochial 
4schools; amending, revising, consolidating and changing the 
5laws relating thereto," in pupils and attendance, further
6providing for cost of tuition and maintenance of certain
7exceptional children in approved institutions; in charter
8schools, further providing for funding for charter schools;
9and, in reimbursements by Commonwealth and between school
10districts, further providing for special education payments
11to school districts and for extraordinary special education
12program expenses.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 1376 of the act of March 10, 1949
16(P.L.30, No.14), known as the Public School Code of 1949, is
17amended by adding a subsection to read:

18Section 1376. Cost of Tuition and Maintenance of Certain
19Exceptional Children in Approved Institutions.--* * *

20(c.9) (1) Beginning in fiscal year 2014-2015, in any fiscal
21year when there is no increase in the State allocation to

1approved private schools under subsection (a.2), an amount equal
2to the funds remitted to the Commonwealth by the approved
3private schools pursuant to subsection (c.2)(5)(ii) from the
4previous fiscal year is appropriated to the Department of
5Education for the purpose of making payments to the approved
6private schools for pupils who are enrolled with the approval of
7the Department of Education.

8(2) The funds available for payment pursuant to paragraph
9(1) shall be distributed as follows:

10(i) Divide the amount of funding paid to the approved
11private school during the previous year under subsection (a.2)
12by the total allocation of funding paid to approved private
13schools under subsection (a.2) during the previous year.

14(ii) Multiply the quotient from subparagraph (i) by the
15amount of funding available for payment under paragraph (1).

16(3) Funds distributed under this subsection shall be paid in
17twelve (12) equal monthly payments.

18* * *

19Section 2. Section 1725-A(a)(3) of the act, amended June 29,
202002 (P.L.524, No.88), is amended and the subsection is amended
21by adding clauses to read:

22Section 1725-A. Funding for Charter Schools.--(a) Funding
23for a charter school shall be provided in the following manner:

24* * *

25(3) For the 1997-1998 school year through the 2013-2014 
26school year, for special education students, the charter school
27shall receive for each student enrolled the same funding as for
28each non-special education student as provided in clause (2),
29plus an additional amount determined by dividing the district of
30residence's total special education expenditure by the product

1of multiplying the combined percentage of section 2509.5(k)
2times the district of residence's total average daily membership
3for the prior school year. This amount shall be paid by the
4district of residence of each student.

5(3.1) (i) For the 2014-2015 school year and each year
6thereafter, subject to the provisions in clauses (3.2) and (3.3)
7which provide for the transition to the new student-based
8funding methodology established in this clause, for special
9education students, the charter school shall receive for each
10student enrolled an amount which shall be paid by the district
11of residence of each student to be determined as follows:

12(A) For each student enrolled in the charter school for
13which the annual expenditure for special education programs and
14services is less than twenty-five thousand dollars ($25,000),
15which shall be known as Category 1, multiply the same funding as
16for each non-special education student as provided in clause (2)
17by one and fifty-one hundredths (1.51).

18(B) For a student enrolled in the charter school for which
19the annual expenditure for special education programs and
20services is equal to or greater than twenty-five thousand
21dollars ($25,000) and less than fifty thousand dollars
22($50,000), which shall be known as Category 2, multiply the same
23funding as for each non-special education student as provided in
24clause (2) by three and seventy-seven hundredths (3.77).

25(C) For each student enrolled in the charter school for
26which the annual expenditure for special education programs and
27services is equal to or greater than fifty thousand dollars
28($50,000), which shall be known as Category 3, multiply the same
29funding as for each non-special education student as provided in
30clause (2) by seven and forty-six hundredths (7.46).

1(ii) Pursuant to regulations developed by the department, to
2be eligible to receive funding for special education students
3under subclause (i)(B) and (C), the charter school must document
4the cost of providing special education programs and services to
5the student and provide the documentation to the school district
6of residence and the department.

7(iii) The department shall annually adjust the weights
8provided in subclause (i)(A), (B) and (C) for each school
9district based on the percentage difference in the school
10district's annual expenditure for special education programs and
11services per student when compared to the Statewide average
12annual expenditure for special education programs and services
13per student.

