PRINTER'S NO. 1280

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1155 Session of 1981


        INTRODUCED BY ROCKS, SALVATORE, WESTON, PERZEL AND WOGAN,
           APRIL 7, 1981

        REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 7, 1981

                                     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," transferring the finance, budget,
     6     taxation and fiscal policy decisions and functions related
     7     thereto of school districts of the first class to other
     8     municipal officials, providing for certain preaudit
     9     functions, recommending that the superintendent of a school
    10     district of the first class be a member of the mayor's
    11     cabinet, and making repeals.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The definition of "Board of school directors" in
    15  section 102, act of March 10, 1949 (P.L.30, No.14), known as the
    16  "Public School Code of 1949," amended January 14, 1970 (1969,
    17  P.L.468, No.192), is amended to read:
    18     Section 102.  Definitions.--When used in this act the
    19  following words and phrases shall have the following meanings:
    20     (1)  "Board of school directors" shall include the board of
    21  [public] education in school districts of the first class,
    22  except where specifically limited to school districts of other

     1  classes.
     2     * * *
     3     Section 2.  Section 201 of the act, amended October 21, 1965
     4  (P.L.601, No.312), is amended to read:
     5     Section 201.  How Constituted.--All school districts shall
     6  remain as now constituted until changed as authorized by this
     7  act. Except as otherwise now or hereafter constituted, each
     8  city, incorporated town, borough, or township in this
     9  Commonwealth, now existing or hereafter created, shall
    10  constitute a separate school district, to be designated and
    11  known as the "School District of .... ........................:"
    12  Provided, That notwithstanding any other provision of this act,
    13  a school district of the first class shall be coterminous with
    14  the municipality from which it was formed: And, provided
    15  further, That where any city, incorporated town, borough, or
    16  township, or a part of the school district remaining after its
    17  separation would constitute a third or fourth class school
    18  district, it shall remain a part of the school district to which
    19  it formerly belonged until the change to a new school district
    20  is approved by the Council of Basic Education, as hereinafter
    21  provided.
    22     Section 3.  Section 229 of the act, amended May 13, 1949
    23  (P.L.1332, No.397), is amended to read:
    24     Section 229.  Annexation to District of First Class A.--
    25  Whenever hereafter the territory comprising a school district of
    26  the second, third, or fourth class is annexed to a city
    27  comprising a school district of the [first class or of the]
    28  first class A, the annexed school district shall immediately
    29  become merged in and become a part of said school district of
    30  the [first class or of the] first class A.
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     1     Section 4.  Subsection (a) of section 302 of the act, amended
     2  June 2, 1965 (P.L.86, No.59), is amended to read:
     3     Section 302.  Number and Appointment in Districts [First
     4  Class and] First Class A; Reorganized District of First Class A
     5  Containing Former Districts of Second, Third or Fourth Class:
     6  Terms of Office.--(a)  In each school district of the [first
     7  class or of the] first class A, the board shall be known as the
     8  "Board of Public Education," and shall consist of fifteen (15)
     9  school directors, whose term of office shall be six (6) years.
    10  The terms of five of the members shall expire on the second
    11  Monday of November of each odd numbered year, as now provided by
    12  law. The judges of the courts of common pleas of the county in
    13  which such school district is situated shall, in October of
    14  every odd numbered year, appoint five (5) members for terms of
    15  six (6) years. Their term of office shall begin on the second
    16  Monday of November next following their appointment.
    17     * * *
    18     Section 5.  Section 315 of the act, amended November 28, 1973
    19  (P.L.361, No.127), is amended to read:
    20     Section 315.  Filling of Vacancies.--In case any vacancy
    21  shall occur in any board of school directors by reason of death,
    22  resignation, removal from the district, or otherwise, such
    23  vacancy shall, in a school district of the [first class or of
    24  the] first class A, be filled for the unexpired term by the
    25  court of common pleas of the county in which such school
    26  district is situated from the qualified electors of the
    27  district; and in a school district of the second, third, or
    28  fourth classes, the remaining members of the board of school
    29  directors shall, by a majority vote thereof, fill such vacancy
    30  from the qualified electors of the district within thirty (30)
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     1  days thereafter. In a district of the second, third, or fourth
     2  class, the person selected to fill such vacancy shall be a
     3  qualified elector of the district and shall hold his office, if
     4  the term thereof so long continues, until the first Monday of
     5  December after the first municipal election occurring more than
     6  sixty (60) days after his appointment. At such election an
     7  eligible person shall be elected for the remainder of the
     8  unexpired term. If, by reason of a tie vote or otherwise, such
     9  vacancy shall not have been filled by the board of school
    10  directors within thirty (30) days after such vacancy shall have
    11  occurred from the qualified electors of the district, the court
    12  of common pleas of the proper county, upon the petition of ten
    13  or more resident taxpayers, shall fill such vacancy by the
    14  appointment of a suitable person from the qualified electors of
    15  the district if the term of the vacant office so long continues,
    16  until the first Monday of December after the first municipal
    17  election occurring more than sixty (60) days after his
    18  appointment. At such election an eligible person shall be
    19  elected for the remainder of the unexpired term. When any member
    20  of a board of school directors heretofore or hereafter enlists
    21  or is inducted into the military or naval forces of the United
    22  States in time of war, a temporary vacancy shall be declared,
    23  which shall be filled by the remaining members of the board or
    24  the court, as the case may be from the qualified electors of the
    25  district, until the return of such member of the board from the
    26  military or naval service, or until the expiration of the term
    27  for which he shall have been elected, whichever shall be the
    28  shorter period.
    29     Section 6.  Subsection (a) of section 401 of the act is
    30  repealed.
    19810H1155B1280                  - 4 -

     1     Section 7.  Section 402 of the act is amended to read:
     2     Section 402.  Notice of Organization Meetings; Temporary
     3  Officers; etc.--All members of the board of school directors in
     4  every school district, other than a school district of the first
     5  class, shall be given five days' notice, by mail, by the
     6  secretary of the retiring board, of the time and place of
     7  meeting for organization, at which time and place, if a majority
     8  are present, an organization shall be effected as follows: [In
     9  districts of the first class there shall be elected from the
    10  hold-over members a temporary president and secretary; and in
    11  all other school districts] there shall be elected from the
    12  hold-over members a temporary president, and the secretary of
    13  the board shall act as secretary of such meeting. The
    14  certificates of the election or appointment of all new school
    15  directors shall be read, and a list of the legally elected or
    16  appointed and qualified school directors prepared. If any of the
    17  members have not taken and subscribed to the oath of office
    18  required by this act, the same may be administered to them by
    19  the temporary president.
    20     Section 8.  Section 403 of the act, amended June 2, 1965
    21  (P.L.86, No.59), is amended to read:
    22     Section 403.  Districts [First Class and] First Class A
    23  Permanent Organization; Election of Officers.--In all school
    24  districts of the [first class or] first class A, the school
    25  directors shall effect a permanent organization by electing a
    26  president and vice-president from their members, and a secretary
    27  who is not a member. They shall elect the treasurer of the city
    28  constituting all or the greater part of such school district of
    29  the [first class or] first class A as the school treasurer for
    30  such school district for the ensuing fiscal year.
    19810H1155B1280                  - 5 -

     1     The school treasurer of each school district of the [first
     2  class or] first class A may recommend to the board of public
     3  education for appointment, a deputy school treasurer. The board
     4  of public education shall appoint as deputy school treasurer the
     5  candidate recommended by the school treasurer, who, in case of
     6  death, resignation, or inability of the school treasurer to act,
     7  for any cause whatsoever, shall have the same powers and shall
     8  perform the same duties as imposed by law on the school
     9  treasurer. In case the school treasurer does not recommend to
    10  the board of public education for appointment a deputy school
    11  treasurer, the board of public education may elect a deputy
    12  school treasurer who shall serve until such time as the school
    13  treasurer recommends to the board of public education the
    14  appointment of a deputy school treasurer. The salary of the
    15  deputy school treasurer shall be fixed by the board of public
    16  education. He shall furnish bond in the sum of ten thousand
    17  dollars ($10,000).
    18     Section 9.  Section 439 of the act is amended to read:
    19     Section 439.  Receipt and Payment of School Funds.--The
    20  treasurer of each school district, other than a school district
    21  of the first class, shall receive all State appropriations,
    22  district school taxes, and other funds belonging to the school
    23  district, and make payments out of the same on proper orders
    24  approved by the board of school directors, signed[, except in
    25  districts of the first class,] by the president[, and, in any
    26  school district of the first class by the secretary]. The
    27  treasurer may pay out such funds on orders which have been
    28  prepared and [signed by the secretary, and in school districts
    29  other than in school districts of the first class,] signed by
    30  the president, without the approval of the board first having
    19810H1155B1280                  - 6 -

