PRINTER'S NO. 3943

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2940 Session of 1994


        INTRODUCED BY COWELL AND EVANS, JUNE 16, 1994

        REFERRED TO COMMITTEE ON EDUCATION, JUNE 16, 1994

                                     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," providing for alternative education
     6     programs for disruptive students, for basic education
     7     funding, for other subsidy payments and for special education
     8     payments.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The act of March 10, 1949 (P.L.30, No.14), known
    12  as the Public School Code of 1949, is amended by adding an
    13  article to read:
    14                           ARTICLE XIX-C.
    15                 ALTERNATIVE EDUCATION PROGRAMS FOR
    16                        DISRUPTIVE STUDENTS.
    17     Section 1901-C.  Definitions.--The following words and
    18  phrases, as used in this article, shall, unless a different
    19  meaning is plainly required by the context, have the following
    20  meaning:


     1     (1)  "Applicant" shall mean a school district or intermediate
     2  unit or a consortium of school districts, area vocational-
     3  technical schools and intermediate units which apply for grants
     4  under this article.
     5     (2)  "Community resources"  shall mean those services for
     6  children and youth provided by the juvenile court, the
     7  Department of Health, the Department of Public Welfare and other
     8  public or private institutions.
     9     (3)  "Disruptive student"  shall mean a student who poses a
    10  clear threat to the safety and welfare of other students or the
    11  school staff, creates an unsafe school environment, or whose
    12  behavior materially interferes with the learning of other
    13  students or disrupts the overall educational process. The
    14  disruptive student exhibits to a marked degree any or all of the
    15  following conditions:
    16     (i)  Defiant disregard for school authority including
    17  persistent violation of school policies and rules.
    18     (ii)  Display of or use of controlled substances on school
    19  property or during school-affiliated activities.
    20     (iii)  Violent or threatening behavior.
    21     (iv)  Possession of a weapon on school property, as defined
    22  under 18 Pa.C.S. § 912 (relating to possession of weapon on
    23  school property).
    24     (v)  Commission of a criminal act on school property.
    25     (vi)  Misconduct that would merit expulsion under school
    26  policies.
    27  No student who is eligible for special education services
    28  pursuant to the Individuals with Disabilities Education Act
    29  (Public Law 91-230, 20 U.S.C. § 1400 et seq.) shall be deemed a
    30  disruptive student for the purposes of this article, except as
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     1  provided for in 22 Pa. Code § 14.35 (relating to discipline).
     2     (4)  "Program" shall mean an alternative education program
     3  for disruptive students which is developed by an eligible
     4  applicant and which removes disruptive students from their
     5  immediate school environment, provides for their education and
     6  provides individualized assistance to meet the needs of the
     7  student. The program may provide transitional services for
     8  students returning from placement in juvenile detention centers.
     9  The program may operate on a year-round basis. The objective of
    10  the program must be to return the student to the regular school
    11  environment equipped with the skills necessary to succeed in
    12  that environment.
    13     (5)  "Secretary" shall mean the Secretary of Education of the
    14  Commonwealth.
    15     Section 1902-C.  Grant Application.--The grant application
    16  shall require the following information:
    17     (1)  A statement of need which illustrates the type and
    18  severity of student disruption.
    19     (2)  A resource assessment describing community and school
    20  resources available to the applicant for the remediation of
    21  student disruption.
    22     (3)  A description of the academic curriculum to be utilized
    23  and a description of the supplementary curriculum to be utilized
    24  for the remediation of student needs. The supplementary
    25  curriculum shall identify community resources.
    26     (4)  A statement verifying that the program has been
    27  developed in consultation with faculty and administrative staff
    28  of the applicant and, where appropriate, with community resource
    29  staff.
    30     (5)  A statement verifying that school personnel involved in
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     1  the program are properly certificated.
     2     (6)  A statement verifying that the school board or boards of
     3  those applicants forming the consortium have adopted policies
     4  which include a procedure for informing the student and the
     5  parents or guardians of the student of the reasons for the
     6  placement and an opportunity for the student and the parents or
     7  guardians of the student to respond before the placement becomes
     8  effective. However, in the case of an assault by a student, or
     9  other act which threatens the health or safety of others, the
    10  offending student may be transferred immediately into the
    11  disruptive student program under 22 Pa. Code § 12.6 (relating to
    12  exclusion from school). The opportunity to respond to such
    13  placement shall be provided to the student and the parents or
    14  guardians of the student as soon thereafter as is practical.
    15     (7)  A statement verifying that the program shall be used
    16  only when other established methods of discipline have been
    17  utilized and have failed, except, in the event of an assault by
    18  a student or other act which threatens the health or safety of
    19  others which warrants immediate placement.
    20     Section 1903-C.  Grant Awards.--(a)  The secretary shall
    21  award grants to eligible applicants based upon evaluation of the
    22  applications. Priority shall be given to those applications
