PRIOR PRINTER'S NO. 1801 PRINTER'S NO. 1922
No. 1611 Session of 1993
INTRODUCED BY COWELL AND EVANS, MAY 5, 1993
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 26, 1993
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for school district
6 reimbursement definitions, for instruction payments, for
7 payment limitations, for the economic supplement, for
8 assistance to small school districts, for the low-
9 expenditure, low-wealth supplement and for the low-
10 expenditure poverty supplement; providing for foundation
11 subsidy payments, for education subsidy base, for an equity
12 supplement, for a foundation guarantee, for a minimum effort
13 base, for an extraordinary growth supplement, for a limited
14 revenue sources supplement, for discretionary funds for
15 distressed school districts and for resource data in the
16 foundation based equity formula; and further providing for
17 payments generally.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 2501(9), (9.1), (9.2), (14.1), (15), (18)
21 and (19) of the act of March 10, 1949 (P.L.30, No.14), known as
22 the Public School Code of 1949, amended December 20, 1983
23 (P.L.267, No.73), July 8, 1989 (P.L.253, No.43) and August 5,
24 1991 (P.L.219, No.25), are amended and the section is amended by
1 adding clauses to read:
2 Section 2501. Definitions.--For the purposes of this article
3 the following terms shall have the following meanings:
4 * * *
5 (9) "Real Property Valuation." A school district's,
6 vocational school district's or municipality's real property
7 valuation, to be used for purposes of computing the basic
8 account standard reimbursement fraction, the subsidiary account
9 reimbursement fraction, [and] the aid ratio, the market
10 value/income aid ratio, and the equalized millage shall be the
11 valuation placed upon its taxable real property by the State Tax
12 Equalization Board.
13 (9.1) "Personal Income Valuation." A school district's
14 personal income valuation for purposes of computing the market
15 value/income aid ratio and for purposes of reimbursement to a
16 school district under subsections (d), (e), and (f) of section
17 2502, section 2502.22, and section 2592 shall be the valuation
18 of the total taxable income for the tax year preceding the
19 immediate prior year, determined under Article III of the act of
20 March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
21 1971," for each school district each year by the Secretary of
22 Revenue and certified to the Secretary of Education. For the
23 1988-1989 school year and each school year thereafter, the
24 Secretary of Revenue shall additionally certify, for those
25 districts in which residents claim credit against the State
26 personal income tax for income earned outside this Commonwealth
27 under section 314 of the "Tax Reform Code of 1971," the total
28 number of persons claiming such out-of-State tax credits and the
29 total dollar amount of such tax credits claimed in the
30 individual district.
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1 (9.2) "Equalized Millage." (a) For the year prior to the
2 year for which reimbursement is being computed, a school
3 district's tax effort to be used for reimbursement under
4 subsections (d) and (e) of section 2502 and section 2502.11,
5 shall be the amount of local school taxes collected divided by
6 the real property valuation of the school district for the year
7 prior to the year for which reimbursement is being computed.
8 (b) For purposes of computing the base earned for
9 reimbursement and for purposes of reimbursement to a school
10 district under section 2502.20, the district's equalized millage
11 shall be computed, for the year for which reimbursement is being
12 paid, as follows: divide the district's amount of local school
13 taxes collected for the school year immediately preceding the
14 school year for which reimbursement is being paid by the real
15 property valuation of the school district for the calendar year
16 that concluded during the school year immediately preceding the
17 school year for which reimbursement is being paid; multiply the
18 result by one thousand (1,000).
19 * * *
20 (14.1) "Market Value/Income Aid Ratio." For purposes of
21 reimbursement to a school district under subsections (d), (e),
22 and (f) of section 2502, section 2502.8, section 2502.22,
23 section 2521 and section 2592, shall be the Commonwealth's
24 method of determining the combined market value and income
25 wealth for each pupil, and shall be computed, for the school
26 year for which reimbursement is being paid, as follows:
27 (a) (i) Divide the market value per weighted average daily
28 membership of the district by the market value per weighted
29 average daily membership of the State;
30 (ii) Determine the product of (a)(i) multiplied by [the
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1 district's share of total costs which is] .5;
2 (iii) Subtract the resultant product in (a)(ii) from 1.000
3 to determine the market value portion of the aid ratio.
4 (iv) For purposes of the calculation described in (a)(i)
5 through (a)(iii), the market value shall be the real property
6 valuation of the district for the calendar year that concluded
7 during the school year immediately preceding the school year for
8 which reimbursement is being paid. The weighted average daily
9 membership of the district shall be the weighted average daily
10 membership for the school year immediately preceding the school
11 year for which reimbursement is being paid.
12 (b) (i) Divide the income per weighted average daily
13 membership of the district by the average personal income per
14 weighted average daily membership of the State;
15 (ii) Determine the product of (b)(i) multiplied by [the
16 district's share of total costs which is] .5;
17 (iii) Subtract the resultant product in (b)(ii) from
18 [1.0000] 1.000 to determine the income aid ratio.
19 (iv) For purposes of the calculation described in (b)(i)
20 through (b)(iii), the income shall be the personal income
21 valuation of the district. The weighted average daily membership
22 of the district shall be the weighted average daily membership
23 for the school year immediately preceding the school year for
24 which reimbursement is being paid.
