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 funding for
6charter schools.

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

9Section 1. Section 1725-A of the act of March 10, 1949
10(P.L.30, No.14), known as the Public School Code of 1949,
11amended or added June 19, 1997 (P.L.225, No.22), June 22, 2001
12(P.L.530, No.35) and June 29, 2002 (P.L.524, No.88), is amended
13to read:

14Section 1725-A. Funding for Charter [Schools] School 
15Entities.--(a) Funding for a charter school entity shall be
16provided in the following manner:

17(1) There shall be no tuition charge for a resident or
18nonresident student attending a charter school entity.

19(2) [For] (i) Through and including the 2014-2015 school 
20year, for non-special education students, the charter school

1entity shall receive for each student enrolled no less than the
2budgeted total expenditure per average daily membership of the
3prior school year, as defined in section 2501(20), minus the
4budgeted expenditures of the district of residence for nonpublic
5school programs; adult education programs; community/junior
6college programs; student transportation services; for special
7education programs; facilities acquisition, construction and
8improvement services; and other financing uses, including debt
9service and fund transfers as provided in the Manual of
10Accounting and Related Financial Procedures for Pennsylvania
11School Systems established by the department. This amount shall
12be paid by the district of residence of each student.

13(ii) Beginning in the 2015-2016 school year, for non-special
14education students, the following shall apply:

15(A)  A charter school or regional charter school shall
16receive for each student enrolled no less than the budgeted
17total expenditure per average daily membership of the prior
18school year, as defined in section 2501(20), minus the budgeted
19expenditures of the district of residence for nonpublic school
20programs; adult education programs; community/junior college
21programs; student transportation services; special education
22programs; facilities acquisition, construction and improvement
23services; and other financing uses, including debt service and
24fund transfers as provided in the Manual of Accounting and
25Related Financial Procedures for Pennsylvania School Systems
26established by the department. This amount shall be paid by the
27district of residence of each student.

28(B)  A cyber charter school shall receive for each student
29enrolled an amount equal to the cyber charter school's per pupil
30expenditure for non-special education students for the prior

1school year, as certified to the department not later than
2August 1 of each year on a form to be developed by the
3department. This amount shall be paid by the department, subject
4to audit by the department. In the case of a cyber charter
5school in its first year of operation, the cyber charter school
6shall receive for each student enrolled an amount equal to the
7blended average of per pupil expenditures for non-special
8education students for all cyber charter schools for the prior
9school year.

10(3) For special education students, the charter school
11entity shall receive for each student enrolled the following:

12(i) Through and including the 2014-2015 school year, the
13same funding as for each non-special education student as
14provided in [clause (2)] clause (2)(i), plus an additional
15amount determined by dividing the district of residence's total
16special education expenditure by the product of multiplying the
17combined percentage of section 2509.5(k) times the district of
18residence's total average daily membership for the prior school
19year. This amount shall be paid by the district of residence of 
20each student.

21(ii) Beginning in the 2015-2016 school year, the following:

22(A) For charter schools and regional charter schools, the 
23same funding as for each non-special education student as 
24provided in clause (2)(ii)(A), plus an additional amount 
25determined by dividing the district of residence's total special 
26education expenditure by the product of multiplying the combined 
27percentage of section 2509.5(k) times the district of 
28residence's total average daily membership for the prior school 
29year. This amount shall be paid by the district of residence of 
30each student.

1(B) For cyber charter schools, the following:

2(I) Subject to subclause (II), the same funding as for each
3non-special education student as provided in clause (2)(ii)(B),
4plus an additional amount determined by dividing the district of
5residence's total special education expenditure by the product
6of multiplying the combined percentage of section 2509.5(k)
7times the district of residence's total average daily membership
8for the prior school year. This amount shall be paid by the
9department, subject to audit by the department.

10(II) Beginning on the effective date of final-omitted 
11regulations which the State Board of Education shall promulgate 
12pursuant to the act of June 25, 1982 (P.L.633, No.181), known as 
13the "Regulatory Review Act," which regulations shall set forth a 
14formula for reimbursing cyber charter schools for their actual 
15costs of providing special education services, an amount 
16calculated pursuant to said formula. In developing the formula 
17and promulgating the regulations required under this subclause, 
18the State Board of Education shall work in cooperation with the 
19department and with organizations representing special education 
20students and cyber charter schools. This amount shall be paid by 
21the department, subject to audit by the department.

