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 <-exceptional children, education and training, 
7for cost of tuition and maintenance of certain exceptional
8children in approved institutions; in charter schools,
9further providing for funding for charter schools; and, in
10reimbursements by Commonwealth and between school districts,
11further providing for special education payments to school
12districts and for extraordinary special education program
13expenses.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

<-16Section 1. Section 1376 of the act of March 10, 1949
17(P.L.30, No.14), known as the Public School Code of 1949, is
18amended by adding a subsection to read:

<-19Section 1. Section 1372(8) of the act of March 10, 1949
20(P.L.30, No.14), known as the Public School Code of 1949, added
21May 10, 2000 (P.L.44, No.16), is amended to read:

22Section 1372. Exceptional Children; Education and

1Training.--* * *

2(8) Reporting of Expenditures Relating to Exceptional
3Students. By December 31, 2000, and each year thereafter, each
4school district shall compile information listing the number of
5students with disabilities for which expenditures are between
6twenty-five thousand dollars ($25,000) and fifty thousand
7dollars ($50,000), between fifty thousand dollars ($50,000) and
8seventy-five thousand dollars ($75,000) and over seventy-five
9thousand dollars ($75,000) for the prior school year. The
10information shall be submitted to the department in a form
11prescribed by the department. By February 1, 2001, and each year
12thereafter, the department shall submit to the chairman and
13minority chairman of the Education and Appropriations Committees
14of the Senate and the chairman and minority chairman of the
15Education and Appropriations Committees of the House of
16Representatives a report listing this information by school
17district. The department shall annually adjust the dollar ranges 
18by the Consumer Price Index for All Urban Consumers for the 
19Pennsylvania, New Jersey, Delaware and Maryland area.

20Section 2. Section 1376 of the act is amended by adding a
21subsection to read:

22Section 1376. Cost of Tuition and Maintenance of Certain
23Exceptional Children in Approved Institutions.--* * *

24(c.9) (1) Beginning in fiscal year 2014-2015, in any fiscal
25year when there is no increase in the State allocation to
26approved private schools under subsection (a.2), an amount equal
27to the funds remitted to the Commonwealth by the approved
28private schools pursuant to subsection (c.2)(5)(ii) from the
29previous fiscal year is appropriated to the Department of
30Education for the purpose of making payments to the approved

1private schools for pupils who are enrolled with the approval of
2the Department of Education.

3(2) The funds available for payment pursuant to paragraph
4(1) shall be distributed as follows:

5(i) Divide the amount of funding paid to the approved
6private school during the previous year under subsection (a.2)
7by the total allocation of funding paid to approved private
8schools under subsection (a.2) during the previous year.

9(ii) Multiply the quotient from subparagraph (i) by the
10amount of funding available for payment under paragraph (1).

11(3) Funds distributed under this subsection shall be paid in
12twelve (12) equal monthly payments.

13* * *

14Section <-2 3. Section 1725-A(a)(3) of the act, amended June
1529, 2002 (P.L.524, No.88), is amended and the subsection is
16amended by adding clauses to read:

17Section 1725-A. Funding for Charter Schools.--(a) Funding
18for a charter school shall be provided in the following manner:

19* * *

20(3) For the 1997-1998 school year through the 2013-2014 
21school year, for special education students, the charter school
22shall receive for each student enrolled the same funding as for
23each non-special education student as provided in clause (2),
24plus an additional amount determined by dividing the district of
25residence's total special education expenditure by the product
26of multiplying the combined percentage of section 2509.5(k)
27times the district of residence's total average daily membership
28for the prior school year. This amount shall be paid by the
29district of residence of each student.

30(3.1) (i) For the 2014-2015 school year and each year

1thereafter, subject to the provisions in clauses (3.2) <-and,
2(3.3)<-, (3.4), (3.5) and (3.6) which provide for the transition
3to the new student-based funding methodology established in this
4clause, for special education students, the charter school shall
5receive for each student enrolled an amount which shall be paid
6by the district of residence of each student to be determined as
7follows:

8(A) For each <-special education student enrolled in the
9charter school for which the annual expenditure <-for special
10education programs and services is less than twenty-five
11thousand dollars ($25,000), which shall be known as Category 1,
12multiply the same funding as for each non-special education
13student as provided in clause (2) by one and fifty-one
14hundredths (1.51).

