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                                                      PRINTER'S NO. 3911

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2593 Session of 2006


        INTRODUCED BY ROEBUCK, BELARDI, BELFANTI, BLACKWELL,
           CALTAGIRONE, DALEY, DeWEESE, FREEMAN, GEORGE, GRUCELA, JAMES,
           JOSEPHS, KOTIK, LEACH, LEVDANSKY, MANDERINO, MARKOSEK,
           MICOZZIE, PARKER, PISTELLA, READSHAW, SIPTROTH, SOLOBAY,
           STURLA, SURRA, TANGRETTI, THOMAS, WALKO, YOUNGBLOOD AND
           YUDICHAK, APRIL 24, 2006

        REFERRED TO COMMITTEE ON EDUCATION, APRIL 24, 2006

                                     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," providing for the definition of
     6     "adjusted current expenditure per average daily membership";
     7     further providing for small district assistance; providing
     8     for basic education funding for 2005-2006 school year; and
     9     further providing for payments on account of limited English
    10     proficiency programs.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 2501 of the act of March 10, 1949
    14  (P.L.30, No.14), known as the Public School Code of 1949, is
    15  amended by adding a clause to read:
    16     Section 2501.  Definitions.--For the purposes of this article
    17  the following terms shall have the following meanings:
    18     * * *
    19     (25)  "Adjusted Current Expenditure per Average Daily
    20  Membership."  An amount equal to a school district's current

     1  expenditures for a school year, as defined in clause (24), minus
     2  the revenue account tuition for patrons, as designated in the
     3  Manual of Accounting and Related Financial Procedures for
     4  Pennsylvania School Systems, divided by the average daily
     5  membership of the school district for the same school year.
     6     Section 2.  Section 2502.13 of the act is amended by adding a
     7  subsection to read:
     8     Section 2502.13.  Small District Assistance.--* * *
     9     (l)  For the school year 2005-2006, the Commonwealth shall
    10  pay small district assistance to each qualifying school district
    11  calculated as follows:
    12     (1)  To qualify for small district assistance, a school
    13  district's 2005-2006 average daily membership must be equal to
    14  or less than one thousand five hundred (1,500) and its market
    15  value/income aid ratio must be equal to or greater than five
    16  thousand three hundred ten-thousandths (.5300).
    17     (2)  Small district assistance shall be calculated for
    18  qualifying school districts as follows:
    19     (i)  Multiply the school district's 2006-2007 market value/
    20  income aid ratio by its 2005-2006 average daily membership.
    21     (ii)  Multiply the product from subclause (i) by fifty
    22  dollars ($50).
    23     Section 3.  The act is amended by adding a section to read:
    24     Section 2502.45.  Basic Education Funding for 2005-2006
    25  School Year.--For the 2005-2006 school year, the Commonwealth
    26  shall pay to each school district a basic education funding
    27  allocation which shall consist of the following:
    28     (1)  An amount equal to the basic education funding
    29  allocation for the 2004-2005 school year pursuant to sections
    30  2502.13, 2502.44 and 2504.4.
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     1     (2)  A base supplement calculated as follows:
     2     (i)  If the school district's market value/income aid ratio
     3  is equal to or greater than seven thousand three hundred
     4  seventy-one ten-thousandths (.7371):
     5     (A)  Multiply the school district's 2006-2007 market
     6  value/income aid ratio by its 2005-2006 average daily
     7  membership.
     8     (B)  Multiply the product from clause (A) by ten million
     9  seven hundred thousand dollars ($10,700,000).
    10     (C)  Divide the product from clause (B) by the sum of the
    11  products of the 2006-2007 market value/income aid ratio
    12  multiplied by the 2005-2006 average daily membership for all
    13  qualifying school districts.
    14     (ii)  If the school district's market value/income aid ratio
    15  is equal to or greater than six thousand five hundred ninety-
    16  five ten-thousandths (.6595) and less than seven thousand three
    17  hundred seventy-one ten-thousandths (.7371):
    18     (A)  Multiply the school district's 2006-2007 market
    19  value/income aid ratio by its 2005-2006 average daily
    20  membership.
    21     (B)  Multiply the product from clause (A) by thirty-five
    22  million nine hundred fifty thousand dollars ($35,950,000).
    23     (C)  Divide the product from clause (B) by the sum of the
    24  products of the 2006-2007 market value/income aid ratio
    25  multiplied by the 2005-2006 average daily membership for all
    26  qualifying school districts.
    27     (iii)  If the school district's market value/income aid ratio
    28  is equal to or greater than five thousand eight hundred sixty-
    29  three ten-thousandths (.5863) and less than six thousand five
    30  hundred ninety-five ten-thousandths (.6595):
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     1     (A)  Multiply the school district's 2006-2007 market
     2  value/income aid ratio by its 2005-2006 average daily
     3  membership.
     4     (B)  Multiply the product from clause (A) by thirteen million
     5  three hundred thousand dollars ($13,300,000).
     6     (C)  Divide the product from clause (B) by the sum of the
     7  products of the 2006-2007 market value/income aid ratio
     8  multiplied by the 2005-2006 average daily membership for all
     9  qualifying school districts.
    10     (iv)  If the school district's market value/income aid ratio
    11  is equal to or greater than four thousand forty-four ten-
    12  thousandths (.4044) and less than five thousand eight hundred
    13  sixty-three ten-thousandths (.5863):
    14     (A)  Multiply the school district's 2006-2007 market
    15  value/income aid ratio by its 2005-2006 average daily
    16  membership.
    17     (B)  Multiply the product from clause (A) by fifteen million
    18  six hundred thousand dollars ($15,600,000).
    19     (C)  Divide the product from clause (B) by the sum of the
    20  products of the 2006-2007 market value/income aid ratio
    21  multiplied by the 2005-2006 average daily membership for all
    22  qualifying school districts.
    23     (v)  If the school district's market value/income aid ratio
    24  is less than four thousand forty-four ten-thousandths (.4044):
    25     (A)  Multiply the school district's 2006-2007 market
    26  value/income aid ratio by its 2005-2006 average daily
    27  membership.
    28     (B)  Multiply the product from clause (A) by four million
    29  five hundred thousand dollars ($4,500,000).
    30     (C)  Divide the product from clause (B) by the sum of the
    20060H2593B3911                  - 4 -     

