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                                                      PRINTER'S NO. 3528

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2562 Session of 1990


        INTRODUCED BY PIEVSKY, MAY 22, 1990

        REFERRED TO COMMITTEE ON EDUCATION, MAY 22, 1990

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for funding
     6     programs for exceptional children.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 2509 of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended December 29, 1972 (P.L.1732, No.373), is amended to
    12  read:
    13     Section 2509.  Payments on Account of Courses for Exceptional
    14  Children.--[Annually, before] Before the first day of July, of
    15  every year up to and including 1990, every school district or
    16  joint board of school directors planning to conduct classes or
    17  schools for [the] exceptional children shall submit, for prior
    18  review and approval to establish the amount on which
    19  reimbursement will be paid by the Department of Education, an


     1  estimate of the cost of classes or schools for exceptional
     2  children to be operated by the district or joint board during
     3  the ensuing school year, and for transportation of pupils to and
     4  from classes and schools for exceptional children conducted by
     5  the district or joint board of school directors. [Every school
     6  district, regardless of classification, shall be paid by the
     7  Commonwealth for the school term 1953-1954, the sum of twenty
     8  dollars ($20) per pupil in average daily membership in a course
     9  or courses for mentally handicapped children, and the sum of
    10  thirty dollars ($30) per pupil in average daily membership in a
    11  course or courses for physically handicapped children, approved
    12  by the Secretary of Education.] Beginning with the school term
    13  of 1954-1955 [and for every school term thereafter] up to and
    14  including the 1990-1991 school term, every school district,
    15  regardless of classification, shall be paid by the Commonwealth
    16  an amount to be determined by multiplying the average daily
    17  membership in a course or courses for exceptional children, (1)
    18  at the elementary level, by an amount determined by subtracting
    19  the "instruction cost per elementary pupil," as defined in
    20  section 2561 of this act, from the "instruction cost per special
    21  class pupil," as hereinafter defined, for the preceding school
    22  term, or from the instruction cost per special class elementary
    23  pupil as approved for reimbursement by the Department of
    24  Education in the budget for classes or schools for exceptional
    25  children for the school year in which the class is operated,
    26  whichever is the lesser, (2) at the secondary level, by an
    27  amount determined by subtracting the "instruction cost per high
    28  school pupil," as defined in section 2561 of this act, from the
    29  "instruction cost per special class pupil," as hereinafter
    30  defined, for the preceding school term, or from the instruction
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     1  cost per special classes secondary pupil as approved for
     2  reimbursement by the Department of Education in the budget for
     3  classes or school for exceptional children for the school year
     4  in which the class is operated, whichever is the lesser.
     5     To find the "instruction cost per special class pupil," add
     6  (1) salaries of directors and supervisors of special education,
     7  public school psychologists, principals of special schools and
     8  assistants, teachers of approved special classes for exceptional
     9  children, clerks and assistants employed in the district's
    10  program for special education, (2) the district's contribution
    11  to the retirement fund on behalf of directors and supervisors of
    12  special education, public school psychologists, principals of
    13  special schools and assistants, teachers of approved special
    14  classes for exceptional children, clerks and assistants employed
    15  in the district's program for special education, (3) the cost of
    16  textbooks and supplies of the second class used in the
    17  district's special education classes or schools, (4) the cost of
    18  telephonic system equipment which enables handicapped children
    19  to remain in their homes and still participate in classroom
    20  activities. Divide the sum of (1), (2), (3), and (4) on that
    21  part thereof which is approved by the Department of Education
    22  for reimbursement by the total number of pupils, including those
    23  pupils who have available for use telephonic system equipment
    24  whereby they may remain at home and still participate in
    25  classroom activities, in average daily membership in the
    26  district's approved special classes for exceptional children.
    27  The quotient so obtained shall be the "instruction cost per
    28  special class pupil."
    29     The average daily membership of speech correction classes
    30  shall be calculated by multiplying (1) the average number of
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     1  pupils in speech correction classes per week by (2) the number
     2  of periods per week that speech correction is provided for the
     3  individual pupil by (3) the number of minutes per period in
     4  speech correction class. Divide the product of (1), (2) and (3)
     5  by the total number of minutes spent in all classes weekly by
     6  the average pupil. The quotient thus obtained will be the
     7  "average daily membership for pupils in speech correction
     8  classes."
     9     For the school term of 1972-1973 [and for the school term of
    10  each school year thereafter] up to and including the 1988-1989
    11  school term, such payments shall consist of an amount payable in
    12  two equal installments during the year of operation, with
    13  adjustments to be made during the next succeeding school year.
    14  The amount to be paid in equal installments on or about the
    15  first day of August and on or about the first day of January of
    16  the operating year shall be the sum of the products determined
    17  by multiplying the anticipated equivalent full-time average
    18  daily membership in courses for exceptional children as reported
    19  on the approved budget for the operating year (1) at the
    20  elementary level times an amount determined by subtracting the
    21  estimated instruction cost per elementary pupil, as defined in
    22  section 2561 of this act, for the preceding school term from the
    23  budgeted instruction cost per special class elementary pupil as
    24  approved by the Department of Education for the operating year
    25  and (2) at the secondary level times an amount determined by
    26  subtracting the estimated instruction cost per high school
    27  pupil, as defined in section 2561 of this act, for the preceding
    28  school term from the budgeted instruction cost per special class
    29  secondary pupil as approved by the Department of Education for
    30  the operating year.
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     1     The adjustment to be made during the school year immediately
     2  succeeding the operating year shall be determined by subtracting
     3  the payments made during the preceding year from the actual
     4  amount of reimbursement which would have been payable for said
     5  year if calculated as during the year 1954-1955 through 1971-
     6  1972. When determined, the adjusted amount, if positive, shall
     7  be paid promptly to the district and, if negative, shall be
     8  withheld from any moneys due to such district out of any State
     9  appropriation.
    10     Section 2.  Section 2509.1 of the act, amended July 8, 1989
    11  (P.L.253, No.43), is amended to read:
    12     Section 2509.1.  Payment on Account of Transportation,
    13  Classes and Schools for Exceptional and Institutionalized
    14  Children.--[Annually, before] Before the first day of July, of
    15  every year up to and including 1990, every intermediate unit
    16  shall submit, for prior review and approval by the Department of
    17  Education, an estimate of the cost of operating and
    18  administering classes or schools for exceptional and
    19  institutionalized children, including the cost of such fiscal
    20  controls as auditing and necessary treasurer's and secretary's
    21  bonds to be operated by the intermediate unit during the ensuing
    22  school year, and for transportation of pupils to and from
    23  classes and schools for exceptional children, whether or not
    24  conducted by the intermediate unit. On or before the first day
    25  of August of every year up to and including 1989, the
    26  Commonwealth shall pay to the intermediate unit a sum equal to
    27  one-half of the approved estimated annual cost of operation and
    28  administration of classes and schools for exceptional and
    29  institutionalized children and transportation for exceptional
    30  children and, on or before the first day of January of every
    19900H2562B3528                  - 5 -