14(iv) The department shall annually adjust the dollar ranges
15in subclause (i)(A), (B) and (C) by the Consumer Price Index for
16All Urban Consumers for the Pennsylvania, New Jersey, Delaware
17and Maryland areas.

18(3.2) Notwithstanding the provisions of clause (3.1), for
19the 2014-2015 school year, for special education students, the
20charter school shall receive for each student enrolled an amount
21which shall be paid by the district of residence as follows:

22(i) If the funding for each special education student in
23clause (3) for the 2013-2014 school year is equal to or greater
24than the funding for the same special education student in
25clause (3.1) for the 2014-2015 school year, the amount shall be
26determined as follows:

27(A) Subtract the amount of funding for each special
28education student in clause (3.1) for the 2014-2015 school year
29from the amount of funding for the same special education
30student in clause (3) for the 2013-2014 school year.

1(B) Multiply the difference in paragraph (A) by three
2hundred and thirty-three thousandths (0.333).

3(C) Subtract the product in paragraph (B) from the amount of
4funding for the same special education student in clause (3) for
5the 2013-2014 school year.

6(ii) If the funding for each special education student in
7clause (3) for the 2013-2014 school year is less than the amount
8of funding for the same special education student in clause
9(3.1) for the 2014-2015 school year, the amount shall be
10determined as follows:

11(A) Subtract the amount of funding for each special
12education student in clause (3) for the 2013-2014 school year
13from the amount of funding for the same special education
14student in clause (3.1) for the 2014-2015 school year.

15(B) Multiply the difference in paragraph (A) by three
16hundred and thirty-three thousandths (0.333).

17(C) Add the product in paragraph (B) to the amount of
18funding for the same special education student in clause (3) for
19the 2013-2014 school year.

20(3.3) Notwithstanding the provisions of clause (3.1), for
21the 2015-2016 school year, for special education students, the
22charter school shall receive for each student enrolled an amount
23which shall be paid by the district of residence as follows:

24(i) If the funding for each special education student in
25clause (3) for the 2013-2014 school year is equal to or greater
26than the funding for the same special education student in
27clause (3.1) for the 2015-2016 school year, the amount shall be
28determined as follows:

29(A) Subtract the amount of funding for each special
30education student in clause (3.1) for the 2015-2016 school year

1from the amount of funding for the same special education
2student in clause (3) for the 2013-2014 school year.

3(B) Multiply the difference in paragraph (A) by six hundred
4and sixty-six thousandths (0.666).

5(C) Subtract the product in paragraph (B) from the amount of
6funding for the same special education student in clause (3) for
7the 2013-2014 school year.

8(ii) If the funding for each special education student in
9clause (3) for the 2013-2014 school year is less than the
10funding for the same special education student in clause (3.1)
11for the 2015-2016 school year, the amount shall be determined as
12follows:

13(A) Subtract the amount of funding for each special
14education student in clause (3) for the 2013-2014 school year
15from the amount of funding for the same special education
16student in clause (3.1) for the 2015-2016 school year.

17(B) Multiply the difference in paragraph (A) by six hundred
18and sixty-six thousandths (0.666).

19(C) Add the product in paragraph (B) to the amount of
20funding for the same special education student in clause (3) for
21the 2013-2014 school year.

22* * *

23Section 3. Section 2509.5 of the act is amended by adding a
24subsection to read:

25Section 2509.5. Special Education Payments to School
26Districts.--* * *

27(bbb) (1) For the 2014-2015 school year and each year 
28thereafter, when the special education funding allocation made 
29to school districts exceeds the amount allocated under 
30subsection (aaa), the Commonwealth shall pay to each school
 

1district a special education funding allocation which shall 
2consist of the following:

3(i) An amount equal to the special education funding
4allocation under subsection (aaa).

5(ii) A student-based allocation to be calculated as follows:

6(A) Multiply the sum of the school district's weighted
7special education student headcount and its sparsity/size
8adjustment by its market value/income aid ratio and its
9equalized millage multiplier.

