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," in pupils and attendance, further
6providing for cost of tuition and maintenance of certain
7exceptional children in approved institutions; in charter
8schools, further providing for funding for charter schools;
9and, in reimbursements by Commonwealth and between school
10districts, further providing for special education payments
11to school districts and for extraordinary special education
12program expenses.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 1376 of the act of March 10, 1949
16(P.L.30, No.14), known as the Public School Code of 1949, is
17amended by adding a subsection to read:

18Section 1376. Cost of Tuition and Maintenance of Certain
19Exceptional Children in Approved Institutions.--* * *

20(c.9) (1) Beginning in fiscal year 2014-2015, in any fiscal
21year when there is no increase in the State allocation to
22approved private schools under subsection (a.2), an amount equal

1to the funds remitted to the Commonwealth by the approved
2private schools pursuant to subsection (c.2)(5)(ii) from the
3previous fiscal year is appropriated to the Department of
4Education for the purpose of making payments to the approved
5private schools for pupils who are enrolled with the approval of
6the Department of Education.

7(2) The funds available for payment pursuant to paragraph
8(1) shall be distributed as follows:

9(i) Divide the amount of funding paid to the approved
10private school during the previous year under subsection (a.2)
11by the total allocation of funding paid to approved private
12schools under subsection (a.2) during the previous year.

13(ii) Multiply the quotient from subparagraph (i) by the
14amount of funding available for payment under paragraph (1).

15(3) Funds distributed under this subsection shall be paid in
16twelve (12) equal monthly payments.

17* * *

18Section 2. Section 1725-A(a)(3) of the act, amended June 29,
192002 (P.L.524, No.88), is amended and the subsection is amended
20by adding clauses to read:

21Section 1725-A. Funding for Charter Schools.--(a) Funding
22for a charter school shall be provided in the following manner:

23* * *

24(3) For the 1997-1998 school year through the 2013-2014 
25school year, for special education students, the charter school
26shall receive for each student enrolled the same funding as for
27each non-special education student as provided in clause (2),
28plus an additional amount determined by dividing the district of
29residence's total special education expenditure by the product
30of multiplying the combined percentage of section 2509.5(k)

1times the district of residence's total average daily membership
2for the prior school year. This amount shall be paid by the
3district of residence of each student.

4(3.1) (i) For the 2014-2015 school year and each year
5thereafter, subject to the provisions in clauses (3.2) and (3.3)
6which provide for the transition to the new student-based
7funding methodology established in this clause, for special
8education students, the charter school shall receive for each
9student enrolled an amount which shall be paid by the district
10of residence of each student to be determined as follows:

11(A) For each student enrolled in the charter school for
12which the annual expenditure for special education programs and
13services is less than twenty-five thousand dollars ($25,000),
14which shall be known as Category 1, multiply the same funding as
15for each non-special education student as provided in clause (2)
16by one and fifty-one hundredths (1.51).

17(B) For a student enrolled in the charter school for which
18the annual expenditure for special education programs and
19services is equal to or greater than twenty-five thousand
20dollars ($25,000) and less than fifty thousand dollars
21($50,000), which shall be known as Category 2, multiply the same
22funding as for each non-special education student as provided in
23clause (2) by three and seventy-seven hundredths (3.77).

24(C) For each student enrolled in the charter school for
25which the annual expenditure for special education programs and
26services is equal to or greater than fifty thousand dollars
27($50,000), which shall be known as Category 3, multiply the same
28funding as for each non-special education student as provided in
29clause (2) by seven and forty-six hundredths (7.46).

30(ii) Pursuant to regulations developed by the department, to

1be eligible to receive funding for special education students
2under subclause (i)(B) and (C), the charter school must document
3the cost of providing special education programs and services to
4the student and provide the documentation to the school district
5of residence and the department.

6(iii) The department shall annually adjust the weights
7provided in subclause (i)(A), (B) and (C) for each school
8district based on the percentage difference in the school
9district's annual expenditure for special education programs and
10services per student when compared to the Statewide average
11annual expenditure for special education programs and services
12per student.