     1  year up to and including 1990, shall pay an equal sum, or a
     2  lesser sum as may be shown to be necessary by an adjusted budget
     3  based upon expenditures during the first half of the school
     4  term.
     5     For the 1990-1991 school term, such payments shall consist of
     6  an amount payable in five installments during the next
     7  succeeding school year as follows: in August, thirty percent
     8  (30%) of the approved estimated cost, in November, twenty
     9  percent (20%) of the approved estimated cost, in January, twenty
    10  percent (20%) of the approved estimated cost, in March, twenty
    11  percent (20%) of the approved estimated cost and in June, the
    12  balance determined by subtracting the payments made during July,
    13  November, January and March from the actual cost. At the end of
    14  each school year all unexpended funds shall be credited to the
    15  Commonwealth. Payments due for the succeeding school year on
    16  account of the operation of such classes or upon direction of
    17  the Secretary of Education shall be returned to the
    18  Commonwealth. All such funds returned are hereby specifically
    19  appropriated to the Department of Education for support of
    20  schools and classes, and transportation for exceptional
    21  children. For each school year up to and including 1989-1990,
    22  for each child enrolled in any special class or school for
    23  exceptional children operated by an intermediate unit, the
    24  school district in which the child is resident shall pay to the
    25  Commonwealth a sum equal to the "tuition charge per elementary
    26  pupil" or the "tuition charge per high school pupil," as
    27  determined for the schools operated by the district or by a
    28  joint board of which the district is a member, for the same year
    29  in which the special class or school is operated, as provided
    30  for in section two thousand five hundred sixty-one of the act to
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     1  which this is an amendment. In the event that any school
     2  district has not established such "tuition charge per elementary
     3  pupil" or "tuition charge per high school pupil," the Secretary
     4  of Education shall fix a reasonable charge for such district for
     5  the year in question. In addition, the district shall pay on
     6  account of transportation by the intermediate unit of pupils to
     7  and from classes and schools for exceptional children, whether
     8  or not conducted by the intermediate unit, an amount to be
     9  determined by subtracting from the cost of transportation per
    10  pupil the reimbursement due the district on account of such
    11  transportation in order to facilitate such payments by the
    12  several school districts. [The] During each school year up to
    13  and including 1990-1991, the Secretary of Education shall
    14  withhold from any moneys due to such district out of any state
    15  appropriation, except from reimbursements due on account of
    16  rentals as provided in section two thousand five hundred eleven
    17  point one of the act to which this is an amendment, the amounts
    18  due by such school districts to the Commonwealth. All amounts so
    19  withheld are hereby specifically appropriated to the Department
    20  of Education for the support of public schools. [The cost of
    21  operating and administering classes and schools for
    22  institutionalized children, including the cost of necessary
    23  fiscal controls, shall be paid by the Commonwealth.] Annually,
    24  before the first day of July 1991 and each year thereafter
    25  intermediate units shall submit for prior review and approval by
    26  the Department of Education, an estimate of the cost of
    27  operating and administering classes or schools for
    28  institutionalized children during the ensuing school year and
    29  for transportation of pupils to and from classes and schools for
    30  exceptional children, whether or not conducted by the
    19900H2562B3528                  - 7 -