     1  been secured, for the payment of amounts owing under any
     2  contracts which shall previously have been approved by the
     3  board, and by the prompt payment of which the district will
     4  receive a discount or other advantage. [In all school districts
     5  of the first class, all school orders before being paid by the
     6  school treasurer shall be approved by the school controller of
     7  such district.]
     8     Section 10.  Section 602 of the act is amended to read:
     9     Section 602.  Tax Levies.--All taxes required by any school
    10  district, other than a school district of the first class, in
    11  addition to the State appropriation, shall be levied by the
    12  board of school directors therein. In a school district of the
    13  first class, all taxes required by the school district shall be
    14  levied by the council.
    15     Section 11.  Section 603 of the act, amended June 2, 1965
    16  (P.L.86, No.59) and September 1, 1965 (P.L.433, No.218), is
    17  amended to read:
    18     Section 603.  Only One Annual Tax Levy.--There shall be but
    19  one levy of school taxes made in each school district in each
    20  year, which shall be assessed, levied, and collected for all the
    21  purposes provided in this act, and shall be uniform throughout
    22  the territorial limit of each school district, except that those
    23  school taxes which school districts are empowered to levy under
    24  the authority of the act of June 25, 1947 (P.L.1145), as
    25  amended, may be levied at any time during the period authorized
    26  for the assessment and levy of any school taxes: Provided, That
    27  (1) where two or more school districts have voted to become a
    28  union school district in accordance with the provisions of this
    29  act and prior to the actual creation of the union school
    30  district, the school board members by a majority vote of all the
    19810H1155B1280                  - 7 -

     1  members comprising said school boards shall assess and levy a
     2  uniform school tax in all of the districts comprising said union
     3  school district for general revenue purposes necessary to
     4  operate said union school district commencing the first day of
     5  July following the vote establishing said union district, and
     6  (2) whenever hereafter a school district of the second, third,
     7  or fourth class shall be annexed to and merged in, and become a
     8  part of a school district of the [first class or] first class A,
     9  be merged into and become a part of a school district of the
    10  first class A as a reorganized district under the provisions of
    11  Article II, subdivision (i) of this act, the board of public
    12  education of said school district of the [first class or] first
    13  class A shall have power to levy a special school tax on the
    14  territory which comprised said annexed and merged school
    15  district or on the territory which comprised the school district
    16  merged into and becoming a part of a school district of the
    17  first class A as a reorganized district, to provide for the
    18  expense and maintenance of the schools thereof from the end of
    19  the school year of said annexed and merged or merged by force of
    20  reorganization school district to the beginning of the next
    21  school year in said school district of the [first class or]
    22  first class A, and to provide for and pay the floating
    23  indebtedness of said annexed and merged or merged by force of
    24  reorganization school district. Said levy shall not exceed one-
    25  half of the last previous total annual millage levied by said
    26  school district of the [first class or] first class A.
    27     Section 12.  Section 607 of the act is amended to read:
    28     Section 607.  Payments; How Made; Limitations.--[All] Except
    29  for a school district of the first class, all payments made by
    30  the board of school directors of any school district from the
    19810H1155B1280                  - 8 -

     1  school funds shall be made by proper school orders drawn on the
     2  treasurer. No school order shall be authorized by the board, or
     3  signed by the president or secretary of any board of school
     4  directors, unless there are sufficient funds in the treasury of
     5  the district to pay the same, and no school order shall be made
     6  payable at any time in the future, or draw interest. A separate
     7  school order shall be drawn for each account or payment:
     8  Provided, That the monthly payroll of teachers, janitors, or
     9  other employes may be included on one or more orders, which may
    10  be made payable to the order of such person or persons, and
    11  distributed in such manner as the board of school directors in
    12  any school district may determine.
    13     [In all school districts of the first class, each school
    14  order shall state on its face the particular item of the annual
    15  school estimate upon which it is drawn.]
    16     In all school districts of the second, third, and fourth
    17  class, each school order shall state on its face the particular
    18  class of expenditure of the annual school budget upon which the
    19  same is drawn.
    20     Section 13.  Section 651 of the act, amended December 22,
    21  1965 (P.L.1159, No.453), is amended to read:
    22     Section 651.  Fiscal Year.--In all school districts of the
    23  [first class and] first class A, the fiscal year shall begin on
    24  the first day of January in each year: Provided, That the Board
    25  of Public Education of any district of the [first class or]
    26  first class A may, by resolution adopted by two-thirds vote of
    27  the members thereof at a meeting of the board after not less
    28  than ten days' notice of the fact that such resolution would be
    29  presented for action at such meeting, fix the fiscal year of
    30  such school district so as to begin on the first day of July in
    19810H1155B1280                  - 9 -

     1  each year instead of on the first day of January as hereinabove
     2  provided.
     3     Section 14.  Section 652 of the act, amended August 5, 1977
     4  (P.L.178, No.46), is amended to read:
     5     Section  652.  Tax Levy; Purposes; Limitations.--In all
     6  school districts of the first class the school taxes for the
     7  following fiscal year shall be levied annually, by [the board of
     8  public education thereof] ordinance of the council of the
     9  municipality, on or after the second Monday of November and
    10  before the first Monday of December following. In all school
    11  districts of the first class A the school taxes for the
    12  following fiscal year shall be levied annually by the board of
    13  public education on or after the first Monday of December and
    14  before the end of the current fiscal year. The council or the
    15  board of public education thereof shall annually levy a tax on
    16  each dollar of the total assessments of all property assessed
    17  and certified for taxation in said district, which tax shall be
    18  ascertained, determined, and fixed by adding together the
    19  following:
    20     (1)  An amount which, with all moneys received from the
    21  Commonwealth applicable thereto, shall be sufficient to pay the
    22  minimum salaries and increments of the teaching and supervisory
    23  staff thereof as fixed and provided by law and to pay the
    24  contributions of said district to the teachers' retirement
    25  system. For the purpose of computing the amount required to pay
    26  the minimum salaries and increments fixed by law, but without
    27  otherwise limiting the rights of the district to employ teachers
    28  or other employes, (i) The number of teachers on the salary
    29  schedule of the elementary schools shall not exceed one for
    30  every thirty pupils in average daily membership in such schools,
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     1  (ii) The number of teachers on the salary schedule of the junior
     2  high schools shall not exceed one for every twenty-two pupils in
     3  average daily membership in such schools, (iii) The number of
     4  teachers on the salary schedule of the senior high schools shall
     5  not exceed one for every twenty-two pupils in average daily
     6  membership in such schools, (iv) The number of teachers with
     7  salaries and increments fixed by law, on any salary schedule now
     8  established or hereafter established, and not specially
     9  mentioned in this act, shall not exceed one for every twenty-two
    10  pupils in average daily membership, (v) The number of principals
    11  in the elementary schools, and the principals in charge of all
    12  other character of schools now established or hereafter
    13  established, and not specially mentioned in this act, shall not
    14  exceed one for every six hundred pupils in average daily
    15  membership in such schools, (vi) The number of principals in the
    16  junior and senior high schools shall not exceed one for every
    17  twelve hundred pupils in average daily membership in such
    18  schools, (vii) The number of supervisors in all schools shall
    19  not exceed one for every fifteen hundred pupils in average daily
    20  membership, (viii) The number of attendance officers and home
    21  and school visitors shall not exceed one for every two thousand
    22  pupils in average daily membership in all elementary and
    23  secondary schools, (ix) In all adult and extension school
    24  classes, the number of teachers shall not exceed one for every
    25  twenty pupils in average daily membership in such schools.
    26     The salary and increments, fixed by law, of members of the
    27  teaching and supervisory staff whose number is not in some
    28  manner limited hereby, shall not be included within the purposes
    29  authorized by clause (1) of this section, but shall be construed
    30  and regarded as constituting expenses within the meaning of
    19810H1155B1280                 - 11 -

     1  clause (3) of this section.
     2     Average daily membership, as used herein, shall be based upon
     3  membership during the preceding school term.
     4     (2)  An amount sufficient to pay the interest on, and retire
     5  at maturity the principal of, the indebtedness of said district
     6  incurred as authorized by law.
     7     (2.1)  An amount sufficient to pay any rentals agreed to be
     8  paid to the State Public School Building Authority or any other
     9  authority created by the General Assembly, having State-wide
    10  jurisdiction.
    11     (3)  An amount sufficient to pay all other expenses and
    12  requirements of said school district, which amount shall be
    13  equivalent to not less than three, nor more than five, mills on
    14  the dollar of the total assessment of all property assessed and
    15  certified for taxation therein.
    16     The total annual school tax levy for all purposes in any
    17  school district of the first class shall not be more than eleven
    18  and three-quarter (11 3/4) mills on the dollar of the total
    19  assessment of all property assessed and certified for taxation
    20  in the territory constituting the district.
    21     Section 15.  Sections 653 and 654 of the act are repealed.
    22     Section 16.  Section 656 of the act, amended June 2, 1965
    23  (P.L.91, No.60), is amended to read:
    24     Section 656.  Certification of Assessments.--(a)  In order to
    25  enable the board of public education to levy the necessary
    26  school taxes for each school year, there shall be certified to
    27  the board, annually, before the first day of November of each
    28  year, by the board or bureau of assessors, board of revision of
    29  taxes, or other proper authorities in the municipality or
    30  municipalities comprising school districts of the [first class
    19810H1155B1280                 - 12 -