    23  which exemplify collaboration between the applicant and
    24  community resources.
    25     (b)  For fiscal year 1994-1995 only, priority shall be given
    26  to applicants which have an established alternative education
    27  program for disruptive students that meets the requirements of
    28  this article. In determining the amount of the grants, the
    29  secretary shall consider the number of students involved in the
    30  program during the 1993-1994 school year.
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     1     (c)  For fiscal year 1994-1995 and each school year
     2  thereafter, grants may be awarded to applicants with established
     3  programs and to applicants seeking to establish a program.
     4     (d)  Grants shall be awarded to selected applicants no later
     5  than September 30 of the year for which the grant has been
     6  awarded.
     7     (e)  The secretary shall augment the State appropriation with
     8  appropriate Federal funds.
     9     Section 2.  Section 2502.5 of the act is amended by adding a
    10  subsection to read:
    11     Section 2502.5.  Limitation of Certain Payments.--* * *
    12     (f)  For the 1993-1994 school year no school district
    13  qualifying for payments under section 2502.30 shall receive an
    14  increase which is less than one percent (1%) of payments
    15  received under section 2502.20 for the 1992-1993 school year.
    16     Section 3.  Section 2502.25 of the act, added June 7, 1993
    17  (P.L.49, No.16), is amended to read:
    18     Section 2502.25.  Growth Supplement.--(a)  For the school
    19  [year] years 1992-1993 and 1993-1994, each school district may
    20  qualify for payment of a supplement based upon growth in the
    21  school district's average daily membership, in addition to any
    22  other subsidy to which the district may be entitled.
    23     (b)  To qualify for the growth supplement pursuant to this
    24  section for the school year 1992-1993, the district's average
    25  daily membership for the school year immediately preceding the
    26  school year for which reimbursement is being paid must have
    27  increased by at least four and five-tenths percent (4.5%) or by
    28  at least two hundred fifty (250) pupils in average daily
    29  membership compared to the school year two (2) years prior to
    30  the school year for which reimbursement is being paid.
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     1     (c)  The Commonwealth shall pay to each qualifying school
     2  district pursuant to subsections (a) and (b) a supplement in an
     3  amount calculated as follows:
     4     (1)  Subtract the district's average daily membership for the
     5  school year two (2) years prior to the school year for which
     6  reimbursement is being paid from the district's average daily
     7  membership for the school year for which reimbursement is being
     8  paid.
     9     (2)  Multiply the result of the calculation pursuant to
    10  clause (1) by the district's market value/income aid ratio for
    11  the school year for which reimbursement is being paid.
    12     (3)  Multiply the result of the calculation pursuant to
    13  clause (2) by four hundred dollars ($400).
    14     (d)  To qualify for the growth supplement pursuant to this
    15  section for the school year 1993-1994, the district's average
    16  daily membership must have increased by at least four and five-
    17  tenths percent (4.5%) or by at least two hundred fifty (250)
    18  pupils in average daily membership compared to the school year
    19  prior to the school year for which reimbursement is being paid.
    20     (e)  The Commonwealth shall pay to each qualifying school
    21  district pursuant to subsection (a) a supplement in an amount
    22  calculated as follows:
    23     (1)  Subtract the district's average daily membership for the
    24  school year prior to the school year for which reimbursement is
    25  being paid from the district's average daily membership for the
    26  school year for which reimbursement is being paid.
    27     (2)  Multiply the result of the calculation pursuant to
    28  clause (1) by the district's market value/income aid ratio for
    29  the school year for which reimbursement is being paid.
    30     (3)  Multiply the result of the calculation pursuant to
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     1  clause (2) by five hundred dollars ($500).
     2     Section 4.  The act is amended by adding sections to read:
     3     Section 2502.29.  Local Effort Base.--For the purposes of
     4  this article, the local effort base for each district means the
     5  sum of:
     6     (1)  The 1992 real property valuation of the district
     7  multiplied by eighteen thousandths (0.018).
     8     (2)  The 1992 personal income valuation of the district
     9  multiplied by five thousandths (0.005).
    10     Section 2502.30.  Foundation Funding for Equity.--Foundation
    11  funding for equity is the minimum level of revenue resources
    12  that shall be available to support the education of pupils in
    13  the school districts of this Commonwealth. For the 1993-1994
    14  school year, the Commonwealth shall pay to qualifying school
    15  districts a foundation funding for equity that shall consist of
    16  a foundation component pursuant to section 2502.31, a poverty
    17  component pursuant to section 2502.32, a growth component
    18  pursuant to section 2502.25(d), a population component pursuant
    19  to section 2502.33 and a minimum increase guarantee pursuant to
    20  section 2502.5(f).
    21     Section 2502.31.  Foundation Component.--For the 1993-1994
    22  school year, the Commonwealth shall pay to each school district
    23  an amount calculated by subtracting, from the product of four
    24  thousand seven hundred fifty-one dollars ($4,751) times the
    25  average daily membership of the district, the sum of the
    26  following:
    27     (1)  The amount payable to the district pursuant to section
    28  2502.20 for the 1993-1994 school year.
    29     (2)  The contributions by the Commonwealth relating to the
    30  district employes' retirement funds pursuant to 24 Pa.C.S. §
    19940H2940B3943                  - 7 -