13(iv) The department shall annually adjust the dollar ranges
14in subclause (i)(A), (B) and (C) by the Consumer Price Index for
15All Urban Consumers for the Pennsylvania, New Jersey, Delaware
16and Maryland areas.

17(3.2) Notwithstanding the provisions of clause (3.1), for
18the 2014-2015 school year, for special education students, the
19charter school shall receive for each student enrolled an amount
20which shall be paid by the district of residence as follows:

21(i) If the funding for each special education student in
22clause (3) for the 2013-2014 school year is equal to or greater
23than the funding for the same special education student in
24clause (3.1) for the 2014-2015 school year, the amount shall be
25determined as follows:

26(A) Subtract the amount of funding for each special
27education student in clause (3.1) for the 2014-2015 school year
28from the amount of funding for the same special education
29student in clause (3) for the 2013-2014 school year.

30(B) Multiply the difference in paragraph (A) by three

1hundred and thirty-three thousandths (0.333).

2(C) Subtract the product in paragraph (B) from the amount of
3funding for the same special education student in clause (3) for
4the 2013-2014 school year.

5(ii) If the funding for each special education student in
6clause (3) for the 2013-2014 school year is less than the amount
7of funding for the same special education student in clause
8(3.1) for the 2014-2015 school year, the amount shall be
9determined as follows:

10(A) Subtract the amount of funding for each special
11education student in clause (3) for the 2013-2014 school year
12from the amount of funding for the same special education
13student in clause (3.1) for the 2014-2015 school year.

14(B) Multiply the difference in paragraph (A) by three
15hundred and thirty-three thousandths (0.333).

16(C) Add the product in paragraph (B) to the amount of
17funding for the same special education student in clause (3) for
18the 2013-2014 school year.

19(3.3) Notwithstanding the provisions of clause (3.1), for
20the 2015-2016 school year, for special education students, the
21charter school shall receive for each student enrolled an amount
22which shall be paid by the district of residence as follows:

23(i) If the funding for each special education student in
24clause (3) for the 2013-2014 school year is equal to or greater
25than the funding for the same special education student in
26clause (3.1) for the 2015-2016 school year, the amount shall be
27determined as follows:

28(A) Subtract the amount of funding for each special
29education student in clause (3.1) for the 2015-2016 school year
30from the amount of funding for the same special education

1student in clause (3) for the 2013-2014 school year.

2(B) Multiply the difference in paragraph (A) by six hundred
3and sixty-six thousandths (0.666).

4(C) Subtract the product in paragraph (B) from the amount of
5funding for the same special education student in clause (3) for
6the 2013-2014 school year.

7(ii) If the funding for each special education student in
8clause (3) for the 2013-2014 school year is less than the
9funding for the same special education student in clause (3.1)
10for the 2015-2016 school year, the amount shall be determined as
11follows:

12(A) Subtract the amount of funding for each special
13education student in clause (3) for the 2013-2014 school year
14from the amount of funding for the same special education
15student in clause (3.1) for the 2015-2016 school year.

16(B) Multiply the difference in paragraph (A) by six hundred
17and sixty-six thousandths (0.666).

18(C) Add the product in paragraph (B) to the amount of
19funding for the same special education student in clause (3) for
20the 2013-2014 school year.

21* * *

22Section 3. Section 2509.5 of the act is amended by adding a
23subsection to read:

24Section 2509.5. Special Education Payments to School
25Districts.--* * *

26(bbb) (1) For the 2014-2015 school year and each year 
27thereafter, when the special education funding allocation made 
28to school districts exceeds the amount allocated under 
29subsection (aaa), the Commonwealth shall pay to each school 
30district a special education funding allocation which shall
 

1consist of the following:

2(i) An amount equal to the special education funding
3allocation under subsection (aaa).

4(ii) A student-based allocation to be calculated as follows:

5(A) Multiply the sum of the school district's weighted
6special education student headcount and its sparsity/size
7adjustment by its market value/income aid ratio and its
8equalized millage multiplier.

