AN ACT

 

1Providing for the posting of annual financial reports for public 
2school entities, for the convening of an advisory committee, 
3for posting of final adopted budgets for public school 
4entities and for the Department of Education's establishment 
5of a searchable Internet website detailing certain 
6information concerning receipts and expenditures by public 
7school entities.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. Short title.

11This act shall be known and may be cited as the Public School
12Web Accountability and Transparency (SchoolWATCH) Act.

13Section 2. Definitions.

14The following words and phrases when used in this act shall
15have the meanings given to them in this section unless the
16context clearly indicates otherwise:

17"Administrative staff." Employees of a public school entity
18that include, but are not limited to, superintendents, assistant

1superintendents, deputy superintendents, principals, assistant
2principals, supervisors, managers, directors and coordinators.

3"Area vocational-technical school." As defined in section
41841 of the act of March 10, 1949 (P.L.30, No.14), known as the 
5Public School Code of 1949.

6"Charter school." As defined in section 1703-A of the act of 
7March 10, 1949 (P.L.30, No.14), known as the Public School Code 
8of 1949.

<-9"Charter school entity." A charter school, cyber charter
10school or regional charter school as defined in section 1703-A
11of the act of March 10, 1949 (P.L.30, No.14), known as the
12Public School Code of 1949.

13"Cyber charter school." As defined in section 1703-A of the 
14act of March 10, 1949 (P.L.30, No.14), known as the Public 
15School Code of 1949.

16"Department." The Department of Education of the
17Commonwealth.

18"Entity." Any of the following:

19(1) A corporation, association, limited liability
20company or limited liability partnership.

21(2) An individual who is not an employee of the public
22school entity.

23(3) Any other legal business entity, including a
24nonprofit, a grantee, a contractor and a sole proprietor.

25(4) Any political subdivision or other local government
26entity.

<-27"Expenditure and performance measure." An annual measure 
28developed by the Department of Education in consultation with 
29the advisory committee established under section 5 that compares 
30the public school entity instructional expenditures for each
 

1public school entity to that public school entity's student 
2academic performance. The measure shall include, but not be 
3limited to, academic growth as measured by the Pennsylvania 
4Value-Added Assessment System.

5"Funding action or expenditure." A payment by a public
6school entity to include:

7(1) A grant.

8(2) A loan.

9(3) Reimbursement.

10(4) Payment made pursuant to the purchase of goods and
11services, excluding employee salaries, or to a construction
12or other contract.

13(5) Payment of debt service.

14(6) Payments made pursuant to a formula.

15(7) Payments to political subdivisions or other local
16government entities.

17"Funding source." A public school entity's general fund or
18special funds.

19"Public School Code of 1949." The act of March 10, 1949
20(P.L.30, No.14), known as the Public School Code of 1949.

21"Public school entity." Any of the following:

22(1) An area vocational-technical school, as defined in
23section 1841 of the Public School Code of 1949.

24(2) A school district, as defined in section 102 of the
25Public School Code of 1949.

<-26(3) A charter school, cyber charter school or regional
27charter school, as defined in section 1703-A of the Public
28School Code of 1949.

<-29(3) A charter school entity.

30"Public school entity instructional expenditures."

1Expenditures made from the General Fund for instructional and 
2support services by the public school entity as reported on the 
3public school entity's most recent annual financial report, to 
4be determined by the Department of Education in consultation 
5with the advisory committee established under section 5. The 
6term shall include, but not be limited to, all functions related 
7to instruction and support services pursuant to the Manual of 
8Accounting and Related Financial Procedures.

9"Regional charter school." As defined in section 1703-A of
10the Public School Code of 1949.

11"School district." As defined in section 102 of the Public
12School Code of 1949.

13"SchoolWATCH." The single, searchable, public Internet
14website to be established by the Department of Education under
15this act.

16"Secretary." The Secretary of Education of the Commonwealth.

17Section 3. Annual financial reports to be posted.

18Within 90 days of the effective date of this act, and by
19December 31 of each year thereafter, the department shall post
20on its publicly accessible Internet website, as the first phase
21of a single, searchable, public Internet website to be called
22SchoolWATCH, the most recent annual financial reports for each
23public school entity submitted to the secretary pursuant to
24section 218(a) of the Public School Code of 1949. The department
25shall post SchoolWATCH in a location and in a manner that is
26easily accessible to the public and shall include on SchoolWATCH
27all explanatory references that may be necessary to assist
28website users in understanding the content of public school
29entities' annual financial reports.

