PRIOR PRINTER'S NOS. 489, 1614, 1828 PRINTER'S NO. 1982
No. 438 Session of 1993
Report of the Committee of Conference
To the Members of the House of Representatives and Senate:
We, the undersigned, Committee of Conference on the part of
the House of Representatives and Senate for the purpose of
considering House Bill No. 438, entitled:
"An act amending the act of March 10, 1949 (P.L.30, No.14),
entitled 'An act relating to the public school system, including
certain provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the laws
relating thereto,' REQUIRING A REPORT OF CERTAIN RACIAL AND
ETHNIC GROUPINGS; authorizing the board of school directors of
certain school districts to levy different rates of taxation for
school purposes on land and on buildings; PROVIDING FOR
INSTRUCTIONAL SUPPORT, FOR PAYMENTS TO INTERMEDIATE UNITS AND
FOR SPECIAL EDUCATION PAYMENTS TO SCHOOL DISTRICTS; AND CREATING
A FUND FOR PAYMENTS TO APPROVED PRIVATE SCHOOLS,"
respectfully submit the following bill as our report:
RONALD R. COWELL
DWIGHT EVANS
(Committee on the part of the House of Representatives.)
J. WILLIAM LINCOLN
CHAKA FATTAH
(Committee on the part of the Senate.)
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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," requiring a report of certain racial
6 and ethnic groupings; authorizing the board of school
7 directors of certain school districts to levy different rates
8 of taxation for school purposes on land and on buildings;
9 providing for emergency certificates in certain
10 circumstances; further providing for certain inmates of
11 children's institutions, for transportation and lodging of
12 certain children and for approved private schools and
13 chartered schools; providing for instructional support, for
14 reimbursements for community colleges, for payments to
15 intermediate units and for special education payments to
16 school districts, including special education payment
17 adjustments; creating a fund for audit resolutions for
18 approved private schools; further providing for school
19 district reimbursement definitions, for instruction payments,
20 for payment limitations, for the economic supplement, for
21 assistance to small school districts, for temporary special
22 aid, for the low-expenditure, low-wealth supplement and for
23 the low-expenditure poverty supplement; providing for
24 education subsidy base, for an equity supplement, for
25 foundation guarantee payments, for a minimum effort base, for
26 a growth supplement, for a limited revenue sources
27 supplement, for discretionary funds to assist school
28 districts experiencing extreme financial difficulty and for
29 resource data in the foundation-based equity formula; further
30 providing for payments generally and for forfeitures for
31 certain employment practices; and providing for a graduate
32 opportunity fund.
33 The General Assembly of the Commonwealth of Pennsylvania
34 hereby enacts as follows:
35 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
36 as the Public School Code of 1949, is amended by adding a
37 section to read:
38 Section 112. Report of Racial and Ethnic Groupings.--The
39 Department of Education shall conduct a thorough review of the
40 1991-1992 PennData report "Statistical Summary for 1991-1992"
41 and identify those school districts that have special education
42 enrollments whose gender and ethnic representation exceeds by
43 five percent (5%) the gender and ethnic makeup of the student
44 population for the 1991-1992 school year. The Department of
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1 Education shall report to the Committee on Education in the
2 Senate and the Committee on Education in the House of
3 Representatives by October 1993 the findings of the review by
4 the Department of Education, an outline of what further
5 investigative steps should be taken, recommendations for
6 appropriate actions to be taken by the Department of Education
7 and any technical assistance services to be provided by the
8 Department of Education to school districts.
9 Section 2. Section 672 of the act is amended by adding a
10 subsection to read:
11 Section 672. Tax Levy; Limitations.--* * *
12 (e) The board of school directors of any school district of
13 the third class with a coterminous boundary with a third class
14 city, may, in any year, levy separate and different rates of
15 taxation for school purposes on all real estate classified as
16 land, exclusive of the buildings thereon, and on all real estate
17 classified as buildings on land. When real estate taxes are so
18 levied, (1) the rates shall be determined annually by a vote of
19 the board of school directors of a school district of the third
20 class based upon passage of the school district's annual budget,
21 (2) the rates may be levied by a school district of the third
22 class: Provided, That (i) the revenue obtained in the first year
23 of the levy is not in excess of one hundred fifteen (115) per
24 centum of the aggregate revenue which the school district
25 collected from a levy on real estate in the prior year, and (ii)
26 in the second and subsequent years, the school district levy on
27 real estate shall not be in excess of the aggregate revenue
28 which a school district is empowered to collect under existing
29 statute, and (3) the rates levied by a school district of the
30 third class shall be uniform as to all real estate within the
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1 classification.
2 Section 3. The act is amended by adding a section to read:
3 Section 1109.1. Emergency Certification in Certain
4 Instances.--When the superintendent and board of education of a
5 school district of the first class find that the supply of
6 certified teachers is inadequate to the educational needs of the
7 district's language minority student population or that the loss
8 of teachers due to early retirement would cause the interruption
9 of suitable and essential programs of instruction for such
10 students, the district may hire otherwise qualified persons
11 without current teaching certificates, provided that individuals
12 so employed shall enroll in a teacher certification program and
13 meet Pennsylvania certification requirements within a period not
14 to exceed three (3) years.
15 Section 4. Section 1306 of the act is amended by adding
16 subsections to read:
17 Section 1306. Non-resident Inmates of Children's
18 Institutions.--* * *
19 (c) Except as provided in subsection (d), whenever a student
20 described in this section is a suspected or identified eligible
21 student as defined in 22 Pa. Code Chs. 14 (relating to special
22 education services and programs) and 342 (relating to special
23 education services and programs), the school district in which
24 the institution is located is responsible for:
25 (1) providing the student with an appropriate program of
26 special education and training consistent with this act and 22
27 Pa. Code Chs. 14 and 342; and
28 (2) maintaining contact with the school district of
29 residence of the student for the purpose of keeping the school
30 district of residence informed of its plans for educating the
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1 student and seeking the advice of that district with respect to
2 the student.
3 (d) The student's school district of residence and the
4 school district in which the institution is located may agree to
5 an arrangement of educational and procedural responsibilities
6 other than as contained in subsection (c), provided that the
7 agreement is in writing and is approved by the Department of
8 Education after notice to and an opportunity to comment by the
9 parents of the student.
10 (e) Nothing in this section is intended to supersede section
11 914.1-A of this act or any other provision of law applicable to
12 a particular type of placement.
13 Section 5. The act is amended by adding a section to read:
14 Section 1306.1. Optional Commitment Location.--Any
15 adjudicated delinquent committed to a youth development center
16 or other juvenile correctional facility may serve the time of
17 any such commitment at a facility within the county of residence
18 if an appropriate facility exists within that county.
19 Section 6. Section 1308 of the act, amended February 5, 1982
20 (P.L.13, No.6), is amended to read:
21 Section 1308. Liability for Tuition and Enforcement of
22 Payment.--In all cases not covered by the preceding section if a
23 charge is made by any school district for tuition for the
24 inmates of any such institution, the officers of the institution
25 shall submit to the board of school directors a sworn statement,
26 setting forth the names, ages, and school districts liable for
27 tuition of all children who are inmates thereof, and desire to
28 attend public school in the district[, together with]. The
29 district in which the institution is located shall obtain a
30 blank acknowledging or disclaiming residence, signed by the
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1 secretary of the school district in which the institution
2 declares the legal residence of the child to be. If said
3 district shall fail to file said blank [with said institution]
4 within fifteen (15) days from the date it is sent to the
5 district [by the institution] by registered mail, [the
6 institution] the district in which the institution is located
7 shall again notify the district of its failure to comply with
8 the provisions of this act. If the district shall fail to comply
9 within fifteen (15) days following the second notice, said
10 failures to return the blank shall be construed as an
11 acknowledgement of said child's residence. The tuition of such
12 inmates as are included in the sworn statement to the board of
13 school directors shall be [withheld by the Secretary of
14 Education from any moneys due to the district liable for said
15 tuition upon receipt of a sworn statement setting forth the
16 names, ages, tuition charges, and school district liable for
17 tuition of said inmates. All money thus withheld shall be paid
18 by him to the district entitled to receive the same.] paid by
19 the district of residence of the inmates upon receipt of a bill
20 from the district in which the institution is located setting
21 forth the names, ages and tuition charges of the inmates. The
22 district so charged with tuition may file an appeal with the
23 Secretary of Education, in which it shall be the complainant and
24 the [institution] district in which the institution is located
25 the respondent. The decision of the Secretary of Education, as
26 to which of said parties is responsible for tuition, shall be
27 final.
28 If any inmates have been received from outside of
29 Pennsylvania, or if the institution cannot certify as to their
30 residence, their tuition shall be paid by the institution having
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1 the care or custody of said children, except in the case of
2 medically indigent children hospitalized in exclusively
3 charitable children's hospitals exempt under section 501(c)(3)
4 of the Internal Revenue Code which make no charges to any of its
5 patients nor accepts any third-party payments for services
6 provided to any of its patients. In such cases their tuition
7 shall be paid by the Commonwealth out of moneys appropriated by
8 the General Assembly for the purposes of this act. Enrollment of
9 any out-of-state student in a school district or intermediate
10 unit program shall be conditioned upon a guarantee, or actual
11 advance receipt, of tuition and transportation payment from the
12 institution, from the student's home state or out-of-state
13 school district, or from the out-of-state party or agency which
14 placed the student in the institution, except in the case of
15 medically indigent children hospitalized in exclusively
16 charitable children's hospitals exempt under section 501(c)(3)
17 of the Internal Revenue Code which make no charges to any of its
18 patients nor accepts any third-party payments for services
19 provided to any of its patients where the Commonwealth is paying
20 the tuition as otherwise provided for in this paragraph. If the
21 Secretary of Education decides that the legal residence of any
22 of said inmates is in Pennsylvania, but cannot be fixed in a
23 particular district, the Commonwealth shall pay the tuition of
24 such inmate out of moneys appropriated to the Department of
25 Education by the General Assembly for the maintenance and
26 support of the public schools of the Commonwealth.
27 Section 7. Section 1309 of the act is amended to read:
28 Section 1309. Cost of Tuition; How Fixed.--(a) The cost of
29 tuition in such cases shall be fixed as is now provided by law
30 for tuition costs in other cases, except [where,] in the
19930H0438B1982 - 8 -
1 following circumstances:
2 (1) Where, for the accommodation of such children, it shall
3 be necessary to provide a separate school or to erect additional
4 school buildings, [in which cases] the charge for tuition for
5 such children may include a proportionate cost of the operating
6 expenses, rental, and interest on any investment required to be
7 made in erecting such new school buildings.
8 (2) When a child who is an inmate of an institution is an
9 exceptional child, the district in which the institution is
10 located may charge the district of residence, and the district
11 of residence shall pay a special education charge in addition to
12 the applicable tuition charge. Such special education charge
13 shall not exceed an additional fifty percent (50%) of the
14 applicable tuition charge.
15 (b) The tuition herein provided for shall be paid annually
16 by the [Superintendent of Public Instruction] Secretary of
17 Education, the district of residence or the institution as the
18 case may be.
19 Section 8. Section 1374 of the act, amended January 14, 1970
20 (1969 P.L.468, No.192), is amended to read:
21 Section 1374. Free Transportation or Board and Lodging.--Any
22 exceptional child, who is regularly enrolled in a special class
23 that is approved by the Department of [Public Instruction]
24 Education, or who is enrolled in a regular class in which
25 approved educational provisions are made for him, may be
26 furnished with free transportation by the school district. When
27 it is not feasible to provide such transportation the board of
28 school directors may in lieu thereof pay for suitable board and
29 lodging for any such child. If free transportation or board and
30 lodging is not furnished for any exceptional child or any
19930H0438B1982 - 9 -
1 eligible young child as defined in the act of December 19, 1990
2 (P.L.1372, No.212), known as the Early Intervention Services
3 System Act, who, by reason thereof, is unable to attend the
4 class or center for which he is qualified, the intermediate unit
5 shall provide the transportation necessary.