25 (c) Add sixty percent (60%) of the market value aid ratio to
26 forty percent (40%) of the income aid ratio to determine the
27 market value/income aid ratio.
28 (d) For payments beginning in the 1989-1990 school year and
29 each school year thereafter, the Department of Education shall
30 utilize an adjusted personal income valuation for the 1987 tax
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1 year and each tax year thereafter respectively in computing the
2 market value/income aid ratio for such districts. The adjusted
3 personal income valuation shall be calculated by dividing the
4 total out-of-State tax credits claimed by the residents of a
5 school district by the State personal income tax rate and
6 subtracting that amount from the total personal income valuation
7 for the individual school district. The State total personal
8 income valuation shall remain that as certified by the
9 Department of Revenue and shall not be adjusted to reflect out-
10 of-State tax credits.
11 (15) "Minimum Subsidy." For the school years 1976-1977 and
12 1977-1978, in no case shall a district receive for each pupil in
13 weighted average daily membership, an amount less than ten
14 percent (10%) of the actual cost of instruction or ten percent
15 (10%) of the base earned for reimbursement whichever is the
16 lesser amount. For the 1978-1979 school year through the 1980-
17 1981 school year, no school district shall receive for each
18 pupil in weighted average daily membership an amount less than
19 fifteen percent (15%) of the base earned for reimbursement or
20 actual instructional expense per WADM, whichever is the lesser
21 amount. For the 1976-1977 school year through the 1980-1981
22 school year, a district whose actual instruction expense per
23 weighted average daily membership is more than two hundred
24 dollars ($200) less than the median actual instruction expense
25 per weighted average daily membership, and whose equalized
26 millage is within fifteen percent (15%) of the median equalized
27 millage, the reimbursement shall be two hundred dollars ($200)
28 below the median actual instruction expense per weighted average
29 daily membership times the district's aid ratio for each
30 weighted average daily membership. For the 1982-1983 school year
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1 [and each school year thereafter] through the 1990-1991 school
2 year, no school district shall receive for each pupil in
3 weighted average daily membership an amount less than fifteen
4 percent (15%) of the factor for educational expense.
5 * * *
6 (18) "Equalized Subsidy for Basic Education." For the school
7 year 1982-1983 and each school year thereafter, each school
8 district shall be paid by the Commonwealth an equalized subsidy
9 for basic education, which shall consist of any or all of the
10 following, as applicable:
11 (i) Payments on account of instruction, as provided for in
12 subsections (d) and (e) of section 2502.
13 (ii) An economic supplement, as provided for in section
14 2502.11.
15 (iii) Assistance to small districts as provided for in
16 section 2502.13.
17 (iv) A low-expenditure, low-wealth supplement as provided
18 for in section 2502.17.
19 (v) A low-expenditure poverty supplement as provided for in
20 section 2502.18.
21 (vi) A payment as provided for in section 2502.21.
22 (19) "Factor for Educational Expense." For the school years
23 1982-1983 and 1983-1984, the factor for educational expense used
24 to compute school district entitlements to payments on account
25 of instruction, as provided for in subsection (d) of section
26 2502, shall be one thousand six hundred fifty-six dollars
27 ($1,656) unless later changed by statute. For the school year
28 1983-1984, the Factor for Educational Expense shall be one
29 thousand seven hundred twenty-five dollars ($1,725), unless
30 later changed by statute, for those school districts
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1 participating, during the 1984-1985 school year, in a Statewide
2 program for testing and remediation which is designed to
3 identify and provide remediation services to individual students
4 pursuant to section 1511.1. For the 1984-1985 school year,
5 notwithstanding any other provisions of this act to the
6 contrary, the Factor for Educational Expense used to compute all
7 school districts' entitlements to payments on account of
8 instruction, as provided for in subsection (d) of section 2502,
9 shall be one thousand eight hundred seventy-five dollars
10 ($1,875). For the 1985-1986 school year, the Factor for
11 Educational Expense used to compute all school districts'
12 entitlements to payments on account of instruction, as provided
13 for in subsection (d) of section 2502, shall be one thousand
14 nine hundred seventy dollars ($1,970). For the 1986-1987 school
15 year, the Factor for Educational Expense used to compute all
16 school districts' entitlements to payments on account of
17 instruction, as provided for in subsection (d) of section 2502,
18 shall be two thousand one hundred twenty-five dollars ($2,125).
19 For the school year 1987-1988, the Factor for Educational
20 Expense used to compute all school districts' entitlements to
21 payments on account of instruction, as provided for in
22 subsection (d) of section 2502, shall be two thousand two
23 hundred thirty dollars ($2,230). For the school year 1988-1989,
24 the Factor for Educational Expense used to compute all school
25 districts' entitlements to payments on account of instruction,
26 as provided for in subsection (d) of section 2502, shall be two
27 thousand three hundred thirty dollars ($2,330). For the school
28 year 1989-1990, the Factor for Educational Expense used to
29 compute all school districts' entitlements to payments on
30 account of instruction, as provided for in subsection (d) of
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1 section 2502, shall be two thousand three hundred eighty dollars
2 ($2,380), as provided for in section 212 of the act of July 1,
3 1990 (P.L.1591, No.7A), known as the "General Appropriation Act
4 of 1990." For the school year 1990-1991, the Factor for
5 Educational Expense used to compute all school districts'
6 entitlements to payments on account of instruction, as provided
7 for in subsection (d) of section 2502, shall be two thousand
8 five hundred fifty dollars ($2,550). [For the school year 1991-
9 1992 and each school year thereafter, the Factor for Educational
10 Expense used to compute all school districts' entitlements to
11 payments on account of instruction, as provided for in
12 subsection (d) of section 2502, shall be two thousand six
13 hundred fifty-five dollars ($2,655).]
