PRINTER'S NO. 2457
No. 2009 Session of 1993
INTRODUCED BY LEE, BAKER, HESS AND FLEAGLE, SEPTEMBER 29, 1993
REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 29, 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 defining "market value/income
6 aid ratio."
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 2501(14.1) of the act of March 10, 1949
10 (P.L.30, No.14), known as the Public School Code of 1949,
11 amended July 8, 1989 (P.L.253, No.43), is amended to read:
12 Section 2501. Definitions.--For the purposes of this article
13 the following terms shall have the following meanings:
14 * * *
15 (14.1) "Market Value/Income Aid Ratio." For purposes of
16 reimbursement to a school district under subsections (d), (e),
17 and (f) of section 2502, and section 2592, shall be the
18 Commonwealth's method of determining the combined market value
19 and income wealth for each pupil, and shall be computed as
20 follows:
1 (a) (i) Divide the market value per weighted average daily
2 membership of the district by the market value per weighted
3 average daily membership of the State;
4 (ii) Determine the product of (a)(i) multiplied by the
5 district's share of total costs which is .5;
6 (iii) Subtract the resultant product in (a)(ii) from 1.000
7 to determine the market value portion of the aid ratio.
8 (b) (i) Divide the income per weighted average daily
9 membership of the district by the average personal income per
10 weighted average daily membership of the State;
11 (ii) Determine the product of (b)(i) multiplied by the
12 district's share of total costs which is .5;
13 (iii) Subtract the resultant product in (b)(ii) from 1.0000
14 to determine the income aid ratio.
15 (c) Add sixty percent (60%) of the market value aid ratio to
16 forty percent (40%) of the income aid ratio to determine the
17 market value/income aid ratio.
18 (c.1) When the market value portion of the aid ratio exceeds
19 the income aid ratio as computed in subsections (a) and (b) by
20 twenty-five percent (25%) or greater, add fifty percent (50%) of
21 the market value aid ratio to fifty percent (50%) of the income
22 aid ratio to determine the market value/income aid ratio.
23 (d) For payments beginning in the 1989-1990 school year and
24 each school year thereafter, the Department of Education shall
25 utilize an adjusted personal income valuation for the 1987 tax
26 year and each tax year thereafter respectively in computing the
27 market value/income aid ratio for such districts. The adjusted
28 personal income valuation shall be calculated by dividing the
29 total out-of-State tax credits claimed by the residents of a
30 school district by the State personal income tax rate and
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1 subtracting that amount from the total personal income valuation
2 for the individual school district. The State total personal
3 income valuation shall remain that as certified by the
4 Department of Revenue and shall not be adjusted to reflect out-
5 of-State tax credits.
6 * * *
7 Section 2. This act shall take effect July 1, 1993.
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