PRIOR PRINTER'S NO. 1918 PRINTER'S NO. 2294
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
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 23, 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. PROVIDING FOR THE WEATHER <--
7 EMERGENCY AND SCHOOL STRIKE OF 1992-1993 AND FOR LEARNING
8 OUTCOMES AND FOR STRATEGIC PLANS.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 1913-A(a) and (b) of the act of March 10, <--
12 1949 (P.L.30, No.14), known as the Public School Code of 1949,
13 added July 1, 1985 (P.L.103, No.31) and amended October 20, 1988
14 (P.L.827, No.110), are amended and the section is amended by
15 adding subsections to read:
16 Section 1913-A. Financial Program; Reimbursement or
17 Payments.--(a) The plan submitted by the local sponsor shall
18 set forth a financial program for the operation of the community
19 college. The plan shall provide that [at least two-thirds of the
20 annual operating costs and up to] the local sponsor shall
1 appropriate or provide to the community college an amount at
2 least equal to the community college's annual operating costs
3 less the student tuition as determined in section 1908-A(a) less
4 the Commonwealth's payment as determined in subsection (b)(1) of
5 this section. The plan shall also provide that one-half of the
6 annual capital expenses shall be appropriated or provided by the
7 local sponsor to the community college[, and such allocation].
8 The local sponsor's appropriation for annual operating costs and
9 annual capital expenses may in part be represented by real or
10 personal property or services made available to the community
11 college. The plan shall indicate whether the appropriation shall
12 come from general revenues, loan funds, special tax levies or
13 from other sources, including student tuitions.
14 (b) (1) [The] For the 1993-1994 fiscal year and for each
15 fiscal year thereafter, the Commonwealth shall pay to a
16 community college on behalf of the sponsor on account of its
17 operating costs during the fiscal year from funds appropriated
18 for that purpose an amount equal to [one-third of such college's
19 approved operating costs not to exceed three thousand dollars
20 ($3,000) per student multiplied by the number of equivalent
21 full-time students determined by an audit to be made in a manner
22 prescribed by the State Board of Education.
23 (2) In addition, the Commonwealth shall pay to a community
24 college, on account of its] the lesser of such college's
25 variable State share ceiling as determined in subsection
26 (b)(1.3) or such college's equivalent full-time student
27 reimbursement as determined in subsection (b)(1.4).
28 (1.2) The Secretary of Education, in consultation with the
29 community colleges, shall promulgate standards for credit
30 courses and for noncredit courses that will be eligible for
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1 Commonwealth reimbursement. The standards shall specifically
2 exclude from eligibility for reimbursement any course or program
3 in avocational or recreational pursuits. The standards shall be
4 promulgated by the beginning of the 1994-1995 fiscal year. Until
5 such standards are promulgated, no community college will be
6 reimbursed for any credit course which was offered by such
7 college as a noncredit course during the college's 1992-1993
8 fiscal year.
9 (1.3) The variable State share ceiling of a community
10 college shall be determined as follows:
11 (i) Subtract the taxable income per person of the local
12 sponsor from the highest taxable income per person of any county
13 in the Commonwealth.
14 (ii) Divide the amount determined under paragraph (i) by the
15 difference between the highest taxable income per person of any
16 county in the Commonwealth and the lowest taxable income per
17 person of any county in the Commonwealth.
18 (iii) Multiply the quotient determined under paragraph (ii)
19 by one-sixth.
20 (iv) Add one-third to the product determined under paragraph
21 (iii).
22 (v) Multiply the sum determined under paragraph (iv) by the
23 community college's operating costs in the year for which
24 reimbursement is being claimed.
25 (vi) The taxable income per person data used in the
26 preceding calculation shall be data certified to the Secretary
27 of Education by the Secretary of Revenue under section 2501(9.1)
28 for school district local sponsors or data otherwise published
29 by the Secretary of Revenue for a municipal local sponsor.
