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                                                      PRINTER'S NO. 1601

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1292 Session of 2003


        INTRODUCED BY ROEBUCK, MAY 5, 2003

        REFERRED TO COMMITTEE ON EDUCATION, MAY 5, 2003

                                     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 small district
     6     assistance, for payments to intermediate units, for special
     7     education payments to school districts; providing for basic
     8     education funding; and making appropriations.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Section 2502.13 of the act of March 10, 1949
    12  (P.L.30, No.14), known as the Public School Code of 1949,
    13  amended June 29, 2002 (P.L.524, No.88), is amended to read:
    14     Section 2502.13.  Small District Assistance.--For the 1984-
    15  1985 and 1985-1986 school years, the Commonwealth shall pay to
    16  each school district which has an average daily membership of
    17  one thousand five hundred (1,500) or less and has a market
    18  value/income aid ratio of five thousand ten-thousandths (0.5000)
    19  or greater, an amount equal to fifty dollars ($50) multiplied by
    20  that district's average daily membership. For the 1985-1986


     1  school year, no school district shall receive less on account of
     2  this section than it did for the 1984-1985 school year. For the
     3  school year 1986-1987, the Commonwealth shall pay to each school
     4  district which has an average daily membership of one thousand
     5  five hundred (1,500) or less and has a market value/income aid
     6  ratio of five thousand ten-thousandths (0.5000) or greater, or
     7  received payments under this section for the 1985-1986 school
     8  year, an amount equal to seventy-five dollars ($75) multiplied
     9  by that district's average daily membership. For the school year
    10  1987-1988, the Commonwealth shall pay to each school district
    11  which has an average daily membership of one thousand five
    12  hundred (1,500) or less and a market value/income aid ratio of
    13  five thousand ten-thousandths (0.5000) or greater, or received
    14  payments under this section for the 1986-1987 school year, an
    15  amount equal to eighty-five dollars ($85) multiplied by that
    16  district's average daily membership. For the school year 1988-
    17  1989, the Commonwealth shall pay to each school district which
    18  has an average daily membership of one thousand five hundred
    19  (1,500) or less and a market value/income aid ratio of five
    20  thousand ten thousandths (0.5000) or greater, or received
    21  payments under this section for the 1987-1988 or 1988-1989
    22  school year, an amount equal to one hundred five dollars ($105).
    23  For the school year 1989-1990, the Commonwealth shall pay to
    24  each school district which has an average daily membership of
    25  one thousand five hundred (1,500) or less and a market
    26  value/income aid ratio of five thousand ten-thousandths (0.5000)
    27  or greater, or received payments under this section for the
    28  1987-1988 school year, an amount equal to one hundred fifteen
    29  dollars ($115) multiplied by the district's average daily
    30  membership as provided for in section 212 of the act of July 1,
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     1  1990 (P.L.1591, No.7A), known as the "General Appropriation Act
     2  of 1990." For the school year 1990-1991, the Commonwealth shall
     3  pay to each school district which has an average daily
     4  membership of one thousand five hundred (1,500) or less and a
     5  market value/income aid ratio of five thousand ten-thousandths
     6  (0.5000) or greater, or received payments under this section for
     7  the prior school year, an amount equal to one hundred seventy
     8  dollars ($170) multiplied by that district's average daily
     9  membership. For the school year 1990-1991, each school district
    10  with a population per square mile of less than ninety (90),
    11  which otherwise meets the average daily membership and market
    12  value/income aid ratio requirements of this section, or received
    13  payments under this section for the prior school year, shall
    14  instead receive an amount equal to one hundred ninety dollars
    15  ($190) multiplied by that district's average daily membership.
    16  For the 1987-1988 school year through the 1990-1991 school year,
    17  no school district shall receive less on account of this section
    18  than it did for the prior school year. For the school year 1994-
    19  1995, the Commonwealth shall pay to each school district which
    20  has an average daily membership of one thousand five hundred