15(B) For <-a each special education student enrolled in the
16charter school for which the annual expenditure <-for special
17education programs and services is equal to or greater than
18twenty-five thousand dollars ($25,000) and less than fifty
19thousand dollars ($50,000), which shall be known as Category 2,
20multiply the same funding as for each non-special education
21student as provided in clause (2) by three and seventy-seven
22hundredths (3.77).

23(C) For each <-special education student enrolled in the
24charter school for which the annual expenditure <-for special
25education programs and services is equal to or greater than
26fifty thousand dollars ($50,000), which shall be known as
27Category 3, multiply the same funding as for each non-special
28education student as provided in clause (2) by seven and forty-
29six hundredths (7.46).

30(ii) Pursuant to <-regulations guidelines developed by the

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

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 <-average annual expenditure for special education
11programs and services per student <-students when compared to the
12Statewide average annual expenditure for special education
13programs and services per student <-students.

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.<- AREA.

18(v) The annual expenditure amounts used to calculate funding
19under subclause (i)(A), (B) and (C) shall be based on the
20amounts used in making reports to the department under section
211372(8).

22(3.2) Notwithstanding the provisions of clause (3.1), for
23the 2014-2015 school year, for special education students, the
24charter school shall receive for each student enrolled an amount
25which shall be paid by the district of residence as follows:

26(i) If the funding for each special education student in
27clause (3) for the 2013-2014 school year is equal to or greater
28than the funding for the same special education student in
29clause (3.1) for the 2014-2015 school year, the amount shall be
30determined as follows:

1(A) Subtract the amount of funding for each special
2education student in clause (3.1) for the 2014-2015 school year
3from the amount of funding for the same special education
4student in clause (3) for the 2013-2014 school year.

5(B) Multiply the difference in paragraph (A) by <-three one
6hundred and thirty-three sixty-seven thousandths <-(0.333)
<-7(0.167).

8(C) Subtract the product in paragraph (B) from the amount of
9funding for the same special education student in clause (3) for
10the 2013-2014 school year.

11(ii) If the funding for each special education student in
12clause (3) for the 2013-2014 school year is less than the amount
13of funding for the same special education student in clause
14(3.1) for the 2014-2015 school year, the amount shall be
15determined as follows:

16(A) Subtract the amount of funding for each special
17education student in clause (3) for the 2013-2014 school year
18from the amount of funding for the same special education
19student in clause (3.1) for the 2014-2015 school year.

20(B) Multiply the difference in paragraph (A) by <-three one
21hundred and thirty-three sixty-seven thousandths <-(0.333)
<-22(0.167).

23(C) Add the product in paragraph (B) to the amount of
24funding for the same special education student in clause (3) for
25the 2013-2014 school year.

26(3.3) Notwithstanding the provisions of clause (3.1), for
27the 2015-2016 school year, for special education students, the
28charter school shall receive for each student enrolled an amount
29which shall be paid by the district of residence as follows:

30(i) If the funding for each special education student in

1clause (3) for the 2013-2014 school year is equal to or greater
2than the funding for the same special education student in
3clause (3.1) for the 2015-2016 school year, the amount shall be
4determined as follows:

5(A) Subtract the amount of funding for each special
6education student in clause (3.1) for the 2015-2016 school year
7from the amount of funding for the same special education
8student in clause (3) for the 2013-2014 school year.

9(B) Multiply the difference in paragraph (A) by <-six three
10hundred and sixty-six thirty-three thousandths <-(0.666) (0.333).

11(C) Subtract the product in paragraph (B) from the amount of
12funding for the same special education student in clause (3) for
13the 2013-2014 school year.

14(ii) If the funding for each special education student in
15clause (3) for the 2013-2014 school year is less than the
16funding for the same special education student in clause (3.1)
17for the 2015-2016 school year, the amount shall be determined as
18follows:

19(A) Subtract the amount of funding for each special
20education student in clause (3) for the 2013-2014 school year
21from the amount of funding for the same special education
22student in clause (3.1) for the 2015-2016 school year.

23(B) Multiply the difference in paragraph (A) by <-six three
24hundred and sixty-six thirty-three thousandths <-(0.666) (0.333).

25(C) Add the product in paragraph (B) to the amount of
26funding for the same special education student in clause (3) for
27the 2013-2014 school year.