     1  8326(a) (relating to contributions by the Commonwealth) for the
     2  1993-1994 school year.
     3     (3)  The Commonwealth share of payments on account of social
     4  security of district personnel pursuant to 24 Pa.C.S. § 8329
     5  (relating to payments on account of social security deductions
     6  from appropriations) for the 1993-1994 school year.
     7     (4)  The local effort base for the 1993-1994 school year.
     8  If the result is a negative number, no amount shall be paid.
     9     Section 2502.32  Poverty Component.--(a)  For the purposes of
    10  this section, a district's rate of children in low-income
    11  families means the number of children in low-income families in
    12  the district divided by the average daily membership of the
    13  district in the prior school year, expressed as a percentage.
    14     (b)  For the 1993-1994 school year, the Commonwealth shall
    15  pay to each school district an amount calculated by multiplying
    16  one hundred forty dollars ($140) times the number of children in
    17  low-income families in the district, if the rate of children in
    18  low-income families is less than thirty-five percent (35%).
    19     (c)  For the 1993-1994 school year, the Commonwealth shall
    20  pay to each school district an amount calculated by multiplying
    21  one hundred fifty dollars ($150) times the number of children in
    22  low-income families in the district, if the rate of children in
    23  low-income families is equal to or more than thirty-five percent
    24  (35%).
    25     Section 2502.33  Population.--For the 1993-1994 school year,
    26  the Commonwealth shall pay to each school district with a
    27  population density of one hundred or less according to the 1980
    28  census data an amount equal to two hundred thirty-seven dollars
    29  and fifty-five cents ($237.55) per student in average daily
    30  membership multiplied by the district's aid ratio.
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     1     Section 2502.34  Temporary Special Aid to School Districts
     2  Suffering Severe Reductions in Assessed Valuation of Taxable
     3  Property.--(a)  For the school year 1992-1993 and each school
     4  year thereafter, a school district experiencing a total of ten
     5  percent (10%) or greater reduction in the assessed valuation of
     6  taxable property during the preceding seven (7) school years or
     7  which has been declared a distressed school district pursuant to
     8  section 691, shall qualify for temporary special aid under the
     9  provisions of this section for a period of four (4) years as
    10  provided for in this subsection. Payments made pursuant to this
    11  section shall be made from funds appropriated for distressed
    12  school districts and from other funds appropriated to the
    13  Department of Education which would otherwise lapse. The first
    14  payment of such temporary special aid shall be made in the
    15  second year following qualification based upon the total
    16  reduction in assessed valuation and shall be equal to the amount
    17  of lost real estate tax revenues determined by multiplying the
    18  total reduction in assessed valuation, but not less than ten
    19  percent (10%), by the real estate tax millage rate for the year
    20  in which the district qualifies. The second payment shall be
    21  made in the third year following qualification and shall be
    22  equal to seventy-five percent (75%) of the amount payable to the
    23  school district during the first school year of such payments.
    24  The third payment shall be made in the fourth year following
    25  qualification and shall be equal to fifty percent (50%) of the
    26  amount payable to the school district during the first school
    27  year of such payments. The fourth payment shall be made in the
    28  fifth year following qualification and shall be equal to twenty-
    29  five percent (25%) of the amount payable to the school district
    30  during the first school year of such payments. Such temporary
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     1  special aid shall be paid only upon the condition that the
     2  school district tax rates which were in effect at the beginning
     3  of the seven (7) year decline in assessed valuation are not
     4  reduced prior to the time the district qualifies or during the
     5  four (4) years in which payments are made pursuant to this
     6  section.
     7     (b)  Nothing contained in this section shall disqualify a
     8  school district from receiving temporary special aid due to real
     9  property reassessments pursuant to the provisions of section
    10  2502.10 or temporary special aid due to bankruptcy of businesses
    11  in the school district pursuant to the provisions of section
    12  2502.16: Provided, however, That no school district shall
    13  qualify simultaneously for payments pursuant to sections
    14  2502.10, 2502.16 and this section.
    15     (c)  A school district may qualify for temporary special aid
    16  pursuant to this section more than once. No school district may
    17  however, receive payments again until the conclusion of the four
    18  (4) years during which payments are made pursuant to a previous
    19  qualification. A school district may again requalify for
    20  temporary special aid during the third year during which a
    21  district receives payment pursuant to this act and if qualified,
    22  shall receive payments in the second year after requalification.
    23     (d)  Payments made pursuant to this section shall be in
    24  accordance with the provisions of section 2517(c).
    25     Section 5.  Section 2509.1(b.1) and (d) of the act, amended
    26  June 7, 1993 (P.L.49, No.16), are amended to read:
    27     Section 2509.1.  Payments to Intermediate Units.--* * *
    28     (b.1)  For programs operated during the 1992-1993 school year
    29  and each school year thereafter, the Commonwealth shall pay
    30  intermediate units, based on their costs of operating and
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     1  administering classes or schools for institutionalized children,
     2  an amount to be determined by the Department of Education
     3  following review of annual reports of the costs of such classes
     4  or schools for the immediately preceding year. To qualify for
     5  such payments, each intermediate unit that operates and
     6  administers classes or schools for institutionalized children
     7  annually shall submit to the Department of Education on or
     8  before the first day of July a report of the cost of operating
     9  and administering such classes or schools. Notwithstanding the
    10  foregoing, intermediate units may submit their annual reports
    11  for the 1991-1992 school year until June 30, 1993, although this
    12  date may be extended as deemed necessary by the Secretary of
    13  Education provided that for programs operated during the 1992-
    14  1993 school year and the 1993-1994 school year the aggregate
    15  amounts paid on this account shall not exceed twenty million six
    16  hundred thousand dollars ($20,600,000) per year. For programs
    17  operated during the 1994-1995 school year, the aggregate amounts
    18  paid on this account shall not exceed twenty-one million two
    19  hundred eighteen thousand dollars ($21,218,000).
    20     * * *
    21     (d)  For the 1991-1992 school year, each intermediate unit
    22  which is coterminous to a school district of the first class or
    23  first class A shall be paid fifty percent (50%) of the amount
    24  received by the intermediate unit for the cost of operating and
    25  administering classes or schools for exceptional children, as
    26  approved by the Department of Education for the 1990-1991 school
    27  year. For the 1991-1992 school year, each intermediate unit not
    28  coterminous with a school district which operates all the
    29  special education programs for handicapped children for its
    30  constituent school districts shall be paid ten percent (10%) of
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     1  the amount received by the intermediate unit for the cost of
     2  operating and administering classes or schools for handicapped
     3  children, as approved by the Department of Education for the
     4  1990-1991 school year. For the 1992-1993 [and the], 1993-1994
     5  and 1994-1995 school years, each intermediate unit which is
     6  coterminous to a school district of the first class or first
     7  class A shall be paid twenty-five percent (25%) of the amount
     8  received by the intermediate unit for the cost of operating and
     9  administering classes or schools for exceptional children, as
    10  approved by the Department of Education for the 1990-1991 school
    11  year.
    12     * * *
    13     Section 6.  Sections 2509.5 and 2509.8 of the act are amended
    14  by adding subsections to read:
    15     Section 2509.5.  Special Education Payments to School
    16  Districts.--* * *
    17     (h)  During the 1994-1995 school year, each school district
    18  shall be paid:
    19     (1)  an amount to be determined by multiplying one thousand
    20  thirty-five dollars ($1,035) by fifteen percent (15%) of its
    21  average daily membership; and
    22     (2)  an amount to be determined by multiplying twelve
    23  thousand five hundred dollars ($12,500) by one percent (1%) of
    24  its average daily membership.
    25     (i)  Amounts paid under this section may be used by school
    26  districts only to pay for the costs of special education
    27  programs or services without regard to the particular
    28  exceptionality or degree of intervention required for an
    29  individual exceptional student.
    30     Section 2509.8.  Extraordinary Special Education Program
    19940H2940B3943                 - 12 -