     1  or] first class A, an estimated statement of the total
     2  assessment of all real estate and property taxable for municipal
     3  purposes in such municipality or municipalities comprising a
     4  school district of the [first class or] first class A, for the
     5  ensuing year. In school districts of the [first class or] first
     6  class A that are coterminous with a municipality or
     7  municipalities, the taxes of which are levied and assessed on
     8  real estate and personal property as contained in the
     9  assessments made for county tax purposes, the proper county
    10  assessing authorities shall furnish to the board of public
    11  education, annually, on or before the first day of November, a
    12  properly certified duplicate of the then existing adjusted
    13  valuation of all property taxable for county purposes and for
    14  municipal purposes within the territorial limits of such
    15  municipality or municipalities comprising such school district
    16  of the [first class or] first class A, excepting only such
    17  assessments of intangible personal property as is not subject to
    18  the payment of school taxes.
    19     (b)  In the case of a school district of the first class, the
    20  certifications provided for in subsection (a) shall be made to
    21  the council.
    22     Section 17.  Section 657 of the act is hereby repealed.
    23     Section 18.  Section 658 of the act is amended to read:
    24     Section 658.  Bond of Collector[; Neglect to Furnish].--(a)
    25  Every collector or receiver of taxes, [city treasurer,] or other
    26  authority in a school district of the first class, who is by the
    27  provisions of this act authorized to collect or receive the
    28  school taxes therein, shall, before entering upon the duties of
    29  his office as collector or receiver of school taxes, furnish to
    30  the school district a bond, in such amount and with such surety
    19810H1155B1280                 - 13 -

     1  or sureties as the board of [public] education may approve,
     2  conditioned upon the faithful performance of his duty in the
     3  office of such collector or receiver. The cost of such bond
     4  shall be paid by the school district.
     5     (b)  In lieu of furnishing such a bond, each such collector
     6  or receiver of taxes, [city treasurer,] or other authority, may
     7  file his own collateral bond, in such amount as may be required
     8  by the board of [public] education, secured by an actual deposit
     9  with the board of [public] education, or with any bank or trust
    10  company within the Commonwealth which may be agreed upon, of any
    11  of the securities which depositories may use to secure the
    12  deposit of school funds as herein provided. The total market
    13  value of the securities, thus deposited, shall equal the amount
    14  of the collateral bond. Such collateral bond shall be
    15  conditioned upon the faithful performance of his duties as
    16  receiver or collector of taxes. The securities, thus deposited,
    17  shall constitute a trust fund to be available for the
    18  satisfaction of any liability accruing upon the collateral bond.
    19  The securities shall be accompanied by a proper assignment or
    20  power of attorney for their transfer. Such trust deposit, in the
    21  event of any depreciation in its value, shall be maintained,
    22  upon request in writing of the board of [public] education, at
    23  the amount provided herein. The board of [public] education may
    24  permit the receiver or collector of taxes to substitute for any
    25  one or more bonds or obligations included in any such
    26  securities, other bonds or obligations that meet the
    27  requirements of this act.
    28     [(c)  In case any receiver of taxes, or city treasurer
    29  elected as receiver of taxes or as school treasurer in a school
    30  district of the first class, shall refuse or neglect to furnish
    19810H1155B1280                 - 14 -

     1  a proper bond with the proper sureties or securities, as herein
     2  provided, after his election, then, in that case, the board of
     3  public education may elect any other proper person as receiver
     4  of school taxes or school treasurer.]
     5     Section 19.  Section 659 and 660 of the act are amended to
     6  read:
     7     Section 659.  Compensation; Stationery; Books[; Clerks].--
     8  Every [such treasurer] collector or receiver of school taxes
     9  shall be paid such compensation as the board of [public]
    10  education in the district may determine, and, in addition to his
    11  salary, be furnished by the school district with the necessary
    12  stationery and books required by him in the performance of his
    13  duties as [treasurer] collector or receiver of school taxes.
    14  [The board of public education may also appoint, annually, such
    15  clerks as it may deem necessary to assist the receiver of
    16  taxes.]
    17     Section 660.  Monthly Reports; Payment of Taxes Collected.--
    18  In every school district of the first class the collector or
    19  receiver of taxes, [city treasurer,] or other proper authority
    20  collecting or receiving the school taxes as herein provided,
    21  shall, at the end of each month, report to the board of [public]
    22  education, and to the [school controller] superintendent, the
    23  total amount of school taxes collected during the month, setting
    24  forth the years for which collected. He shall pay the same when
    25  and as collected to the [school treasurer] municipal treasurer
    26  for deposit in the school fund in the treasury of the
    27  municipality, and shall file with the [school controller]
    28  superintendent a duplicate receipt therefor, and shall, at the
    29  end of each month, also report the total amount collected during
    30  the current fiscal year, and the unexonerated balance remaining
    19810H1155B1280                 - 15 -

     1  uncollected on the tax duplicate for each year in such district.
     2     Section 20.  Section 661 of the act, amended November 30,
     3  1959 (P.L.1606, No.583), is amended to read:
     4     Section 661.  Annual Reports.--The collector or receiver of
     5  taxes, [city treasurer,] or other proper authority collecting or
     6  receiving school taxes in any school district of the first
     7  class, shall, annually, on the first Monday of April of each
     8  year, settle his accounts for the school taxes for the preceding
     9  fiscal year, and shall, at the same time, furnish the board of
    10  [public] education and the superintendent with a statement of
    11  the total amount of school taxes standing unpaid upon the tax
    12  duplicates.
    13     Section 21.  Section 662 of the act is amended to read:
    14     Section 662.  Liens of Unpaid Taxes.--In all school districts
    15  of the first class, all unpaid school taxes assessed upon any
    16  real property shall be liens thereon, in like way and manner,
    17  and subject to like provisions and restrictions, as exist and
    18  shall exist in the cases of all other taxes assessed in this
    19  Commonwealth. Such taxes and liens shall be filed, enforced, and
    20  collected by the collector or receiver of taxes, [treasurer,] or
    21  other proper authority, in the manner and under and in
    22  accordance with the provisions which are and shall be applicable
    23  in the cases of other taxes assessed in this Commonwealth.
    24     Section 22.  Sections 664 and 665 of the act are repealed.
    25     Section 23.  Subsection (b) of section 913-A, added May 4,
    26  1970 (P.L.311, No.102), is amended to read:
    27     Section 913-A.  Staff.--* * *
    28     (b)  An executive director shall be appointed by each
    29  intermediate unit board of directors for a term of four years:
    30  Provided, That the initial term shall commence July 1, 1971 and
    19810H1155B1280                 - 16 -

     1  terminate June 30, 1974: And, provided further, however, That
     2  each intermediate unit planning committee may employ an
     3  executive director-elect to serve prior to July 1, 1971. In the
     4  case of an intermediate unit comprised of a single school
     5  district, which is a school district of the first class, the
     6  term of the executive director shall correspond to the term
     7  served by him as district superintendent. An executive director
     8  shall hold a commission issued by the [Superintendent of Public
     9  Instruction] Secretary of Education, in accordance with
    10  regulations adopted by the State Board of Education.
    11     * * *
    12     Section 24.  Subsection (a) of section 1071, amended January
    13  14, 1970 (1969 P.L.468, No.192), is amended to read:
    14     Section 1071.  Election.--(a) [The] Except in a school
    15  district of the first class, the board of school directors in
    16  every school district shall, by a majority vote of all the
    17  members thereof, elect a properly qualified person as district
    18  superintendent, together with such properly qualified assistant
    19  superintendents as it deems wise. If a district superintendent
    20  has jurisdiction over a joint school system including grades 1
    21  to 12, he shall be elected by a majority vote of all the school
    22  directors in the districts operating the joint school system.
    23     * * *
    24     Section 25.  Section 1342 of the act is amended to read:
    25     Section 1342.  Term of Employment; Compensation.--Attendance
    26  officers or home and school visitors may be employed for the
    27  full calendar year, and shall be paid such amounts and in such
    28  manner as the board of school directors appointing them may
    29  decide. They shall at all times perform the duties of their
    30  appointment under the direction of the board of school directors
    19810H1155B1280                 - 17 -