14 (20) "Total Expenditure per Average Daily Membership." A
15 school district's total expenditures shall include all General
16 Fund expenditures and other financing uses for a school year, as
17 designated in the Manual of Accounting and Related Financial
18 Procedures for Pennsylvania School Systems. The total
19 expenditures so determined, when divided by the average daily
20 membership for the same school year for the district, shall be
21 the total expenditure per average daily membership.
22 (21) "Children in Low-Income Families." Children aged five
23 (5) to seventeen (17) years, inclusive, in families receiving a
24 grant in excess of two thousand dollars ($2,000) per year from
25 the Commonwealth on account of dependent children under the
26 Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.).
27 Section 2. Section 2502(d) and (e) of the act, amended or
28 added February 1, 1966 (1965 P.L.1642, No.580) and July 1, 1985
29 (P.L.103, No.31), are amended to read:
30 Section 2502. Payments on Account of Instruction.--* * *
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1 (d) For the school year 1976 and 1977 through the 1980-1981
2 school year, each school district shall be paid by the
3 Commonwealth on account of instruction of the district's pupils
4 an amount to be determined by multiplying the market
5 value/income aid ratio times the actual instruction expense per
6 weighted average daily membership or by the base earned for
7 reimbursement, whichever is less, and by the weighted average
8 daily membership for the district. For the school year 1976-1977
9 any school district which, as a result of the impact on payments
10 under subsections (d), (e) and (f) and under section 2592 by
11 reason of the market value/income aid ratio or the application
12 of equalized millage to the base earned for reimbursement, shall
13 suffer a reduction in subsidy entitlement, shall be held
14 harmless from this impact and shall receive an amount which is
15 no less than that received for 1976-1977 under such subsections
16 and under section 2592. For the 1982-1983 school year [and each
17 school year thereafter] through the 1990-1991 school year, each
18 school district shall be paid by the Commonwealth on account of
19 instruction of the district's pupils an amount to be determined
20 by multiplying the district's market value/income aid ratio by
21 the factor for educational expense and by the weighted average
22 daily membership of the district. For the 1983-1984 school year,
23 each school district participating, during the 1984-1985 school
24 year, in a Statewide program for testing and remediation which
25 is designed to identify and provide remediation services to
26 individual students pursuant to section 1511.1, shall be paid by
27 the Commonwealth on account of instruction of the district's
28 pupils an amount to be determined by multiplying the district's
29 market value/income aid ratio by the factor for educational
30 expense, one thousand seven hundred twenty-five dollars
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1 ($1,725), and by the weighted average daily membership of the
2 district. This subsidy may be used for strengthening curriculum,
3 increasing standards, improving student achievement and
4 providing remedial programs during the 1984-1985 school year.
5 (e) For no school year from 1966-1967 through 1990-1991
6 shall any district receive less than an amount obtained by
7 multiplying the minimum subsidy by the weighted average daily
8 membership for the district.
9 * * *
10 Section 3. Section 2502.5(b) of the act, amended July 8,
11 1989 (P.L.253, No.43), is amended to read:
12 Section 2502.5. Limitation of Certain Payments.--* * *
13 (b) Notwithstanding any other provisions of law, for the
14 school year 1982-1983 and 1983-1984, no school district shall be
15 paid under subsections (d) and (e) of section 2502 and section
16 2502.11 or, for the school year 1984-1985, no school district
17 shall be paid under subsections (d) and (e) of section 2502,
18 subsection (e) of this section, section 2502.11 and section
19 2502.13 or, for the school year 1985-1986, no school district
20 shall be paid under subsections (d) and (e) of section 2502,
21 subsection (e) of this section, section 2502.11, section
22 2502.13, section 2502.14 and section 2502.15 or, for the school
23 year 1986-1987, no school district shall be paid under
24 subsections (d) and (e) of section 2502, subsection (e) of this
25 section, section 2502.11, section 2502.13 and section 2502.15
26 or, for the school year 1987-1988, no school district shall be
27 paid under subsections (d) and (e) of section 2502, subsection
28 (e) of this section, sections 2502.11 and 2502.13 or, for the
29 school [year] years 1988-1989 [and each school year thereafter]
30 through 1990-1991, no school district shall be paid under
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1 subsections (d) and (e) of section 2502, sections 2502.11 and
2 2502.13 an amount in excess of one hundred percent (100%) of the
3 total reimbursable instructional expenditures of the school
4 district. For the 1982-1983 school year, all school districts
5 qualifying for payments under subsections (d) and (e) of section
6 2502 and section 2502.11 shall be limited to an increase payment
7 on account of those sections which shall not exceed nine percent
8 (9%) over the sums received on account of section 2502.9 for the
9 1981-1982 school year, nor shall any school district receive an
10 increase of less than two percent (2%) of the 1982-1983 school
11 year payments on account of the 1981-1982 school year. For the
12 1984-1985 school year, each school district qualifying for
13 payments under subsections (d) and (e) of section 2502 and