30Section 4. Annual budgets to be posted.

1(a) Filing.--Within 11 months of the effective date of this
2act, and by September 1 of each year thereafter, each public
3school entity shall file with the department an electronic copy
4of its most recent final adopted budget.

5(b) Posting.--Within one year of the effective date of this
6act, and by October 1 of each year thereafter, the department
7shall post on SchoolWATCH, as the second phase of SchoolWATCH,
8the final adopted budgets for each public school entity filed
9with the department pursuant to subsection (a) and shall include
10on SchoolWATCH all explanatory references that may be necessary
11to assist website users in understanding the content of public
12school entities' final adopted budgets.

13Section 5. Searchable database.

14(a) Development.--

15(1) Within 45 days of the effective date of this act,
16the department shall convene an advisory committee to develop
<-17a plan for the department's establishment of the third phase 
18of SchoolWATCH, which shall consist of a searchable database 
19detailing certain information concerning receipts and 
20expenditures by public school entities. <-plans for the 
21department's development and establishment of the following:

22(i) The third phase of SchoolWATCH, which shall
23consist of a searchable database detailing certain
24information concerning receipts and expenditures by
25public school entities; and

26(ii) The fourth phase of SchoolWATCH, under which
27the expenditure and performance measure for each public
28school entity shall be added to the searchable database.

29(2) The advisory committee required pursuant to
<-30paragraph (1) shall consist of the following members, to be
 

<-1paragraph (1) shall consist of the following:

2(i) The following members, to be appointed by the 
3secretary in consultation with education associations 
4representing school districts, charter school entities 
5and area vocational-technical schools:

<-6(i) Five school district business managers.

7(ii) Three charter school entity business managers.

8(iii) Three area vocational-technical school
9business managers.

10(iv) The chairman and minority chairman of the
11Education Committee of the Senate.

12(v) The chairman and minority chairman of the
13Education Committee of the House of Representatives.

<-14(A) Five school district business managers.

15(B) Three charter school entity business
16managers.

17(C) Three area vocational-technical school
18business managers.

19(ii) The chairman and minority chairman of the
20Education Committee of the Senate.

21(iii) The chairman and minority chairman of the
22Education Committee of the House of Representatives.

23(iv) Two members who shall be selected by the
24secretary from among the citizens of this Commonwealth.

25(3) The following shall apply to the advisory committee
26required pursuant to paragraph (1):

27(i) The advisory committee shall:

28(A) Develop a plan for the department's
29establishment of a searchable, public Internet
30database, which shall impose no additional cost on

1public school entities, that the department shall
2establish, place online and fully implement as the
3third phase of SchoolWATCH within two years of the
4effective date of this act, provided that the
5department may extend the implementation date for the
6third phase of SchoolWATCH by one year by publishing
7notice of the extension in the Pennsylvania Bulletin
8within two years of the effective date of this act.

9(B) Determine the manner and frequency of
10reporting to the department by public school
11entities, which shall be no less frequent than
12quarterly.

13(C) Within nine months of the effective date of
14this act, issue a report to the Governor and the
15General Assembly setting forth a plan for the
16department's development of the Internet database
17that the department is required to establish pursuant
18to subclause (A).

19(ii) The advisory committee may consider including
<-20the following information on the Internet database:

21(A) The expected and achieved performance
22outcomes from each funding action or expenditure.

23(B) Individual <-on the Internet database 
24individual salary information for employees who are
25not administrative staff.

26(iii) In developing a plan for the department's
27establishment of the Internet database, the advisory
28committee shall consider the following:

29(A) How the Internet database established under
30this act can be coordinated with existing databases

1and electronic reporting systems.

2(B) Whether any current public school entity
3reporting requirements that may be duplicated by the
4reporting requirements of this act may be eliminated.

5(C) Development of an efficient and transparent
6method for the department and public school entities
7to comply with the reporting requirements of this
8act.

9(iv) The department shall provide the advisory
10committee with administrative and technical support,
11including the assistance of department information
12technology and budget staff, meeting space and any other
13assistance required by the advisory committee to carry
14out its duties under this act.