     1  intermediate unit. The approved estimated cost of operating and
     2  administering classes and schools for institutionalized
     3  children, including the cost of necessary fiscal controls, and
     4  for transportation shall be paid by the Commonwealth. For each
     5  child enrolled in an intermediate unit operated class or school
     6  for institutionalized children, the school district in which the
     7  child is resident shall pay to the Commonwealth a sum equal to
     8  the "tuition charge per elementary pupil," or the "tuition
     9  charge per high school pupil," as determined for the schools
    10  operated by the district or by a joint board of which the
    11  district is a member, based upon the costs of the preceding
    12  school term as provided for in section two thousand five hundred
    13  sixty-one of the act to which this is an amendment. In the event
    14  that any school district has not established such "tuition
    15  charge per elementary pupil" or "tuition charge per high school
    16  pupil," the Secretary of Education shall fix a reasonable charge
    17  for such district for the year in question. In addition, the
    18  district shall pay on account of transportation by the
    19  intermediate unit of pupils to and from classes and schools for
    20  exceptional children, whether or not conducted by the
    21  intermediate unit, an amount to be determined by subtracting
    22  from the cost of transportation per pupil the reimbursement due
    23  the district on account of such transportation in order to
    24  facilitate such payments by the several school districts. The
    25  Secretary of Education shall withhold from any moneys due to
    26  such district out of any State appropriation, except from
    27  reimbursements due on account of rentals as provided in section
    28  two thousand five hundred eleven point one of the act to which
    29  this is an amendment, the amounts due by such school districts
    30  to the Commonwealth. All amounts so withheld are hereby
    19900H2562B3528                  - 8 -