30 (1.4) The equivalent full-time student reimbursement of a
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1 community college shall be the sum of credit course, noncredit
2 course and stipend reimbursements. These reimbursements shall be
3 calculated using a reimbursement factor of one thousand and
4 forty dollars ($1,040) for the 1993-1994 fiscal year and of one
5 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
6 and for each year thereafter and shall be determined as follows:
7 (i) Credit course reimbursement shall be calculated by
8 multiplying the reimbursement factor by the number of equivalent
9 full-time students enrolled in credit courses as determined by
10 an audit to be made in a manner prescribed by the State Board of
11 Education.
12 (ii) Noncredit course reimbursement shall be calculated as
13 follows:
14 (A) eighty percent (80%) of the reimbursement factor
15 multiplied by the number of equivalent full-time students
16 enrolled in eligible noncredit courses for the 1993-1994 fiscal
17 year, as determined by the audit referred to in paragraph (i);
18 or
19 (B) seventy percent (70%) of the reimbursement factor
20 multiplied by the number of equivalent full-time students
21 enrolled in eligible noncredit courses for the 1994-1995 fiscal
22 year and for each year thereafter, as determined by the audit
23 referred to in paragraph (i).
24 (iii) Stipend reimbursement on account of a community
25 college's operating costs for all equivalent full-time students
26 enrolled in the following categories of two-year or less than
27 two-year occupational or technical programs, [a stipend as
28 follows] shall be the sum of the following:
29 [(i)] (A) One thousand one hundred dollars ($1,100) per
30 full-time equivalent student enrolled in advanced technology
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1 programs. Advanced technology programs are programs using new or
2 advanced technologies which hold promise for creating new job
3 opportunities, including such fields as robotics, biotechnology,
4 specialized materials and engineering and engineering-related
5 programs.
6 [(ii)] (B) One thousand dollars ($1,000) per full-time
7 equivalent student enrolled in programs designated as Statewide
8 programs. A Statewide program is a program which meets one or
9 more of the following criteria:
10 [(A)] (I) Program enrollment from out-of-sponsor area is
11 twenty per cent or more of the enrollment for the program.
12 [(B)] (II) A consortial arrangement exists with another
13 community college to cooperatively operate a program or share
14 regions in order to avoid unnecessary program duplication.
15 [(iii)] (C) Five hundred dollars ($500) per full-time
16 equivalent student enrolled in other occupational or technical
17 programs.
18 (2) For the 1993-1994 fiscal year, each community college
19 shall be reimbursed under subsection (b)(1) in an amount which
20 is at least equal to a one percent (1%) increase over its 1992-
21 1993 operating cost and stipend reimbursement. In no case shall
22 a community college's 1993-1994 reimbursement under subsection
23 (b)(1) per full-time equivalent student, insofar as said
24 reimbursement does not include a proportionate share
25 attributable to stipend reimbursement under subsection
26 (b)(1.4)(iii), exceed its 1992-1993 operating cost reimbursement
27 per full-time equivalent student by more than ten percent (10%).
28 (2.1) For the 1994-1995 fiscal year, each community college
29 shall be reimbursed under subsection (b)(1) in an amount which
30 is at least equal to a one percent (1%) increase over its 1993-
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1 1994 reimbursement under subsection (b)(1). In no case shall a
2 community college's 1994-1995 reimbursement under subsection
3 (b)(1) per full-time equivalent student, insofar as said
4 reimbursement does not include the proportionate share
5 attributable to stipend reimbursement under subsection
6 (b)(1.4)(iii), exceed its 1993-1994 reimbursement under
7 subsection (b)(1) per full-time equivalent student, insofar as
8 said reimbursement does not include the proportionate share
9 attributable to stipend reimbursement under subsection
10 (b)(1.4)(iii) by more than ten percent (10%).
11 (2.2) For the 1995-1996 fiscal year, each community college
12 shall be reimbursed under subsection (b)(1) in an amount which
13 is at least equal to its 1994-1995 reimbursement under
14 subsection (b)(1).
15 (3) The Secretary of Education annually shall establish
16 criteria to be used to determine eligibility of programs for
17 each of the above stipend categories, shall approve programs for
18 funding in the following fiscal year according to these criteria
19 and shall submit to chairmen of the committees of education in
20 the House of Representatives and Senate a report setting forth
21 the established criteria, any programs approved for funding
22 under these criteria and the recipient community colleges.
23 (4) Each community college shall maintain such accounting
24 and student attendance records on generally accepted principles
25 and standards as will lend themselves to satisfactory audit. The
26 Commonwealth shall pay to a community college on behalf of the
27 sponsor on account of its capital expenses an amount equal to
28 one-half of such college's annual capital expenses from funds
29 appropriated for that purpose to the extent that said capital
30 expenses have been approved as herein provided.