6 Section 9. Section 1376 of the act, amended July 8, 1989
7 (P.L.253, No.43) and August 5, 1991 (P.L.219, No.25), is amended
8 to read:
9 Section 1376. Cost of Tuition and Maintenance of Certain
10 Exceptional Children in Approved Institutions.--(a) When any
11 child between school entry age and twenty-one (21) years of age
12 and resident in this Commonwealth, who is blind or deaf, or
13 [afflicted with] has cerebral palsy and/or [brain damage]
14 neurological impairment and/or muscular dystrophy and/or is
15 mentally retarded and/or [socially and emotionally disturbed,]
16 has a serious emotional disturbance and/or has autism/pervasive
17 developmental disorder and is enrolled, with the approval of the
18 Department of Education, as a pupil in an approved private
19 school [for the blind or deaf, or cerebral palsied and/or brain
20 damaged and/or muscular dystrophied and/or mentally retarded,
21 and/or socially and emotionally disturbed,] approved by the
22 Department of Education, in accordance with standards and
23 regulations promulgated by the State Board of Education, the
24 school district in which such child is resident shall pay the
25 greater of either twenty per centum (20%) of the actual audited
26 cost of tuition and maintenance of such child in such school, as
27 determined by the Department of Education, or its "tuition
28 charge per elementary pupil" or its "tuition charge per high
29 school pupil," and the Commonwealth shall pay, out of funds
30 appropriated to the department for special education, the
19930H0438B1982 - 10 -
1 balance due for the costs of such child's tuition and
2 maintenance, as determined by the department. For the school
3 years 1989-1990, 1990-1991 and 1991-1992, the school district
4 payment shall be no greater than forty percent (40%) of the
5 actual audited costs of tuition and maintenance of such child in
6 such school. For the 1992-1993 school year and each school year
7 thereafter, the school district payment shall be the greater of
8 forty percent (40%) of the actual audited costs of tuition and
9 maintenance of such child in such school, as determined by the
10 Department of Education, or its "tuition charge per elementary
11 pupil" or its "tuition charge per high school pupil," and the
12 Commonwealth shall pay, out of funds appropriated to the
13 department for approved private schools, the balance due for the
14 costs of such child's tuition and maintenance, as determined by
15 the department. The department will credit the district of
16 residence with average daily membership for such child
17 consistent with the rules of procedure developed in accordance
18 with section 2501. If the residence of such child in a
19 particular school district cannot be determined, the
20 Commonwealth shall pay, out of moneys appropriated to the
21 department for special education, the whole cost of tuition and
22 maintenance of such child. The Department of Education shall be
23 provided with such financial data from approved private schools
24 as may be necessary to determine the reasonableness of costs for
25 tuition and room and board concerning Pennsylvania resident
26 approved reimbursed students. The Department of Education shall
27 evaluate such data and shall disallow any cost deemed
28 unreasonable. Any costs deemed unreasonable by the Department of
29 Education for disallowance shall be considered an adjudication
30 within the meaning of Title 2 of the Pa.C.S. (relating to
19930H0438B1982 - 11 -
1 administrative law and procedure) and regulations promulgated
2 thereunder.
3 (b) When any person less than school entry age or more than
4 twenty-one (21) years of age and resident in this Commonwealth,
5 who is blind or deaf, or [afflicted with] has cerebral palsy
6 and/or [brain damage and/or muscular dystrophy,] has
7 neurological impairment and/or has muscular dystrophy, or has
8 autism/pervasive developmental delay, and is enrolled, with the
9 approval of the Department of Education, as a pupil in an
10 approved private school [for the blind or deaf, or cerebral
11 palsied and/or brain damaged and/or muscular dystrophied,]
12 approved by the Department of Education, the Commonwealth shall
13 pay to such school, out of moneys appropriated to the department
14 for special education, the actual audited cost of tuition and
15 maintenance of such person, as determined by the Department of
16 Education, subject to review and approval in accordance with
17 standards and regulations promulgated by the State Board of
18 Education, and in addition, in the case of any child less than
19 school entry age, who is blind, the cost, as determined by the
20 Department of Education of instructing the parent of such blind
21 child in caring for such child.
22 (c) Each approved private school, prior to the start of the
23 school year, shall submit to the department such information as
24 the department may require in order to establish an estimate of
25 reimbursable costs. Based upon this information, any other data
26 deemed necessary by the department and in accordance with
27 department standards, the department shall develop for each
28 approved private school an estimate of reimbursable costs. Based
29 upon such estimate, the department shall provide each approved
30 private school with monthly payments in advance of department
19930H0438B1982 - 12 -
1 audit. The department may withhold a portion of such payments
2 not exceeding five percent (5%) of such payment, pending final
3 audit. In no event shall either the advance payments or final
4 reimbursement made by the department following audit exceed the
5 appropriation available for approved private schools.
6 (c.1) Any funds remaining from the appropriation line items
7 "for special education - approved private schools" from the
8 general appropriations acts for fiscal years 1978-1979 through
9 1990-1991 inclusive shall be transferred by the State Treasurer
10 into a restricted account (continuing appropriation) for audit
11 resolution which is hereby established. The Department of
12 Education shall also deposit into this restricted account any
13 funds returned to or recovered by the department from approved
14 private schools for overpayments during fiscal years 1978-1979
15 through 1990-1991 inclusive. The funds in the restricted account
16 are hereby appropriated upon approval of the Governor, to the
17 Department of Education for payments to approved private schools
18 for audit resolutions for fiscal years 1978-1979 through 1990-
19 1991 inclusive. Funds in this restricted account shall not be
20 subject to the limitations in subsection (c) which prohibit
21 advance payments and final reimbursement from exceeding the
22 appropriation available for approved private schools. Any
23 uncommitted funds remaining in this restricted account on June
24 30, 1995, shall lapse into the General Fund.
25 (d) No private institution receiving payment in accordance
26 with this section shall impose any charge on the student and/or
27 parents who are Pennsylvania approved reimbursable residents for
28 a program of individualized instruction and maintenance
29 appropriate to the child's needs; except that charges for
30 services not part of such program may be made if agreed to by
19930H0438B1982 - 13 -
1 the parents.
2 (e) (1) The Education Committees of the Senate and House of
3 Representatives are directed to jointly examine the issues of
4 the funding of approved private schools and special education
5 students' access to approved private schools as part of the full
6 continuum of special education placements. The committees'
7 examination should address, at a minimum, the following issues:
8 (i) The funding methodology which supports the school
9 district's responsibility for individualized, appropriate
10 educational services to special education students through
11 access to the most comprehensive continuum of educational
12 options and settings.
13 (ii) The role of the approved private school in the mandated
14 continuum of special education services available to students in
15 Pennsylvania.
16 (iii) The relative roles of the Department of Education and
17 school districts to ensure free appropriate public education
18 (FAPE) through adequate funding and appropriate distribution of
19 comprehensive services.
20 (iv) the provisions of the Individuals with Disabilities
21 Education Act (IDEA) (P.L.101-476); the Cordero Court Orders;
22 this act; and 22 Pa. Code Chs. 14 and 342 as they relate to the
23 provision of programs and services to special education students
24 should be carefully reviewed as they pertain to approved private
25 schools, continuum of placement options, funding, FAPE and other
26 pertinent issues.
27 (2) The committees shall report back to the General Assembly
28 by November 15, 1993, with legislative and/or administrative
29 recommendations. The committees may hold such meetings and
30 hearings as they deem appropriate to accomplish the provisions
19930H0438B1982 - 14 -
1 of this subsection.
2 Section 10. Section 1376.1 of the act, amended July 8, 1989
3 (P.L.253, No.43), is amended to read:
4 Section 1376.1. Actual Cost of Tuition and Maintenance of
5 Certain Exceptional Children in the Four Chartered Schools for
6 Education of the Deaf and the Blind.--(a) The following term,
7 whenever used or referred to in this section, shall have the
8 following meaning. "Chartered school" shall mean any of the four
9 (4) chartered schools for the education of the deaf or the
10 blind: the Pennsylvania School for the Deaf; the Overbrook
11 School for the Blind; the Western Pennsylvania School for Blind
12 Children; and the Western Pennsylvania School for the Deaf.
13 (b) When any child of school age resident in this
14 Commonwealth, who is blind or deaf, is enrolled with the
15 approval of the Department of Education as a pupil in any of the
16 four (4) chartered schools in accordance with standards and
17 regulations promulgated by the State Board of Education, the
18 school district in which such child is resident shall pay the
19 greater of either twenty percent (20%) of the actual cost of
20 tuition and maintenance of such child in such institution, as
21 determined by the Department of Education; or its "tuition
22 charge per elementary pupil" or its "tuition charge per high
23 school pupil," and the Commonwealth shall pay, out of funds
24 appropriated to the department for special education, the
25 balance due for the costs of such child's tuition and
26 maintenance, as determined by the department. For the school
27 years 1989-90, 1990-91 and 1991-92, the school district payment
28 shall be no greater than forty percent (40%) of the actual
29 audited costs of tuition and maintenance of such child in such
30 school. For the 1992-1993 school year and each school year
19930H0438B1982 - 15 -
1 thereafter, the school district payment shall be the greater of
2 forty percent (40%) of the actual audited costs of tuition and
3 maintenance of such child in such school, as determined by the
4 Department of Education, or its "tuition charge per elementary
5 pupil" or its "tuition charge per high school pupil," and the
6 Commonwealth shall pay, out of funds appropriated to the
7 department for chartered schools, the balance due for the costs
8 of such child's tuition and maintenance, as determined by the
9 department. The department will credit the district of residence
10 with average daily membership for such child consistent with the
11 rules of procedure developed in accordance with section 2501. If
12 the residence of such child in a particular school district
13 cannot be determined, the Commonwealth shall pay, out of moneys
14 appropriated to the department for special education, the whole
15 cost of tuition and maintenance of such child. The Department of
16 Education shall be provided with such financial data from each
17 of the chartered schools as may be necessary to determine the
18 reasonableness of charges for tuition and room and board of each
19 of the chartered schools made on Pennsylvania resident approved
20 students. The Department of Education shall evaluate such data
21 and shall disallow any charges deemed unreasonable. Any charge
22 deemed unreasonable by the Department of Education for
23 disallowance shall be considered an adjudication within the
24 meaning of Title 2 of the Pa.C.S. (relating to administrative
25 law and procedure) and regulations promulgated thereunder.
26 (c) When any person less than school age resident in this
27 Commonwealth who is blind or deaf is enrolled, with the approval
28 of the Department of Education, as a residential pupil in any of
29 the four (4) chartered schools, the Commonwealth shall pay to
30 the school, out of moneys appropriated to the department for
19930H0438B1982 - 16 -
1 special education, the actual cost of tuition and maintenance of
2 such person, as determined by the Department of Education,
3 subject to review and approval in accordance with standards and
4 regulations promulgated by the State Board of Education, and in
5 addition, in the case of any child less than school age, who is
6 blind, the cost, as determined by the Department of Education of
7 instructing the parent of such blind child in caring for such
8 child.
9 (d) None of the chartered schools receiving payment in
10 accordance with this section shall impose any charge on the
11 student and/or parents who are approved reimbursable residents
12 for a program of instruction and maintenance appropriate to the
13 child's needs; except that charges for programs not part of the
14 normal school year may be made.
