THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WILLIAMS, GREENLEAF, D. WHITE AND FOLMER, JUNE 15, 2010

REFERRED TO EDUCATION, JUNE 15, 2010  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for the Opportunity

Scholarship Act.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

ARTICLE XXV-B

OPPORTUNITY SCHOLARSHIP ACT

Section 2501-B.  Scope of article.

This article deals with education opportunities for low-

income children residing in school districts with at least one

chronically failing school.

Section 2502-B.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Chronically failing school."  A school that fits one of the

following categories:

(1)  Out of all the students a school administered a

State assessment test to, more than 40% of students scored in

the basic or below basic range in both reading and writing

and mathematics subject areas in the two prior school years.

The designation shall continue until the school's percentage

of students in the basic or below basic range for both

reading and writing and mathematics meets or exceeds the

Statewide percentage.

(2)  Out of all the students a school administered a

State assessment test to, more than 65% of students scored in

the basic or below basic range in either reading and writing

and mathematics subject areas in the two prior school years.

The designation shall continue until the school's percentage

of students in the basic or below basic range for both

reading and writing and mathematics meets or exceeds the

Statewide percentage.

"Department."  The Department of Education of the

Commonwealth.

"Eligible school."  A nonpublic school located in this

Commonwealth and offering a program of instruction for

kindergarten through 12th grade, or a combination of grades that

meets the following criteria:

(1)  Is open to all students who are eligible to

participate in the Opportunity Scholarship Program on a

space-available basis.

(2)  Does not discriminate in its admission policies or

practices for scholarship applicants enrolled in a public

school on the date of the scholarship application on the

basis of measures of achievement or aptitude, status as a

handicapped person, proficiency in the English language or

any other basis that would be illegal if used by a school

district.

(3)  Is in full compliance with all Federal, State and

local laws.

"Federal poverty level."  The official Federal poverty level

based on family size, established and adjusted under section

673(2) of Subtitle B of the Community Services Block Grant Act

(Public Law 97-35, 95 Stat. 511).

"Household income."  Income as defined for the purposes of

determining eligibility for a free or reduced-price lunch under

the National School Lunch Program in 42 U.S.C. 1758.

"Household income ratio."  A percentage determined on a

sliding scale with 100% being applicable to household incomes

that are equal to or less than the Federal poverty level and 50%

being applicable to household incomes that are equal to 2.5

times the Federal poverty level.

"Low-income child."  A child from a household with an income

that does not exceed 2.5 times the Federal poverty level for the

school year preceding the school year for which an Opportunity

Scholarship is to be distributed.

Section 2503-B.  Establishment.

Beginning in the first school year following the effective

date of this article, the department shall establish a

scholarship program to provide Opportunity Scholarships to help

low-income children who reside in a district with at least one

school considered a chronically failing school. The scholarship

shall pay tuition to an eligible school for the low-income child

to attend the eligible school.

Section 2504-B.  Amount of scholarship.

(a)    General.--The amount of an Opportunity Scholarship shall

equal the sum of 100% of the Commonwealth's annual per-pupil

school aid funding amount plus 50% of the local municipality's

annual per-pupil school aid funding amount, in each case, with

respect to the school district in which the child resides. Such

amount shall then be multiplied by the child's household income

ratio.

(b)  Reduction.--With respect to any low-income student who

is enrolled in a nonpublic school on the effective date of this

article, the amount of the scholarship in subsection (a) shall

be reduced by 50%. Scholarships for low-income students enrolled

in nonpublic schools on the effective date of this article shall

be payable solely from the Educational Innovation Fund

established in section 2507-B. The aggregate amount of

scholarship funds payable from the Educational Innovation Fund

for any one school year shall not exceed 50% of the fund's

balance as of August 15th of the year in which such school year

commences. In the event that there are insufficient funds in the

Educational Innovation Fund in any year to pay 100% of the

scholarship awards for low-income students who are enrolled in a

nonpublic school on August 15 of the year that the scholarships

are to be received, the scholarship amounts to those students

will be paid pro rata to all eligible students who timely

applied for a scholarship for such academic year.