     1  appointing them.
     2     [In districts of the first class the minimum salaries of
     3  attendance officers and home and school visitors in elementary
     4  schools shall be: Minimum annual salary, one thousand two
     5  hundred dollars ($1200); minimum annual increment, one hundred
     6  dollars ($100); minimum number of increments, ten (10). No
     7  school district of the first class shall, reduce the
     8  compensation of any attendance officer below that paid on the
     9  second day of July, one thousand nine hundred thirty-seven.]
    10     Section 26.  Sections 2101, 2102, 2103, 2104, 2107, 2108,
    11  2109, 2110, 2111, 2112, 2113 are repealed.
    12     Section 27.  Section 2121 of the act, amended June 2, 1965
    13  (P.L.86, No.59), is amended to read:
    14     Section 2121.  City Controller to be Elected School
    15  Controller; Deputy Controller.--In each school district of the
    16  [first class or] first class A, the board of public education
    17  therein shall elect the controller of the city comprising all or
    18  the greater part of such district as school controller for said
    19  district for and during his term of office as city controller.
    20  The school controller of each school district of the [first
    21  class or] first class A may recommend to the board of public
    22  education for appointment a deputy school controller. The board
    23  of public education shall appoint as deputy school controller
    24  the candidate recommended by the school controller, who, in case
    25  of death, resignation or inability of the school controller to
    26  act for any cause whatsoever, shall have the same powers and
    27  shall perform the same duties as imposed by law on the school
    28  controller. In case the school controller does not recommend to
    29  the board of public education for appointment a deputy school
    30  controller, the board of public education may elect a deputy
    19810H1155B1280                 - 18 -

     1  school controller who shall serve until such time as the school
     2  controller recommends to the board of public education the
     3  appointment of a deputy school controller. The salary of the
     4  deputy school controller shall be fixed by the board of public
     5  education. He shall furnish bond in the sum of ten thousand
     6  dollars ($10,000).
     7     Section 28.  Section 2122 of the act, amended January 16,
     8  1974 (P.L.1, No.1), is amended to read:
     9     Section 2122.  Oath, Bond, and Compensation of Controller.--
    10  Every person elected as a school controller shall, before
    11  entering upon such duties of his office, take or subscribe to
    12  the oath or affirmation herein provided for school directors,
    13  and shall furnish to the school district in which he is elected
    14  a proper bond, in the amount of twenty-five thousand dollars
    15  ($25,000), with such surety or sureties as the board of school
    16  directors may approve, conditioned upon the faithful performance
    17  of all duties of his office during his term.
    18     [The school controller in each district of the first class
    19  shall be paid, from the funds of the school district, an annual
    20  salary of four thousand four hundred dollars ($4,400), payable
    21  monthly.] The school controller in each district of the first
    22  class A shall be paid, from the funds of the school district, an
    23  annual salary fixed by the Board of Public Education, payable
    24  monthly.
    25     Section 29.  Sections 2123, 2124 and 2125 of the act are
    26  repealed.
    27     Section 30.  Section 2126 of the act, amended April 21, 1949
    28  (P.L.692, No.164), is amended to read:
    29     Section 2126.  Contracts.--All contracts made by any school
    30  district of the first class shall state therein on what item in
    19810H1155B1280                 - 19 -

     1  the annual estimate of school expenditures the same is based.
     2  Every contract before becoming valid shall be properly certified
     3  by the [school controller] superintendent, who shall, at the
     4  time of so doing, charge up the amount of any such contract
     5  against the item in the annual estimate on which the same is
     6  based. No contract shall be certified by the [school controller]
     7  superintendent if the amount to become due thereon shall exceed
     8  the item of expenditure on which it is based.
     9     Section 31.  Section 2127 of the act is amended to read:
    10     Section 2127.  Payment of Contracts; Liability of Controller
    11  and his Surety.--It shall be the duty of each [school
    12  controller] superintendent to certify all contracts, for the
    13  payment of which a sufficient sum has been provided in the
    14  annual school estimate as herein provided. If any [school
    15  controller] superintendent shall certify any contract in excess
    16  of the amount of the item of expenditure in the annual estimate
    17  made thereof, he together with his surety or sureties shall be
    18  individually liable on his bond therefor.
    19     Section 32.  Sections 2128, 2129 and 2130 of the act are
    20  repealed.
    21     Section 33.  The act is amended by adding an article to read:
    22                           ARTICLE XXI-A.
    23     SCHOOL DISTRICTS OF THE FIRST CLASS; ADDITIONAL PROVISIONS
    24                      (a)  General Provisions.
    25     Section 2140.  Additional Provisions.--Subject to the general
    26  provisions of this act, and in addition to the several
    27  provisions regulating the affairs of school districts of the
    28  first class, as otherwise provided, the following additional
    29  provisions shall relate to and regulate school districts of the
    30  first class.
    19810H1155B1280                 - 20 -

     1     Section 2141.  Definitions.--When used in this article, or in
     2  any other provision of this act relating to school districts of
     3  the first class, the following words and phrases shall have the
     4  following meanings:
     5     (1)  "Controller."  The controller of a municipality or the
     6  officer responsible for auditing of finances in any other
     7  municipality which is coterminous with a school district of the
     8  first class.
     9     (2)  "Council."  The council of a municipality or the
    10  governing body of any other municipality which is coterminous
    11  with a school district of the first class.
    12     (3)  "Mayor."  The mayor of a municipality or, in the case of
    13  municipalities which do not provide for the office of mayor, the
    14  chairman of the governing body of the municipality which is
    15  coterminous with a school district of the first class.
    16     (4)  "Municipality."  A political subdivision which is
    17  coterminous with a school district of the first class.
    18                      (b)  Board of Education.
    19     Section 2142.  Board of Education; Selection; Qualification;
    20  Terms; Vacancies; Application of School Laws.--(a)  The board of
    21  education of a school district of the first class shall consist
    22  of an officer of the municipal government, to be appointed by
    23  the mayor, and of the following eight (8) members, to be
    24  appointed by the mayor with the consent of a two-thirds majority
    25  of the members elected to the council:
    26     (1)  Three (3) members from the school district at large, one
    27  (1) of whom shall be a member of a collective bargaining unit
    28  representing employes of the school district.
    29     (2)  A member from each of the five (5) regions of the school
    30  district who shall have continuously resided in the region from
    19810H1155B1280                 - 21 -

     1  which he or she is appointed for a period of not less than three
     2  (3) years immediately preceding the date of appointment.
     3     (b)  The members of the board of education shall be
     4  registered electors of the municipality. No person shall be
     5  eligible to be appointed to more than two (2) consecutive full
     6  four (4) year terms.
     7     (c)  (1)  With the exception of the municipal officer, whose
     8  board term shall coincide with his other term of office, each
     9  member of the board of education shall serve for a term of four
    10  (4) years, which terms shall commence one hundred twenty (120)
    11  days following enactment of this article, or one hundred twenty
    12  (120) days after a school district of the first class becomes
    13  subject to the provisions of this article. Of the first members
    14  appointed to the board,  other than the municipal officer, two
    15  (2) regional members and two (2) at large members shall serve
    16  for an initial term ending January 30 after the next municipal
    17  election occurring ten (10) months after a school district of
    18  the first class becomes subject to the provisions of this
    19  article, and three (3) regional members and one (1) at large
    20  member shall serve for an initial term ending January 30, two
    21  (2) years thereafter. The terms of all members of the board of
    22  education in office upon enactment of this article shall expire
    23  one hundred twenty (120) days thereafter.
    24     (2)  With respect to the initial appointments, until such
    25  time as at least five (5) members of the board are sworn and
    26  qualified, the interim superintendent of the district shall
    27  exercise all powers of the board of education.
    28     (d)  Vacancies in the office of a member of the board of
    29  education shall be filled for the balance of the unexpired term
    30  in the same manner as the original appointment.
    19810H1155B1280                 - 22 -

     1     (e)  (1)  Except as otherwise provided by this article,
     2  members of the board of education in a school district of the
     3  first class shall be subject to the same provisions governing
     4  conflict of interest, removal from office, incompatible offices
     5  and any other criminal offenses and penalties that are
     6  applicable to all school districts in the Commonwealth.
     7     (2)  Insofar as this article provides otherwise, the
     8  provisions of section 322, relating to incompatible offices,
     9  shall not apply to the municipal officer appointed to the board
    10  of education.
    11     Section 2143.  Creation of Regions; Regional Apportionment
    12  Commission.--(a)  All school districts of the first class shall
    13  be divided into five (5) regions for the purpose of providing
    14  for the appointment of one (1) member from each region to the
    15  board of education. A regional apportionment commission shall be
    16  established for this purpose. Within sixty (60) days after
    17  enactment of this article, or after a school district becomes
    18  subject to the provisions of this article, the commission shall
    19  fix and establish the boundaries of the five (5) regions in such
    20  manner that the population of each region shall be as nearly
    21  equal as practicable.
    22     (b)  The commission shall consist of three (3) members:
    23     (1)  The mayor, or his designee.
    24     (2)  The president of the council, or his designee.
    25     (3)  A member to be appointed by the board of education then
    26  in office. The commission shall elect one (1) of its members
    27  chairman and shall act by a majority of its entire membership.
    28     (c)  Before adopting an apportionment plan, the commission
    29  shall publish the proposed plan once in two (2) newspapers of
    30  general circulation in the municipality, which publication shall
    19810H1155B1280                 - 23 -