14 section 2502.11 shall be limited to an increase payment on
15 account of those sections which shall not exceed eight and
16 forty-five one hundredths percent (8.45%) over the sums received
17 on account of such sections for the school year 1983-1984, nor
18 shall any school district receive an increase of less than two
19 percent (2%) of such payments for the school year 1983-1984:
20 Provided, however, That such payments for the school year 1983-
21 1984 shall be computed using a Factor for Educational Expense of
22 one thousand six hundred fifty-six dollars ($1,656) and a
23 maximum payment increase of seven and forty-five one hundredths
24 percent (7.45%) and a minimum payment increase of two percent
25 (2%) and the eighty percent (80%) guarantee provided for in
26 section 2502.5(e). For the 1985-1986 school year, each school
27 district qualifying for payments under subsections (d) and (e)
28 of section 2502, subsection (e) of this section and section
29 2502.11 shall be limited to an increase payment on account of
30 those sections which shall not exceed seven percent (7%) over
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1 the sums received on account of such sections for the school
2 year 1984-1985, nor shall any school district receive an
3 increase less than two percent (2%) of such payments for the
4 school year 1984-1985. For the 1986-1987 school year, each
5 school district qualifying for payments under subsections (d)
6 and (e) of section 2502, subsection (e) of this section and
7 section 2502.11 shall be limited to an increase payment on
8 account of those sections which shall not exceed eight percent
9 (8%) over the sums received on account of such sections and
10 section 2502.14 for the school year 1985-1986, nor shall any
11 school district receive an increase less than two percent (2%)
12 of such payment for the school year 1985-1986. For the 1987-1988
13 school year, each school district qualifying for payments under
14 subsections (d) and (e) of section 2502, subsection (e) of this
15 section and section 2502.11 shall be limited to an increase
16 payment on account of those sections which shall not exceed
17 eight percent (8%) over the sums received on account of such
18 sections and section 2502.15 for the school year 1986-1987, nor
19 shall any school district receive an increase less than two
20 percent (2%) of such payments for the school year 1986-1987. For
21 the 1988-1989 school year [and each school year thereafter]
22 through the 1990-1991 school year, no school district qualifying
23 for payments under subsections (d) and (e) of section 2502,
24 subsection (e) of this section and section 2502.11 shall receive
25 an increase less than two percent (2%) of such payments for the
26 prior school year.
27 * * *
28 Section 4. Section 2502.11 of the act, amended July 8, 1989
29 (P.L.253, No.43) and August 5, 1991 (P.L.219, No.25), is amended
30 to read:
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1 Section 2502.11. Economic Supplement.--(a) For the school
2 year 1982-1983 [and each school year thereafter] through the
3 school year 1990-1991, each qualifying school district shall be
4 paid, in addition to any other payments to which it is entitled,
5 an economic supplement, based upon children in low-income
6 families, local tax effort and population per square mile.
7 (b) For the school years 1982-1983 through 1986-1987, each
8 qualifying school district shall be paid on account of children
9 in low-income families an amount in accordance with the
10 following table:
11 Percentage of Low-Income Pupils Grant Per
12 In Average Daily Membership Low-Income Pupil
13 10 - 19.9 $100
14 20 - 39.9 $300
15 40 or over $500
16 For the school year 1987-1988, each qualifying school
17 district shall be paid on account of children in low-income
18 families an amount in accordance with the following table:
19 Percentage of Low-Income Pupils Grant Per
20 In Average Daily Membership Low-Income Pupil
21 8 - 14.9 $128
22 15 - 29.9 $357
23 30 or over $587
24 For the school years 1988-1989 and 1989-1990, each qualifying
25 school district shall be paid on account of children in low-
26 income families an amount in accordance with the following
27 table:
28 Percentage of Low-Income Pupils Grant Per
29 In Average Daily Membership Low-Income Pupil
30 8 - 14.9 6% of the factor for educational
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1 expense used to make payments on
2 account of instruction, as
3 provided for in section 2501(19).
4 15 - 29.9 16% of the factor for educational
5 expense used to make payments on
6 account of instruction, as
7 provided for in section 2501(19).
8 30 or over 27% of the factor for educational
9 expense used to make payments on
10 account of instruction, as
11 provided for in section 2501(19).
12 For the school year 1990-1991 [and each school year
13 thereafter], each qualifying school district shall be paid on
14 account of children in low-income families an amount in
15 accordance with the following table:
16 Percentage of Low-Income Pupils Grant Per
17 In Average Daily Membership Low-Income Pupil
18 8 - 14.9 6% of the factor for educational
19 expense used to make payments on
20 account of instruction, as
21 provided for in section 2501(19).
22 15 - 19.9 16% of the factor for educational
23 expense used to make payments on
24 account of instruction, as
25 provided for in section 2501(19).
26 20 - 29.9 23% of the factor for educational
27 expense used to make payments on
28 account of instruction, as
29 provided for in section 2501(19).
30 30 or over 27% of the factor for educational
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1 expense used to make payments on
2 account of instruction, as
3 provided for in section 2501(19).