     1  products of the 2006-2007 market value/income aid ratio
     2  multiplied by the 2005-2006 average daily membership for all
     3  qualifying school districts.
     4     (3)  A poverty supplement calculated for qualifying school
     5  districts as follows:
     6     (i)  To qualify for the poverty supplement, a school
     7  district's 2004 personal income valuation when divided by its
     8  2005-2006 average daily membership must be equal to or less than
     9  ninety-one thousand dollars ($91,000).
    10     (ii)  The poverty supplement shall be calculated for
    11  qualifying school districts as follows:
    12     (A)  Multiply the school district's 2005-2006 average daily
    13  membership by fifty-five million dollars ($55,000,000).
    14     (B)  Divide the product from clause (A) by the sum of the
    15  2005-2006 average daily membership for all qualifying school
    16  districts.
    17     (4)  A foundation supplement calculated for qualifying school
    18  districts as follows:
    19     (i)  To qualify for the foundation supplement, a school
    20  district's 2004-2005 adjusted current expenditures per average
    21  daily membership must be less than the 2003-2004 median current
    22  expenditures per average daily membership increased by three and
    23  nine-tenths percent (3.9%) and its 2004-2005 equalized millage
    24  must be greater than or equal to 17.2.
    25     (ii)  The foundation supplement shall be calculated for
    26  qualifying school districts as follows:
    27     (A)  Multiply the school district's 2006-2007 market
    28  value/income aid ratio by its 2005-2006 average daily
    29  membership.
    30     (B)  Multiply the product in clause (A) by the lesser of:
    20060H2593B3911                  - 5 -     

