PRINTER'S NO. 1484
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1198
Session of
2017
INTRODUCED BY CARROLL, SCHLOSSBERG, SCHWEYER, SNYDER, HAGGERTY,
D. COSTA, ROEBUCK, KAVULICH, CALTAGIRONE, MULLERY, MILLARD,
SOLOMON, LONGIETTI, DeLUCA, IRVIN, STURLA, McCARTER AND
DONATUCCI, APRIL 19, 2017
REFERRED TO COMMITTEE ON EDUCATION, APRIL 19, 2017
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," in school finances, providing for
limitations on certain unassigned fund balance limits for a
charter school entity.
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 a
section to read:
Section 688.1. Limitations on Certain Unassigned Fund
Balance Limits for a Charter School Entity.--(a) Fund balance
limits shall be as follows:
(1) For the 2017-2018 school year and each school year
thereafter, a charter school entity shall not accumulate an
unassigned fund balance greater than the charter school entity
unassigned fund balance limit, which is determined as follows:
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Charter School Entity
Total Budgeted Expenditures
Maximum Unassigned Fund
Balance as Percentage of
Total Budgeted Expenditures
Less than or equal to
$11,999,999 12%
Between $12,000,000 and
$12,999,999 11.5%
Between $13,000,000 and
$13,999,999 11%
Between $14,000,000 and
$14,999,999 10.5%
Between $15,000,000 and
$15,999,999 10%
Between $16,000,000 and
$16,999,999 9.5%
Between $17,000,000 and
$17,999,999 9%
Between $18,000,000 and
$18,999,999 8.5%
Greater Than or Equal to
$19,000,000 8%
(2) For the 2017-2018 school year and each school year
thereafter, the unassigned fund balance in place on June 30,
2018, and on June 30 of each year thereafter, in excess of the
charter school entity unassigned fund balance limit, shall be
refunded on a pro rata basis within ninety (90) days to all
school districts that paid tuition to the charter school entity
in the prior school year, based on the number of students for
whom each school district paid tuition to the charter school
entity multiplied by the school district's per student payment
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under section 1725-A.
(3) By October 31, 2018, and by October 31 of each year
thereafter, each charter school entity shall provide the
Department of Education and all school districts that paid
tuition to the charter school entity in the prior school year
with information certifying compliance with this section. The
information shall be provided in a form and manner prescribed by
the department and shall include information on the charter
school entity's estimated ending unassigned fund balance
expressed as a dollar amount and as a percentage of the charter
school entity's total budgeted expenditures for that school
year.
(4) Unassigned funds of a charter school entity in excess of
the unassigned fund balance limit may not be used to pay a bonus
to an administrator, board of trustees member, employe, staff
member or contractor and may not be transferred to a charter
school foundation. If a charter school entity uses funds in
excess of the unassigned fund balance limit to pay bonuses or as
a fund transfer, the value of that amount shall be refunded on a
pro rata basis to all school districts that paid tuition to the
charter school entity in the prior school year, based upon the
number of students for whom each school district paid tuition to
the charter school entity multiplied by the school district's
per student payment under section 1725-A.
(b) As used in this section, "unassigned fund balance" shall
mean the portion of the fund balance of a charter school entity
that provides funding which serves to support the charter school
entity and is:
(1) Available for expenditure and not legally or otherwise
segregated for a specific or tentative future use.
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(2) Held in the General Fund accounts of the charter school
entity.
Section 2. This act shall take effect in 60 days.
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