15 Section 11. The act is amended by adding a section to read:
16 Section 1548. Instructional Support.--The instructional
17 support program currently found at 22 Pa. Code § 14.24 (relating
18 to instructional support) or any successor regulation shall not
19 apply to students who are thought to be gifted, to students
20 attending non-public schools who are thought to be exceptional
21 or to young children not yet of kindergarten age or not enrolled
22 in a public school program. Public school students thought to be
23 eligible may be served regardless of grade.
24 Section 12. Section 1913-A(a) and (b) of the act, amended or
25 added July 1, 1985 (P.L.103, No.31) and October 20, 1988
26 (P.L.827, No.110), are amended and the section is amended by
27 adding subsections to read:
28 Section 1913-A. Financial Program; Reimbursement or
29 Payments.--(a) The plan submitted by the local sponsor shall
30 set forth a financial program for the operation of the community
19930H0438B1982 - 17 -
1 college. The plan shall provide that [at least two-thirds of the
2 annual operating costs and up to] the local sponsor shall
3 appropriate or provide to the community college an amount at
4 least equal to the community college's annual operating costs
5 less the student tuition as determined in section 1908-A(a) less
6 the Commonwealth's payment as determined in subsection (b)(1) of
7 this section. The plan shall also provide that one-half of the
8 annual capital expenses shall be appropriated or provided by the
9 local sponsor to the community college[, and such allocation].
10 The local sponsor's appropriation for annual operating costs and
11 annual capital expenses may in part be represented by real or
12 personal property or services made available to the community
13 college. The plan shall indicate whether the appropriation shall
14 come from general revenues, loan funds, special tax levies or
15 from other sources, including student tuitions.
16 (b) (1) [The] For the 1993-1994 fiscal year and for each
17 fiscal year thereafter, the Commonwealth shall pay to a
18 community college on behalf of the sponsor on account of its
19 operating costs during the fiscal year from funds appropriated
20 for that purpose an amount equal to [one-third of such college's
21 approved operating costs not to exceed three thousand dollars
22 ($3,000) per student multiplied by the number of equivalent
23 full-time students determined by an audit to be made in a manner
24 prescribed by the State Board of Education.
25 (2) In addition, the Commonwealth shall pay to a community
26 college, on account of its] the lesser of such college's
27 variable State share ceiling as determined in subsection
28 (b)(1.3) or such college's equivalent full-time student
29 reimbursement as determined in subsection (b)(1.4).
30 (1.2) The Secretary of Education, in consultation with the
19930H0438B1982 - 18 -
1 community colleges, shall promulgate standards for credit
2 courses and for noncredit courses that will be eligible for
3 Commonwealth reimbursement. The standards shall specifically
4 exclude from eligibility for reimbursement any course or program
5 in avocational or recreational pursuits. The standards shall be
6 promulgated by the beginning of the 1994-1995 fiscal year. Until
7 such standards are promulgated, no community college will be
8 reimbursed for any credit course which was offered by such
9 college as a noncredit course during the college's 1992-1993
10 fiscal year.
11 (1.3) The variable State share ceiling of a community
12 college shall be determined as follows:
13 (i) Subtract the taxable income per person of the local
14 sponsor from the highest taxable income per person of any county
15 in the Commonwealth.
16 (ii) Divide the amount determined under paragraph (i) by the
17 difference between the highest taxable income per person of any
18 county in the Commonwealth and the lowest taxable income per
19 person of any county in the Commonwealth.
20 (iii) Multiply the quotient determined under paragraph (ii)
21 by one-sixth.
22 (iv) Add one-third to the product determined under paragraph
23 (iii).
24 (v) Multiply the sum determined under paragraph (iv) by the
25 community college's operating costs in the year for which
26 reimbursement is being claimed.
27 (vi) The taxable income per person data used in the
28 preceding calculation shall be data certified to the Secretary
29 of Education by the Secretary of Revenue under section 2501(9.1)
30 for school district local sponsors or data otherwise published
19930H0438B1982 - 19 -
1 by the Secretary of Revenue for a municipal local sponsor.
2 (1.4) The equivalent full-time student reimbursement of a
3 community college shall be the sum of credit course, noncredit
4 course and stipend reimbursements. These reimbursements shall be
5 calculated using a reimbursement factor of one thousand and
6 forty dollars ($1,040) for the 1993-1994 fiscal year and of one
7 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
8 and for each year thereafter and shall be determined as follows:
9 (i) Credit course reimbursement shall be calculated by
10 multiplying the reimbursement factor by the number of equivalent
11 full-time students enrolled in credit courses as determined by
12 an audit to be made in a manner prescribed by the State Board of
13 Education.
14 (ii) Noncredit course reimbursement shall be calculated as
15 follows:
16 (A) eighty percent (80%) of the reimbursement factor
17 multiplied by the number of equivalent full-time students
18 enrolled in eligible noncredit courses for the 1993-1994 fiscal
19 year, as determined by the audit referred to in paragraph (i);
20 or
21 (B) seventy percent (70%) of the reimbursement factor
22 multiplied by the number of equivalent full-time students
23 enrolled in eligible noncredit courses for the 1994-1995 fiscal
24 year and for each year thereafter, as determined by the audit
25 referred to in paragraph (i).
26 (iii) Stipend reimbursement on account of a community
27 college's operating costs for all equivalent full-time students
28 enrolled in the following categories of two-year or less than
29 two-year occupational or technical programs, [a stipend as
30 follows] shall be the sum of the following:
19930H0438B1982 - 20 -
1 [(i)] (A) One thousand one hundred dollars ($1,100) per
2 full-time equivalent student enrolled in advanced technology
3 programs. Advanced technology programs are programs using new or
4 advanced technologies which hold promise for creating new job
5 opportunities, including such fields as robotics, biotechnology,
6 specialized materials and engineering and engineering-related
7 programs.
8 [(ii)] (B) One thousand dollars ($1,000) per full-time
9 equivalent student enrolled in programs designated as Statewide
10 programs. A Statewide program is a program which meets one or
11 more of the following criteria:
12 [(A)] (I) Program enrollment from out-of-sponsor area is
13 twenty per cent or more of the enrollment for the program.
14 [(B)] (II) A consortial arrangement exists with another
15 community college to cooperatively operate a program or share
16 regions in order to avoid unnecessary program duplication.
17 [(iii)] (C) Five hundred dollars ($500) per full-time
18 equivalent student enrolled in other occupational or technical
19 programs.
20 (2) For the 1993-1994 fiscal year, each community college
21 shall be reimbursed under subsection (b)(1) in an amount which
22 is at least equal to a one percent (1%) increase over its 1992-
23 1993 operating cost and stipend reimbursement. In no case shall
24 a community college's 1993-1994 reimbursement under subsection
25 (b)(1) per full-time equivalent student, insofar as said
26 reimbursement does not include a proportionate share
27 attributable to stipend reimbursement under subsection
28 (b)(1.4)(iii), exceed its 1992-1993 operating cost reimbursement
29 per full-time equivalent student by more than ten percent (10%).
30 (2.1) For the 1994-1995 fiscal year, each community college
19930H0438B1982 - 21 -
1 shall be reimbursed under subsection (b)(1) in an amount which
2 is at least equal to a one percent (1%) increase over its 1993-
3 1994 reimbursement under subsection (b)(1). In no case shall a
4 community college's 1994-1995 reimbursement under subsection
5 (b)(1) per full-time equivalent student, insofar as said
6 reimbursement does not include the proportionate share
7 attributable to stipend reimbursement under subsection
8 (b)(1.4)(iii), exceed its 1993-1994 reimbursement under
9 subsection (b)(1) per full-time equivalent student, insofar as
10 said reimbursement does not include the proportionate share
11 attributable to stipend reimbursement under subsection
12 (b)(1.4)(iii) by more than ten percent (10%).
13 (2.2) For the 1995-1996 fiscal year, each community college
14 shall be reimbursed under subsection (b)(1) in an amount which
15 is at least equal to its 1994-1995 reimbursement under
16 subsection (b)(1).
17 (3) The Secretary of Education annually shall establish
18 criteria to be used to determine eligibility of programs for
19 each of the above stipend categories, shall approve programs for
20 funding in the following fiscal year according to these criteria
21 and shall submit to chairmen of the committees of education in
22 the House of Representatives and Senate a report setting forth
23 the established criteria, any programs approved for funding
24 under these criteria and the recipient community colleges.
25 (4) Each community college shall maintain such accounting
26 and student attendance records on generally accepted principles
27 and standards as will lend themselves to satisfactory audit. The
28 Commonwealth shall pay to a community college on behalf of the
29 sponsor on account of its capital expenses an amount equal to
30 one-half of such college's annual capital expenses from funds
19930H0438B1982 - 22 -
1 appropriated for that purpose to the extent that said capital
2 expenses have been approved as herein provided.
3 (5) For purposes of determining Commonwealth reimbursement
4 of operating costs, Federally funded expenditures for those
5 programs in which the Commonwealth participates in the cost
6 shall be deducted from total operating expenditures to determine
7 net reimbursable operating costs.
8 * * *
9 (j) In no event shall the payments or final reimbursement
10 made by the department following audit exceed the appropriation
11 available for community colleges.
12 (k) (1) Unless otherwise prescribed by the State Board of
13 Education, the Commonwealth's fiscal audits of community
14 colleges under this section shall be conducted in accordance
15 with "Government Auditing Standards," latest revision,
16 promulgated by the United State General Accounting Office.
17 Written audit reports will be produced and will be sent to the
18 community college by the Commissioner of Postsecondary/Higher
19 Education. Any cost disallowed under findings contained in the
20 audit report shall be considered an adjudication within the
21 meaning of 2 Pa.C.S. (relating to administrative law and
22 procedure) and regulations promulgated thereunder.
23 (2) The Secretary of Education is hereby specifically
24 authorized and shall be required to resolve audit findings
25 involving disallowed costs that are contested by community
26 colleges except for audit findings that involve mathematical
27 errors, violation of regulations or alleged illegal activities.
28 The proposed resolution of the Secretary of Education shall not
29 be subject to the provisions of 2 Pa.C.S. The Secretary of
30 Education's notice to resolve audit findings shall be sent to
19930H0438B1982 - 23 -
1 the community college in writing. The Secretary of Education may
2 resolve the audit findings by reducing the disallowed costs
3 related thereto in whole or in part.
4 (3) The Secretary of Education's notice to resolve an audit
5 finding by reducing or eliminating the disallowed costs must be
6 made contingent upon the community college developing and
7 implementing a corrective action plan to address the audit
8 finding. The community college must submit a corrective action
9 plan to the Secretary of Education within 60 days after receipt
10 of the Secretary of Education's written notice to resolve the
11 audit finding. The Secretary of Education shall approve, reject
12 or alter the plan submitted by the community college within
13 thirty (30) days of submission. After the community college
14 receives written notice of approval or agrees in writing to the
15 Secretary of Education's alterations of the corrective action
16 plan, said plan shall be implemented and shall be binding on the
17 community college. Implementation of the approved or agreed upon
18 corrective action plan will be verified by an audit conducted by
19 the department no later than the end of the fiscal year
20 following the fiscal year during which the plan is implemented.
21 If no agreed upon corrective action plan is in place within one
22 year after the date of the Secretary of Education's written
23 notice to resolve audit findings, or if the agreed upon
24 corrective action has not been implemented within one year after
25 the date of the Secretary of Education's written notice to
26 resolve the audit findings, then the Secretary of Education is
27 authorized to adjust payments to the community college to
28 collect any amounts due based upon the findings contained in the
29 audit report that was issued to the college by the commissioner.