     1     (I)  five hundred dollars ($500), or if its 2004-2005
     2  equalized millage is equal to or greater than 28.3 and its 2006-
     3  2007 market value/income aid ratio is equal to or greater than
     4  seven thousand five hundred sixty three ten-thousandths (.7563),
     5  eight hundred fifty dollars ($850); or
     6     (II)  the difference between the value of the 2003-2004
     7  median current expenditures per average daily membership
     8  increased by three and nine-tenths percent (3.9%) and the school
     9  district's 2004-2005 adjusted current expenditures per average
    10  daily membership; or
    11     (III)  if the school district's 2004-2005 equalized mills is
    12  less than twenty (20.0), the product of the lesser of the amount
    13  in clause (B)(I) or (II) and the quotient of its 2004-2005
    14  equalized mills divided by twenty (20.0).
    15     (C)  Multiply the product from clause (B) by forty-four
    16  million dollars ($44,000,000).
    17     (D)  Divide the product from clause (C) by the sum of the
    18  products from clause (B).
    19     (iii)  If a qualifying school district's equalized millage is
    20  equal to or greater than twenty-three and eight-tenths (23.8),
    21  it shall receive an additional payment calculated as follows:
    22     (A)  Multiply the product from subparagraph (ii)(B) by twenty
    23  million dollars ($20,000,000).
    24     (B)  Divide the product from clause (A) by the sum of the
    25  products from subparagraph (ii)(B) for qualifying school
    26  districts.
    27     (5)  A growth supplement shall be calculated for qualifying
    28  school districts as follows:
    29     (i)  To qualify for the growth supplement, a school
    30  district's average daily membership must have increased by at
    20060H2593B3911                  - 6 -     

     1  least two percent (2.0%) between the 2002-2003 and 2004-2005
     2  school years, its 2004-2005 local school tax revenue divided by
     3  its 2004-2005 average daily membership must be less than its
     4  2002-2003 local school tax revenue divided by its 2002-2003
     5  average daily membership, and its 2006-2007 market value/income
     6  aid ratio must be equal to or greater than five thousand eight
     7  hundred sixty-three ten-thousandths (.5863).
     8     (ii)  The growth supplement shall be calculated for
     9  qualifying school districts as follows:
    10     (A)  Multiply the school district's 2006-2007 market
    11  value/income aid ratio by its 2005-2006 average daily
    12  membership.
    13     (B)  Multiply the product from clause (A) by five hundred
    14  thousand dollars ($500,000).
    15     (C)  Divide the product from clause (B) by the sum of the
    16  products from clause (A).
    17     (6)  Each school district shall receive an inflation index
    18  supplement as necessary so that the sum of the amounts under
    19  section 2502.13, paragraphs (2), (3), (4) and (5) and this
    20  paragraph equal three and nine-tenths percent (3.9%) multiplied
    21  by its 2006-2007 market value/income aid ratio of the amount in
    22  paragraph (1).
    23     (7)  Each school district shall receive additional funding as
    24  necessary so that the sum of the amounts under section 2502.13,
    25  paragraphs (2), (3), (4), (5) and (6) and this paragraph shall
    26  equal at least two percent (2.0%) of the amount in paragraph
    27  (1).
    28     Section 4.  Section 2504.4 of the act is amended by adding a
    29  subsection to read:
    30     Section 2504.4.  Payments on Account of Limited English
    20060H2593B3911                  - 7 -     

     1  Proficiency Programs.--* * *
     2     (a.2)  To qualify for limited English proficiency payments
     3  under this section, a school district's 2006-2007 market
     4  value/income aid ratio must be equal to or greater than three
     5  thousand five hundred ten-thousandths (.3500) and the number of
     6  enrolled students identified as limited English proficient in
     7  the 2004-2005 school year must be equal to or greater than two
     8  and one-half percent (2.5%) of the school district's 2004-2005
     9  average daily membership. The allocation under this section
    10  shall be paid in fiscal year 2006-2007 out of the appropriation
    11  for basic education funding and calculated for qualifying school
    12  districts as follows:
    13     (1)  Multiply the number of enrolled students identified as
    14  limited English proficient in the 2004-2005 school year by ten
    15  million dollars ($10,000,000).
    16     (2)  Divide the product from paragraph (1) by the sum of
    17  enrolled students identified as limited English proficient for
    18  all qualifying school districts.
    19     Section 5.  This act shall take effect in 60 days.








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