Section 2505-B.  Department's powers and duties.

(a)    Duties.--The department shall: 

(1)  Administer the Opportunity Scholarship application

process.

(2)  Review and verify the income and residence of a

scholarship applicant.

(3)  Compile an inventory of openings in eligible schools

available for potential scholarship recipients.

(4)  Monitor the enrollment of scholarship students in

eligible schools and allocate scholarship funds to those

schools.

(5)  Prepare a report to be submitted to the Governor by

December 1 of each year that includes at least the following

information for the prior school year:

(i)  The amount of scholarship funds awarded under

the scholarship program.

(ii)  The administrative costs of the scholarship

program.

(iii)  The amount of scholarship funds dispersed on

behalf of scholarship recipients to eligible schools that

are public schools and a listing of those eligible

schools.

(iv)  The amount of scholarship funds dispersed on

behalf of recipients to eligible schools that are

nonpublic schools and a listing of those eligible

schools.

(6)  Ensure that a child enrolled in an eligible school

who received a scholarship under this article in the prior

school year receives a scholarship in each school year of

enrollment under the scholarship program, provided that the

child remains eligible. If a child does not qualify as a low-

income child, that child may continue to receive a partial

scholarship until completing the eighth grade, provided that

the child continues to meet all other eligibility

requirements. The scholarship shall be reduced and the family

shall contribute an amount to be set by the department based

on the family's income.

(b)  Report.--The department shall make the annual report

available to the parents or guardians of scholarship recipients

and to members of the public.

(c)  Schools.--The department shall require that an eligible

school which admits a child receiving an Opportunity

Scholarship:

(1)  In the event that more children apply for admission

under the scholarship program than there are openings at an

eligible school, determine through a lottery which children

are selected for admission, except that preference for

enrollment may be given to siblings of students who are

enrolled in the eligible school. The lottery shall be

conducted by each individual school.

(2)  Not discriminate on any illegal basis. Nothing shall

prohibit an eligible school from limiting admission to a

particular grade level or to areas of concentration of the

eligible school, such as mathematics, science or the arts.

Section 2506-B.  Reduction in amount.

Notwithstanding any other provision to the contrary:

(1)  For each Opportunity Scholarship recipient who was

enrolled in a public school of the district at the time that

the student first received a scholarship under this article,

the amount of Commonwealth school aid paid by the department

to the State school district shall be reduced by an amount

equal to the district's total aid received per student.

(2)  For each scholarship recipient who was enrolled in a

public school of the district at the time that the student

first received a scholarship under this article, the amount

of local school aid paid to the district shall be reduced by

50% and the amount of such reduction shall be paid to the

Commonwealth and used to fund scholarship programs and

grants.

Section 2507-B.  Educational Innovation Fund and Educational

Innovation Program.

(a)    Establishment.--There is established in the department a

fund entitled the Educational Innovation Fund. The fund shall be

credited with the amount of any per-pupil Commonwealth or local

school aid reduction made pursuant to section 2506-B that is in

excess of the applicable scholarship awarded to a recipient who

was enrolled in a public school of the district at the time that

the student first received a scholarship. All interest or other

income or earnings derived from the investment or reinvestment

of moneys in the fund shall be credited to the fund.

(b)    Program.--The department shall establish an Educational

Innovation Program. This program shall award competitive grants

to chronically failing schools to finance the adoption of

innovative educational practices with the objective of improving

student performance. The department shall have the exclusive

authority to determine all aspects of the competitive grants.

The grants shall be funded by moneys on deposit in the

Educational Innovation Fund. The department shall develop an

application process to select the chronically failing schools

which will receive an innovation grant. The application shall be

prepared and submitted by the superintendent of the district in

which the chronically failing school is located. The application

shall include at least the following information:

(1)  A description of the innovative programs or

practices which would be implemented in the chronically

failing schools.

(2)  A budget proposal for the use of any grant award.

(3)  A list of program objectives and a description of

how the district will assess the program's implementation and

outcomes.

(4)  A superintendent may submit a grant application that

does not include all chronically failing schools in the

district.

Section 2.  This act shall take effect immediately.