30 (4) The department shall deduct any amounts due the
19930H0438B1982 - 24 -
1 Commonwealth as a result of audit findings that are resolved
2 under this subsection from any future payment due to the
3 community college from the Commonwealth. The Secretary of
4 Education is authorized to approve a payment schedule in cases
5 where immediate repayment of the full amount due the
6 Commonwealth would jeopardize the ability of the community
7 college to continue operations.
8 (5) Resolution authority provided to the Secretary of
9 Education in this subsection shall be limited to disallowed cost
10 findings relating to policy and/or administrative practices. The
11 resolution authority shall not be used for audit findings in
12 which the audited community college data and documentation is in
13 error, where a violation of applicable law or regulation is
14 found or where criminal violations are suspected by the
15 Commonwealth auditors and brought to the Secretary of
16 Education's attention in writing. Notwithstanding the
17 limitations of this subsection, until June 30, 1995, the
18 Secretary of Education is authorized to resolve audit findings
19 involving disallowed costs for fiscal years prior to and
20 including 1992-1993 when such disallowed costs result from
21 violation of regulations.
22 (6) The department, through the Secretary of Education, is
23 authorized to issue guidelines for the operation of the
24 community college educational and financial programs. The
25 department shall amend these guidelines on an annual basis to
26 reflect the department's position on issues that require
27 resolution under this subsection.
28 (7) The provisions of subsection (d) of this section are
29 repealed insofar as they are inconsistent with the provisions of
30 this subsection.
19930H0438B1982 - 25 -
1 (l) For the fiscal year 1992-1993, if insufficient funds are
2 appropriated to make Commonwealth payments pursuant to this
3 section, such payments shall be made on a pro rata basis.
4 Section 13. Section 2501(9), (9.1), (9.2), (14.1), (15),
5 (18) and (19) of the act, amended December 20, 1983 (P.L.267,
6 No.73), July 8, 1989 (P.L.253, No.43) and August 5, 1991
7 (P.L.219, No.25), are amended and the section is amended by
8 adding clauses to read:
9 Section 2501. Definitions.--For the purposes of this article
10 the following terms shall have the following meanings:
11 * * *
12 (9) "Real Property Valuation." A school district's,
13 vocational school district's or municipality's real property
14 valuation, to be used for purposes of computing the basic
15 account standard reimbursement fraction, the subsidiary account
16 reimbursement fraction, [and] the aid ratio, the market
17 value/income aid ratio, and the equalized millage shall be the
18 valuation placed upon its taxable real property by the State Tax
19 Equalization Board.
20 (9.1) "Personal Income Valuation." A school district's
21 personal income valuation for purposes of computing the market
22 value/income aid ratio and for purposes of reimbursement to a
23 school district under subsections (d), (e), and (f) of section
24 2502, section 2502.22, section 2502.25 and section 2592 shall be
25 the valuation of the total taxable income for the tax year
26 preceding the immediate prior year, determined under Article III
27 of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax
28 Reform Code of 1971," for each school district each year by the
29 Secretary of Revenue and certified to the Secretary of
30 Education. For the 1988-1989 school year and each school year
19930H0438B1982 - 26 -
1 thereafter, the Secretary of Revenue shall additionally certify,
2 for those districts in which residents claim credit against the
3 State personal income tax for income earned outside this
4 Commonwealth under section 314 of the "Tax Reform Code of 1971,"
5 the total number of persons claiming such out-of-State tax
6 credits and the total dollar amount of such tax credits claimed
7 in the individual district.
8 (9.2) "Equalized Millage." (a) For the year prior to the
9 year for which reimbursement is being computed, a school
10 district's tax effort to be used for reimbursement under
11 subsections (d) and (e) of section 2502 and section 2502.11,
12 shall be the amount of local school taxes collected divided by
13 the real property valuation of the school district for the year
14 prior to the year for which reimbursement is being computed.
15 (b) For purposes of computing the base earned for
16 reimbursement and for purposes of reimbursement to a school
17 district under section 2502.22, the district's equalized millage
18 shall be computed, for the year for which reimbursement is being
19 paid, as follows: divide the district's amount of local school
20 taxes collected for the school year immediately preceding the
21 school year for which reimbursement is being paid by the real
22 property valuation of the school district for the calendar year
23 that concluded during the school year immediately preceding the
24 school year for which reimbursement is being paid; multiply the
25 result by one thousand (1,000).
26 * * *
27 (14.1) "Market Value/Income Aid Ratio." For purposes of
28 reimbursement to a school district under subsections (d), (e),
29 and (f) of section 2502, section 2502.8, section 2502.22,
30 section 2502.25, section 2502.26 and section 2592, or to an
19930H0438B1982 - 27 -
1 intermediate unit or area vocational-technical school, shall be
2 the Commonwealth's method of determining the combined market
3 value and income wealth for each pupil, and shall be computed,
4 for the school year for which reimbursement is being paid, as
5 follows:
6 (a) (i) Divide the market value per weighted average daily
7 membership of the district, intermediate unit or area
8 vocational-technical school by the market value per weighted
9 average daily membership of the State;
10 (ii) Determine the product of (a)(i) multiplied by [the
11 district's share of total costs which is] .5;
12 (iii) Subtract the resultant product in (a)(ii) from 1.000
13 to determine the market value portion of the aid ratio.
14 (iv) For purposes of the calculation described in (a)(i)
15 through (a)(iii), the market value of a district shall be the
16 real property valuation of the district for the calendar year
17 that concluded during the school year immediately preceding the
18 school year for which reimbursement is being paid. The market
19 value of an intermediate unit or area vocational-technical
20 school shall be the sum of the real property valuations of each
21 of its component districts for the calendar year that concluded
22 during the school year immediately preceding the school year for
23 which reimbursement is being paid. The weighted average daily
24 membership of a district shall be the weighted average daily
25 membership for the school year immediately preceding the school
26 year for which reimbursement is being paid. The weighted average
27 daily membership of an intermediate unit or area vocational-
28 technical school shall be the sum of the weighted average daily
29 memberships of each of its component districts for the school
30 year immediately preceding the school year for which
19930H0438B1982 - 28 -
1 reimbursement is being paid.
2 (b) (i) Divide the income per weighted average daily
3 membership of the district, the intermediate unit or area
4 vocational-technical school by the average personal income per
5 weighted average daily membership of the State;
6 (ii) Determine the product of (b)(i) multiplied by [the
7 district's share of total costs which is] .5;
8 (iii) Subtract the resultant product in (b)(ii) from
9 [1.0000] 1.000 to determine the income aid ratio.
10 (iv) For purposes of the calculation described in (b)(i)
11 through (b)(iii), the income of a district shall be the personal
12 income valuation of the district. The income of an intermediate
13 unit or area vocational-technical school shall be the sum of the
14 personal income valuations of each of its component districts.
15 The weighted average daily membership of the district shall be
16 the weighted average daily membership for the school year
17 immediately preceding the school year for which reimbursement is
18 being paid. The weighted average daily membership of an
19 intermediate unit or area vocational-technical school shall be
20 the sum of the weighted average daily memberships of each of its
21 component districts for the school year immediately preceding
22 the school year for which reimbursement is being paid.
23 (c) Add sixty percent (60%) of the market value aid ratio to
24 forty percent (40%) of the income aid ratio to determine the
25 market value/income aid ratio.
26 (d) For payments beginning in the 1989-1990 school year and
27 each school year thereafter, the Department of Education shall
28 utilize an adjusted personal income valuation for the 1987 tax
29 year and each tax year thereafter respectively in computing the
30 market value/income aid ratio for such districts. The adjusted
19930H0438B1982 - 29 -
1 personal income valuation shall be calculated by dividing the
2 total out-of-State tax credits claimed by the residents of a
3 school district by the State personal income tax rate and
4 subtracting that amount from the total personal income valuation
5 for the individual school district. The State total personal
6 income valuation shall remain that as certified by the
7 Department of Revenue and shall not be adjusted to reflect out-
8 of-State tax credits.
9 (15) "Minimum Subsidy." For the school years 1976-1977 and
10 1977-1978, in no case shall a district receive for each pupil in
11 weighted average daily membership, an amount less than ten
12 percent (10%) of the actual cost of instruction or ten percent
13 (10%) of the base earned for reimbursement whichever is the
14 lesser amount. For the 1978-1979 school year through the 1980-
15 1981 school year, no school district shall receive for each
16 pupil in weighted average daily membership an amount less than
17 fifteen percent (15%) of the base earned for reimbursement or
18 actual instructional expense per WADM, whichever is the lesser
19 amount. For the 1976-1977 school year through the 1980-1981
20 school year, a district whose actual instruction expense per
21 weighted average daily membership is more than two hundred
22 dollars ($200) less than the median actual instruction expense
23 per weighted average daily membership, and whose equalized
24 millage is within fifteen percent (15%) of the median equalized
25 millage, the reimbursement shall be two hundred dollars ($200)
26 below the median actual instruction expense per weighted average
27 daily membership times the district's aid ratio for each
28 weighted average daily membership. For the 1982-1983 school year
29 [and each school year thereafter] through the 1990-1991 school
30 year, no school district shall receive for each pupil in
19930H0438B1982 - 30 -
1 weighted average daily membership an amount less than fifteen
2 percent (15%) of the factor for educational expense.
3 * * *
4 (18) "Equalized Subsidy for Basic Education." For the school
5 year 1982-1983 and each school year thereafter, each school
6 district shall be paid by the Commonwealth an equalized subsidy
7 for basic education, which shall consist of any or all of the
8 following, as applicable:
9 (i) Payments on account of instruction, as provided for in
10 subsections (d) and (e) of section 2502.
11 (ii) An economic supplement, as provided for in section
12 2502.11.
13 (iii) Assistance to small districts as provided for in
14 section 2502.13.
15 (iv) A low-expenditure, low-wealth supplement as provided
16 for in section 2502.17.
17 (v) A low-expenditure poverty supplement as provided for in
18 section 2502.18.
19 (vi) A payment as provided for in section 2502.20.
20 (19) "Factor for Educational Expense." For the school years
21 1982-1983 and 1983-1984, the factor for educational expense used
22 to compute school district entitlements to payments on account
23 of instruction, as provided for in subsection (d) of section
24 2502, shall be one thousand six hundred fifty-six dollars
25 ($1,656) unless later changed by statute. For the school year
26 1983-1984, the Factor for Educational Expense shall be one
27 thousand seven hundred twenty-five dollars ($1,725), unless
28 later changed by statute, for those school districts
29 participating, during the 1984-1985 school year, in a Statewide
30 program for testing and remediation which is designed to
19930H0438B1982 - 31 -
1 identify and provide remediation services to individual students
2 pursuant to section 1511.1. For the 1984-1985 school year,
3 notwithstanding any other provisions of this act to the
4 contrary, the Factor for Educational Expense used to compute all
5 school districts' entitlements to payments on account of
6 instruction, as provided for in subsection (d) of section 2502,
7 shall be one thousand eight hundred seventy-five dollars
8 ($1,875). For the 1985-1986 school year, the Factor for
9 Educational Expense used to compute all school districts'
10 entitlements to payments on account of instruction, as provided
11 for in subsection (d) of section 2502, shall be one thousand
12 nine hundred seventy dollars ($1,970). For the 1986-1987 school
13 year, the Factor for Educational Expense used to compute all
14 school districts' entitlements to payments on account of
15 instruction, as provided for in subsection (d) of section 2502,
16 shall be two thousand one hundred twenty-five dollars ($2,125).
