PRINTER'S NO. 1918
No. 1706 Session of 1993
INTRODUCED BY COWELL, ROBINSON, STAIRS, ITKIN, RAYMOND, CURRY,
KREBS, LINTON, HERMAN, CARONE, MELIO, RUDY, EVANS AND
ROEBUCK, MAY 25, 1993
REFERRED TO COMMITTEE ON EDUCATION, MAY 25, 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 community
6 college reimbursement payments.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 1913-A(a) and (b) of the act of March 10,
10 1949 (P.L.30, No.14), known as the Public School Code of 1949,
11 added July 1, 1985 (P.L.103, No.31) and amended October 20, 1988
12 (P.L.827, No.110), are amended and the section is amended by
13 adding subsections to read:
14 Section 1913-A. Financial Program; Reimbursement or
15 Payments.--(a) The plan submitted by the local sponsor shall
16 set forth a financial program for the operation of the community
17 college. The plan shall provide that [at least two-thirds of the
18 annual operating costs and up to] the local sponsor shall
19 appropriate or provide to the community college an amount at
1 least equal to the community college's annual operating costs
2 less the student tuition as determined in section 1908-A(a) less
3 the Commonwealth's payment as determined in subsection (b)(1) of
4 this section. The plan shall also provide that one-half of the
5 annual capital expenses shall be appropriated or provided by the
6 local sponsor to the community college[, and such allocation].
7 The local sponsor's appropriation for annual operating costs and
8 annual capital expenses may in part be represented by real or
9 personal property or services made available to the community
10 college. The plan shall indicate whether the appropriation shall
11 come from general revenues, loan funds, special tax levies or
12 from other sources, including student tuitions.
13 (b) (1) [The] For the 1993-1994 fiscal year and for each
14 fiscal year thereafter, the Commonwealth shall pay to a
15 community college on behalf of the sponsor on account of its
16 operating costs during the fiscal year from funds appropriated
17 for that purpose an amount equal to [one-third of such college's
18 approved operating costs not to exceed three thousand dollars
19 ($3,000) per student multiplied by the number of equivalent
20 full-time students determined by an audit to be made in a manner
21 prescribed by the State Board of Education.
22 (2) In addition, the Commonwealth shall pay to a community
23 college, on account of its] the lesser of such college's
24 variable State share ceiling as determined in subsection
25 (b)(1.3) or such college's equivalent full-time student
26 reimbursement as determined in subsection (b)(1.4).
27 (1.2) The Secretary of Education, in consultation with the
28 community colleges, shall promulgate standards for credit
29 courses and for noncredit courses that will be eligible for
30 Commonwealth reimbursement. The standards shall specifically
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1 exclude from eligibility for reimbursement any course or program
2 in avocational or recreational pursuits. The standards shall be
3 promulgated by the beginning of the 1994-1995 fiscal year. Until
4 such standards are promulgated, no community college will be
5 reimbursed for any credit course which was offered by such
6 college as a noncredit course during the college's 1992-1993
7 fiscal year.
8 (1.3) The variable State share ceiling of a community
9 college shall be determined as follows:
10 (i) Subtract the taxable income per person of the local
11 sponsor from the highest taxable income per person of any county
12 in the Commonwealth.
13 (ii) Divide the amount determined under paragraph (i) by the
14 difference between the highest taxable income per person of any
15 county in the Commonwealth and the lowest taxable income per
16 person of any county in the Commonwealth.
17 (iii) Multiply the quotient determined under paragraph (ii)
18 by one-sixth.
19 (iv) Add one-third to the product determined under paragraph
20 (iii).
21 (v) Multiply the sum determined under paragraph (iv) by the
22 community college's operating costs in the year for which
23 reimbursement is being claimed.
24 (vi) The taxable income per person data used in the
25 preceding calculation shall be data certified to the Secretary
26 of Education by the Secretary of Revenue under section 2501(9.1)
27 for school district local sponsors or data otherwise published
28 by the Secretary of Revenue for a municipal local sponsor.