<-28(3.4) Notwithstanding the provisions of clause (3.1), for
29the 2016-2017 school year, for special education students, the
30charter school shall receive for each student enrolled an amount

1which shall be paid by the district of residence as follows:

2(i) If the funding for each special education student in
3clause (3) for the 2013-2014 school year is equal to or greater
4than the funding for the same special education student in
5clause (3.1) for the 2016-2017 school year, the amount shall be
6determined as follows:

7(A) Subtract the amount of funding for each special
8education student in clause (3.1) for the 2016-2017 school year
9from the amount of funding for the same special education
10student in clause (3) for the 2013-2014 school year.

11(B) Multiply the difference in paragraph (A) by five hundred
12thousandths (0.500).

13(C) Subtract the product in paragraph (B) from the amount of
14funding for the same special education student in clause (3) for
15the 2013-2014 school year.

16(ii) If the funding for each special education student in
17clause (3) for the 2013-2014 school year is less than the amount
18of funding for the same special education student in clause
19(3.1) for the 2016-2017 school year, the amount shall be
20determined as follows:

21(A) Subtract the amount of funding for each special
22education student in clause (3) for the 2013-2014 school year
23from the amount of funding for the same special education
24student in clause (3.1) for the 2016-2017 school year.

25(B) Multiply the difference in paragraph (A) by five hundred
26thousandths (0.500).

27(C) Add the product in paragraph (B) to the amount of
28funding for the same special education student in clause (3) for
29the 2013-2014 school year.

30(3.5) Notwithstanding the provisions of clause (3.1), for

1the 2017-2018 school year, for special education students, the
2charter school shall receive for each student enrolled an amount
3which shall be paid by the district of residence as follows:

4(i) If the funding for each special education student in
5clause (3) for the 2013-2014 school year is equal to or greater
6than the funding for the same special education student in
7clause (3.1) for the 2017-2018 school year, the amount shall be
8determined as follows:

9(A) Subtract the amount of funding for each special
10education student in clause (3.1) for the 2017-2018 school year
11from the amount of funding for the same special education
12student in clause (3) for the 2013-2014 school year.

13(B) Multiply the difference in paragraph (A) by six hundred
14and sixty-seven thousandths (0.667).

15(C) Subtract the product in paragraph (B) from the amount of
16funding for the same special education student in clause (3) for
17the 2013-2014 school year.

18(ii) If the funding for each special education student in
19clause (3) for the 2013-2014 school year is less than the amount
20of funding for the same special education student in clause
21(3.1) for the 2017-2018 school year, the amount shall be
22determined as follows:

23(A) Subtract the amount of funding for each special
24education student in clause (3) for the 2013-2014 school year
25from the amount of funding for the same special education
26student in clause (3.1) for the 2017-2018 school year.

27(B) Multiply the difference in paragraph (A) by six hundred
28and sixty-seven thousandths (0.667).

29(C) Add the product in paragraph (B) to the amount of
30funding for the same special education student in clause (3) for

1the 2013-2014 school year.

2(3.6) Notwithstanding the provisions of clause (3.1), for
3the 2018-2019 school year, for special education students, the
4charter school shall receive for each student enrolled an amount
5which shall be paid by the district of residence as follows:

6(i) If the funding for each special education student in
7clause (3) for the 2013-2014 school year is equal to or greater
8than the funding for the same special education student in
9clause (3.1) for the 2018-2019 school year, the amount shall be
10determined as follows:

11(A) Subtract the amount of funding for each special
12education student in clause (3.1) for the 2018-2019 school year
13from the amount of funding for the same special education
14student in clause (3) for the 2013-2014 school year.

15(B) Multiply the difference in paragraph (A) by eight
16hundred and thirty-three thousandths (0.833).

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

20(ii) If the funding for each special education student in
21clause (3) for the 2013-2014 school year is less than the amount
22of funding for the same special education student in clause
23(3.1) for the 2018-2019 school year, the amount shall be
24determined as follows:

25(A) Subtract the amount of funding for each special
26education student in clause (3) for the 2013-2014 school year
27from the amount of funding for the same special education
28student in clause (3.1) for the 2018-2019 school year.

29(B) Multiply the difference in paragraph (A) by eight
30hundred and thirty-three thousandths (0.833).

1(C) Add the product in paragraph (B) to the amount of
2funding for the same special education student in clause (3) for
3the 2013-2014 school year.