     1  contain a map of the school district showing the five (5)
     2  proposed regions. The publication shall also state the
     3  population of each proposed region.
     4     (d)  Each year following the year in which such Federal
     5  census data is officially reported, a regional reapportionment
     6  commission shall be constituted in like manner and with like
     7  composition as the initial regional apportionment commission
     8  herein set forth. Such commission shall adopt a reapportionment
     9  plan no later than sixty (60) days after the population data for
    10  the first class school district as determined by the Federal
    11  decennial census becomes available.
    12     (e)  The council shall appropriate sufficient funds for the
    13  compensation and expenses of staff appointed by such
    14  apportionment and reapportionment commissions, and other
    15  necessary expenses. The members of such commissions shall not be
    16  entitled to compensation for their services but shall be
    17  reimbursed for actual expenses incurred in the performance of
    18  their duties.
    19     Section 2144.  Board of Education; Powers and Duties.--(a)
    20  Except as otherwise provided by this article, the board of
    21  education shall exercise all powers and duties provided for by
    22  this act. This includes, but is not limited to, powers and
    23  duties regarding: the adoption of textbooks and courses of
    24  study; appointing, disciplining and dismissing principals,
    25  teachers and other personnel; fixing salaries or compensation of
    26  officers and other school employes not subject to the provisions
    27  of collective bargaining agreements; and any other matters
    28  relating to the setting of general educational policy for the
    29  district. The board shall have the power to enter into
    30  contracts, to make purchases and to authorize disbursements of
    19810H1155B1280                 - 24 -

     1  school funds as provided by this article.
     2     (b)  In addition, the board shall have the power:
     3     (1)  To approve collective bargaining agreements negotiated
     4  by the superintendent of the district.
     5     (2)  To appoint a solicitor for the board, as provided by
     6  section 406, except that actions relating to the collection of
     7  delinquent school taxes, and other matters delegated by the
     8  board, shall be referred to the solicitor of the municipality.
     9     (3)  To provide for residency requirements for employes of
    10  the school district, subject to the approval of the council.
    11     Section 2145.  Officers of the Board of Education; Duties.--
    12  (a)  The officers of the board of education shall be a
    13  president, a vice-president, a secretary and a treasurer, who
    14  shall be the assistant superintendent of the district, and such
    15  other officers as the board may from time to time determine and
    16  who shall have such duties as the board shall prescribe.
    17     (b)  The superintendent and assistant superintendent of the
    18  district shall attend all meetings of the board, and may attend
    19  all meetings of any board committees, except those concerned
    20  with their own salaries or benefits. The superintendent and
    21  assistant superintendent shall have the right to advise on any
    22  question or matter under consideration but shall have no right
    23  to vote.
    24     Section 2146.  Organization and Procedures.--(a)  The board
    25  of education shall hold an annual organization meeting on the
    26  first Monday of December and shall by a majority vote of all its
    27  members elect a president, a vice-president and a secretary from
    28  among its members.
    29     (b)  The board shall hold public meetings not less often than
    30  once every two (2) months during the school year.
    19810H1155B1280                 - 25 -

     1     (c)  A majority of all the members of the board shall
     2  constitute a quorum for the transaction of business. No action
     3  of the board shall be binding unless a majority of the members
     4  present at a public meeting shall be recorded as voting in its
     5  favor.
     6     (d)  The board may adopt rules for its government,
     7  organization and procedures not inconsistent with the provisions
     8  of this act.
     9     Section 2147.  Personnel Policies.--(a)  The board of
    10  education shall establish a table of organization setting forth
    11  a roster of positions for each principal administrative unit of
    12  the district and the superintendent shall report monthly any
    13  changes made in the table.
    14     (b)  The board shall adopt regulations based on merit
    15  principles and scientific methods governing all incidents of
    16  employment, including appointment, promotion, demotion, removal
    17  and discipline for all employes of the district except the
    18  following:
    19     (1)  Deputy superintendents, associate superintendents,
    20  district superintendents, directors of departments responsible
    21  directly to the superintendent or to any deputy superintendent
    22  and such personal assistants as the superintendent may require.
    23     (2)  Persons employed by contract to perform special services
    24  for the district where the superintendent certifies that such
    25  services cannot be performed by district employes.
    26     (3)  Persons temporarily appointed or designated to make or
    27  conduct a special inquiry or study, to perform a special service
    28  of a unique character which cannot or should not be performed by
    29  regular district employes.
    30     (4)  In addition, the superintendent may, with the consent of
    19810H1155B1280                 - 26 -

     1  the board, exempt not more than five per centum (5%) of the
     2  professional employes of the district.
     3     (c)  Except as otherwise provided by a collective bargaining
     4  agreement, the personnel regulations adopted by the board shall
     5  provide for the preparation, maintenance and revision of a
     6  position classification plan and of a pay plan for all employes,
     7  policies and procedures for recruitment, examinations,
     8  promotions, eligible lists and certifications, provisional and
     9  emergency appointments, suspension, discharge or reduction in
    10  rank, hours of work, holidays, leaves and vacations, employe
    11  hearings and such other matters as may be necessary or proper.
    12  Copies of the personnel regulations shall be available for
    13  public information and distribution at all times.
    14     (d)  The board shall in its personnel regulations preserve
    15  and safeguard all rights of employment, status and tenure of all
    16  employes of the school district which exist at the time of
    17  enactment of this article, consistent with law and the
    18  requirements of a fair and effective system of personnel
    19  administration.
    20            (c)  Superintendent of the School District.
    21     Section 2148.  Superintendent of School District;
    22  Appointment, Term of Office and Compensation; General Powers.--
    23  (a)  The mayor shall appoint a superintendent for the school
    24  district, with the approval of the board of education. The
    25  superintendent shall serve at the pleasure of the mayor and
    26  shall be responsible to the mayor for the conduct of the office.
    27  Compensation for the superintendent shall be set by ordinance of
    28  the council.
    29     (b)  Until such time as at least five (5) members of the
    30  initial board are appointed and take the oath of office, the
    19810H1155B1280                 - 27 -

     1  mayor shall appoint an interim superintendent, to exercise all
     2  powers of the board of education. The interim superintendent
     3  shall also perform the duties of the superintendent until such
     4  time as a superintendent is appointed by the mayor and approved
     5  by the board.
     6     (c)  The superintendent shall:
     7     (1)  Be the chief administrative officer and chief
     8  instructional officer of the board of education and the school
     9  district, and shall be responsible for the execution of all
    10  actions of the board, the administration and operation of the
    11  public school system subject to the policies of the board and
    12  the supervision of all matters pertaining to instruction in all
    13  the schools under the direction of the board.
    14     (2)  Be the chief financial, accounting and budget officer of
    15  the school district.
    16     (3)  Exercise those powers and duties conferred upon him by
    17  this article.
    18     (4)  Exercise those powers not inconsistent with this article
    19  conferred generally upon a superintendent of a school district.
    20     (d)  Where the municipality has adopted a home rule charter
    21  establishing a mayor's cabinet, the superintendent shall be a
    22  member of said cabinet.
    23     Section 2149.  Superintendent of the District, Specific
    24  Powers.--In addition to other powers conferred by this article,
    25  the superintendent shall have the power:
    26     (1)  To enter into agreements, upon consultation with the
    27  board, relating to, but not limited to, joint purchasing of
    28  supplies, equipment and contractual services, use of
    29  recreational and park equipment and facilities, control and
    30  prevention of juvenile delinquency, municipal planning,
    19810H1155B1280                 - 28 -

     1  comprehensive development planning and health services with any
     2  department, agency, office, board or commission of the
     3  municipality, or with any agency of the Commonwealth or of the
     4  United States, or with any nonprofit private agency, when, in
     5  the opinion of the superintendent, such agreement will further
     6  the efficient and effective administration of the school
     7  district. In any such agreements, the superintendent shall,
     8  insofar as possible, safeguard all rights of employment, status
     9  and tenure of employes who may be transferred into or out of the
    10  school district service by virtue of the operation of such
    11  agreements.
    12     (2)  To appoint an assistant superintendent, with the
    13  approval of the mayor and the board of education, who will be
    14  the treasurer of the school district and who will act as
    15  superintendent when there is a vacancy in that position.
    16     (3)  To appoint, with the approval of the board, deputy
    17  superintendents, associate superintendents, district
    18  superintendents, assistant district superintendents, directors
    19  of departments responsible directly to the superintendent, the
    20  assistant superintendent or to any deputy superintendent and
    21  such personal assistants as he deems consistent with the
    22  educational needs of the district.
    23     (4)  To establish and maintain a separate accounting system
    24  for the school district, which shall be separate and distinct
    25  from the municipality's accounting system and revenues.
    26     (5)  To negotiate, or to designate a negotiator for,
    27  collective bargaining agreements with employes of the school
    28  district, pursuant to the provisions of the act of July 23, 1970
    29  (P.L.563, No.195), known as the "Public Employe Relations Act."
    30  All collective bargaining agreements negotiated by the
    19810H1155B1280                 - 29 -