     1  specifically appropriated to the Department of Education for the
     2  support of public schools.
     3     Section 3.  Section 2509.4 of the act, added July 8, 1989
     4  (P.L.253, No.43), is amended to read:
     5     Section 2509.4.  Payments on Account of Special Education
     6  Services.--(a)  For the school year 1989-1990, the following
     7  provisions shall apply to the Commonwealth's payments of funds
     8  to school districts and intermediate units for the provisions of
     9  special education services.
    10     (1)  On or before the first day of August, the Commonwealth
    11  shall pay to school districts and intermediate units an amount
    12  which represents fifty percent (50%) of the total State funds
    13  available for such programs operated in the school year 1989-
    14  1990.
    15     (2)  On January 1, 1990, a second payment shall be made to
    16  school districts and intermediate units consisting of one-fourth
    17  (1/4) of the total State funds available for such programs
    18  operated in the school year 1989-1990.
    19     (3)  If, by March 1, 1990, the State Board of Education has
    20  adopted revisions to Chapter 13 Special Education regulations
    21  and/or the 22 Pa. Code Ch. 341 standards, the final payment
    22  shall consist of the remaining State funds available for such
    23  programs operated in the school year 1989-1990. If, on March 1,
    24  1990, the State Board of Education has not adopted revisions to
    25  Chapter 13 Special Education regulations and/or 22 Pa. Code Ch.
    26  341 standards, but the Secretary of the Budget determines that
    27  sufficient progress has been made, a one-time waiver in order to
    28  make an additional payment of no more than one-eighth (1/8) of
    29  the total State funds available for such programs operated in
    30  the school year 1989-1990 may be made.
    19900H2562B3528                  - 9 -

     1     (b)  From the funds appropriated in the 1989-1990 fiscal year
     2  and notwithstanding the provisions of subsection (a)(1), (2) and
     3  (3), fifty million dollars ($50,000,000) shall be paid on August
     4  1, 1989, to school districts for programs operated in school
     5  year 1988-1989 with the additional payment of forty-nine million
     6  dollars ($49,000,000) of the funds due the school districts for
     7  the programs operated in school year 1988-1989 to be paid on or
     8  before December 1, 1989. Any adjustments to these payments may
     9  be made in June 1990 on the basis of actual data.
    10     (c)  During the school term of 1990-1991, the Commonwealth
    11  shall pay to each school district the balance due on account of
    12  approved special education programs operated by each school
    13  district during the 1989-1990 school term. Such payments shall
    14  consist of an amount payable in five installments as follows: in
    15  August of 1990, thirty percent (30%) of the estimated balance
    16  due, in November of 1990, twenty percent (20%) of the estimated
    17  balance due, in January of 1991, twenty percent (20%) of the
    18  estimated balance due, in March of 1991, twenty percent (20%) of
    19  the estimated balance due and in June 1991, the remainder,
    20  determined by adding the payments made under subsection (a) to
    21  the payments made during August, November, January and March and
    22  subtracting the result from the actual reimbursable amount
    23  earned for the 1989-1990 school term.
    24     Section 4.  The act is amended by adding sections to read:
    25     Section 2509.5.  Special Education Excess Costs.--(a)  During
    26  the school term of 1991-1992 and each school term thereafter,
    27  the Commonwealth shall pay to each school district the excess
    28  costs earned by the district pursuant to this section for
    29  approved special education programs and services provided during
    30  the immediately preceding school term by the district, or by
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     1  intermediate units or by other school districts, or by consortia
     2  of school districts or by other approved public educational
     3  agencies to exceptional students who are school district
     4  residents. Such payments shall consist of an amount payable in
     5  five installments as follows: in August, thirty percent (30%) of
     6  the estimated amount, in November, twenty percent (20%) of the
     7  estimated amount, in January, twenty percent (20%) of the
     8  estimated amount, in March, twenty percent (20%) of the
     9  estimated amount and in June, the balance due, determined by
    10  subtracting the payments made during August, November, January
    11  and March from the actual excess costs earned by the school
    12  district.
    13     (b)  The excess costs earned by each school district for
    14  approved special education programs and services shall be
    15  determined according to the following formula: For the 1990-1991
    16  school year and each school year thereafter school districts
    17  shall be paid by the Commonwealth on account of the excess costs
    18  for special education of the district's pupils an amount to be
    19  determined by multiplying the district's market value/income aid
    20  ratio or .3750, whichever is greater, by the excess cost factor
    21  and by the average daily membership of resident pupils enrolled
    22  in approved special education programs and services. For the
    23  school year 1990-1991 and each school year thereafter, the
    24  excess cost factor used to compute school district entitlements
    25  to payments pursuant to this section shall be nine thousand
    26  twenty-five dollars ($9,025).
    27     (c)  The provisions of subsection (a) notwithstanding, the
    28  Commonwealth's payment to each school district shall not exceed
    29  the prior year base amount by greater than nine percent (9%).
    30     (d)  The prior year base amount for the payments made during
    19900H2562B3528                 - 11 -