29 (1.4) The equivalent full-time student reimbursement of a
30 community college shall be the sum of credit course, noncredit
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1 course and stipend reimbursements. These reimbursements shall be
2 calculated using a reimbursement factor of one thousand and
3 forty dollars ($1,040) for the 1993-1994 fiscal year and of one
4 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
5 and for each year thereafter and shall be determined as follows:
6 (i) Credit course reimbursement shall be calculated by
7 multiplying the reimbursement factor by the number of equivalent
8 full-time students enrolled in credit courses as determined by
9 an audit to be made in a manner prescribed by the State Board of
10 Education.
11 (ii) Noncredit course reimbursement shall be calculated as
12 follows:
13 (A) eighty percent (80%) of the reimbursement factor
14 multiplied by the number of equivalent full-time students
15 enrolled in eligible noncredit courses for the 1993-1994 fiscal
16 year, as determined by the audit referred to in paragraph (i);
17 or
18 (B) seventy percent (70%) of the reimbursement factor
19 multiplied by the number of equivalent full-time students
20 enrolled in eligible noncredit courses for the 1994-1995 fiscal
21 year and for each year thereafter, as determined by the audit
22 referred to in paragraph (i).
23 (iii) Stipend reimbursement on account of a community
24 college's operating costs for all equivalent full-time students
25 enrolled in the following categories of two-year or less than
26 two-year occupational or technical programs, [a stipend as
27 follows] shall be the sum of the following:
28 [(i)] (A) One thousand one hundred dollars ($1,100) per
29 full-time equivalent student enrolled in advanced technology
30 programs. Advanced technology programs are programs using new or
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1 advanced technologies which hold promise for creating new job
2 opportunities, including such fields as robotics, biotechnology,
3 specialized materials and engineering and engineering-related
4 programs.
5 [(ii)] (B) One thousand dollars ($1,000) per full-time
6 equivalent student enrolled in programs designated as Statewide
7 programs. A Statewide program is a program which meets one or
8 more of the following criteria:
9 [(A)] (I) Program enrollment from out-of-sponsor area is
10 twenty per cent or more of the enrollment for the program.
11 [(B)] (II) A consortial arrangement exists with another
12 community college to cooperatively operate a program or share
13 regions in order to avoid unnecessary program duplication.
14 [(iii)] (C) Five hundred dollars ($500) per full-time
15 equivalent student enrolled in other occupational or technical
16 programs.
17 (2) For the 1993-1994 fiscal year, each community college
18 shall be reimbursed under subsection (b)(1) in an amount which
19 is at least equal to a one percent (1%) increase over its 1992-
20 1993 operating cost and stipend reimbursement. In no case shall
21 a community college's 1993-1994 reimbursement under subsection
22 (b)(1) per full-time equivalent student, insofar as said
23 reimbursement does not include a proportionate share
24 attributable to stipend reimbursement under subsection
25 (b)(1.4)(iii), exceed its 1992-1993 operating cost reimbursement
26 per full-time equivalent student by more than ten percent (10%).
27 (2.1) For the 1994-1995 fiscal year, each community college
28 shall be reimbursed under subsection (b)(1) in an amount which
29 is at least equal to a one percent (1%) increase over its 1993-
30 1994 reimbursement under subsection (b)(1). In no case shall a
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1 community college's 1994-1995 reimbursement under subsection
2 (b)(1) per full-time equivalent student, insofar as said
3 reimbursement does not include the proportionate share
4 attributable to stipend reimbursement under subsection
5 (b)(1.4)(iii), exceed its 1993-1994 reimbursement under
6 subsection (b)(1) per full-time equivalent student, insofar as
7 said reimbursement does not include the proportionate share
8 attributable to stipend reimbursement under subsection
9 (b)(1.4)(iii) by more than ten percent (10%).
10 (2.2) For the 1995-1996 fiscal year, each community college
11 shall be reimbursed under subsection (b)(1) in an amount which
12 is at least equal to its 1994-1995 reimbursement under
13 subsection (b)(1).
14 (3) The Secretary of Education annually shall establish
15 criteria to be used to determine eligibility of programs for
16 each of the above stipend categories, shall approve programs for
17 funding in the following fiscal year according to these criteria
18 and shall submit to chairmen of the committees of education in
19 the House of Representatives and Senate a report setting forth
20 the established criteria, any programs approved for funding
21 under these criteria and the recipient community colleges.
22 (4) Each community college shall maintain such accounting
23 and student attendance records on generally accepted principles
24 and standards as will lend themselves to satisfactory audit. The
25 Commonwealth shall pay to a community college on behalf of the
26 sponsor on account of its capital expenses an amount equal to
27 one-half of such college's annual capital expenses from funds
28 appropriated for that purpose to the extent that said capital
29 expenses have been approved as herein provided.