     1  superintendent, or by his designated negotiator, must be
     2  approved by the board and by the mayor before such agreements
     3  shall become effective.
     4     (6)  To submit an annual report to the mayor and the board on
     5  the financial affairs of the school district.
     6     (7)  To make recommendations to the mayor regarding the levy
     7  of taxes for the school district.
     8     (8)  To sell or lease, with the approval of the board, unused
     9  or unnecessary school property or buildings in the manner
    10  provided by this act and to approve the proposed utilization of
    11  operating school facilities by the board to insure efficient
    12  management and use of school grounds and buildings.
    13     (9)  To perform all other acts necessary to manage the fiscal
    14  affairs of the school district.
    15     Section 2150.  Personnel Administration.--(a)  The
    16  superintendent shall have the authority to assign and reassign
    17  all professional and classified employes of the district
    18  consistent with the laws of the Commonwealth.
    19     (b)  The superintendent shall report annually to the board:
    20     (1)  All assignments and reassignments of professional and
    21  classified employes made during the school year.
    22     (2)  All appointments of professional employes which were
    23  exempted from the personnel regulations of the board, including
    24  the titles of the positions to which such assignments are made,
    25  the duties and responsibilities assigned and the salaries and
    26  benefits received by the appointees.
    27     (3)  On such other subjects as the board may deem necessary
    28  or proper.
    29              (d)  Fiscal Affairs of School District.
    30     Section 2160.  Fiscal Year.--The council shall adopt, by
    19810H1155B1280                 - 30 -

     1  ordinance, a date for the beginning of each fiscal year
     2  appropriate to the requirements of the school district and shall
     3  adopt a fiscal calendar consistent with such fiscal year and
     4  with all public notice requirements. Any change in fiscal year
     5  shall be made only after public notice and public hearing on the
     6  proposed change. Not less than ninety (90) days prior to any
     7  proposed change in fiscal year, the council shall publish notice
     8  of such proposed change by advertisement at least once in two
     9  (2) newspapers of general circulation for the municipality. Such
    10  advertisement shall include notice of public hearing scheduled
    11  for not less than sixty (60) days before the change is to become
    12  effective.
    13     Section 2161.  Subsidies and Other Funds; Construction.--
    14  Unless otherwise expressly provided by this article, the
    15  provisions of this article shall be deemed to be consistent with
    16  State or Federal law governing subsidies and other moneys
    17  received from State or Federal sources for the use of the school
    18  district or for use for school purposes.
    19     Section 2162.  Establishment of School Fund in Municipal
    20  Treasury; Separate Accounting.--(a)  There shall be established
    21  in the treasury of the municipality a school fund, to be under
    22  the custody and control of the treasurer of the municipality.
    23  The fund shall be administered separate and apart from other
    24  funds in the treasury of the municipality and shall be used only
    25  for school district purposes. In no case, shall school and
    26  municipal funds be commingled, and no municipal funds shall be
    27  used for school purposes. Furthermore, no revenues from any tax
    28  imposed on the wages, salaries or net income of nonresidents
    29  employed in the municipality shall be used for school purposes
    30  or deposited in the school fund.
    19810H1155B1280                 - 31 -

     1     (b)  All tax revenues collected by the municipality for the
     2  school district shall be deposited in the school fund
     3  established in the treasury of the municipality. Moneys shall be
     4  appropriated from the fund by ordinance of council, in the same
     5  manner as municipal funds are appropriated, for use by the
     6  school district, such moneys to be used only for school district
     7  purposes or as otherwise expressly provided by enabling
     8  legislation.
     9     (c)  The treasurer of the municipality may invest moneys
    10  deposited in the school fund in the same manner as moneys in the
    11  municipal treasury generally are invested, except as otherwise
    12  provided by law. All income from such investments shall be
    13  placed in the school fund, to be used for school district
    14  purposes.
    15     Section 2163.  Receipt of Funds.--The treasurer of the board
    16  of education shall receive all State and Federal funds, all
    17  appropriations from the school fund established in the treasury
    18  of the municipality and all other funds belonging to the school
    19  district and shall deposit them in a school treasury.
    20     Section 2164.  Payment of Moneys Out of School Treasury.--(a)
    21  All payments out of the school treasury shall be by the check of
    22  the treasurer of the board issued upon order of the
    23  superintendent.
    24     (b)  The superintendent shall issue orders for payments out
    25  of the school treasury only upon requisition of the board of
    26  education and only after he has satisfied himself as to the
    27  legality and reasonableness of the requisition.
    28     (c)  If the board of education approves a requisition, it
    29  shall deliver the original to the superintendent. If the
    30  superintendent approves the requisition, he shall issue an order
    19810H1155B1280                 - 32 -

     1  for payment and shall deliver it to the treasurer of the board.
     2  If he disapproves the requisition, he shall attach a memorandum
     3  thereto detailing the objections and return the requisition to
     4  the board of education.
     5     Section 2165.  The Annual Operating Budget Ordinance.--(a)
     6  It shall be the duty of the council, thirty (30) days before the
     7  end of the fiscal year, to adopt the annual operating budget
     8  ordinance for the school district for the next fiscal year. The
     9  consideration of the operating budget ordinance shall begin
    10  forthwith upon the receipt from the mayor of his annual
    11  operating budget message and the proposed annual operating
    12  budget ordinance for the district, both of which shall be
    13  submitted in printed form. The proposed budget ordinance shall
    14  be regarded as having been introduced immediately upon its
    15  receipt.
    16     (b)  The annual operating budget ordinance for the school
    17  district shall provide for discharging any deficit and shall
    18  make appropriations to the district for school purposes. All
    19  appropriations shall be made in lump sum amounts and according
    20  to the following classes of expenditures:
    21     (1)  Personal services.
    22     (2)  Materials, supplies and equipment.
    23     (3)  Debt service.
    24     (4)  Such additional classes as the mayor shall recommend in
    25  his proposed annual operating budget ordinance.
    26     Expenditures for the repair of any property and for the
    27  acquisition of any property or for any work or project which
    28  does not have a probable useful life to the school district of
    29  at least five (5) years following the time the expenditure is
    30  made for it shall be deemed to be ordinary expenses to be
    19810H1155B1280                 - 33 -

     1  provided for in the annual operating budget ordinance for the
     2  school district. Appropriations for the use of the school
     3  district shall be made to the school district.
     4     (c)  The mayor's estimates of receipts for the ensuing fiscal
     5  year and of surplus or deficit, if any, for the current fiscal
     6  year may not be altered by the council.
     7     (d)  The annual operating budget ordinance may be amended
     8  after its passage to authorize the transfer of items but the
     9  aggregate of the appropriations made by it may not be increased
    10  and transfers of budget items may not be made during the last
    11  four (4) months of any fiscal year, except upon the
    12  recommendation of the mayor.
    13     (e)  The council shall, at least thirty (30) days prior to
    14  the time any budget or amendment thereto is adopted, conduct at
    15  least one (1) public hearing thereon. At least thirty (30) days'
    16  notice of such public hearings shall be published by
    17  advertisement at least once in two (2) newspapers of general
    18  circulation printed in the municipality. The council shall make
    19  available to the public a reasonable number of copies of such
    20  budget or amendment, and the notice of public hearing shall
    21  state where copies may be obtained or inspected.
    22     (f)  The council by ordinance shall have the power to make
    23  additional appropriations or increase existing appropriations to
    24  meet emergencies which could not be anticipated when the budget
    25  was adopted, the funds therefore to be provided from unexpended
    26  balances in existing appropriations, from unappropriated
    27  revenues, if any, or from temporary loans. Under no other
    28  circumstances may the council increase the aggregate total of
    29  budget appropriations unless unappropriated revenues become
    30  available in sufficient amount to maintain the budget in
    19810H1155B1280                 - 34 -