4* * *

5Section <-3 4. Section 2509.5 of the act is amended by adding
6a subsection to read:

7Section 2509.5. Special Education Payments to School
8Districts.--* * *

9(bbb) (1) For the 2014-2015 school year and each year 
10thereafter, when the special education funding allocation made 
11to school districts exceeds the amount allocated under 
12subsection (aaa), the Commonwealth shall pay to each school 
13district a special education funding allocation which shall 
14consist of the following:

15(i) An amount equal to the special education funding
16allocation under subsection (aaa).

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

18(A) Multiply the sum of the school district's weighted
19special education student headcount and its sparsity/size
20adjustment by its market value/income aid ratio and its
21equalized millage multiplier.

22(B) Multiply the product in clause (A) by the difference
23between the amount appropriated for the allocation of special
24education funding and the sum of the amounts allocated in
25subparagraph (i).

26(C) Divide the product from clause (B) by the sum of the
27products in clause (A) for all school districts.

28(2) For the purposes of this section:

29(i) The weighted special education student headcount shall
30be calculated for each school district as follows:

1(A) Multiply the number of <-special education students who
2reside in the school district for which the annual expenditure
<-3for special education programs and services is less than twenty-
4five thousand dollars ($25,000), which shall be known as
5Category 1, by one and fifty-one hundredths (1.51).

6(B) Multiply the number of <-special education students that
7reside in the school district for which the annual expenditure
<-8for special education programs and services is greater than or
9equal to twenty-five thousand dollars ($25,000) but less than
10fifty thousand dollars ($50,000), which shall be known as
11Category 2, by three and seventy-seven hundredths (3.77).

12(C) Multiply the number of <-special education students who
13reside in the school district for which the annual expenditure
<-14for special education programs and services is greater than or
15equal to fifty thousand dollars ($50,000), which shall be known
16as Category 3, by seven and forty-six hundredths (7.46).

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

18The Department of Education shall annually adjust the dollar
19ranges in clauses (A), (B) and (C) by the Consumer Price Index
20for All Urban Consumers for the Pennsylvania, New Jersey,
21Delaware and Maryland area. <-The annual expenditure amount used 
22to calculate funding shall be based on the information reported 
23to the department under section 1372(8).

24(ii) The sparsity ratio shall be calculated for each school
25district as follows:

26(A) Divide the school district's average daily membership
27per square mile by the State's average daily membership per
28square mile.

29(B) Multiply the quotient of clause (A) by five tenths
30(0.5).

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

2(iii) The size ratio for each school district shall be
3calculated as follows:

4(A) Divide the school district's average daily membership by
5the average of the average daily membership of all school
6districts.

7(B) Multiply the quotient of clause (A) by five tenths
8(0.5).

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

10(iv) The sparsity/size ratio for each school district shall
11be calculated by adding forty percent (40%) of the sparsity
12ratio and sixty percent (60%) of the size ratio.

13(v) The sparsity/size adjustment for each school district
14shall be calculated as follows:

15(A) For a school district with a sparsity/size ratio less
16than or equal to the sparsity/size ratio that represents the
17seventieth (70th) percentile of the sparsity/size ratio of all
18school districts, the school district's sparsity/size adjustment
19shall be zero (0).

20(B) For a school district with a sparsity/size ratio greater
21than the sparsity/size ratio that represents the seventieth
22(70th) percentile of the sparsity/size ratio of all school
23districts, the school district's sparsity/size adjustment shall
24be calculated as follows:

25(I) Divide the school district's sparsity/size ratio by the
26sparsity/size ratio that represents the seventieth (70th)
27percentile of the sparsity/size ratio of all school districts.

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

29(III) Multiply the remainder in subclause (II) by five
30tenths (0.5).

1(IV) Multiply the product in subclause (III) by the school
2district's weighted special education student headcount.

3(vi) The equalized millage multiplier for each school
4district shall be calculated as follows:

5(A) For a school district with an equalized millage rate
6greater than or equal to the equalized millage rate that
7represents the seventieth (70th) percentile of the equalized
8millage rate of all school districts, the school district's
9equalized millage multiplier shall be one (1).