17 For the school year 1987-1988, the Factor for Educational
18 Expense used to compute all school districts' entitlements to
19 payments on account of instruction, as provided for in
20 subsection (d) of section 2502, shall be two thousand two
21 hundred thirty dollars ($2,230). For the school year 1988-1989,
22 the Factor for Educational Expense used to compute all school
23 districts' entitlements to payments on account of instruction,
24 as provided for in subsection (d) of section 2502, shall be two
25 thousand three hundred thirty dollars ($2,330). For the school
26 year 1989-1990, the Factor for Educational Expense used to
27 compute all school districts' entitlements to payments on
28 account of instruction, as provided for in subsection (d) of
29 section 2502, shall be two thousand three hundred eighty dollars
30 ($2,380), as provided for in section 212 of the act of July 1,
19930H0438B1982 - 32 -
1 1990 (P.L.1591, No.7A), known as the "General Appropriation Act
2 of 1990." For the school year 1990-1991, the Factor for
3 Educational Expense used to compute all school districts'
4 entitlements to payments on account of instruction, as provided
5 for in subsection (d) of section 2502, shall be two thousand
6 five hundred fifty dollars ($2,550). [For the school year 1991-
7 1992 and each school year thereafter, the Factor for Educational
8 Expense used to compute all school districts' entitlements to
9 payments on account of instruction, as provided for in
10 subsection (d) of section 2502, shall be two thousand six
11 hundred fifty-five dollars ($2,655).]
12 (20) "Total Expenditure per Average Daily Membership." A
13 school district's total expenditures shall include all General
14 Fund expenditures and other financing uses for a school year, as
15 designated in the Manual of Accounting and Related Financial
16 Procedures for Pennsylvania School Systems. The total
17 expenditures so determined, when divided by the average daily
18 membership for the same school year for the district, shall be
19 the total expenditure per average daily membership.
20 (21) "Children in Low-Income Families." Children aged five
21 (5) to seventeen (17) years, inclusive, in families receiving a
22 grant in excess of two thousand dollars ($2,000) per year from
23 the Commonwealth on account of dependent children under the
24 Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.).
25 Section 14. Section 2502(d) and (e) of the act, amended or
26 added February 1, 1966 (1965 P.L.1642, No.580) and July 1, 1985
27 (P.L.103, No.31), are amended to read:
28 Section 2502. Payments on Account of Instruction.--* * *
29 (d) For the school year 1976 and 1977 through the 1980-1981
30 school year, each school district shall be paid by the
19930H0438B1982 - 33 -
1 Commonwealth on account of instruction of the district's pupils
2 an amount to be determined by multiplying the market
3 value/income aid ratio times the actual instruction expense per
4 weighted average daily membership or by the base earned for
5 reimbursement, whichever is less, and by the weighted average
6 daily membership for the district. For the school year 1976-1977
7 any school district which, as a result of the impact on payments
8 under subsections (d), (e) and (f) and under section 2592 by
9 reason of the market value/income aid ratio or the application
10 of equalized millage to the base earned for reimbursement, shall
11 suffer a reduction in subsidy entitlement, shall be held
12 harmless from this impact and shall receive an amount which is
13 no less than that received for 1976-1977 under such subsections
14 and under section 2592. For the 1982-1983 school year [and each
15 school year thereafter] through the 1990-1991 school year, each
16 school district shall be paid by the Commonwealth on account of
17 instruction of the district's pupils an amount to be determined
18 by multiplying the district's market value/income aid ratio by
19 the factor for educational expense and by the weighted average
20 daily membership of the district. For the 1983-1984 school year,
21 each school district participating, during the 1984-1985 school
22 year, in a Statewide program for testing and remediation which
23 is designed to identify and provide remediation services to
24 individual students pursuant to section 1511.1, shall be paid by
25 the Commonwealth on account of instruction of the district's
26 pupils an amount to be determined by multiplying the district's
27 market value/income aid ratio by the factor for educational
28 expense, one thousand seven hundred twenty-five dollars
29 ($1,725), and by the weighted average daily membership of the
30 district. This subsidy may be used for strengthening curriculum,
19930H0438B1982 - 34 -
1 increasing standards, improving student achievement and
2 providing remedial programs during the 1984-1985 school year.
3 (e) For no school year from 1966-1967 through 1990-1991
4 shall any district receive less than an amount obtained by
5 multiplying the minimum subsidy by the weighted average daily
6 membership for the district.
7 * * *
8 Section 15. Section 2502.5(b) of the act, amended July 8,
9 1989 (P.L.253, No.43), is amended to read:
10 Section 2502.5. Limitation of Certain Payments.--* * *
11 (b) Notwithstanding any other provisions of law, for the
12 school year 1982-1983 and 1983-1984, no school district shall be
13 paid under subsections (d) and (e) of section 2502 and section
14 2502.11 or, for the school year 1984-1985, no school district
15 shall be paid under subsections (d) and (e) of section 2502,
16 subsection (e) of this section, section 2502.11 and section
17 2502.13 or, for the school year 1985-1986, no school district
18 shall be paid under subsections (d) and (e) of section 2502,
19 subsection (e) of this section, section 2502.11, section
20 2502.13, section 2502.14 and section 2502.15 or, for the school
21 year 1986-1987, no school district shall be paid under
22 subsections (d) and (e) of section 2502, subsection (e) of this
23 section, section 2502.11, section 2502.13 and section 2502.15
24 or, for the school year 1987-1988, no school district shall be
25 paid under subsections (d) and (e) of section 2502, subsection
26 (e) of this section, sections 2502.11 and 2502.13 or, for the
27 school [year] years 1988-1989 [and each school year thereafter]
28 through 1990-1991, no school district shall be paid under
29 subsections (d) and (e) of section 2502, sections 2502.11 and
30 2502.13 an amount in excess of one hundred percent (100%) of the
19930H0438B1982 - 35 -
1 total reimbursable instructional expenditures of the school
2 district. For the 1982-1983 school year, all school districts
3 qualifying for payments under subsections (d) and (e) of section
4 2502 and section 2502.11 shall be limited to an increase payment
5 on account of those sections which shall not exceed nine percent
6 (9%) over the sums received on account of section 2502.9 for the
7 1981-1982 school year, nor shall any school district receive an
8 increase of less than two percent (2%) of the 1982-1983 school
9 year payments on account of the 1981-1982 school year. For the
10 1984-1985 school year, each school district qualifying for
11 payments under subsections (d) and (e) of section 2502 and
12 section 2502.11 shall be limited to an increase payment on
13 account of those sections which shall not exceed eight and
14 forty-five one hundredths percent (8.45%) over the sums received
15 on account of such sections for the school year 1983-1984, nor
16 shall any school district receive an increase of less than two
17 percent (2%) of such payments for the school year 1983-1984:
18 Provided, however, That such payments for the school year 1983-
19 1984 shall be computed using a Factor for Educational Expense of
20 one thousand six hundred fifty-six dollars ($1,656) and a
21 maximum payment increase of seven and forty-five one hundredths
22 percent (7.45%) and a minimum payment increase of two percent
23 (2%) and the eighty percent (80%) guarantee provided for in
24 section 2502.5(e). For the 1985-1986 school year, each school
25 district qualifying for payments under subsections (d) and (e)
26 of section 2502, subsection (e) of this section and section
27 2502.11 shall be limited to an increase payment on account of
28 those sections which shall not exceed seven percent (7%) over
29 the sums received on account of such sections for the school
30 year 1984-1985, nor shall any school district receive an
19930H0438B1982 - 36 -
1 increase less than two percent (2%) of such payments for the
2 school year 1984-1985. For the 1986-1987 school year, each
3 school district qualifying for payments under subsections (d)
4 and (e) of section 2502, subsection (e) of this section and
5 section 2502.11 shall be limited to an increase payment on
6 account of those sections which shall not exceed eight percent
7 (8%) over the sums received on account of such sections and
8 section 2502.14 for the school year 1985-1986, nor shall any
9 school district receive an increase less than two percent (2%)
10 of such payment for the school year 1985-1986. For the 1987-1988
11 school year, each school district qualifying for payments under
12 subsections (d) and (e) of section 2502, subsection (e) of this
13 section and section 2502.11 shall be limited to an increase
14 payment on account of those sections which shall not exceed
15 eight percent (8%) over the sums received on account of such
16 sections and section 2502.15 for the school year 1986-1987, nor
17 shall any school district receive an increase less than two
18 percent (2%) of such payments for the school year 1986-1987. For
19 the 1988-1989 school year [and each school year thereafter]
20 through the 1990-1991 school year, no school district qualifying
21 for payments under subsections (d) and (e) of section 2502,
22 subsection (e) of this section and section 2502.11 shall receive
23 an increase less than two percent (2%) of such payments for the
24 prior school year.
25 * * *
26 Section 16. Section 2502.11 of the act, amended July 8, 1989
27 (P.L.253, No.43) and August 5, 1991 (P.L.219, No.25), is amended
28 to read:
29 Section 2502.11. Economic Supplement.--(a) For the school
30 year 1982-1983 [and each school year thereafter] through the
19930H0438B1982 - 37 -
1 school year 1990-1991, each qualifying school district shall be
2 paid, in addition to any other payments to which it is entitled,
3 an economic supplement, based upon children in low-income
4 families, local tax effort and population per square mile.
5 (b) For the school years 1982-1983 through 1986-1987, each
6 qualifying school district shall be paid on account of children
7 in low-income families an amount in accordance with the
8 following table:
9 Percentage of Low-Income Pupils Grant Per
10 In Average Daily Membership Low-Income Pupil
11 10 - 19.9 $100
12 20 - 39.9 $300
13 40 or over $500
14 For the school year 1987-1988, each qualifying school
15 district shall be paid on account of children in low-income
16 families an amount in accordance with the following table:
17 Percentage of Low-Income Pupils Grant Per
18 In Average Daily Membership Low-Income Pupil
19 8 - 14.9 $128
20 15 - 29.9 $357
21 30 or over $587
22 For the school years 1988-1989 and 1989-1990, each qualifying
23 school district shall be paid on account of children in low-
24 income families an amount in accordance with the following
25 table:
26 Percentage of Low-Income Pupils Grant Per
27 In Average Daily Membership Low-Income Pupil
28 8 - 14.9 6% of the factor for educational
29 expense used to make payments on
30 account of instruction, as
19930H0438B1982 - 38 -
1 provided for in section 2501(19).
2 15 - 29.9 16% of the factor for educational
3 expense used to make payments on
4 account of instruction, as
5 provided for in section 2501(19).
6 30 or over 27% of the factor for educational
7 expense used to make payments on
8 account of instruction, as
9 provided for in section 2501(19).
10 For the school year 1990-1991 [and each school year
11 thereafter], each qualifying school district shall be paid on
12 account of children in low-income families an amount in
13 accordance with the following table:
14 Percentage of Low-Income Pupils Grant Per
15 In Average Daily Membership Low-Income Pupil
16 8 - 14.9 6% of the factor for educational
17 expense used to make payments on
18 account of instruction, as
19 provided for in section 2501(19).
20 15 - 19.9 16% of the factor for educational
21 expense used to make payments on
22 account of instruction, as
23 provided for in section 2501(19).
24 20 - 29.9 23% of the factor for educational
25 expense used to make payments on
26 account of instruction, as
27 provided for in section 2501(19).
28 30 or over 27% of the factor for educational
29 expense used to make payments on
30 account of instruction, as
19930H0438B1982 - 39 -
1 provided for in section 2501(19).
