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," providing for basic education funding

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

9Section 1. The act of March 10, 1949 (P.L.30, No.14), known
10as the Public School Code of 1949, is amended by adding a
11section to read:

12Section 123.  Basic Education Funding Commission.--(a) There
13is hereby established a Basic Education Funding Commission.

14(b)  The commission shall review and make recommendations
15related to basic education funding as provided in this section.

16(c)  (1)  The commission shall consist of the following

1(i)  The chair and minority chair of the Education Committee
2of the Senate and the chair and minority chair of the Education
3Committee of the House of Representatives or their designees.

4(ii)  Two (2) legislators from each of the four (4)
5legislative caucuses, to be appointed by the President pro
6tempore of the Senate and the Speaker of the House of
7Representatives, in consultation with the Majority Leader and
8Minority Leader of the Senate and the Majority Leader and
9Minority Leader of the House of Representatives.

10(iii)  The Secretary of Education or a designee.

11(iv)  The Deputy Secretary for Elementary and Secondary
12Education or a designee.

13(v) An individual appointed by the Governor from within the
14Governor's Administration.

15(2)  The commission shall appoint a member to serve as chair
16of the commission.

17(d)  The commission shall hold its first meeting within
18forty-five (45) days of the effective date of this section,
19regardless of whether the Governor or all legislative caucuses
20have actually approved members to the commission.

21(e)  The commission shall hold meetings at the call of the

23(f)  The members may not receive compensation for their
24services, but shall be reimbursed for all necessary travel and
25other reasonable expenses incurred in connection with the
26performance of their duties as members of the commission.

27(g)  The General Assembly shall provide administrative
28support, meeting space and any other assistance required by the
29commission to carry out its duties under this section in
30cooperation with the department. The department shall provide

1the commission with data, research and other information upon
2request by the commission.

3(h)  The commission shall develop a basic education funding
4formula and identify factors that may be used to determine the
5distribution of basic education funding among the school
6districts in this Commonwealth. The factors identified under
7this subsection may include all of the following:

8(1)  The market value/personal income aid ratio averaged for
9each of the three (3) most recent years for each school

11(2)  The equalized millage rate averaged for each of the
12three (3) most recent years for each school district.

13(3)  Geographic price differences identified for each school

15(4)  Whether a school district has experienced exceptionally
16high enrollment growth.

17(5)  Whether a school district has an exceptionally high
18level of local support.

19(6)  Other factors related to the distribution of basic
20education funding.

21(i)  The commission shall have all of the following powers
22and duties:

23(1)  Review and make findings and recommendations related to
24basic education funding in this Commonwealth.

25(2)  Consult with and utilize experts to assist the
26commission in carrying out the duties under this subsection.

27(3)  Receive input from interested parties, including, but
28not limited to, school districts and charter and cyber charter
29school operators.

30(4)  Hold public hearings in different regions of this


2(5)  Review and consider basic education funding formulas and
3factors utilized throughout the United States.

4(6)  In identifying the basic education funding factors under
5subsection (h) and in completing the report required under this
6subsection, consider the impact these factors may have on the
7distribution of basic education funding among the school

9(7)  Review the administration of State and regional basic
10education programs and services to determine if cost savings may
11be achieved and make recommendations to implement the savings.

12(8) Prior to recommending a basic education funding formula
13under this section, consider the potential consequences of a
14basic education funding formula that does not allocate to each
15school district at least the same level or proportion of State
16basic education funding as the school district received in the
17prior school year.

18(9)  Prior to recommending a basic education funding formula
19under this section, consider nationally accepted accounting and
20budgeting standards.

21(10) Develop a proposed basic education funding formula and
22factors pursuant to subsection (h).

23(11)  Draft proposed regulations and proposed legislation
24based on the commission's findings.

25(12)  Issue a report of the commission's findings and
26recommendations to the Governor, the President pro tempore of
27the Senate, the Majority Leader and Minority Leader of the
28Senate, the Education Committee of the Senate, the Speaker of
29the House of Representatives, the Majority Leader and Minority
30Leader of the House of Representatives, the Education Committee

1of the House of Representatives, the Secretary of Education and
2the State Board of Education not later than one year after the
3effective date of this section.

4(j)  The basic education formula developed by the commission
5shall not go into effect unless the formula is approved by an
6act of the General Assembly enacted after the effective date of
7this section.

8(k)  Every five (5) years the commission shall be
9reconstituted in accordance with subsection (c) and shall meet
10and hold public hearings to review the operation of the basic
11education funding provisions of this section, shall make a
12further report and shall issue the report to the recipients
13listed in subsection (i)(11). When in receipt of a further
14report recommending changes to the basic education funding
15formula, the General Assembly shall consider and take action to
16enact the formula into law in accordance with subsection (j).

17(l)  The General Assembly shall, through the annual
18appropriations process, determine the level of State funding for
19basic education.

20(m)  As used in this section, the following words and phrases
21shall have the meanings given to them in this subsection unless
22the context clearly indicates otherwise:

23"Commission."  The Basic Education Funding Commission
24established under this section.

25"Department."  The Department of Education of the

27Section 2. This act shall take effect immediately.