10(B) For a school district with an equalized millage rate
11less than the equalized millage rate that represents the
12seventieth (70th) percentile of the equalized millage rate of
13all school districts, the school district's equalized millage
14multiplier shall be calculated as follows:

15(I) Divide the school district's equalized millage rate by
16the equalized millage rate that represents the seventieth (70th)
17percentile of the equalized millage rate of all school
18districts.

19(II) (Reserved).

20(3) <-The data used to calculate the weighted special 
21education student headcount in clause (2)(i) shall be based on 
22information from the most recent year for which data is 
23available as determined by the Department of Education. The data
24used to calculate the <-remainder of the provisions contained in
25this section shall be averaged for the three (3) most recent
26years for which data is available as determined by the
27Department of Education.

28Section <-4 5. Section 2509.8(e) of the act, added December
2923, 2003 (P.L.304, No.48), is amended and the section is amended
30by adding a subsection to read:

1Section 2509.8. Extraordinary Special Education Program
2Expenses.--* * *

3(e) For the 2003-2004 school year [and each school year
4thereafter] through the 2013-2014 school year, the Department of
5Education shall set aside one percent (1%) of the special
6education appropriation for extraordinary expenses incurred in
7providing a special education program or service to one or more
8students with disabilities as approved by the Secretary of
9Education. Such special education program or service shall
10include, but not be limited to, the transportation of students
11with disabilities; services related to occupational therapy,
12physical therapy, speech and language, hearing impairments or
13visual impairments; or training in orientation and mobility for
14children who are visually impaired or blind.

15(f) (i) For the 2014-2015 school year and each school year 
16thereafter, an amount equal to one percent (1%) of the special 
17education appropriation shall be distributed to school districts 
18and charter schools 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(ii) Funds distributed to a school district or charter
28school under this subsection shall be allocated for students for
29which expenses are incurred on an annual basis that are equal to
30or greater than seventy-five thousand dollars ($75,000) as

1follows:

2(A) For a student for whom expenses are equal to or greater
3than seventy-five thousand dollars ($75,000) and less than or
4equal to one hundred thousand dollars ($100,000), subtract the
5State subsidies paid on behalf of the student <-for special
6education programs and services to the school district or, for a
7student enrolled in a charter school, the <-difference in the
8nonspecial education and special education charter school
9payment received by the charter school where the child is
10enrolled from the expense incurred for the student and multiply
11the difference by the school district's or charter school's
12market value/personal income aid ratio.

13(B) For a student for which expenses are greater than one
14hundred thousand dollars ($100,000), subtract the State
15subsidies paid on behalf of the student <-for special education
16programs and services to the school district or, for a student
17enrolled in a charter school, the <-difference in the nonspecial
18education and special education charter school payment received
19by the charter school where the child is enrolled from the
20expense incurred for the student.

21(iii) No school district or charter school shall in any
22school year receive an amount under subclause (i) which exceeds
23the total amount of funding available multiplied by the
24percentage equal to the greatest percentage of the State's
25special education students enrolled in a school district or
26charter school.

<-27(iv) It is the intent of the General Assembly that funds
28necessary to implement this subsection shall be appropriated as
29a separate line item in the General Appropriation Act entitled
30Extraordinary Cost Fund.

1Section <-5 6. Section 2509.14 of the act, added April 25,
22013 (P.L.12, No.3), is repealed:

3[Section 2509.14. Special Education Funding for Eligible
4Students with Disabilities in Cost Category 3.--(a) For the
52014-2015 school year and each school year thereafter, the
6Department of Education shall set aside an amount not less than
7one percent (1%) of the State special education appropriation
8above the level of the appropriation in the base year. The
9Department of Education shall distribute this amount as provided
10in subsection (b).

11(b) For the 2014-2015 school year and each school year
12thereafter, each school district in this Commonwealth shall
13receive a pro rata share of the amount set aside under
14subsection (a) based upon the number of eligible students
15residing or enrolled in each school district and classified in
16Cost Category 3 during the immediately preceding school year.

17(c) The funding provided under this section shall be 
18accounted for as part of actual special education spending and 
19as part of the special education allocation received by a school 
20district, according to the definitions in section 2501. School 
21districts shall also account for the funding provided under this 
22section and the resulting services and supports for eligible 
23students through the special education plans, revisions, updates 
24and amendments required by section 2509.15.]

25Section <-6 7. This act shall take effect July 1, 2014, or
26immediately, whichever occurs later.