4 For the 1982-1983 school year [and each school year thereafter]
5 through the 1990-1991 school year, low-income pupils are defined
6 for purposes of this section as children aged five (5) to
7 seventeen (17) years, inclusive, in families receiving a grant
8 in excess of two thousand dollars ($2,000) from the Commonwealth
9 on account of dependent children under Title IV of the Federal
10 Social Security Act.
11 (c) For the school year 1982-1983 through the school year
12 1987-1988, any district which levies and collects local taxes
13 for school purposes equal to or above the median equalized
14 millage, as defined in section 2501(9.3), in the year for which
15 reimbursement is determined shall qualify for and receive a
16 payment based upon local tax effort and population per square
17 mile in accordance with the following table, except for
18 qualifying districts which include a central city of a Standard
19 Metropolitan Statistical Area and have a district population of
20 less than four thousand (4,000) persons per square mile, which
21 districts shall receive three percent (3%) of their
22 instructional expenditures:
23 Population Per Square Mile Payment as Percent of
24 of the Qualifying District Instructional Expenditure
25 5,950 and over 5
26 4,000 - 5,949 3
27 less than 4,000 1
28 Notwithstanding the provisions of this subsection, districts
29 having a general population of five thousand nine hundred fifty
30 (5,950) or more persons per square mile and at least thirty-five
19930H1611B1922 - 15 -
1 thousand (35,000) WADMs shall be paid nineteen percent (19%) of
2 their instructional expenditures.
3 (d) For the school year 1988-1989 [and each school year
4 thereafter] through the school year 1990-1991, any district
5 which levies and collects local taxes for school purposes equal
6 to or above the median equalized millage, as defined in section
7 2501(9.3), in the year for which reimbursement is determined or
8 any school district the majority of whose population is drawn
9 from a city of the first through third class which levies and
10 collects local taxes for municipal purposes equal to or above
11 the municipal median equalized millage, as defined in section
12 2501(9.5), for the most recent municipal fiscal year for which
13 data is available shall qualify for and receive a payment based
14 upon local tax effort and population per square mile in
15 accordance with the following table, except for qualifying
16 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 Qualifying districts having a general population of five
27 thousand nine hundred fifty (5,950) or more persons per square
28 mile and at least thirty-five thousand (35,000) WADM's shall be
29 paid nineteen percent (19%) of their instructional expenditures.
30 [A] For the 1990-1991 school year, a central city of a Standard
19930H1611B1922 - 16 -
1 Metropolitan Statistical Area which has an equalized millage as
2 defined in clause (9.2) of section 2501 to be greater than the
3 median equalized millage by ten and twenty-nine hundredths
4 (10.29) and has an estimated 1990-1991 Weighted Average Daily
5 Membership (WADM) provided by the Department of Education in
6 June 1991 that is less than the actual 1989-1990 Weighted
7 Average Daily Membership by two hundred (200) shall receive an
8 additional two percent (2%) of their 1990-1991 actual
9 instructional expenditure.
10 Section 5. Sections 2502.13, 2502.17 and 2502.18 of the act,
11 amended or added August 5, 1991 (P.L.219, No.25), are amended to
12 read:
13 Section 2502.13. Small District Assistance.--For the 1984-
14 1985 and 1985-1986 school years, the Commonwealth shall pay to
15 each school district which has an average daily membership of
16 one thousand five hundred (1,500) or less and has a market
17 value/income aid ratio of five thousand ten-thousandths (0.5000)
18 or greater, an amount equal to fifty dollars ($50) multiplied by
19 that district's average daily membership. For the 1985-1986
20 school year, no school district shall receive less on account of
21 this section than it did for the 1984-1985 school year. For the
22 school year 1986-1987, the Commonwealth shall pay to each school
23 district which has an average daily membership of one thousand
24 five hundred (1,500) or less and has a market value/income aid
25 ratio of five thousand ten-thousandths (0.5000) or greater, or
26 received payments under this section for the 1985-1986 school
27 year, an amount equal to seventy-five dollars ($75) multiplied
28 by that district's average daily membership. For the school year
29 1987-1988, the Commonwealth shall pay to each school district
30 which has an average daily membership of one thousand five
19930H1611B1922 - 17 -
1 hundred (1,500) or less and a market value/income aid ratio of
2 five thousand ten-thousandths (0.5000) or greater, or received
3 payments under this section for the 1986-1987 school year, an
4 amount equal to eighty-five dollars ($85) multiplied by that
5 district's average daily membership. For the school year 1988-
6 1989 [and each school year thereafter], the Commonwealth shall
7 pay to each school district which has an average daily
8 membership of one thousand five hundred (1,500) or less and a
9 market value/income aid ratio of five thousand ten thousandths
10 (0.5000) or greater, or received payments under this section for
11 the 1987-1988 or 1988-1989 school year, an amount equal to one
12 hundred five dollars ($105). For the school year 1989-1990, the
13 Commonwealth shall pay to each school district which has an
14 average daily membership of one thousand five hundred (1,500) or
15 less and a market value/income aid ratio of five thousand ten-
16 thousandths (0.5000) or greater, or received payments under this
17 section for the 1987-1988 school year, an amount equal to one
18 hundred fifteen dollars ($115) multiplied by the district's
19 average daily membership as provided for in section 212 of the
20 act of July 1, 1990 (P.L.1591, No.7A), known as the "General
21 Appropriation Act of 1990." For the school year 1990-1991 [and
22 each school year thereafter], the Commonwealth shall pay to each
23 school district which has an average daily membership of one
24 thousand five hundred (1,500) or less and a market value/income
25 aid ratio of five thousand ten-thousandths (0.5000) or greater,
26 or received payments under this section for the prior school
27 year, an amount equal to one hundred seventy dollars ($170)
28 multiplied by that district's average daily membership. [Each]
29 For the school year 1990-1991, each school district with a
30 population per square mile of less than ninety (90), which
19930H1611B1922 - 18 -
1 otherwise meets the average daily membership and market
2 value/income aid ratio requirements of this section, or received
3 payments under this section for the prior school year, shall
4 instead receive an amount equal to one hundred ninety dollars
5 ($190) multiplied by that district's average daily membership.
