1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," further providing for charter
6schools.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 1725-A(a) of the act of March 10, 1949
10(P.L.30, No.14), known as the Public School Code of 1949,
11amended June 29, 2002 (P.L.524, No.88) is amended and the
12section is amended by adding subsections to read:

13Section 1725-A. Funding for Charter Schools.--(a) Funding
14for a charter school shall be provided in the following manner:

15(1) There shall be no tuition charge for a resident or
16nonresident student attending a charter school.

17(2) For non-special education students, the charter school
18shall receive for each student enrolled the following, which 
19shall be paid by the district of residence of each student:

20(i) Through and including the 2012-2013 school year, no less

1than the budgeted total expenditure per average daily membership
2of the prior school year, as defined in section 2501(20), minus
3the budgeted expenditures of the district of residence for
4nonpublic school programs; adult education programs;
5community/junior college programs; student transportation
6services; for special education programs; facilities
7acquisition, construction and improvement services; and other
8financing uses, including debt service and fund transfers as
9provided in the Manual of Accounting and Related Financial
10Procedures for Pennsylvania School Systems established by the
11department. [This amount shall be paid by the district of
12residence of each student.]

13(ii) Beginning in the 2013-2014 school year, the following:

14(A) For each student enrolled in a brick and mortar charter
15school, no less than the budgeted total expenditure per average
16daily membership of the prior school year, as defined in section
172501(20), minus the budgeted expenditures of the district of
18residence for nonpublic school programs; adult education
19programs; community/junior college programs; student
20transportation services; for special education programs;
21facilities acquisition, construction and improvement services;
22and other financing uses, including debt service and fund
23transfers as provided in the Manual of Accounting and Related
24Financial Procedures for Pennsylvania School Systems established
25by the department.

26(B) For each student enrolled in a cyber charter school, an 
27amount equal to the lesser of the median per student cost of 
28cyber charter school enrollment paid by all school districts for 
29the 2012-2013 school year or the per student cost of cyber 
30charter school enrollment paid by the district of residence for
 

1the 2012-2013 school year, as adjusted by the index pursuant to 
2subsection (f).

3(3) For special education students, the charter school shall
4receive for each student enrolled the same funding as for each
5non-special education student as provided in clause (2), plus an
6additional amount determined by dividing the district of
7residence's total special education expenditure by the product
8of multiplying the combined percentage of section 2509.5(k)
9times the district of residence's total average daily membership
10for the prior school year. This amount shall be paid by the
11district of residence of each student.

12(4) A charter school may request the intermediate unit in
13which the charter school is located to provide services to
14assist the charter school to address the specific needs of
15exceptional students. The intermediate unit shall assist the
16charter school and bill the charter school for the services. The
17intermediate unit may not charge the charter school more for any
18service than it charges the constituent districts of the
19intermediate unit.

20(5) Payments shall be made to the charter school in twelve
21(12) equal monthly payments, by the fifth day of each month,
22within the operating school year. A student enrolled in a
23charter school shall be included in the average daily membership
24of the student's district of residence for the purpose of
25providing basic education funding payments and special education
26funding pursuant to Article XXV. If a school district fails to
27make a payment to a charter school as prescribed in this clause,
28the secretary shall deduct the estimated amount, as documented
29by the charter school, from any and all State payments made to
30the district after receipt of documentation from the charter

1school.

2(6) Within thirty (30) days after the secretary makes the
3deduction described in clause (5), a school district may notify
4the secretary that the deduction made from State payments to the
5district under this subsection is inaccurate. The secretary
6shall provide the school district with an opportunity to be
7heard concerning whether the charter school documented that its
8students were enrolled in the charter school, the period of time
9during which each student was enrolled, the school district of
10residence of each student and whether the amounts deducted from
11the school district were accurate.

12* * *

13(f) No later than October 31, 2014, and by October 31 of
14each year thereafter, the department shall calculate the index
15and the adjusted median per student cost of cyber charter school
16enrollment paid by all school districts for use in calculating
17cyber charter school payments for the succeeding school year. 
18The department shall publish the index in the Pennsylvania
19Bulletin by November 15, 2014, and by November 15 of each year
20thereafter. Each district of residence shall use the index
21published by the department in calculating the adjustment to the
22per student cost of cyber charter school enrollment paid by the
23district of residence for the 2012-2013 school year pursuant to
24clause (a)(2)(ii)(B).

25(g) As used in this section, the following terms shall have
26the following meanings:

27(1)  "Brick and mortar charter school."  A charter school as
28defined in section 1703-A which is not a cyber charter school as
29defined in this subsection.

30(2)  "Charter school."  A brick and mortar charter school or

1a cyber charter school as such terms are defined in this
2subsection.

3(3)  "Cyber charter school."  A charter school as defined in
4section 1703-A which uses technology in order to provide a
5significant portion of its curriculum and delivers a significant
6portion of its instruction to students through the Internet or
7other electronic means.

8(4)  "Index."  The index as defined in section 302 of the act
9of June 27, 2006 (1st Sp. Sess., P.L.1873, No.1), known as the
10Taxpayer Relief Act.

11(5)  "Median per student cost of cyber charter school
12enrollment paid by all school districts."  The midpoint of the
13per student costs for cyber charter school enrollment paid by
14school districts in this Commonwealth, ranked from the lowest
15cost to the highest cost, as determined by the department for
16each school year pursuant to subsection (f).

17Section 2. This act shall take effect in 60 days.