     1  Expenses.--* * *
     2     (d)  The Department of Education shall, for the 1994-1995
     3  school year, set aside one percent (1%) of the State special
     4  education appropriation for extraordinary expenses incurred in
     5  providing special education programs or services to one or more
     6  exceptional students as approved by the Secretary of Education.
     7  The Secretary of Education shall provide reports to the chairman
     8  and minority chairman of the Education Committee of the Senate
     9  and the chairman and minority chairman of the Education
    10  Committee of the House of Representatives on January 1, 1995,
    11  and June 30, 1995, listing the school districts which have
    12  applied for assistance under this section, school districts
    13  approved for funds and the dollar amount of each request.
    14     Section 7.  The act is amended by adding a section to read:
    15     Section 2509.11  Supplemental Funding for Special
    16  Education.--(a)  For the purposes of this section, the following
    17  terms shall have the following meanings:
    18     (1)  "Net Special Education Expenditures" special education
    19  expenditures as reported on the school district's 1992-1993
    20  school year annual financial report under function 1200 Special
    21  Programs for Elementary/Secondary, as designated in the Manual
    22  of Accounting and Related Financial Procedures for Pennsylvania
    23  school systems, minus the sum of the amount received pursuant to
    24  section 2509.5 during the 1992-1993 school year and the amount
    25  received pursuant to section 2509.8 during the 1992-1993 school
    26  year.
    27     (2)  "Total education expenditures" all General Fund
    28  expenditures and other financing uses as reported in the school
    29  district's 1992-1993 school year annual financial report, as
    30  designated in the Manual of Accounting and Related Financial
    19940H2940B3943                 - 13 -