6 For the 1987-1988 school year [and each school year thereafter]
7 through the 1990-1991 school year, no school district shall
8 receive less on account of this section than it did for the
9 prior school year.
10 Section 2502.17. Low-Expenditure, Low-Wealth Supplement.--
11 For the 1990-1991 school year [and each school year thereafter],
12 the Commonwealth shall pay to each school district which has a
13 market value/income aid ratio of six thousand ten-thousandths
14 (0.6000) or greater and has an actual instruction expenditure
15 per weighted average daily membership for the school year prior
16 to the reimbursable year, which is less than the Statewide
17 median actual instruction expenditure per weighted average daily
18 membership for that year, an amount equal to one and three-
19 tenths percent (1.3%) of the school district's actual
20 instruction expenditure for the reimbursable year: Provided,
21 That no school district shall receive a dollar amount, which,
22 when combined with its actual instruction expenditure for the
23 year prior to the reimbursable year, would result in the
24 district's actual instruction expenditure per weighted average
25 daily membership exceeding the Statewide median actual
26 instruction expenditure per weighted average daily membership
27 for the year prior to reimbursement.
28 Section 2502.18. Low-Expenditure Poverty Supplement.--For
29 the 1990-1991 school year [and each school year thereafter], the
30 Commonwealth shall pay to each school district, which has an
19930H1611B1922 - 19 -
1 actual instruction expenditure per weighted average daily
2 membership for the school year prior to the reimbursable year,
3 which is less than three thousand four hundred forty-five
4 dollars ($3,445), and has ten percent (10%) or more of its
5 pupils in average daily membership as children in low-income
6 families, an amount equal to one-half percent (.5%) of their
7 actual instruction expenditure.
8 Section 6. The act is amended by adding sections to read:
9 Section 2502.20. Foundation Subsidy Payments.--For payments
10 on account of instruction in school years 1992-1993 and 1993-
11 1994, each school district shall be paid a subsidy amount based
12 upon the provisions of sections 2502.21, 2502.22, 2502.23,
13 2502.24, 2502.25, 2502.26 and 2502.27.
14 Section 2502.21. Education Subsidy Base.--For payments on
15 account of instruction in the 1992-1993 and 1993-1994 school <--
16 years SCHOOL YEAR, the Commonwealth shall pay to each school <--
17 district an education subsidy base which shall consist of the
18 same amount that the district was entitled to receive for the
19 1990-1991 school year pursuant to sections 2502(d) and (e) and
20 2502.11, both as adjusted pursuant to section 2502.5(b), if
21 applicable, and sections 2502.13, 2502.17 and 2502.18. FOR <--
22 PAYMENTS ON ACCOUNT OF INSTRUCTION IN THE 1993-1994 SCHOOL YEAR,
23 THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT AN EDUCATION
24 SUBSIDY BASE WHICH SHALL CONSIST OF THE SAME AMOUNT THAT THE
25 DISTRICT WAS ENTITLED TO RECEIVE FOR THE PRIOR SCHOOL YEAR
26 PURSUANT TO SECTION 2502.20.
27 Section 2502.22. Equity Supplement.--(a) For payments on
28 account of instruction in the 1992-1993 and 1993-1994 school
29 years, each school district may qualify for payment of the
30 supplement based upon market value/income aid ratio, local tax
19930H1611B1922 - 20 -
1 effort and total expenditure per average daily membership.
2 (b) To qualify for such supplement, districts shall meet all
3 of the following criteria:
4 (1) The district's market value/income aid ratio for the
5 school year immediately preceding the school year for which
6 reimbursement is being paid is greater than or equal to five
7 thousand ten-thousandths (0.5000).
8 (2) The district's equalized millage for the school year
9 immediately preceding the school year for which reimbursement is
10 being paid is greater than or equal to nineteen and five tenths
11 (19.5).
12 (3) The district's total expenditure per average daily
13 membership for the school year two (2) years prior to the school
14 year for which reimbursement is being paid is less than or equal
15 to six thousand one hundred ninety-three dollars ($6,193).
16 (c) The Commonwealth shall pay to each qualifying school
17 district, as determined pursuant to subsection (b), a supplement
18 in an amount calculated as follows:
19 (1) Determine the product of the district's average daily
20 membership for the school year for which reimbursement is being
21 paid and the district's market value/income aid ratio for the
22 school year for which reimbursement is being paid.