9(B) Multiply the product in clause (A) by the difference
10between the amount appropriated for the allocation of special
11education funding and the sum of the amounts allocated in
12subparagraph (i).

13(C) Divide the product from clause (B) by the sum of the
14products in clause (A) for all school districts.

15(2) For the purposes of this section:

16(i) The weighted special education student headcount shall
17be calculated for each school district as follows:

18(A) Multiply the number of students who reside in the school
19district for which the annual expenditure for special education
20programs and services is less than twenty-five thousand dollars
21($25,000), which shall be known as Category 1, by one and fifty-
22one hundredths (1.51).

23(B) Multiply the number of students that reside in the
24school district for which the annual expenditure for special
25education programs and services is greater than or equal to
26twenty-five thousand dollars ($25,000) but less than fifty
27thousand dollars ($50,000), which shall be known as Category 2,
28by three and seventy-seven hundredths (3.77).

29(C) Multiply the number of students who reside in the school
30district for which the annual expenditure for special education

1programs and services is greater than or equal to fifty thousand
2dollars ($50,000), which shall be known as Category 3, by seven
3and forty-six hundredths (7.46).

4(D) Add the products in clauses (A), (B) and (C).

5The Department of Education shall annually adjust the dollar
6ranges in clauses (A), (B) and (C) by the Consumer Price Index
7for All Urban Consumers for the Pennsylvania, New Jersey,
8Delaware and Maryland area.

9(ii) The sparsity ratio shall be calculated for each school
10district as follows:

11(A) Divide the school district's average daily membership
12per square mile by the State's average daily membership per
13square mile.

14(B) Multiply the quotient of clause (A) by five tenths
15(0.5).

16(C) Subtract the product in clause (B) from one (1).

17(iii) The size ratio for each school district shall be
18calculated as follows:

19(A) Divide the school district's average daily membership by
20the average of the average daily membership of all school
21districts.

22(B) Multiply the quotient of clause (A) by five tenths
23(0.5).

24(C) Subtract the product in clause (B) from one (1).

25(iv) The sparsity/size ratio for each school district shall
26be calculated by adding forty percent (40%) of the sparsity
27ratio and sixty percent (60%) of the size ratio.

28(v) The sparsity/size adjustment for each school district
29shall be calculated as follows:

30(A) For a school district with a sparsity/size ratio less

1than or equal to the sparsity/size ratio that represents the
2seventieth (70th) percentile of the sparsity/size ratio of all
3school districts, the school district's sparsity/size adjustment
4shall be zero (0).

5(B) For a school district with a sparsity/size ratio greater
6than the sparsity/size ratio that represents the seventieth
7(70th) percentile of the sparsity/size ratio of all school
8districts, the school district's sparsity/size adjustment shall
9be calculated as follows:

10(I) Divide the school district's sparsity/size ratio by the
11sparsity/size ratio that represents the seventieth (70th)
12percentile of the sparsity/size ratio of all school districts.

13(II) Subtract one (1) from the quotient in subclause (I).

14(III) Multiply the remainder in subclause (II) by five
15tenths (0.5).

16(IV) Multiply the product in subclause (III) by the school
17district's weighted special education student headcount.

18(vi) The equalized millage multiplier for each school
19district shall be calculated as follows:

20(A) For a school district with an equalized millage rate
21greater than or equal to the equalized millage rate that
22represents the seventieth (70th) percentile of the equalized
23millage rate of all school districts, the school district's
24equalized millage multiplier shall be one (1).

25(B) For a school district with an equalized millage rate
26less than the equalized millage rate that represents the
27seventieth (70th) percentile of the equalized millage rate of
28all school districts, the school district's equalized millage
29multiplier shall be calculated as follows:

30(I) Divide the school district's equalized millage rate by

1the equalized millage rate that represents the seventieth (70th)
2percentile of the equalized millage rate of all school
3districts.

4(II) (Reserved).