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1 (5) For purposes of determining Commonwealth reimbursement
2 of operating costs, Federally funded expenditures for those
3 programs in which the Commonwealth participates in the cost
4 shall be deducted from total operating expenditures to determine
5 net reimbursable operating costs.
6 * * *
7 (j) In no event shall the payments or final reimbursement
8 made by the department following audit exceed the appropriation
9 available for community colleges.
10 (k) (1) Unless otherwise prescribed by the State Board of
11 Education, the Commonwealth's fiscal audits of community
12 colleges under this section shall be conducted in accordance
13 with "Government Auditing Standards," latest revision,
14 promulgated by the United State General Accounting Office.
15 Written audit reports will be produced and will be sent to the
16 community college by the Commissioner of Postsecondary/Higher
17 Education. Any cost disallowed under findings contained in the
18 audit report shall be considered an adjudication within the
19 meaning of 2 Pa.C.S. (relating to administrative law and
20 procedure) and regulations promulgated thereunder.
21 (2) The Secretary of Education is hereby specifically
22 authorized and shall be required to resolve audit findings
23 involving disallowed costs that are contested by community
24 colleges except for audit findings that involve mathematical
25 errors, violation of regulations or alleged illegal activities.
26 The proposed resolution of the Secretary of Education shall not
27 be subject to the provisions of 2 Pa.C.S. The Secretary of
28 Education's notice to resolve audit findings shall be sent to
29 the community college in writing. The Secretary of Education may
30 resolve the audit findings by reducing the disallowed costs
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1 related thereto in whole or in part.
2 (3) The Secretary of Education's notice to resolve an audit
3 finding by reducing or eliminating the disallowed costs must be
4 made contingent upon the community college developing and
5 implementing a corrective action plan to address the audit
6 finding. The community college must submit a corrective action
7 plan to the Secretary of Education within 60 days after receipt
8 of the Secretary of Education's written notice to resolve the
9 audit finding. The Secretary of Education shall approve, reject
10 or alter the plan submitted by the community college within
11 thirty (30) days of submission. After the community college
12 receives written notice of approval or agrees in writing to the
13 Secretary of Education's alterations of the corrective action
14 plan, said plan shall be implemented and shall be binding on the
15 community college. Implementation of the approved or agreed upon
16 corrective action plan will be verified by an audit conducted by
17 the department no later than the end of the fiscal year
18 following the fiscal year during which the plan is implemented.
19 If no agreed upon corrective action plan is in place within one
20 year after the date of the Secretary of Education's written
21 notice to resolve audit findings, or if the agreed upon
22 corrective action has not been implemented within one year after
23 the date of the Secretary of Education's written notice to
24 resolve the audit findings, then the Secretary of Education is
25 authorized to adjust payments to the community college to
26 collect any amounts due based upon the findings contained in the
27 audit report that was issued to the college by the commissioner.
28 (4) The department shall deduct any amounts due the
29 Commonwealth as a result of audit findings that are resolved
30 under this subsection from any future payment due to the
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1 community college from the Commonwealth. The Secretary of
2 Education is authorized to approve a payment schedule in cases
3 where immediate repayment of the full amount due the
4 Commonwealth would jeopardize the ability of the community
5 college to continue operations.
6 (5) Resolution authority provided to the Secretary of
7 Education in this subsection shall be limited to disallowed cost
8 findings relating to policy and/or administrative practices. The
9 resolution authority shall not be used for audit findings in
10 which the audited community college data and documentation is in
11 error, where a violation of applicable law or regulation is
12 found or where criminal violations are suspected by the
13 Commonwealth auditors and brought to the Secretary of
14 Education's attention in writing. Notwithstanding the
15 limitations of this subsection, until June 30, 1995, the
16 Secretary of Education is authorized to resolve audit findings
17 involving disallowed costs for fiscal years prior to and
18 including 1992-1993 when such disallowed costs result from
19 violation of regulations.
20 (6) The department, through the Secretary of Education, is
21 authorized to issue guidelines for the operation of the
22 community college educational and financial programs. The
23 department shall amend these guidelines on an annual basis to
24 reflect the department's position on issues that require
25 resolution under this subsection.
26 (7) The provisions of subsection (d) of this section are
27 repealed insofar as they are inconsistent with the provisions of
28 this subsection.