30 (5) For purposes of determining Commonwealth reimbursement
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1 of operating costs, Federally funded expenditures for those
2 programs in which the Commonwealth participates in the cost
3 shall be deducted from total operating expenditures to determine
4 net reimbursable operating costs.
5 * * *
6 (j) In no event shall the payments or final reimbursement
7 made by the department following audit exceed the appropriation
8 available for community colleges.
9 (k) (1) Unless otherwise prescribed by the State Board of
10 Education, the Commonwealth's fiscal audits of community
11 colleges under this section shall be conducted in accordance
12 with "Government Auditing Standards," latest revision,
13 promulgated by the United State General Accounting Office.
14 Written audit reports will be produced and will be sent to the
15 community college by the Commissioner of Postsecondary/Higher
16 Education. Any cost disallowed under findings contained in the
17 audit report shall be considered an adjudication within the
18 meaning of 2 Pa.C.S. (relating to administrative law and
19 procedure) and regulations promulgated thereunder.
20 (2) The Secretary of Education is hereby specifically
21 authorized and shall be required to resolve audit findings
22 involving disallowed costs that are contested by community
23 colleges except for audit findings that involve mathematical
24 errors, violation of regulations or alleged illegal activities.
25 The proposed resolution of the Secretary of Education shall not
26 be subject to the provisions of 2 Pa.C.S. The Secretary of
27 Education's notice to resolve audit findings shall be sent to
28 the community college in writing. The Secretary of Education may
29 resolve the audit findings by reducing the disallowed costs
30 related thereto in whole or in part.
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1 (3) The Secretary of Education's notice to resolve an audit
2 finding by reducing or eliminating the disallowed costs must be
3 made contingent upon the community college developing and
4 implementing a corrective action plan to address the audit
5 finding. The community college must submit a corrective action
6 plan to the Secretary of Education within 60 days after receipt
7 of the Secretary of Education's written notice to resolve the
8 audit finding. The Secretary of Education shall approve, reject
9 or alter the plan submitted by the community college within
10 thirty (30) days of submission. After the community college
11 receives written notice of approval or agrees in writing to the
12 Secretary of Education's alterations of the corrective action
13 plan, said plan shall be implemented and shall be binding on the
14 community college. Implementation of the approved or agreed upon
15 corrective action plan will be verified by an audit conducted by
16 the department no later than the end of the fiscal year
17 following the fiscal year during which the plan is implemented.
18 If no agreed upon corrective action plan is in place within one
19 year after the date of the Secretary of Education's written
20 notice to resolve audit findings, or if the agreed upon
21 corrective action has not been implemented within one year after
22 the date of the Secretary of Education's written notice to
23 resolve the audit findings, then the Secretary of Education is
24 authorized to adjust payments to the community college to
25 collect any amounts due based upon the findings contained in the
26 audit report that was issued to the college by the commissioner.
27 (4) The department shall deduct any amounts due the
28 Commonwealth as a result of audit findings that are resolved
29 under this subsection from any future payment due to the
30 community college from the Commonwealth. The Secretary of
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1 Education is authorized to approve a payment schedule in cases
2 where immediate repayment of the full amount due the
3 Commonwealth would jeopardize the ability of the community
4 college to continue operations.
5 (5) Resolution authority provided to the Secretary of
6 Education in this subsection shall be limited to disallowed cost
7 findings relating to policy and/or administrative practices. The
8 resolution authority shall not be used for audit findings in
9 which the audited community college data and documentation is in
10 error, where a violation of applicable law or regulation is
11 found or where criminal violations are suspected by the
12 Commonwealth auditors and brought to the Secretary of
13 Education's attention in writing. Notwithstanding the
14 limitations of this subsection, until June 30, 1995, the
15 Secretary of Education is authorized to resolve audit findings
16 involving disallowed costs for fiscal years prior to and
17 including 1992-1993 when such disallowed costs result from
18 violation of regulations.
19 (6) The department, through the Secretary of Education, is
20 authorized to issue guidelines for the operation of the
21 community college educational and financial programs. The
22 department shall amend these guidelines on an annual basis to
23 reflect the department's position on issues that require
24 resolution under this subsection.
25 (7) The provisions of subsection (d) of this section are
26 repealed insofar as they are inconsistent with the provisions of
27 this subsection.
28 Section 2. This act shall take effect immediately.
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