2 For the 1982-1983 school year [and each school year thereafter]
3 through the 1990-1991 school year, low-income pupils are defined
4 for purposes of this section as children aged five (5) to
5 seventeen (17) years, inclusive, in families receiving a grant
6 in excess of two thousand dollars ($2,000) from the Commonwealth
7 on account of dependent children under Title IV of the Federal
8 Social Security Act.
9 (c) For the school year 1982-1983 through the school year
10 1987-1988, any district which levies and collects local taxes
11 for school purposes equal to or above the median equalized
12 millage, as defined in section 2501(9.3), in the year for which
13 reimbursement is determined shall qualify for and receive a
14 payment based upon local tax effort and population per square
15 mile in accordance with the following table, except for
16 qualifying districts which include a central city of a Standard
17 Metropolitan Statistical Area and have a district population of
18 less than four thousand (4,000) persons per square mile, which
19 districts shall receive three percent (3%) of their
20 instructional expenditures:
21 Population Per Square Mile Payment as Percent of
22 of the Qualifying District Instructional Expenditure
23 5,950 and over 5
24 4,000 - 5,949 3
25 less than 4,000 1
26 Notwithstanding the provisions of this subsection, districts
27 having a general population of five thousand nine hundred fifty
28 (5,950) or more persons per square mile and at least thirty-five
29 thousand (35,000) WADMs shall be paid nineteen percent (19%) of
30 their instructional expenditures.
19930H0438B1982 - 40 -
1 (d) For the school year 1988-1989 [and each school year
2 thereafter] through the school year 1990-1991, any district
3 which levies and collects local taxes for school purposes equal
4 to or above the median equalized millage, as defined in section
5 2501(9.3), in the year for which reimbursement is determined or
6 any school district the majority of whose population is drawn
7 from a city of the first through third class which levies and
8 collects local taxes for municipal purposes equal to or above
9 the municipal median equalized millage, as defined in section
10 2501(9.5), for the most recent municipal fiscal year for which
11 data is available shall qualify for and receive a payment based
12 upon local tax effort and population per square mile in
13 accordance with the following table, except for qualifying
14 districts which include a central city of a Standard
15 Metropolitan Statistical Area and have a district population of
16 less than four thousand (4,000) persons per square mile, which
17 districts shall receive three percent (3%) of their
18 instructional expenditures:
19 Population Per Square Mile Payment as Percent of
20 of the Qualifying District Instructional Expenditure
21 5,950 and over 5
22 4,000 - 5,949 3
23 less than 4,000 1
24 Qualifying districts having a general population of five
25 thousand nine hundred fifty (5,950) or more persons per square
26 mile and at least thirty-five thousand (35,000) WADM's shall be
27 paid nineteen percent (19%) of their instructional expenditures.
28 [A] For the 1990-1991 school year, a central city of a Standard
29 Metropolitan Statistical Area which has an equalized millage as
30 defined in clause (9.2) of section 2501 to be greater than the
19930H0438B1982 - 41 -
1 median equalized millage by ten and twenty-nine hundredths
2 (10.29) and has an estimated 1990-1991 Weighted Average Daily
3 Membership (WADM) provided by the Department of Education in
4 June 1991 that is less than the actual 1989-1990 Weighted
5 Average Daily Membership by two hundred (200) shall receive an
6 additional two percent (2%) of their 1990-1991 actual
7 instructional expenditure.
8 Section 17. Section 2502.13 of the act, amended August 5,
9 1991 (P.L.219, No.25), is amended to read:
10 Section 2502.13. Small District Assistance.--For the 1984-
11 1985 and 1985-1986 school years, the Commonwealth shall pay to
12 each school district which has an average daily membership of
13 one thousand five hundred (1,500) or less and has a market
14 value/income aid ratio of five thousand ten-thousandths (0.5000)
15 or greater, an amount equal to fifty dollars ($50) multiplied by
16 that district's average daily membership. For the 1985-1986
17 school year, no school district shall receive less on account of
18 this section than it did for the 1984-1985 school year. For the
19 school year 1986-1987, the Commonwealth shall pay to each school
20 district which has an average daily membership of one thousand
21 five hundred (1,500) or less and has a market value/income aid
22 ratio of five thousand ten-thousandths (0.5000) or greater, or
23 received payments under this section for the 1985-1986 school
24 year, an amount equal to seventy-five dollars ($75) multiplied
25 by that district's average daily membership. For the school year
26 1987-1988, the Commonwealth shall pay to each school district
27 which has an average daily membership of one thousand five
28 hundred (1,500) or less and a market value/income aid ratio of
29 five thousand ten-thousandths (0.5000) or greater, or received
30 payments under this section for the 1986-1987 school year, an
19930H0438B1982 - 42 -
1 amount equal to eighty-five dollars ($85) multiplied by that
2 district's average daily membership. For the school year 1988-
3 1989 [and each school year thereafter], the Commonwealth shall
4 pay to each school district which has an average daily
5 membership of one thousand five hundred (1,500) or less and a
6 market value/income aid ratio of five thousand ten thousandths
7 (0.5000) or greater, or received payments under this section for
8 the 1987-1988 or 1988-1989 school year, an amount equal to one
9 hundred five dollars ($105). For the school year 1989-1990, the
10 Commonwealth shall pay to each school district which has an
11 average daily membership of one thousand five hundred (1,500) or
12 less and a market value/income aid ratio of five thousand ten-
13 thousandths (0.5000) or greater, or received payments under this
14 section for the 1987-1988 school year, an amount equal to one
15 hundred fifteen dollars ($115) multiplied by the district's
16 average daily membership as provided for in section 212 of the
17 act of July 1, 1990 (P.L.1591, No.7A), known as the "General
18 Appropriation Act of 1990." For the school year 1990-1991 [and
19 each school year thereafter], the Commonwealth shall pay to each
20 school district which has an average daily membership of one
21 thousand five hundred (1,500) or less and a market value/income
22 aid ratio of five thousand ten-thousandths (0.5000) or greater,
23 or received payments under this section for the prior school
24 year, an amount equal to one hundred seventy dollars ($170)
25 multiplied by that district's average daily membership. [Each]
26 For the school year 1990-1991, each school district with a
27 population per square mile of less than ninety (90), which
28 otherwise meets the average daily membership and market
29 value/income aid ratio requirements of this section, or received
30 payments under this section for the prior school year, shall
19930H0438B1982 - 43 -
1 instead receive an amount equal to one hundred ninety dollars
2 ($190) multiplied by that district's average daily membership.
3 For the 1987-1988 school year [and each school year thereafter]
4 through the 1990-1991 school year, no school district shall
5 receive less on account of this section than it did for the
6 prior school year.
7 Section 18. Section 2502.16(d) of the act, added July 10,
8 1987 (P.L.286, No.50), is amended to read:
9 Section 2502.16. Temporary Special Aid to School Districts
10 Suffering Loss of Tax Revenue Due to Bankruptcy of Businesses in
11 the School District.--* * *
12 [(d) Any subsequent payments made on account of such ceased
13 or suspended real estate taxes by such businesses or by
14 bankruptcy officials on behalf of such businesses, during the
15 course of such bankruptcy proceedings or following their
16 completion, shall be paid to the Department of Education by the
17 school district to the extent of the temporary special aid
18 provided to such school district in accordance with the
19 provisions of this section. Any interest or penalties received
20 by such school district shall be retained by the school
21 district.]
22 * * *
23 Section 19. Sections 2502.17 and 2502.18 of the act, added
24 August 5, 1991 (P.L.219, No.25), are amended to read:
25 Section 2502.17. Low-Expenditure, Low-Wealth Supplement.--
26 For the 1990-1991 school year [and each school year thereafter],
27 the Commonwealth shall pay to each school district which has a
28 market value/income aid ratio of six thousand ten-thousandths
29 (0.6000) or greater and has an actual instruction expenditure
30 per weighted average daily membership for the school year prior
19930H0438B1982 - 44 -
1 to the reimbursable year, which is less than the Statewide
2 median actual instruction expenditure per weighted average daily
3 membership for that year, an amount equal to one and three-
4 tenths percent (1.3%) of the school district's actual
5 instruction expenditure for the reimbursable year: Provided,
6 That no school district shall receive a dollar amount, which,
7 when combined with its actual instruction expenditure for the
8 year prior to the reimbursable year, would result in the
9 district's actual instruction expenditure per weighted average
10 daily membership exceeding the Statewide median actual
11 instruction expenditure per weighted average daily membership
12 for the year prior to reimbursement.
13 Section 2502.18. Low-Expenditure Poverty Supplement.--For
14 the 1990-1991 school year [and each school year thereafter], the
15 Commonwealth shall pay to each school district, which has an
16 actual instruction expenditure per weighted average daily
17 membership for the school year prior to the reimbursable year,
18 which is less than three thousand four hundred forty-five
19 dollars ($3,445), and has ten percent (10%) or more of its
20 pupils in average daily membership as children in low-income
21 families, an amount equal to one-half percent (.5%) of their
22 actual instruction expenditure.
23 Section 20. The act is amended by adding sections to read:
24 Section 2502.20. Subsidy Payments.--For the 1992-1993 school
25 year, each school district shall be paid a subsidy amount based
26 upon the provisions of sections 2502.21, 2502.22, 2502.24,
27 2502.25 and 2502.26.
28 Section 2502.21. Education Subsidy Base.--For the 1992-1993
29 school year, the Commonwealth shall pay to each school district
30 an education subsidy base which shall consist of the same amount
19930H0438B1982 - 45 -
1 that the district was entitled to receive for the 1990-1991
2 school year pursuant to sections 2502(d) and (e) and 2502.11,
3 both as adjusted pursuant to section 2502.5(b), if applicable,
4 and sections 2502.13, 2502.17 and 2502.18. For the 1993-1994
5 school year, the Commonwealth shall pay to each school district
6 an education subsidy base which shall consist of the same amount
7 that the district was entitled to receive for the prior school
8 year pursuant to section 2502.20.
9 Section 2502.22. Equity Supplement.--(a) For the 1992-1993
10 school year, each school district may qualify for payment of the
11 supplement based upon market value/income aid ratio, local tax
12 effort and total expenditure per average daily membership.
13 (b) To qualify for such supplement, districts shall meet all
14 of the following criteria:
15 (1) The district's market value/income aid ratio for the
16 school year immediately preceding the school year for which
17 reimbursement is being paid is greater than or equal to five
18 thousand ten-thousandths (0.5000).
19 (2) The district's equalized millage for the school year
20 immediately preceding the school year for which reimbursement is
21 being paid is greater than or equal to nineteen and five tenths
22 (19.5).
23 (3) The district's total expenditure per average daily
24 membership for the school year two (2) years prior to the school
25 year for which reimbursement is being paid is less than or equal
26 to six thousand one hundred ninety-three dollars ($6,193).
27 (c) The Commonwealth shall pay to each qualifying school
28 district, as determined pursuant to subsection (b), a supplement
29 in an amount calculated as follows:
30 (1) Determine the product of the district's average daily
19930H0438B1982 - 46 -
1 membership for the school year for which reimbursement is being
2 paid and the district's market value/income aid ratio for the
3 school year for which reimbursement is being paid.
4 (2) Multiply the result of the calculation pursuant to
5 clause (1) by ninety-three million dollars ($93,000,000).
6 (3) Divide the result of the calculation pursuant to clause
7 (2) by the sum of the products obtained for all qualifying
8 school districts pursuant to clause (1).
9 (d) For the school year 1992-1993, each school district that
10 does not qualify for the supplement described in subsections (a)
11 through (c) may qualify for payment of a supplement based upon
12 children in low-income families.
13 (e) To qualify for the supplement described in subsection
14 (d), the number of children in low-income families residing in
15 the district for the calendar year that concluded during the
16 school year immediately preceding the year for which
17 reimbursement is being paid divided by the district's average
18 daily membership for the school year two (2) years prior to the
19 school year for which reimbursement is being paid must be
20 greater than or equal to thirty-five percent (35%).