     1  balance, in which event the council may make additional or
     2  increased appropriations.
     3     (g)  Not later than the passage of the annual operating
     4  budget ordinance for the school district, the council shall
     5  adopt by ordinance such revenue measures as are permitted for
     6  school districts of the first class which will, in the opinion
     7  of the mayor, yield sufficient revenue to balance the budget.
     8  For this purpose new sources of revenue or increased rates from
     9  existing sources of revenue not proposed by the mayor shall be
    10  deemed to yield in the ensuing fiscal year such amounts as the
    11  mayor shall determine. The annual operating budget ordinance for
    12  the school district shall not become effective and the
    13  controller shall not approve any order for any expenditure
    14  thereunder until the council has balanced the budget.
    15     Section 2166.  The Capital Program and Capital Budget.--(a)
    16  Prior to the Passage of the annual operating budget ordinance
    17  for the school district, the council shall adopt a capital
    18  program and a capital budget for the school district.
    19     (b)  The capital program for the school district shall
    20  embrace all physical public improvements and any preliminary
    21  studies and surveys relative thereto, the acquisition of
    22  property of a permanent nature, and the purchase of equipment
    23  for any public improvement when first erected or acquired that
    24  are to be financed in whole or in part from funds subject to
    25  control or appropriation by the council. It shall show the
    26  capital expenditures which are planned for each of the six (6)
    27  ensuring fiscal years. For each separate purpose, project,
    28  facility, or other property there shall be shown the amount, if
    29  any, and the source of the money that has been spent,
    30  encumbered, or is intended to be spent or encumbered prior to
    19810H1155B1280                 - 35 -

     1  the beginning of the ensuing fiscal year and also the amounts
     2  and the sources of the money that are intended to be spent
     3  during each of the ensuing six (6) years. The council may delete
     4  projects from the capital program as submitted to it, but it
     5  shall not otherwise amend the capital program until it has
     6  requested through the mayor the recommendations of the board of
     7  education and the superintendent. The council shall not be bound
     8  by such recommendations and may act without them if they are not
     9  received within thirty (30) days from the date they were
    10  requested.
    11     (c)  The council shall at least thirty (30) days prior to the
    12  time any capital program or amendment thereto is adopted,
    13  conduct at least one (1) public hearing thereon. At least thirty
    14  (30) days' notice of such public hearing shall be published by
    15  advertisement at least once in two (2) newspapers of general
    16  circulation printed in the municipality. The council shall make
    17  available to the public a reasonable number of copies of such
    18  program, and the notice of public hearing shall state where
    19  copies may be obtained or inspected.
    20     (d)  The capital budget ordinance for the school district
    21  shall show in detail the capital expenditures intended to be
    22  made or incurred in the ensuing fiscal year that are to be
    23  financed from funds subject to control or appropriation by the
    24  council, and shall be in full conformity with that part of the
    25  capital program applicable to the year which it covers. Amounts
    26  specified as intended to be spent out of new appropriations
    27  shall, upon enactment of the capital budget ordinance,
    28  constitute appropriations of such amounts. The council may amend
    29  the capital budget ordinance but no amendment shall be valid
    30  which does not conform to the capital program.
    19810H1155B1280                 - 36 -

     1     Section 2167.  Annual Operating Budget, Capital Program and
     2  Capital Budget.--(a)  The superintendent shall:
     3     (1)  Obtain such information as shall be necessary to enable
     4  him to compile for the mayor the information necessary for the
     5  preparation and submission to the council of the annual
     6  operating budget for the school district.
     7     (2)  Obtain annually such information as the mayor shall
     8  require to enable the mayor to prepare the capital program and
     9  capital budget for the school district.
    10     (3)  Prepare and supply to the mayor such information as will
    11  enable the mayor to keep currently acquainted with the financial
    12  conditions and prospective receipts and expenditures of the
    13  school district during the current fiscal year in order to
    14  control expenditures in such a manner as to avoid deficits.
    15     (b)  The mayor shall:
    16     (1)  Submit to the council not later than ninety (90) days
    17  before the end of the fiscal year his operating budget message
    18  for the school district and a proposed annual operating budget
    19  for the school district for the ensuing fiscal year. In the
    20  operating budget message of the school district, the mayor shall
    21  furnish to the council the estimated surplus, or deficit, if
    22  any, of the current fiscal year and the estimated actual
    23  receipts of the school district from all sources for the ensuing
    24  fiscal year which shall be available for meeting ordinary
    25  expenses and all other information pertinent to an operating
    26  budget, shall state the known liabilities of every kind which
    27  must be met during the year, and shall recommend appropriations
    28  included in the proposed annual operating budget ordinance for
    29  the school district.
    30     (2)  In connection with his submission of the operating
    19810H1155B1280                 - 37 -

     1  budget for the school district, recommend to the council
     2  measures which he believes necessary to balance the budget.
     3     (3)  At the same time that he submits to the council the
     4  proposed operating budget for the school district for the
     5  ensuing fiscal year, also submit to the council the recommended
     6  capital program and the recommended capital budget for the
     7  school district as received from the superintendent to the
     8  extent approved by the mayor.
     9     (4)  See to it that the school district does not, except in
    10  case of unforeseeable emergency, incur a deficit in any fiscal
    11  year.
    12     (c)  The annual operating budget and the capital budget for
    13  the school district shall be adopted in accordance with the same
    14  procedures required for the adoption of the annual operating
    15  budget and capital budget for the municipality.
    16     Section 2168.  Debt Incurred by School District.--A school
    17  district of the first class shall remain subject to the
    18  provisions of the act of July 12, 1972 (P.L.781, No.185), known
    19  as the "Local Government Unit Debt Act," except that:
    20     (1)  The council, by ordinance, shall approve the incurrence
    21  of any indebtedness by the board, and, where incurrence of the
    22  indebtedness requires electoral approval, council approval must
    23  be secured before the question goes on the ballot.
    24     (2)  The superintendent, or the applicable municipal agency
    25  pursuant to a cooperative agreement, shall perform whatever
    26  supervisory responsibilities over the debt are otherwise
    27  conferred by law upon the board of education.
    28     Section 2169.  Levy of Taxes.--(a)  Notwithstanding any
    29  provisions to the contrary in affected statutes, all taxes which
    30  may be levied under any statute for the use of a school district
    19810H1155B1280                 - 38 -

     1  of the first class shall, be levied by ordinance of council upon
     2  the recommendation of the mayor, such statutes including, but
     3  not limited to, the following:
     4     (1)  Act of June 20, 1947 (P.L.745, No.320), imposing a
     5  Mercantile License Tax.
     6     (2)  Act of May 23, 1949 (P.L.1661, No.505), imposing a real
     7  estate tax.
     8     (3)  Act of May 23, 1949 (P.L.1669, No.508), imposing a tax
     9  on receipts.
    10     (4)  Act of May 23, 1949 (P.L.1676, No.509), imposing a tax
    11  on personal property.
    12     (5)  Act of July 8, 1957 (P.L.548, No.303), imposing
    13  additional real estate tax.
    14     (6)  Act of November 19, 1959 (P.L.1552, No.557), imposing
    15  additional real estate tax.
    16     (7)  Act of August 8, 1963 (P.L.592, No.310), imposing
    17  additional real estate tax.
    18     (8)  Act of August 9, 1963 (P.L.640, No.338), providing for
    19  various taxes.
    20     (b)  The council shall levy taxes annually within such limits
    21  and upon such subjects as the General Assembly may from time to
    22  time prescribe, in amounts sufficient to provide funds for the
    23  current operation of the schools of the district, the payment of
    24  interest and sinking fund charges on or other amortization of
    25  the debt of the district and its predecessor districts, and to
    26  provide for any services which may be incidental to the
    27  operation of the schools. Provided, that if the rate of taxation
    28  shall be fixed at a mill rate it shall also be stated in dollars
    29  and cents on each one hundred dollar ($100) of assessed
    30  valuation.
    19810H1155B1280                 - 39 -

     1     (c)  When any levy of school taxes has been made by the
     2  council, the council shall forthwith certify the levy, under the
     3  seal of the municipality attested by the president of the
     4  council, to the proper authority of the municipality authorized
     5  to prepare tax duplicates, to be entered thereon, and by such
     6  authority to be properly certified to the collector or receiver
     7  of taxes for the municipality. The school taxes shall be
     8  collected as provided by law, at the same time, in the same
     9  manner and with like authority, subject to the same discounts
    10  and penalties as other taxes collected in the municipality.
    11     (d)  No tax for school purposes shall be imposed on the
    12  wages, salary or net income of any person not a resident of a
    13  school district of the first class.
    14     Section 2170.  Collection of School District Taxes.--The
    15  agency of the municipality or the person which is the collector
    16  or receiver of taxes for the municipality shall be the
    17  collection or receiver of taxes for the school district.
    18     Section 2171.  Pre-audit of School District.--(a)  The
    19  superintendent shall pre-audit all requisitions for school
    20  district disbursements made from the school treasury and all
    21  other funds belonging to or controlled by the school district,
    22  which requisitions shall be submitted to the superintendent for
    23  this purpose by the board of education or any authorized officer
    24  thereof. The superintendent shall approve a requisition which it
    25  finds to be for a purpose comprehended by the appropriation
    26  against which it is drawn and in a proper amount and with which
    27  the superintendent is satisfied as to reasonableness. Otherwise
    28  the requisition shall be disapproved.
    29     (b)  Whenever a requisition for disbursement of funds from
    30  the school treasury or any fund belonging to or controlled by
    19810H1155B1280                 - 40 -