22(4) A charter school entity may request the intermediate
23unit in which the charter school entity is located to provide
24services to assist the charter school entity to address the
25specific needs of exceptional students. The intermediate unit
26shall assist the charter school entity and bill the charter
27school entity for the services. The intermediate unit may not
28charge the charter school entity more for any service than it
29charges the constituent districts of the intermediate unit.

30(5) Payments shall be made to the charter school entity in

1twelve (12) equal monthly payments, by the fifth day of each
2month, within the operating school year.

3(5.1) A student enrolled in a charter school or regional 
4charter school shall be included in the average daily membership
5of the student's district of residence for the purpose of
6providing basic education funding payments and special education
7funding pursuant to Article XXV. If a school district fails to
8make a payment to a charter school or regional charter school as
9prescribed in [this] clause (5), the secretary shall deduct the
10estimated amount, as documented by the charter school or 
11regional charter school, from any and all State payments made to
12the district after receipt of documentation from the charter
13school or regional charter school.

14(5.2) A student enrolled in a cyber charter school shall not
15be included in the average daily membership of the student's
16district of residence for the purpose of providing basic
17education funding payments and special education funding
18pursuant to Article XXV. The district of residence of a student
19enrolled in a cyber charter school shall not be required to make
20any payments to the cyber charter school under this section.

21(6) Within thirty (30) days after the secretary makes the
22deduction described in clause [(5)] (5.1), a school district may
23notify the secretary that the deduction made from State payments
24to the district under this subsection is inaccurate. The
25secretary shall provide the school district with an opportunity
26to be heard concerning whether the charter school or regional 
27charter school documented that its students were enrolled in the
28charter school or regional charter school, the period of time
29during which each student was enrolled, the school district of
30residence of each student and whether the amounts deducted from

1the school district were accurate.

2(b) The Commonwealth shall provide temporary financial
3assistance to a school district due to the enrollment of
4students in a charter school or regional charter school who
5attended a nonpublic school in the prior school year in order to
6offset the additional costs directly related to the enrollment
7of those students in a public charter school or regional charter 
8school. The Commonwealth shall pay the school district of
9residence of a student enrolled in a nonpublic school in the
10prior school year who is attending a charter school or regional 
11charter school an amount equal to the school district of
12residence's basic education subsidy for the current school year
13divided by the district's average daily membership for the prior
14school year. This payment shall occur only for the first year of
15the attendance of the student in a charter school or regional 
16charter school, starting with school year 1997-1998. Total
17payments of temporary financial assistance to school districts
18on behalf of a student enrolling in a charter school or regional 
19charter school who attended a nonpublic school in the prior
20school year shall be limited to funds appropriated for this
21program in a fiscal year. If the total of the amount needed for
22all students enrolled in a nonpublic school in the prior school
23year who enroll in a charter school or regional charter school
24exceeds the appropriation for the temporary financial assistance
25program, the amount paid to a school district for each
26qualifying student shall be pro rata reduced. Receipt of funds
27under this subsection shall not preclude a school district from
28applying for a grant under subsection (c).

29(c) The Commonwealth shall create a grant program to provide
30temporary transitional funding to a school district due to the

1budgetary impact relating to any student's first-year attendance
2at a charter school or regional charter school. The department
3shall develop criteria which shall include, but not be limited
4to, the overall fiscal impact on the budget of the school
5district resulting from students of a school district attending
6a charter school or regional charter school. The criteria shall
7be published in the Pennsylvania Bulletin. This subsection shall
8not apply to a public school converted to a charter school under
9section 1717-A(b). Grants shall be limited to funds appropriated
10for this purpose.

11(d) It shall be lawful for any charter school entity to
12receive, hold, manage and use, absolutely or in trust, any
13devise, bequest, grant, endowment, gift or donation of any
14property, real or personal and/or mixed, which shall be made to
15the charter school entity for any of the purposes of this
16article.

17(e) It shall be unlawful for any trustee of a charter school
18entity or any board of trustees of a charter school entity or
19any other person affiliated in any way with a charter school
20entity to demand or request, directly or indirectly, any gift,
21donation or contribution of any kind from any parent, teacher,
22employe or any other person affiliated with the charter school
23entity as a condition for employment or enrollment and/or
24continued attendance of any pupil. Any donation, gift or
25contribution received by a charter school entity shall be given
26freely and voluntarily.

27(f) If insufficient funds are appropriated to the department
28in any fiscal year to make payments pursuant to this section,
29the amount of such payments shall be reduced on a pro rata
30basis.

1(g)  As used in this section, the phrase "charter school
2entity" shall mean a charter school, regional charter school or
3cyber charter school.

4Section 2. This act shall take effect in 60 days.