21 (f) The Commonwealth shall pay to each qualifying school
22 district, as determined pursuant to subsections (d) and (e), a
23 supplement in the amount of one hundred dollars ($100)
24 multiplied by the number of children in low-income families
25 residing in the district for the calendar year that concluded
26 during the school year for which reimbursement is being paid.
27 Section 2502.23. Minimum Effort Base.--The minimum effort
28 base shall be, for the purposes of qualifying for foundation
29 guarantee payments, the level of local revenue resources
30 available per pupil in average daily membership. For the 1992-
19930H0438B1982 - 47 -
1 1993 school year, the local revenue resources available per
2 pupil in average daily membership shall be computed by
3 multiplying the 1990 Real Property Valuation of the district by
4 one hundred and ninety-five ten-thousandths (0.0195).
5 Section 2502.24. Foundation Guarantee.--The foundation
6 guarantee is the minimum level of revenue resources that shall
7 be available to support each pupil in average daily membership
8 in the school districts of the Commonwealth. For the 1992-1993
9 school year, the foundation guarantee amount shall be the
10 difference between three thousand eight hundred seventy-five
11 dollars ($3,875) and the sum of the amounts described in
12 sections 2502.21, 2502.22 and 2502.23 for that year divided by
13 the number of pupils in average daily membership in the district
14 for the 1990-1991 school year. For the 1992-1993 school year,
15 the Commonwealth shall pay to each qualifying school district,
16 as a foundation guarantee payment, the foundation guarantee
17 amount multiplied by the number of pupils in average daily
18 membership in the district for the 1990-1991 school year.
19 Section 2502.25. Growth Supplement.--(a) For the school
20 year 1992-1993, each school district may qualify for payment of
21 a supplement based upon growth in the school district's average
22 daily membership, in addition to any other subsidy to which the
23 district may be entitled.
24 (b) To qualify for the growth supplement pursuant to this
25 section, the district's average daily membership for the school
26 year immediately preceding the school year for which
27 reimbursement is being paid must have increased by at least four
28 and five-tenths percent (4.5%) or by at least two hundred fifty
29 (250) pupils in average daily membership compared to the school
30 year two (2) years prior to the school year for which
19930H0438B1982 - 48 -
1 reimbursement is being paid.
2 (c) The Commonwealth shall pay to each qualifying school
3 district pursuant to subsections (a) and (b) a supplement in an
4 amount calculated as follows:
5 (1) Subtract the district's average daily membership for the
6 school year two (2) years prior to the school year for which
7 reimbursement is being paid from the district's average daily
8 membership for the school year for which reimbursement is being
9 paid.
10 (2) Multiply the result of the calculation pursuant to
11 clause (1) by the district's market value/income aid ratio for
12 the school year for which reimbursement is being paid.
13 (3) Multiply the result of the calculation pursuant to
14 clause (2) by four hundred dollars ($400).
15 Section 2502.26. Limited Revenue Sources Supplement.--(a)
16 For the 1992-1993 school year, each school district that does
17 not qualify for any supplement contained in sections 2502.22,
18 2502.24 and 2502.25 may qualify for payment of a limited revenue
19 sources supplement.
20 (b) To qualify for such supplement, the district's market
21 value/income aid ratio for the school year immediately preceding
22 the school year for which reimbursement is being paid must be
23 greater than or equal to seven thousand ten-thousandths
24 (0.7000).
25 (c) The Commonwealth shall pay to each qualifying district,
26 as determined pursuant to subsections (a) and (b), a supplement
27 in an amount equal to the district's average daily membership
28 for the school year for which reimbursement is being paid,
29 multiplied by two percent (2%) of three thousand eight hundred
30 seventy-five dollars ($3,875).
19930H0438B1982 - 49 -
1 Section 2502.27. Discretionary Funds to Assist School
2 Districts Experiencing Extreme Financial Difficulty.--A sum of
3 one million dollars ($1,000,000) from the amount appropriated in
4 the act of (P.L. , No. ), known as
5 the General Appropriation Act of 1993, for the equity
6 supplement, and any remainder if the sum appropriated for the
7 1993-1994 fiscal year for payments in section 2502.20 exceeds
8 the amounts to which all qualifying school districts are
9 entitled, shall be set aside as discretionary funds to assist
10 school districts that have been declared distressed pursuant to
11 section 691 and/or school districts in need of additional
12 support because of extreme financial difficulties. The Secretary
13 of Education shall establish guidelines for school districts'
14 applications for these funds, department approval of
15 applications for funds, department distribution of funds and
16 school districts' expenditure of these funds. The Secretary of
17 Education shall report to the General Assembly on such
18 expenditures.
19 Section 2502.28. Resource Data for Foundation Based Equity
20 Formula Development.--(a) The Secretary of Education shall
21 develop and collect data necessary to assist in policy
22 development for the transition to a foundation based equity
23 formula in fiscal year 1994-1995. Data shall be collected which
24 will assist in the development of definitions of factors, and in
25 determining the relative importance of various factors which
26 impact on a school district's ability to provide educational
27 opportunities for its students. Such factors shall include, but
28 not be limited to:
29 (1) Regional costs.
30 (2) Students in poverty.
19930H0438B1982 - 50 -
1 (3) Students in special education programs.
2 (4) Local revenue sources.
3 (5) State revenue sources.
4 (6) Other potential State and local revenue sources.
5 (b) The initial report on the data system and data collected
6 shall be submitted to the majority chairman and the minority
7 chairman of the Education Committee of the Senate and the
8 majority chairman and the minority chairman of the Education
9 Committee of the House of Representatives by January 1, 1994.
10 Section 21. Section 2509.1(b.1), (d), (e) and (g) of the
11 act, amended or added August 5, 1991 (P.L.219, No.25) and July
12 9, 1992 (P.L.392, No.85), are amended and the section is amended
13 by adding subsections to read:
14 Section 2509.1. Payments to Intermediate Units.--* * *
15 (b.1) [On or before the last day of June, every intermediate
16 unit shall submit, for prior review and approval by the
17 Department of Education, an estimate of the cost of operating
18 and administering classes or schools for institutionalized
19 children operated by the intermediate unit during the current
20 school year. The Commonwealth shall pay each intermediate unit
21 the approved amount during the following school year.] For
22 programs operated during the 1992-1993 school year, and each
23 school year thereafter, the Commonwealth shall pay intermediate
24 units, based on their costs of operating and administering
25 classes or schools for institutionalized children, an amount to
26 be determined by the Department of Education following review of
27 annual reports of the costs of such classes or schools for the
28 immediately preceding year. To qualify for such payments, each
29 intermediate unit that operates and administers classes or
30 schools for institutionalized children annually shall submit to
19930H0438B1982 - 51 -
1 the Department of Education, on or before the first day of July,
2 a report of the cost of operating and administering such classes
3 or schools. Notwithstanding the foregoing, intermediate units
4 may submit their annual reports for the 1991-1992 school year
5 until June 30, 1993, although this date may be extended as
6 deemed necessary by the Secretary of Education provided that,
7 for programs operated during the 1992-1993 school year and the
8 1993-1994 school year, the aggregate amounts paid on this
9 account shall not exceed twenty million six hundred thousand
10 dollars ($20,600,000) per year.
11 * * *
12 (d) For the 1991-1992 school year, each intermediate unit
13 which is coterminous to a school district of the first class or
14 first class A shall be paid fifty percent (50%) of the amount
15 received by the intermediate unit for the cost of operating and
16 administering classes or schools for exceptional children, as
17 approved by the Department of Education for the 1990-1991 school
18 year. For the 1991-1992 school year, each intermediate unit not
19 coterminous with a school district which operates all the
20 special education programs for handicapped children for its
21 constituent school districts shall be paid ten percent (10%) of
22 the amount received by the intermediate unit for the cost of
23 operating and administering classes or schools for handicapped
24 children, as approved by the Department of Education for the
25 1990-1991 school year. For the 1992-1993 and the 1993-1994
26 school years, each intermediate unit which is coterminous to a
27 school district of the first class or first class A shall be
28 paid twenty-five percent (25%) of the amount received by the
29 intermediate unit for the cost of operating and administering
30 classes or schools for exceptional children, as approved by the
19930H0438B1982 - 52 -
1 Department of Education for the 1990-1991 school year.
2 (e) For the 1991-1992 school year and for each school year
3 thereafter, payments to intermediate units under this section
4 shall consist of an amount payable in three (3) installments
5 during the school year as follows: in August, fifty percent
6 (50%) of the payments [under subsections (b) and (c) or (d)]
7 due; in November, forty-five percent (45%) of the payments
8 [under subsection (b), (c) or (d)] due; and on June 1, the
9 balance of the payments due.
10 * * *
11 (g) (1) For the 1991-1992 school year and each school year
12 thereafter, for each child enrolled in an intermediate unit
13 class for institutionalized children, the school district in
14 which the child is resident shall pay to the Commonwealth a sum
15 equal to the "tuition charge per elementary pupil" or the
16 "tuition charge per high school pupil," as determined for the
17 schools operated by the district or by a joint board of which
18 the district is a member, for the same year in which the class
19 or school is operated, as provided for in section 2561. In the
20 event that any school district has not established such "tuition
21 charge per elementary pupil" or "tuition charge per high school
22 pupil," the Secretary of Education shall fix a reasonable charge
23 for such district for the year in question.
24 (2) In addition, the district shall pay to the Commonwealth
25 on account of transportation by the intermediate unit of pupils
26 to and from classes and schools for exceptional children and of
27 eligible young children to and from early intervention programs,
28 whether or not conducted by the intermediate unit, an amount to
29 be determined by subtracting from the cost of transportation per
30 pupil the reimbursement due the district on account of such
19930H0438B1982 - 53 -
1 transportation.
2 (3) In order to facilitate such payments by the several
3 school districts, the Secretary of Education shall withhold from
4 any moneys due to such districts out of a State appropriation,
5 except from reimbursements due on account of rentals, the
6 amounts due by such school districts to the Commonwealth. All
7 amounts so withheld are hereby specifically appropriated to the
8 Department of Education for the support of public schools.
9 Section 22. Section 2509.5 of the act is amended by adding
10 subsections to read:
11 Section 2509.5. Special Education Payments to School
12 Districts.--* * *
13 (d) During the 1992-1993 school year, each school district
14 shall be paid:
15 (1) An amount to be determined by multiplying one thousand
16 dollars ($1,000) by fifteen percent (15%) of its average daily
17 membership; and
18 (2) An amount to be determined by multiplying eleven
19 thousand five hundred forty dollars ($11,540) by one percent
20 (1%) of its average daily membership.
21 (e) During the 1993-1994 school year, each school district
22 shall be paid:
23 (1) an amount to be determined by multiplying one thousand
24 twenty-five dollars ($1,025) by fifteen percent (15%) of its
25 average daily membership; and
26 (2) an amount to be determined by multiplying twelve
27 thousand dollars ($12,000) by one percent (1%) of its average
28 daily membership.
29 (f) The Secretary of Education shall develop a definition of
30 severely classified exceptional students by September 20, 1993.
19930H0438B1982 - 54 -
1 This definition may include the primary exceptionality, level of
2 intervention, type of support and related services requirements
3 elements currently collected through the PennData system. This
4 definition shall not include students who are institutionalized,
5 in approved private school placements, in detention home
6 programs, in mentally gifted programs or in early intervention
7 programs operated under the provisions of the act of December
8 19, 1990 (P.L.1372, No.212), known as the "Early Intervention
9 Services System Act." This definition shall be submitted to the
10 majority chairman and the minority chairman of the Education
11 Committee of the Senate and the majority chairman and the
12 minority chairman of the Education Committee of the House of
13 Representatives for review and comment no later than September
14 20, 1993. No sooner than fifteen (15) days and not later than
15 thirty (30) days after submission of the proposed definition to
16 the committees, the Secretary of Education shall approve a
17 definition of severely classified exceptional students.