15(b) Internet database contents.--

16(1) The Internet database the department is required to
17establish pursuant to subsection (a) shall<-, at a minimum, 
18provide <-provide only the following information for each
19public school entity, unless the provision of such
20information conflicts with other Federal or State law:

21(i) The name and business address of the public
22school entity.

23(ii) The total amount of funding received by the
24public school entity from, and broken down by, each of
25the following sources and deposited in the public school
26entity's general fund or special fund during the previous
27reporting period:

28(A) Federal.

29(B) State.

30(C) Local.

1(D) Private.

2(iii) The name of the entity receiving a payment
3from the public school entity pursuant to a funding
4action or expenditure.

5(iv) A general description and the amount of each
6funding action or expenditure.

7(v) The funding source for each funding action or
8expenditure.

9(vi) A counter to show the number of times the
10Internet website is accessed.

11(vii) A link to each public school entity's Internet
12website, where available.

13(viii) The total number of individuals employed by
14each public school entity as of the last day of the
15previous reporting period who are not administrative
16staff and the aggregate compensation, as defined in
17section 303(a)(1)(i) of the act of March 4, 1971 (P.L.6,
18No.2), known as the Tax Reform Code of 1971, paid by the
19public school entity to such individuals.

20(ix) For each individual employed by a public school
21entity as administrative staff, the following:

22(A) Name.

23(B) Position or title.

24(C) Current annual salary, based on the
25employee's pay schedule and current salary.

26(D) Any additional compensation received by the
27individual and the basis for such compensation,
28including, but not limited to, duties as a coach or
29activity advisor.

30(E) Compensation, as defined in section 303(a)


1(1)(i) of the Tax Reform Code of 1971, paid by the
2public school entity.

<-3(x) Copies of all currently effective contracts
4between the public school entity and any union.

5(2) Notwithstanding any other provision of this act,
6records determined by the department to be not subject to
7disclosure under the act of February 14, 2008 (P.L.6, No.3),
8known as the Right-to-Know Law, shall not be included on the
9Internet database.

10(3) The Internet database shall allow the public to
11search for and aggregate information at no cost to the
12public.

13(4) Information posted on SchoolWATCH, including annual
14financial reports, final adopted budgets and information
15included in the database, shall remain on SchoolWATCH for a
16period of no less than eight years from the date of posting.

<-17(5) The Internet database shall not provide any
18additional information that is not specifically required or
19permitted under this act.

20Section 5.1. Expenditure and performance measures to be posted.

21Within four years of the effective date of this act, the
22department, in consultation with the advisory committee, shall
23do all of the following:

24(1) Develop the expenditure and performance measure. In
25developing the expenditure and performance measure, the
26department and the advisory committee shall:

27(i) Consult with school district superintendents,
28charter school entity administrators, area vocational-
29technical school chief administrative officers and
30curriculum directors representing school districts,

1charter school entities and area vocational-technical
2schools.

3(ii) Use data submitted by each public school entity
4on its most recent annual financial report and relevant
5academic performance data as determined by the department
6in consultation with the advisory committee.

7(iii) Not require public school entities to report
8any additional data.

9(2) Include on the Internet database, as the fourth
10phase of SchoolWatch, the expenditure and performance measure
11for each public school entity, which the department shall
12update annually.

13Section 6. Administration.

14(a) Public school entity requirements.--

15(1) Upon the implementation of the SchoolWATCH Internet
16website required to be developed pursuant to this act, each
17public school entity shall:

18(i) Provide the department with all information
19regarding Federal, State, local and private funding
20received and all funding actions or expenditures as
21required under this act and at such times, which shall be
22at least quarterly, as directed by the department in
23consultation with the advisory committee.

24(ii) Provide the department with complement and
25employment compensation information as required under
26this act and at such times, which shall be at least
27quarterly, as directed by the department in consultation
28with the advisory committee.

<-29(iii) Provide the department with copies of all 
30union contracts as required under this act and at such
 

1times, which shall be at least quarterly, as directed by 
2the department in consultation with the advisory 
3committee.

4(2) Notwithstanding paragraph (1), a public school
5entity shall not be required to provide the department with
6information required to be posted on SchoolWATCH where the
7department is able to obtain such information from other
8sources, including from other reports by public school
9entities.