10(B) Multiply the product in clause (A) by the difference
11between the amount appropriated for the allocation of special
12education funding and the sum of the amounts allocated in
13subparagraph (i).

14(C) Divide the product from clause (B) by the sum of the
15products in clause (A) for all school districts.

16(2) For the purposes of this section:

17(i) The weighted special education student headcount shall
18be calculated for each school district as follows:

19(A) Multiply the number of students who reside in the school
20district for which the annual expenditure for special education
21programs and services is less than twenty-five thousand dollars
22($25,000), which shall be known as Category 1, by one and fifty-
23one hundredths (1.51).

24(B) Multiply the number of students that reside in the
25school district for which the annual expenditure for special
26education programs and services is greater than or equal to
27twenty-five thousand dollars ($25,000) but less than fifty
28thousand dollars ($50,000), which shall be known as Category 2,
29by three and seventy-seven hundredths (3.77).

30(C) Multiply the number of students who reside in the school

1district for which the annual expenditure for special education
2programs and services is greater than or equal to fifty thousand
3dollars ($50,000), which shall be known as Category 3, by seven
4and forty-six hundredths (7.46).

5(D) Add the products in clauses (A), (B) and (C).

6The Department of Education shall annually adjust the dollar
7ranges in clauses (A), (B) and (C) by the Consumer Price Index
8for All Urban Consumers for the Pennsylvania, New Jersey,
9Delaware and Maryland area.

10(ii) The sparsity ratio shall be calculated for each school
11district as follows:

12(A) Divide the school district's average daily membership
13per square mile by the State's average daily membership per
14square mile.

15(B) Multiply the quotient of clause (A) by five tenths
16(0.5).

17(C) Subtract the product in clause (B) from one (1).

18(iii) The size ratio for each school district shall be
19calculated as follows:

20(A) Divide the school district's average daily membership by
21the average of the average daily membership of all school
22districts.

23(B) Multiply the quotient of clause (A) by five tenths
24(0.5).

25(C) Subtract the product in clause (B) from one (1).

26(iv) The sparsity/size ratio for each school district shall
27be calculated by adding forty percent (40%) of the sparsity
28ratio and sixty percent (60%) of the size ratio.

29(v) The sparsity/size adjustment for each school district
30shall be calculated as follows:

1(A) For a school district with a sparsity/size ratio less
2than or equal to the sparsity/size ratio that represents the
3seventieth (70th) percentile of the sparsity/size ratio of all
4school districts, the school district's sparsity/size adjustment
5shall be zero (0).

6(B) For a school district with a sparsity/size ratio greater
7than the sparsity/size ratio that represents the seventieth
8(70th) percentile of the sparsity/size ratio of all school
9districts, the school district's sparsity/size adjustment shall
10be calculated as follows:

11(I) Divide the school district's sparsity/size ratio by the
12sparsity/size ratio that represents the seventieth (70th)
13percentile of the sparsity/size ratio of all school districts.

14(II) Subtract one (1) from the quotient in subclause (I).

15(III) Multiply the remainder in subclause (II) by five
16tenths (0.5).

17(IV) Multiply the product in subclause (III) by the school
18district's weighted special education student headcount.

19(vi) The equalized millage multiplier for each school
20district shall be calculated as follows:

21(A) For a school district with an equalized millage rate
22greater than or equal to the equalized millage rate that
23represents the seventieth (70th) percentile of the equalized
24millage rate of all school districts, the school district's
25equalized millage multiplier shall be one (1).

26(B) For a school district with an equalized millage rate
27less than the equalized millage rate that represents the
28seventieth (70th) percentile of the equalized millage rate of
29all school districts, the school district's equalized millage
30multiplier shall be calculated as follows:

1(I) Divide the school district's equalized millage rate by
2the equalized millage rate that represents the seventieth (70th)
3percentile of the equalized millage rate of all school
4districts.

5(II) (Reserved).

6(3) The data used to calculate the provisions contained in
7this section shall be averaged for the three (3) most recent
8years for which data is available as determined by the
9Department of Education.