18 (g) The Secretary of Education shall modify the PennData
19 system to collect for each school district an average daily
20 membership count of those exceptional students classified as
21 severe. The Secretary of Education shall use the approved
22 definition of severely classified exceptional in the development
23 of the PennData report "Representation of Students with Severe
24 Disabilities in Special Education." The Secretary of Education
25 shall provide the 1993-1994 PennData report "Representation of
26 Students with Severe Disabilities in Special Education"
27 detailing the average daily membership by category of
28 exceptionality for each school district for the 1993-1994
29 academic year to the majority chairman and the minority chairman
30 of the Education Committee of the Senate and the majority
19930H0438B1982 - 55 -
1 chairman and the minority chairman of the Education Committee of
2 the House of Representatives by February 1, 1994, and shall
3 annually thereafter provide the PennData report "Representation
4 of Students with Severe Disabilities in Special Education"
5 detailing the average daily membership by category of
6 exceptionality for each school district for the current school
7 year to the committees by the first day of February of each
8 year.
9 Section 23. Sections 2509.8 and 2509.9 of the act, amended
10 or added July 9, 1992 (P.L.392, No.85), are amended to read:
11 Section 2509.8. Extraordinary Special Education Program
12 Expenses.--(a) The Department of Education shall, for the 1991-
13 1992 school year [and each school year thereafter], set aside
14 one percent (1%) of the State special education appropriation
15 for extraordinary expenses to be incurred in providing a special
16 education program or service to an exceptional student as
17 approved by the Secretary of Education.
18 (b) (1) Subject to the limitation in clause (2), the
19 Department of Education shall, for the 1992-1993 and 1993-1994
20 school years, set aside two percent (2%) of the State special
21 education appropriation for extraordinary expenses incurred in
22 providing special education programs or services to one or more
23 exceptional students as approved by the Secretary of Education.
24 (2) In the 1992-1993 school year, only one-half of the two
25 percent (2%) set aside may be expended immediately and the other
26 one-half of the amount set aside shall not be expended until all
27 authorized expenditures under sections 2509, 2509.1, 2509.5,
28 2509.9 and 2509.10 have been made to the qualified school
29 entities.
30 (c) The Secretary of Education shall establish guidelines
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1 for the application, approval, distribution and expenditure of
2 these funds and shall report annually to the General Assembly on
3 such expenditures.
4 Section 2509.9. Special Education Payments to Intermediate
5 Units and School Districts for 1992-1993.--Notwithstanding any
6 provision of this act to the contrary, special education
7 payments during the [1992-1993 school year] period from July 1,
8 1992, through December 31, 1992, shall be made in the following
9 manner:
10 (1) Payments to intermediate units shall be equal to amounts
11 payable under section 2509.1(d) and shall be made in accordance
12 with the schedule under section 2509.1(e) during the 1992-1993
13 school year.
14 (2) Payments to school districts shall be equal to those
15 paid to school districts on account of special education
16 services and paid during the 1991-1992 school year in accordance
17 with the schedule under section 2509.5(c), excluding those
18 payments made under section 2509(f).
19 [(3) Payments to intermediate units and school districts
20 shall be made only through December 31, 1992.
21 Under no circumstances shall any intermediate unit receive less
22 than it received under section 2509.1(d) during the 1991-1992
23 school year, nor for the 1992-1993 school year shall any school
24 district receive less than it received during the 1991-1992
25 school year, excluding payments to school districts under
26 section 2509(f) by the end of the 1992-1993 school year.]
27 Section 24. The act is amended by adding a section to read:
28 Section 2509.10. Special Education Payment Adjustments for
29 1992-1993 School Year.--Payments to each school district
30 pursuant to section 2509.9 and pursuant to court orders shall be
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1 applied to the amounts payable to such school district pursuant
2 to section 2509.5(d). Payments pursuant to section 2509.9 and
3 pursuant to court orders to each intermediate unit which is
4 coterminous with a school district shall be applied to the
5 amounts payable to the school district pursuant to section
6 2509.5(d) and to the intermediate unit pursuant to section
7 2509.1(b.1), (c) and (d). Payments pursuant to section 2509.9
8 and pursuant to court orders to each intermediate unit which is
9 not coterminous with a school district shall be applied to the
10 amounts payable to such intermediate unit pursuant to section
11 2509.1(c). Each intermediate unit which is not coterminous with
12 a school district shall return to the Department of Education
13 any funds received pursuant to section 2509.9 and pursuant to
14 courts orders that exceed the amounts payable to such
15 intermediate unit pursuant to section 2509.1(c).
16 Section 25. Section 2517(d) of the act, amended July 1, 1985
17 (P.L.103, No.31), is amended to read:
18 Section 2517. Payments.--* * *
19 (d) Subsection (c) of this section shall apply to:
20 (1) All payments to which a school district is entitled
21 under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
22 2502.9 and 2592 for the school year 1981-1982.
23 (2) Payments to which a school district is entitled under
24 any provision of sections 2502, 2502.8 and 2502.11 for the
25 school year 1982-1983 and the school year 1983-1984.
26 (3) Payments to which a school district is entitled under
27 any provision of sections 2502, 2502.8, 2502.11 [and 2502.13],
28 2502.13 and 2502.20 for the school year 1984-1985 and each
29 school year thereafter.
30 Section 26. Section 2518 of the act, amended January 14,
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1 1970 (1969 P.L.468, No.192) and July 22, 1970 (P.L.543, No.185),
2 is amended to read:
3 Section 2518. Forfeitures for Employing [Certain Teacher]
4 Improperly Certified Individuals.--In the event that after the
5 first day of July one thousand nine hundred fifty-one, any
6 school district, or intermediate unit with respect to area
7 technical schools, for a period of two successive years employes
8 the same teacher, who holds only an emergency certificate for
9 any grade or subject which he teaches, or for a period of two
10 successive years, employs in the same position teachers, who
11 hold only an emergency certificate for any grades or subjects
12 which they teach, such school district or board shall forfeit
13 the sum of three hundred dollars ($300) for each teacher so
14 employed or for each position so filled. No such penalty shall
15 be imposed for any violation of the foregoing provision during
16 the biennium one thousand nine hundred forty-seven--one thousand
17 nine hundred forty-nine. Any school district or intermediate
18 unit with respect to area technical schools that now or
19 hereafter employs any teacher, who does not hold any form of
20 teacher certification to teach in the public schools of this
21 Commonwealth, valid for the subjects or grades in which the
22 teacher is giving instruction, shall forfeit one reimbursement
23 unit for each such teacher employed. Any school district or
24 intermediate unit with respect to area technical schools that
25 employs any person in a supervisory capacity after the first
26 Monday of July, 1962, who has not been certified for such
27 position by the Department of [Public Instruction] Education,
28 shall forfeit one reimbursement unit for each such person
29 employed: Provided, That there shall not be any forfeiture for
30 any uncertificated person who is employed in a supervisory
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1 capacity if such person was in the employ of any school district
2 on or before July 1, 1962. Forfeiture shall apply only to
3 uncertificated persons who are hired in a supervisory capacity
4 after July 1, 1962. Any school district or intermediate unit
5 with respect to area technical schools that employs a substitute
6 after July first, one thousand nine hundred fifty-two, in a
7 position where a vacancy exists for a full year or more, without
8 the specific written approval of the [Superintendent of Public
9 Instruction] Secretary of Education, shall forfeit one
10 reimbursement unit for each substitute so employed. The
11 [Superintendent of Public Instruction] Secretary of Education
12 shall deduct such sum or sums from the amount of the
13 Commonwealth appropriation otherwise due such district or
14 intermediate unit under the provisions of this act.
15 The foregoing forfeitures of reimbursement units on account
16 of employes uncertificated for the position in which employed,
17 and on account of substitutes, shall not apply in the case of
18 employes in positions after July 1, 1966: Provided, however,
19 That any school district or any county board of school directors
20 with respect to area technical schools that [after July 1, 1966
21 has had or shall have] from July 1, 1966, to July 1, 1992, has
22 had in its employ any person in a teaching, specialist,
23 supervisory or administrative capacity who has not been
24 certificated for said position by the Department of [Public
25 Instruction] Education, or that has had [or shall have] in its
26 employ a substitute in a position where a vacancy exists for a
27 full year or more without the specific written approval of the
28 [Superintendent of Public Instruction] Secretary of Education,
29 shall forfeit an amount equal to the minimum salary mandated by
30 law for the position less the product of said salary and the aid
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1 ratio of the district[: And provided further, That any
2 forfeiture levied prior to the effective date of this act shall
3 not be increased by reason of any provisions herein, and any
4 forfeiture levied after July 1, 1966 shall be decreased to
5 conform with this act]. Notwithstanding the above, after July 1,
6 1992, any school district, intermediate unit, area vocational-
7 technical school, or other public school in this Commonwealth,
8 that has in its employ any person in a position that is subject
9 to the certification requirements of the Department of
10 Education, but who has not been certificated for his position by
11 the Department of Education, or that has in its employ a
12 substitute in a position where a vacancy exists for a full year
13 or more without the specific written approval of the Secretary
14 of Education, shall forfeit an amount equal to six thousand
15 dollars ($6,000) less the product of six thousand dollars
16 ($6,000) and the district's Market Value/Income Aid Ratio. Any
17 exemption from forfeiture by reason of employment on or before
18 July 1, 1962 as provided elsewhere in this section shall not be
19 invalidated by this amendment.
20 Section 27. Section 2561 of the act is amended by adding a
21 clause to read:
22 Section 2561. Tuition Charges for Pupils of Other
23 Districts.--A school district or vocational school district
24 receiving elementary or high school pupils or vocational or
25 other extension education pupils who are residents of another
26 school district or another vocational school district shall
27 compute the tuition charges as follows:
28 * * *
29 (7) Special Education Tuition Charge. When the receiving
30 district voluntarily receives exceptional children, the
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1 receiving district and sending district may agree that the
2 sending district will pay a special education charge in addition
3 to the applicable tuition charge. Such special education charge
4 shall be an amount as determined by the two school districts.
5 Section 28. The act is amended by adding an article to read:
6 ARTICLE XXVI-G
7 Section 2601-G. Graduate Opportunity Fund.--(a) In addition
8 to any other powers and duties under the act of August 7, 1963
9 (P.L.549, No.290), referred to as the Pennsylvania Higher
10 Education Assistance Agency Act, the Pennsylvania Higher
11 Education Assistance Agency shall establish and administer a
12 fund to be known as the Graduate Opportunity Fund. The purpose
13 of this fund shall be to provide financial assistance to
14 disadvantaged students who desire to or who are attending
15 graduate school.
16 (b) The fund may accept donations and contributions from all
17 public and private sources including the Federal Government and
18 any appropriations by the General Assembly.
19 Section 29. This act shall be retroactive as follows:
20 (1) The amendment of section 2509.1(g) of the act shall
21 be retroactive to July 1, 1991.
22 (2) The amendment or addition of sections 1913-A(l),
23 2509.1(b.1), and (d), 2509.5, 2509.8, 2509.9, 2509.10, 2518
24 and 2541 of the act shall be retroactive to July 1, 1992.
25 Section 30. This act shall take effect as follows:
26 (1) The amendment or addition of sections 1913-A(l),
27 2509.1(b.1), (d) and (g), 2509.5, 2509.8, 2509.9, 2509.10,
28 2518 and 2541 of the act shall take effect immediately.
29 (2) This section shall take effect immediately.
30 (3) The remainder of this act shall take effect July 1,
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1 1993, or immediately, whichever is later.
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