23 (2) Multiply the result of the calculation pursuant to
24 clause (1) by ninety-three million dollars ($93,000,000).
25 (3) Divide the result of the calculation pursuant to clause
26 (2) by the sum of the products obtained for all qualifying
27 school districts pursuant to clause (1).
28 (d) On account of instruction in the school years 1992-1993
29 and 1993-1994, each school district that does not qualify for
30 the supplement described in subsections (a) through (c) may
19930H1611B1922 - 21 -
1 qualify for payment of a supplement based upon resident children
2 in low-income families.
3 (e) To qualify for the supplement described in subsection
4 (d), the number of children in low-income families residing in
5 the district for the calendar year that concluded during the
6 school year immediately preceding the year for which
7 reimbursement is being paid divided by the district's average
8 daily membership for the school year two (2) years prior to the
9 school year for which reimbursement is being paid must be
10 greater than or equal to thirty-five percent (35%).
11 (f) The Commonwealth shall pay to each qualifying school
12 district, as determined pursuant to subsections (d) and (e), a
13 supplement in the amount of eighty dollars ($80) multiplied by
14 the number of children in low-income families residing in the
15 district for the calendar year that concluded during the school
16 year for which reimbursement is being paid.
17 Section 2502.23. Foundation Guarantee.--The foundation
18 guarantee shall be the minimum level of revenue resources that
19 shall be available to support each of the district pupils in
20 this Commonwealth. For payments during fiscal years 1993-1994
21 and 1994-1995, the foundation guarantee shall be four thousand
22 dollars ($4,000). The resources available for payments during
23 fiscal year 1993-1994 shall be determined by adding the
24 education subsidy base, the equity supplement and the minimum
25 effort base and dividing the total by the 1990-1991 average
26 daily membership. If the revenue resources available for
27 district pupils are less than the foundation guarantee, the
28 foundation guarantee payment to that district during fiscal year
29 1993-1994 shall be determined by multiplying the difference
30 between the revenue resources available by the 1990-1991 average
19930H1611B1922 - 22 -
1 daily membership of the district. The revenue resources
2 available for payments during fiscal year 1994-1995 shall be
3 determined by adding the education subsidy base, the equity
4 supplement, and the minimum effort base and dividing the total
5 by the 1991-1992 average daily membership. If the revenue
6 resources available for district pupils are less than the
7 foundation guarantee, the foundation guarantee payment to that
8 district during fiscal year 1994-1995 shall be determined by
9 multiplying the difference between the revenue resources
10 available by the 1991-1992 average daily membership of the
11 district.
12 Section 2502.24. Minimum Effort Base.--The minimum effort
13 base shall be, for the purposes of qualifying for foundation
14 guarantee payments, the level of local educational revenue
15 available per student in average daily membership. For payments
16 during fiscal year 1993-1994, the level of local revenue
17 available per student shall be computed by multiplying the 1990
18 Real Property Valuation of the district by nineteen and five
19 tenths (19.5) mills. For payments during fiscal year 1994-1995,
20 the level of local revenue available per student shall be
21 computed by multiplying the 1991 Real Property Valuation of the
22 district by twenty and five tenths (20.5) mills.
23 Section 2502.25. Extraordinary Growth Supplement.--During
24 fiscal year 1993-1994, the extraordinary growth supplement shall
25 be those payments to school districts that have had a student
26 population increase of ten percent (10%) of their average daily
27 membership or greater between school years 1990-1991 and 1992-
28 1993 as estimated by the Department of Education in February
29 1993. Payments to qualifying school districts shall be
30 determined by multiplying the actual number of additional
19930H1611B1922 - 23 -
1 students in average daily membership by six and five tenths
2 percent (6.5%) of the foundation guarantee.
3 Section 2502.26. Limited Revenue Sources Supplement.--During
4 fiscal year 1993-1994, the limited revenue sources supplement
5 shall be those payments to school districts which have: a 1992-
6 1993 payable year aid ratio estimated by the Department of
7 Education in February 1993 that is equal to or greater than
8 seventy-five one hundredths (.75); a 1991 market value per WADM <--
9 which is less than or equal to sixty percent (60%) of the
10 Statewide average market value per WADM as estimated by the
11 Department of Education in February 1993; and a 1991 personal
12 income per WADM which is less than or equal to sixty percent
13 (60%) of the Statewide average personal income per WADM as
14 estimated by the Department of Education in February 1993. AND <--
15 WHICH DOES NOT QUALIFY FOR ANY SUPPLEMENT CONTAINED IN SECTIONS
16 2502.22, 2502.23 AND 2502.25. Payments to qualifying districts
17 shall be determined by multiplying the 1992-1993 average daily
18 membership of the district, as estimated by the department in
19 February 1993, by two percent (2%) of the foundation guarantee.
20 Section 2502.27. Discretionary Funds for Distressed
21 Districts.--If the sum appropriated for the 1993-1994 fiscal
22 year for payments in section 2502.20 exceeds the amounts to
23 which all qualifying school districts are entitled, then the
24 Department of Education shall set aside the remainder of the
25 appropriation. The Secretary of Education may, at his
26 discretion, make payments from the funds that have been set
27 aside to school districts that have been declared distressed
28 pursuant to section 691. The secretary shall establish
29 guidelines for school districts' applications for these funds,
30 department approval of applications for funds, department
19930H1611B1922 - 24 -
1 distribution of funds and school districts' expenditure of these
2 funds. The secretary shall report to the General Assembly on
3 such expenditures.