    21  (1,500) or less and a market value/income aid ratio of five
    22  thousand ten-thousandths (0.5000) or greater, an amount equal to
    23  ninety five dollars ($95) multiplied by that district's average
    24  daily membership. For each of the school years 1997-1998 through
    25  1999-2000, the Commonwealth shall pay to each school district
    26  which has an average daily membership of one thousand five
    27  hundred (1,500) or less and a market value/income aid ratio of
    28  five thousand ten-thousandths (0.5000) or greater an amount
    29  equal to seventy-five dollars ($75) multiplied by that
    30  district's average daily membership. For the school years 2000-
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     1  2001 and 2001-2002, the Commonwealth shall pay to each school
     2  district which has an average daily membership of one thousand
     3  five hundred (1,500) or less an amount equal to seventy-five
     4  dollars ($75) multiplied by that district's average daily
     5  membership. For school year 2002-2003, the Commonwealth shall
     6  pay to each school district which has a modified average daily
     7  membership of one thousand (1,000) or less an amount equal to
     8  five thousand four hundred ninety dollars ($5,490) times twenty
     9  percent (20%) of the school district's modified average daily
    10  membership times its market value/income aid ratio. For the
    11  purposes of this section, modified average daily membership is
    12  calculated by subtracting the product of one-half (0.5) times
    13  the sum of the half-time and full-time kindergarten average
    14  daily membership from the school district's average daily
    15  membership.
    16     Section 2.  The act is amended by adding a section to read:
    17     Section 2502.42.  Basic Education Funding for 2002-2003
    18  School Year.--(a)  For the 2002-2003 school year, the
    19  Commonwealth shall calculate an amount for each school district
    20  which will be used for property tax reduction in 2003-2004
    21  pursuant to Article VI-A, except that in school districts of the
    22  first class the amount will be used for resident and nonresident
    23  wage tax reduction in 2003-2004. The amount available for tax
    24  reduction in each school district will equal the foundation
    25  funding, adjusted for minimum and maximum property tax reduction
    26  percentages, minus the basic education funding allocation for
    27  the 2001-2002 school year pursuant to sections 2502.13 and
    28  2502.40. The amount of funds identified for property tax and
    29  wage tax reduction shall be placed in the Property Tax Relief
    30  Trust Fund. The foundation funding shall consist of:
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     1     (1)  A base supplement calculated by multiplying the
     2  foundation grant amount of five thousand four hundred ninety
     3  dollars ($5,490) times the school district's 2002-2003 modified
     4  average daily membership times its 2003-2004 market value/income
     5  aid ratio. The modified average daily membership is calculated
     6  by subtracting one-half (0.5) times the sum of the half-time and
     7  full-time kindergarten average daily membership from the school
     8  district's average daily membership.
     9     (2)  A limited English proficiency supplement calculated by
    10  multiplying the foundation grant amount of five thousand four
    11  hundred ninety dollars ($5,490) times twenty-five percent (25%)
    12  of the school district's 2002-2003 modified average daily
    13  membership times its 2003-2004 market value/income aid ratio.
    14     (3)  A poverty supplement calculated for qualifying school
    15  districts as follows:
    16     (i)  If its 2001 personal income per modified average daily
    17  membership is equal to or less than eighty-five thousand dollars
    18  ($85,000), multiply six hundred fifteen dollars ($615) times its
    19  modified average daily membership.
    20     (ii)  If its 2001 personal income per modified average daily
    21  membership is greater than eighty-five thousand dollars
    22  ($85,000) and equal to or less than one hundred thousand dollars
    23  ($100,000), multiply one hundred fifty dollars ($150) times its
    24  modified average daily membership.
    25     (iii)  If its 2001 personal income per modified average daily
    26  membership is greater than one hundred thousand dollars
    27  ($100,000) and equal to or less than one hundred fifteen
    28  thousand dollars ($115,000), multiply seventy-five dollars ($75)
    29  times its modified average daily membership.
    30     (4)  An amount as necessary so that the sum of the amounts
    20030H1292B1601                  - 5 -     