     1  the school district shall be presented to the superintendent,
     2  the superintendent may require evidence that the amount stated
     3  in the requisition is justly due, and for that purpose may
     4  summon to appear before him any officer of the school district
     5  or any other person and examine him upon oath or affirmation
     6  relative to such requisition.
     7     (c)  Nothing in this section shall be construed to prohibit
     8  any auditing procedures required by State or Federal law
     9  relative to school district finances and applicable to school
    10  districts of the first class.
    11     Section 2172.  Post-audit of School Finances.--(a)  The
    12  controller shall conduct an annual post-audit of the finances of
    13  every department of the school district, and of all persons
    14  handling the school treasury and all other funds of the
    15  district, including the accounts of the receiver of school
    16  taxes, the treasurer of the board, school depositories,
    17  teachers' retirement funds, directors' association funds,
    18  sinking funds, and all other funds belonging to or controlled by
    19  the district. At the end of each fiscal year after conducting
    20  such audit, the controller shall certify to the board of
    21  education and to the mayor that it has audited these accounts
    22  and report to the board and to the mayor the result of such
    23  audit. A summary of the annual audit shall be published by the
    24  board once a week for three (3) successive weeks, beginning the
    25  first week after the audit has been furnished to the board, in
    26  two (2) newspapers of general circulation printed in the
    27  municipality. The board shall include with the summary a notice
    28  that the audit is available for public inspection during regular
    29  business hours at the business office of the district.
    30     (b)  Nothing in this section shall be construed to prohibit
    19810H1155B1280                 - 41 -

     1  any auditing procedure required by State or Federal law relative
     2  to school district finances, including any audit performed by
     3  the Auditor General of the Commonwealth. Special audits of the
     4  affairs of the district may be made whenever in the judgment of
     5  the controller they appear necessary, and shall be made by a
     6  competent and responsible firm of certified public accountants
     7  retained by the controller.
     8     Section 2173.  Cost Analysis.--The superintendent shall from
     9  time to time made studies of the cost of performing the various
    10  functions which are committed to the school district. Such
    11  studies shall be made on such basis as the superintendent may
    12  deem useful or as the mayor may request. Reports showing the
    13  results of such studies shall be made to the mayor.
    14     Section 2174.  Inventory Accounting.--The superintendent
    15  shall:
    16     (1)  Be responsible for the maintenance of a perpetual
    17  inventory of all unissued school property. He shall devise,
    18  install and supervise the operation of systems under which
    19  withdrawals from and replacements in stores will be currently
    20  recorded and reported to his office. He shall have supervision
    21  over the periodic (at least twice annually) counting, weighing
    22  or measuring of inventory quantities.
    23     (2)  Supervise the making of inventory lists of furniture and
    24  equipment by every employe having any supervisory responsibility
    25  for the custody and control of district owned property. The
    26  inventory lists shall be signed by such officer. The
    27  superintendent shall devise a system under which additions to
    28  and withdrawals from such furniture or equipment shall be
    29  currently recorded, and shall have supervision over the periodic
    30  (at least annually) counting of such furniture and equipment,
    19810H1155B1280                 - 42 -

     1  and the reconciliation of such accounts with the district's
     2  perpetual inventory records.
     3     Section 2175.  Accounts.--The superintendent shall establish
     4  a general accounting system for the school district. He shall:
     5     (1)  Keep separate accounts of each item of appropriation
     6  made by the council to the school district. Each such account
     7  shall show the amount of the appropriation, the amounts paid
     8  therefrom, the unpaid obligations against it and the
     9  unencumbered balance.
    10     (2)  Have complete supervision over the keeping of detailed
    11  accounting records by any officer, department or board of the
    12  school district. After consultation with the controller, he
    13  shall devise, and from time to time improve, a uniform system of
    14  accounting for the school district and shall require such system
    15  to be installed and maintained by all such officers, departments
    16  and boards of the school district. Such system shall avoid
    17  duplication of records and of bookkeeping to the greatest extent
    18  possible consistent with the provisions of this article and the
    19  safeguarding of the school district's finances.
    20     (3)  Supervise the accounting for all moneys received and
    21  receivable by the school district from any source whatever, such
    22  accounting to be consistent with appropriate State or Federal
    23  requirements.
    24     (4)  Reflect in the accounts in his office the amounts
    25  collected by the applicable agency of the municipality, as shown
    26  by the daily reports of that agency.
    27     (5)  Issue as soon as practicable after the close of each
    28  fiscal year a statement as of the end of that year showing the
    29  balances in all funds of the school district, the amounts of the
    30  school district's known liabilities, and such other information
    19810H1155B1280                 - 43 -

     1  as is necessary to furnish a true picture of the school
     2  district's financial condition.
     3     Section 34.  Clause (1) of sections 2401 and 2421 of the act,
     4  are repealed.
     5     Section 35.  (a)  All school districts of the first class
     6  which have been created pursuant to the act of August 9, 1963
     7  (P.L.643, No.341), known as the "First Class City Public
     8  Education Home Rule Act," are hereby abolished. The district
     9  newly formed pursuant to the provisions of this amendatory act
    10  shall succeed directly the now existing school district for all
    11  purposes, including, but not limited to, receipt of all grants,
    12  gifts, appropriations, subsidies or other payments. In addition,
    13  the new district shall:
    14     (1)  Take over from the now existing school district all
    15  assets, property, real and personal, tangible and intangible,
    16  all easements and all evidences of ownership in part or in
    17  whole, and all records, and other evidences pertaining thereto.
    18     (2)  Assume all debt, contractual obligations, liabilities,
    19  and causes of action of the now existing school district, as
    20  well as any long term debt to be issued, secured and retired in
    21  the manner now provided by law.
    22     (b)  Nothing in this amendatory act shall be construed to
    23  deprive the employes of the school district of any rights or
    24  protections provided them by tenure, pension, or retirement laws
    25  of this Commonwealth or by any collective bargaining agreement.
    26  In no case shall school employes be deemed employes of the
    27  municipality.
    28     Section 36.  For school districts of the first class in
    29  existence upon the enactment of this act, the following shall
    30  apply:
    19810H1155B1280                 - 44 -

     1         (1)  The selection process for the initial board of
     2     education may commence upon enactment of this act; however,
     3     those board members appointed and approved shall not take
     4     office until at least 120 days after enactment.
     5         (2)  The term for the superintendent of the district in
     6     office at the time of enactment shall expire 120 days
     7     thereafter.
     8         (3)  The process for apportionment of regions may
     9     commence upon enactment of this act, however such regions
    10     shall not be established until at least 60 days after
    11     enactment.
    12         (4)  The board of education for the district in office at
    13     the time of enactment, and officers or employees of the
    14     municipality coterminous with a school district of the first
    15     class, shall take whatever steps may be necessary in order to
    16     assure an orderly, efficient, and economical transition.
    17     Section 37.  Whenever this act requires an ordinance of the
    18  council, such ordinance shall be enacted in the same manner and
    19  be subject to the same conditions, as ordinances enacted
    20  generally by the council, including any veto power held by the
    21  mayor.
    22     Section 38.  No subsequent act shall be deemed to repeal or
    23  modify any provision of Article XXI-A of the "Public School Code
    24  of 1949" unless it does so expressly or otherwise specifically
    25  indicates that it has direct application to a school district of
    26  the first class.
    27     Section 39.  (a)  The act of August 9, 1963 (P.L.643,
    28  No.341), known as the "First Class City Public Education Home
    29  Rule Act," is repealed.
    30     (b)  All parts of any Home Rule Charter adopted pursuant to
    19810H1155B1280                 - 45 -

     1  the act of August 9, 1963 (P.L.643, No.341), known as the "First
     2  Class City Public Education Home Rule Act," are abrogated.
     3     (c)  The provisions of the act of July 12, 1972 (P.L.781,
     4  No.185), known as the "Local Government Unit Debt Act,"
     5  pertaining to the limitations on the incurring of debt by or on
     6  behalf of every school district of the first class shall
     7  continue to apply. This act shall not be deemed to alter or
     8  repeal any provision of the "Local Government Unit Debt Act"
     9  except as otherwise expressly provided.
    10     (d)  The provisions of Article XXI-A of the "Public School
    11  Code of 1949" shall supersede all other parts of the act to
    12  which this is an amendment and all other acts affecting school
    13  districts of the first class to the extent that they are
    14  inconsistent or in conflict therewith.
    15     Section 40.  This act shall take effect in 120 days except as
    16  otherwise provided by section 36.










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