     1  Procedures for Pennsylvania school systems.
     2     (3)  "Special education expenditure rate" net special
     3  education expenditures divided by total education expenditures.
     4     (4)  "Statewide special education expenditure rate" the sum
     5  of the net special education expenditures for all districts
     6  divided by the sum of all total education expenditures for all
     7  districts.
     8     (5)  "Eligible school district" any school district having a
     9  special education expenditure rate that exceeds one hundred
    10  fifty percent (150%) of the Statewide special education
    11  expenditure rate.
    12     (b)  (1)  During the 1994-1995 school year, the Commonwealth
    13  shall pay to each eligible school district an amount calculated
    14  by multiplying the following three factors:
    15     (i)  the difference between one hundred fifty percent (150%)
    16  of the Statewide special education expenditure rate and the
    17  special education expenditure rate of the eligible school
    18  district;
    19     (ii)  the total education expenditures of the eligible school
    20  district; and
    21     (iii)  the market value/income aid ratio of the eligible
    22  school district.
    23     (2)  During the 1995-1996 school year, the Commonwealth shall
    24  pay to each eligible school district an amount calculated by
    25  multiplying the amount derived from subsection (b)(1) times one-
    26  half (1/2).
    27     (3)  During the 1996-1997 school year, the Commonwealth shall
    28  pay to each eligible school district an amount calculated by
    29  multiplying the amount derived from subsection (b)(1) times one-
    30  quarter (1/4).
    19940H2940B3943                 - 14 -

     1     Section 8.  Section 2517(d) of the act, amended June 7, 1993
     2  (P.L.49, No.16), is amended to read:
     3     Section 2517.  Payments.--* * *
     4     (d)  Subsection (c) of this section shall apply to:
     5     (1)  All payments to which a school district is entitled
     6  under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
     7  2502.9 and 2592 for the school year 1981-1982.
     8     (2)  Payments to which a school district is entitled under
     9  any provision of sections 2502, 2502.8 and 2502.11 for the
    10  school year 1982-1983 and the school year 1983-1984.
    11     (3)  Payments to which a school district is entitled under
    12  any provision of sections 2502, 2502.8, 2502.11, 2502.13 and
    13  2502.20 for the school year 1984-1985 and each school year
    14  thereafter.
    15     (4)  Payments to which a school district is entitled under
    16  the provisions of sections 2502.20, 2502.30 and 2502.34 for the
    17  school year 1993-1994.
    18     Section 9.  This act shall take effect July 1, 1994, or
    19  immediately, whichever is later.








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