10Section 4. Section 2509.8(e) of the act, added December 23,
112003 (P.L.304, No.48), is amended and the section is amended by
12adding a subsection to read:

13Section 2509.8. Extraordinary Special Education Program
14Expenses.--* * *

15(e) For the 2003-2004 school year [and each school year
16thereafter] through the 2013-2014 school year, the Department of
17Education shall set aside one percent (1%) of the special
18education appropriation for extraordinary expenses incurred in
19providing a special education program or service to one or more
20students with disabilities as approved by the Secretary of
21Education. Such special education program or service shall
22include, but not be limited to, the transportation of students
23with disabilities; services related to occupational therapy,
24physical therapy, speech and language, hearing impairments or
25visual impairments; or training in orientation and mobility for
26children who are visually impaired or blind.

27(f) (i) For the 2014-2015 school year and each school year 
28thereafter, an amount equal to one percent (1%) of the special 
29education appropriation shall be distributed to school districts 
30and charter schools for extraordinary expenses incurred in
 

1providing a special education program or service to one or more 
2students with disabilities as approved by the Secretary of 
3Education. Such special education program or service shall 
4include, but not be limited to, the transportation of students 
5with disabilities; services related to occupational therapy, 
6physical therapy, speech and language, hearing impairments or 
7visual impairments; or training in orientation and mobility for 
8children who are visually impaired or blind.

9(ii) Funds distributed to a school district or charter
10school under this subsection shall be allocated for students for
11which expenses are incurred on an annual basis that are equal to
12or greater than seventy-five thousand dollars ($75,000) as
13follows:

14(A) For a student for whom expenses are equal to or greater
15than seventy-five thousand dollars ($75,000) and less than or
16equal to one hundred thousand dollars ($100,000), subtract the
17State subsidies paid on behalf of the student for special
18education programs and services to the school district or, for a
19student enrolled in a charter school, the difference in the
20nonspecial education and special education charter school
21payment received by the charter school where the child is
22enrolled from the expense incurred for the student and multiply
23the difference by the school district's or charter school's
24market value/personal income aid ratio.

25(B) For a student for which expenses are greater than one
26hundred thousand dollars ($100,000), subtract the State
27subsidies paid on behalf of the student for special education
28programs and services to the school district or, for a student
29enrolled in a charter school, the difference in the nonspecial
30education and special education charter school payment received

1by the charter school where the child is enrolled from the
2expense incurred for the student.

3(iii) No school district or charter school shall in any
4school year receive an amount under subclause (i) which exceeds
5the total amount of funding available multiplied by the
6percentage equal to the greatest percentage of the State's
7special education students enrolled in a school district or
8charter school.

9(iv) It is the intent of the General Assembly that funds
10necessary to implement this subsection shall be appropriated as
11a separate line item in the General Appropriation Act entitled
12Extraordinary Cost Fund.

13Section 5. Section 2509.14 of the act, added April 25, 2013
14(P.L.12, No.3), is repealed:

15[Section 2509.14. Special Education Funding for Eligible
16Students with Disabilities in Cost Category 3.--(a) For the
172014-2015 school year and each school year thereafter, the
18Department of Education shall set aside an amount not less than
19one percent (1%) of the State special education appropriation
20above the level of the appropriation in the base year. The
21Department of Education shall distribute this amount as provided
22in subsection (b).

23(b) For the 2014-2015 school year and each school year
24thereafter, each school district in this Commonwealth shall
25receive a pro rata share of the amount set aside under
26subsection (a) based upon the number of eligible students
27residing or enrolled in each school district and classified in
28Cost Category 3 during the immediately preceding school year.

29(c) The funding provided under this section shall be 
30accounted for as part of actual special education spending and
 

1as part of the special education allocation received by a school 
2district, according to the definitions in section 2501. School 
3districts shall also account for the funding provided under this 
4section and the resulting services and supports for eligible 
5students through the special education plans, revisions, updates 
6and amendments required by section 2509.15.]

7Section 6. This act shall take effect July 1, 2014, or
8immediately, whichever occurs later.