     1  under section 2502.13 and clauses (1), (2) and (3) and this
     2  clause will equal the amount received in its 2001-2002 basic
     3  education funding allocation pursuant to sections 2502.13 and
     4  2502.40.
     5     (b)  Adjustments for minimum and maximum property tax
     6  reductions pursuant to Article VI-A shall be calculated as
     7  follows:
     8     (1)  If the school district's 2003-2004 market value/income
     9  aid ratio is equal to or greater than four thousand five hundred
    10  ten thousandths (0.4500) an amount will be provided as necessary
    11  such that the amount available for property tax reduction is not
    12  less than thirty percent (30%) of the property taxes. For the
    13  purpose of this section, the property taxes will be calculated
    14  by reducing the total property tax amount as reported by the
    15  school district on its 2001-2002 annual financial report by an
    16  amount equal to the percent of assessed valuations attributable
    17  to industrial and commercial properties as certified by the
    18  State Tax Equalization Board.
    19     (2)  If the school district's 2003-2004 market value/income
    20  aid ratio is less than four thousand five hundred ten
    21  thousandths (0.4500) an amount will be provided as necessary
    22  such that the amount available for property tax reduction is not
    23  less than fifteen percent (15%) of the property taxes.
    24     (3)  If the amount available for property tax reduction is
    25  greater than sixty percent (60%) of the property taxes, the
    26  amount available will be adjusted so that the property tax
    27  reduction equals sixty percent (60%).
    28     (c)  For the 2002-2003 school year, the Commonwealth shall
    29  pay to each school district a basic education funding allocation
    30  which consists of the following:
    20030H1292B1601                  - 6 -     

     1     (1)  An amount determined by adding subsection (a)(1) and (2)
     2  and subtracting the amount designated for the Property Tax
     3  Relief Trust Fund.
     4     (2)  A pro rata share of one hundred two million dollars
     5  ($102,000,000) calculated as follows:
     6     (i)  Multiply the school district's 2003-2004 market
     7  value/income aid ratio by its 2002-2003 average daily
     8  membership.
     9     (ii)  Multiply the product of subclause (i) by one hundred
    10  two million dollars ($102,000,000).
    11     (iii)  Divide the product from subclause (ii) by the sum of
    12  the products for the market value/aid ratio multiplied by the
    13  2002-2003 average daily membership for all school districts.
    14     Section 3.  Sections 2509.1 and 2509.5 of the act are amended
    15  by adding subsections to read:
    16     Section 2509.1.  Payments to Intermediate Units.--* * *
    17     (b.11)  Up to nine million five hundred thousand dollars
    18  ($9,500,000) may be utilized for programs administered and
    19  operated by intermediate units during the 2003-2004 school year
    20  for institutionalized children as established in subsection
    21  (b.1).
    22     * * *
    23     Section 2509.5.  Special Education Payments to School
    24  Districts.--* * *
    25     (ll)  During the 2003-2004 school year, each school district
    26  shall be paid the amount it received during the 2002-2003 school
    27  year under subsection (kk).
    28     (mm)  During the 2003-2004 school year, nineteen million two
    29  hundred and seventy-one thousand dollars ($19,271,000) of the
    30  funds appropriated to the Department of Education for special
    20030H1292B1601                  - 7 -     

     1  education shall be used to provide supplemental funding for
     2  special education to all school districts. The supplemental
     3  funding shall be calculated as follows: multiply each school
     4  district's 2003-2004 market value/income aid ratio by sixteen
     5  percent (16%) of its 2002-2003 average daily membership and
     6  multiply this product by nineteen million two hundred and
     7  seventy-one thousand dollars ($19,271,000) and divide the
     8  resultant product by the sum of the products of the 2003-2004
     9  market value/income aid ratio multiplied by sixteen percent
    10  (16%) of the 2002-2003 average daily membership for all school
    11  districts.
    12     Section 4.  The sum of $25,625,000 is hereby appropriated
    13  from the General Fund to school districts of the first class for
    14  the fiscal period July 1, 2003, through June 30, 2004.
    15     Section 5.  The sum of $56,762,000 is hereby appropriated
    16  from the General Fund for vocational-technical education for the
    17  fiscal period July 1, 2003, through June 30, 2004. This amount
    18  shall replace the appropriation contained in the act of March
    19  20, 2003 (P.L.   , No.1A), known as the General Appropriation
    20  Act of 2003. Any money which has been appropriated and expended
    21  under that act shall be deducted from this appropriation.
    22     Section 6.  The sum of $4,188,326,000 is hereby appropriated
    23  from the General Fund for basic education funding for the fiscal
    24  period July 1, 2003, through June 30, 2004.
    25     Section 7.  The sum of $896,177,000 is hereby appropriated
    26  from the General Fund for special education for the fiscal
    27  period July 1, 2003, through June 30, 2004. This amount shall
    28  replace the similar appropriation contained in the act of March
    29  20, 2003 (P.L.  , No.1A), known as the General Appropriation Act
    30  of 2003. Any money which has been appropriated and expended
    20030H1292B1601                  - 8 -     

     1  under that act shall be deducted from this appropriation.
     2     Section 8.  This act shall take effect immediately.



















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