10(b) Accuracy.--Each public school entity is responsible for
11verifying the accuracy and completeness of information submitted
12to the department.

13(c) Format.--Each public school entity shall compile,
14maintain and report the information required to be posted under
15sections 4 <-and 5(b),<- 5(b) and 5.1 in a manner and on a reporting
16schedule prescribed by the department, in consultation with the
17advisory committee.

<-18(c.1) Additional information.--

19(1) A public school entity shall not be required to
20provide any additional information that is not specifically
21required or permitted under this act.

22(2) No public school entity shall be required to provide
23additional information beyond the information required to be
24provided by any other public school entity.

25(d) Penalty.--The following shall apply:

26(1) When a school district fails to comply with the
27provisions of this act, the secretary shall withhold State
28appropriations due the school district pursuant to section
292552 of the Public School Code of 1949 until the secretary
30determines that the school district is in compliance with the

1provisions of this act. When the secretary determines that
2the school district is in compliance with the provisions of
3this act, the secretary shall make payment to the school
4district of the funds withheld pursuant to this paragraph. 
<-5The department shall provide 30 days' notice to the school 
6district prior to the withholding. If the school district 
7becomes compliant during the 30-day period, no funds shall be 
8withheld.

9(2) When a charter school entity fails to comply with
10the provisions of this act, the secretary shall direct the
11school district of residence of each student enrolled in the
12charter school entity to transfer any payments required under
13section 1725-A(a) of the Public School Code of 1949 to the
14department to be held in escrow until the secretary
15determines that the charter school entity is in compliance
16with the provisions of this act. Where, pursuant to section 
171725-A(a)(5) of the Public School Code of 1949, the secretary 
18deducts payments required under section 1725-A(a) of the 
19Public School Code of 1949 from State payments made to the 
20school district, the department shall hold such deducted 
21amounts in escrow until the secretary determines that the 
22charter school entity is in compliance with the provisions of 
23this act. When the secretary determines that the charter
24school entity is in compliance with the provisions of this
25act, the secretary shall order the department to make payment
26of the funds held in escrow to the charter school entity. <-The 
27department shall provide 30 days' notice to the charter 
28school entity prior to directing a school district of 
29residence to transfer required payments to the department or 
30holding deducted amounts in escrow under this paragraph. If
 

1the charter school entity becomes compliant during the 30-day 
2period, no funds shall be transferred to the department or 
3held in escrow.

4(3) When an area vocational-technical school fails to
5comply with the provisions of this act, the secretary shall
6direct the school districts participating in the vocational-
7technical school pursuant to section 1850.1 of the Public
8School Code of 1949 to transfer any payments required under
9Article XVIII of the Public School Code of 1949 to the
10department to be held in escrow until the secretary
11determines that the area vocational-technical school is in
12compliance with the provisions of this act. When the
13secretary determines that the area vocational-technical
14school is in compliance with the provisions of this act, the
15secretary shall order the department to make payment of the
16funds held in escrow to the area vocational-technical school. 
<-17The department shall provide 30 days' notice to the area 
18vocational-technical school prior to directing a school 
19district to transfer required payments to the department or 
20holding funds in escrow under this paragraph. If the area 
21vocational-technical school becomes compliant during the 30-
22day period, no funds shall be transferred to the department 
23or held in escrow.

24(4) All decisions by the secretary under this subsection
25shall be appealable to the court of common pleas of the
26county in which the public school entity is located. No funds
27shall be withheld, transferred to the department or held in
28escrow under paragraphs (1), (2) or (3) until all appeals are
29exhausted.

30Section 7. Report to Governor and General Assembly.

1The department shall prepare an annual report containing
2statistical information on the usage and performance of the
3Internet website. The report shall describe frequency of user
4access of the Internet website, types of data being accessed and
5Internet website performance. The report shall be submitted to
6the Governor, the chairman and minority chairman of the
7Appropriations Committee of the Senate, the chairman and
8minority chairman of the Appropriations Committee of the House
9of Representatives, the chairman and minority chairman of the
10Education Committee of the Senate and the chairman and minority
11chairman of the Education Committee of the House of
12Representatives within two years of the date on which the
13Internet website has been implemented, and by March 30 of each
14year thereafter.

15Section 8 20<-. Effective date.

16This act shall take effect immediately.