4 Section 2502.28. Resource Data for Foundation Based Equity
5 Formula Development.--(a) The Secretary of Education shall
6 develop and collect data necessary to assist in policy
7 development for the transition to a foundation based equity
8 formula. Data shall be collected which will assist in the
9 development of definitions of factors, and in determining the
10 relative importance of various factors for the purpose of
11 assigning weights, which (factors) impact on a school district's
12 ability to provide educational opportunities for its students.
13 Such factors shall include, but not be limited to:
14 (1) Regional costs.
15 (2) Students in poverty.
16 (3) Students in special education programs. Data under this
17 clause shall be based on, but not limited to, level of
18 intervention, percent of time in program, multiple assignments,
19 related services and other appropriate factors.
20 (4) Small school districts. These are districts which are
21 unable to provide comprehensive education programming and unable
22 to cost effectively merge with or collaboratively provide
23 services with other districts.
24 (5) Local revenue sources.
25 (6) State revenue sources.
26 (7) Other potential State and local revenue sources.
27 (b) The initial report on the data system and data collected
28 shall be submitted to the majority chairman and the minority
29 chairman of the Education Committee of the Senate and the
30 majority chairman and the minority chairman of the Education
19930H1611B1922 - 25 -
1 Committee of the House of Representatives by September 30, 1994 <--
2 JANUARY 1, 1994. <--
3 SECTION 2502.29. SUBSIDY INCREASES.--(A) FOR THE 1993-1994 <--
4 SCHOOL YEAR, THE GENERAL ASSEMBLY IS PROVIDING ADDITIONAL
5 FUNDING FOR POOR SCHOOL DISTRICTS THROUGH SECTIONS 2502.22,
6 2502.23, 2502.25 AND 2502.26. THESE ADDITIONAL FUNDS ARE
7 INTENDED TO HELP ADDRESS THE PROBLEM OF INADEQUATE RESOURCES
8 AVAILABLE TO POOR SCHOOL DISTRICTS IN THIS COMMONWEALTH FOR THE
9 PURPOSE OF EXPANDING EDUCATIONAL OPPORTUNITIES FOR STUDENTS IN
10 SUCH DISTRICTS. THESE ADDITIONAL FUNDS ARE INTENDED BY THE
11 GENERAL ASSEMBLY TO BE UTILIZED BY EACH RECIPIENT SCHOOL
12 DISTRICT PRIMARILY TO IMPROVE EDUCATIONAL OPPORTUNITIES FOR ITS
13 STUDENTS. THEREFORE, IT IS THE INTENTION OF THE GENERAL ASSEMBLY
14 THAT THESE ADDITIONAL FUNDS BE USED PRIMARILY FOR, BUT NOT
15 LIMITED TO, THE FOLLOWING PURPOSES: INSTRUCTIONAL EQUIPMENT AND
16 MATERIALS, SUCH AS TEXTBOOKS, LIBRARY HOLDINGS, COMPUTERS,
17 LABORATORY EQUIPMENT, SUPPLIES, WORKBOOKS AND INSTRUCTIONAL
18 TECHNOLOGY MATERIALS; STAFF DEVELOPMENT AND IN-SERVICE TRAINING;
19 ADDITIONAL TEACHING STAFF FOR NEW CLASSES AND PROGRAM OFFERINGS;
20 STAFFING OF EACH BUILDING WITH A PRINCIPAL, COUNSELORS, HOME AND
21 SCHOOL VISITORS, LIBRARY STAFF; FIELD TRIPS AND EXTRACURRICULAR
22 ACTIVITIES. THESE FUNDS MAY NOT BE USED TO CONSTRUCT ATHLETIC
23 FACILITIES.
24 (B) ALL SCHOOL DISTRICTS RECEIVING PAYMENTS FOR THE 1993-
25 1994 SCHOOL YEAR UNDER SECTIONS 2502.22, 2502.23, 2502.25 AND
26 2502.26 SHALL REPORT TO THE DEPARTMENT OF EDUCATION BY NOVEMBER
27 1, 1993, THE PURPOSES FOR WHICH THE ADDITIONAL FUNDS ARE TO BE
28 EXPENDED.
29 Section 7. Section 2517(d) of the act, amended July 1, 1985
30 (P.L.103, No.31), is amended to read:
19930H1611B1922 - 26 -
1 Section 2517. Payments.--* * *
2 (d) Subsection (c) of this section shall apply to:
3 (1) All payments to which a school district is entitled
4 under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
5 2502.9 and 2592 for the school year 1981-1982.
6 (2) Payments to which a school district is entitled under
7 any provision of sections 2502, 2502.8 and 2502.11 for the
8 school year 1982-1983 and the school year 1983-1984.
9 (3) Payments to which a school district is entitled under
10 any provision of sections 2502, 2502.8, 2502.11 [and 2502.13],
11 2502.13 and 2502.20 for the school year 1984-1985 and each
12 school year thereafter.
13 Section 8. This act shall take effect immediately.
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