     1  the 1991-1992 school year shall be the sum of the school
     2  district's excess cost for 1990-1991 of classes or schools for
     3  exceptional children pursuant to section 2509 of this act, plus
     4  the Commonwealth's payment to the intermediate unit, as
     5  determined by the Department, on account of special education
     6  provided to school district resident exceptional children during
     7  1990-1991 pursuant to section 2509.1 of this act, less the
     8  school district's total tuition charges for elementary students
     9  and secondary students in special classes or schools for
    10  exceptional children operated by the intermediate unit pursuant
    11  to section 2509.1 of this act.
    12     (e)  For any school district whose revenue available for the
    13  1991-1992 school year is less than the revenue available to the
    14  school district in the 1990-1991 school year, that school
    15  district shall be paid by the Commonwealth during the 1991-1992
    16  school year, the school district's earned reimbursement under
    17  subsection (a) for the 1991-1992 school year plus the difference
    18  between the revenue available for 1990-1991 less the revenue
    19  available for 1991-1992. The payment under this subsection shall
    20  be made pursuant to the same installment payment schedule as set
    21  out in subsection (a).
    22     (f)  For purposes of subsection (e), the revenue available to
    23  a school district during the 1990-1991 school year shall be the
    24  Commonwealth's payment to each school district during the 1990-
    25  1991 school year pursuant to section 2509 of this act, plus the
    26  Commonwealth's payment to the intermediate unit during the 1990-
    27  1991 school year, as determined by the Department of Education,
    28  on account of school district resident exceptional students
    29  provided special education by the intermediate unit, pursuant to
    30  section 2509.1 of this act plus the 1990-1991 school year
    19900H2562B3528                 - 12 -

     1  equivalent full-time average daily membership in school district
     2  elementary special education classes multiplied by the
     3  "elementary tuition charge" under section 2561 of this act and
     4  the 1990-1991 school year equivalent full-time average daily
     5  membership in school district secondary special education
     6  classes multiplied by the "high school tuition charge" under
     7  section 2561 of this act.
     8     (g)  For purposes of subsection (e), the revenue available to
     9  a school district during the 1991-1992 school year shall be the
    10  school district's earned excess costs under subsection (a), plus
    11  the amount of the tuition that would have been withheld from the
    12  school district for the 1991-1992 school year pursuant to
    13  section 2509.1 of this act, plus the 1991-1992 school year
    14  equivalent full-time average daily membership in school district
    15  elementary school classes multiplied by the "elementary tuition
    16  charge" under section 2561 of this act and the 1991-1992 school
    17  year equivalent full-time average daily membership in school
    18  district special education classes multiplied by the "high
    19  school tuition charge" under section 2561 of this act.
    20     Section 2509.6.  Extraordinary Special Education Program
    21  Expenses.--The Department of Education shall for the 1991-1992
    22  school year and each school year thereafter set aside one
    23  percent (1%) of the State appropriation for extraordinary
    24  expenses approved by the Secretary of Education to be incurred
    25  in providing a special education program or service to an
    26  exceptional student. The Secretary of Education shall establish
    27  guidelines for the application, approval and expenditure of
    28  these funds and shall report annually to the General Assembly on
    29  such expenditures.
    30     Section 2509.7.  Director Support of Intermediate Unit
    19900H2562B3528                 - 13 -

     1  Services for Exceptional Children.--The Department of Education
     2  shall, for the 1991-1992 school year and each school year
     3  thereafter, pay two percent (2%) of the State appropriation for
     4  special education to intermediate units in August of the school
     5  year to facilitate the cooperative provision of special
     6  education services and programs for students with low-incidence
     7  handicaps, and to provide regional planning, training, technical
     8  assistance, data collection and program evaluation in special
     9  education. No intermediate unit shall receive less than one
    10  hundred thousand dollars ($100,000) annually on account of this
    11  section.
    12     Section 5.  This act shall take effect immediately.












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