29 Section 2. This act shall take effect immediately.
30 SECTION 1. THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN <--
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1 AS THE PUBLIC SCHOOL CODE OF 1949, IS AMENDED BY ADDING SECTIONS
2 TO READ:
3 SECTION 1051.6. WEATHER EMERGENCY AND SCHOOL STRIKE OF 1992-
4 1993.--FOR THE SCHOOL YEAR 1992-1993, NO SCHOOL DISTRICT OF THE
5 THIRD CLASS LOCATED IN A COUNTY OF THE SIXTH CLASS WITH A MARKET
6 VALUE/PERSONAL INCOME AID RATIO OF EIGHT THOUSAND ONE HUNDRED
7 FIFTY-ONE TEN-THOUSANDTHS (0.8151) FOR THE 1991-1992 SCHOOL
8 YEAR, PAYABLE FOR THE 1992-1993 SCHOOL YEAR, WHICH WAS CLOSED
9 BECAUSE OF THE WEATHER EMERGENCY OF 1993 AND A STRIKE BY THE
10 EMPLOYE ORGANIZATION AND WHICH MAKES A GOOD FAITH EFFORT AS
11 DETERMINED BY THE SECRETARY OF EDUCATION TO KEEP OPEN FOR AT
12 LEAST ONE HUNDRED EIGHTY (180) DAYS OF INSTRUCTION SHALL RECEIVE
13 LESS SUBSIDY PAYMENTS OR REIMBURSEMENTS THAN IT WOULD OTHERWISE
14 BE ENTITLED TO RECEIVE ON ACCOUNT OF THE SCHOOL YEAR 1992-1993.
15 SECTION 1524. CURRICULUM.--(A) THE REGULATIONS CONTAINED IN
16 22 PA. CODE CHS. 3 (RELATING TO STUDENT TESTING), 5 (RELATING TO
17 CURRICULUM REQUIREMENTS) AND 6 (RELATING TO VOCATIONAL
18 EDUCATION) AS OF JANUARY 1, 1992, SHALL CONTINUE TO APPLY TO
19 EVERY SCHOOL DISTRICT UNLESS A SCHOOL BOARD SHALL ADOPT A
20 RESOLUTION ELECTING TO BE GOVERNED BY THE PROVISIONS OF 22 PA.
21 CODE CHS. 3, 5 AND 6 WHICH ARE IN FORCE AT THE TIME OF THE
22 RESOLUTION AND AS THEREAFTER MAY BE AMENDED.
23 (B) A SCHOOL BOARD WHICH HAS ADOPTED SUCH A RESOLUTION MAY
24 NOT REPEAL IT WITHIN A PERIOD OF FOUR YEARS FOLLOWING SUCH
25 ADOPTION. A SCHOOL BOARD WHICH HAS REPEALED SUCH A RESOLUTION
26 MAY NOT ADOPT A SIMILAR RESOLUTION WITHIN FOUR YEARS FOLLOWING
27 SUCH REPEAL.
28 (C) THE DEPARTMENT OF EDUCATION SHALL NOT OFFER ANY
29 INCENTIVES OR DISINCENTIVES FOR THE PURPOSE, OR WHICH WOULD HAVE
30 THE EFFECT, OF INFLUENCING A SCHOOL BOARD IN THE EXERCISE OF ITS
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1 OPTIONS UNDER THIS SECTION. AS USED IN THIS SUBSECTION,
2 "INCENTIVES" OR "DISINCENTIVES" INCLUDES, BUT IS NOT LIMITED TO,
3 AWARDING, GRANTING, IMPOSING OR WITHHOLDING FINANCIAL REWARDS OR
4 PENALTIES, REGULATORY WAIVERS OR SPECIAL PROGRAMS.
5 SECTION 1525. STRATEGIC PLANS.--THE DEPARTMENT OF EDUCATION
6 SHALL NOT HAVE THE AUTHORITY TO APPROVE OR DISAPPROVE STRATEGIC
7 PLANS SUBMITTED BY SCHOOL DISTRICTS PURSUANT TO 22 PA. CODE §
8 5.203 (RELATING TO STRATEGIC PLANS) OF STATE BOARD OF EDUCATION
9 CURRICULUM REGULATIONS. THE DEPARTMENT OF EDUCATION SHALL REVIEW
10 EACH STRATEGIC PLAN AND MAY MAKE RECOMMENDATIONS FOR CHANGES.
11 SCHOOL DISTRICTS SHALL NOT BE COMPELLED TO MAKE ANY CHANGES
12 RECOMMENDED BY THE DEPARTMENT OF EDUCATION.
13 SECTION 2. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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