5(3) The data used to calculate the provisions contained in
6this section shall be averaged for the three (3) most recent
7years for which data is available as determined by the
8Department of Education.

9Section 4. Section 2509.8(e) of the act, added December 23,
102003 (P.L.304, No.48), is amended and the section is amended by
11adding a subsection to read:

12Section 2509.8. Extraordinary Special Education Program
13Expenses.--* * *

14(e) For the 2003-2004 school year [and each school year
15thereafter] through the 2013-2014 school year, the Department of
16Education shall set aside one percent (1%) of the special
17education appropriation for extraordinary expenses incurred in
18providing a special education program or service to one or more
19students with disabilities as approved by the Secretary of
20Education. Such special education program or service shall
21include, but not be limited to, the transportation of students
22with disabilities; services related to occupational therapy,
23physical therapy, speech and language, hearing impairments or
24visual impairments; or training in orientation and mobility for
25children who are visually impaired or blind.

26(f) (i) For the 2014-2015 school year and each school year 
27thereafter, an amount equal to one percent (1%) of the special 
28education appropriation shall be distributed to school districts 
29and charter schools for extraordinary expenses incurred in 
30providing a special education program or service to one or more
 

1students with disabilities as approved by the Secretary of 
2Education. Such special education program or service shall 
3include, but not be limited to, the transportation of students 
4with disabilities; services related to occupational therapy, 
5physical therapy, speech and language, hearing impairments or 
6visual impairments; or training in orientation and mobility for 
7children who are visually impaired or blind.

8(ii) Funds distributed to a school district or charter
9school under this subsection shall be allocated for students for
10which expenses are incurred on an annual basis that are equal to
11or greater than seventy-five thousand dollars ($75,000) as
12follows:

13(A) For a student for whom expenses are equal to or greater
14than seventy-five thousand dollars ($75,000) and less than or
15equal to one hundred thousand dollars ($100,000), subtract the
16State subsidies paid on behalf of the student for special
17education programs and services to the school district or, for a
18student enrolled in a charter school, the difference in the
19nonspecial education and special education charter school
20payment received by the charter school where the child is
21enrolled from the expense incurred for the student and multiply
22the difference by the school district's or charter school's
23market value/personal income aid ratio.

24(B) For a student for which expenses are greater than one
25hundred thousand dollars ($100,000), subtract the State
26subsidies paid on behalf of the student for special education
27programs and services to the school district or, for a student
28enrolled in a charter school, the difference in the nonspecial
29education and special education charter school payment received
30by the charter school where the child is enrolled from the

1expense incurred for the student.

2(iii) No school district or charter school shall in any
3school year receive an amount under subclause (i) which exceeds
4the total amount of funding available multiplied by the
5percentage equal to the greatest percentage of the State's
6special education students enrolled in a school district or
7charter school.

8(iv) It is the intent of the General Assembly that funds
9necessary to implement this subsection shall be appropriated as
10a separate line item in the General Appropriation Act entitled
11Extraordinary Cost Fund.

12Section 5. Section 2509.14 of the act, added April 25, 2013
13(P.L.12, No.3), is repealed:

14[Section 2509.14. Special Education Funding for Eligible
15Students with Disabilities in Cost Category 3.--(a) For the
162014-2015 school year and each school year thereafter, the
17Department of Education shall set aside an amount not less than
18one percent (1%) of the State special education appropriation
19above the level of the appropriation in the base year. The
20Department of Education shall distribute this amount as provided
21in subsection (b).

22(b) For the 2014-2015 school year and each school year
23thereafter, each school district in this Commonwealth shall
24receive a pro rata share of the amount set aside under
25subsection (a) based upon the number of eligible students
26residing or enrolled in each school district and classified in
27Cost Category 3 during the immediately preceding school year.

28(c) The funding provided under this section shall be 
29accounted for as part of actual special education spending and 
30as part of the special education allocation received by a school
 

1district, according to the definitions in section 2501. School 
2districts shall also account for the funding provided under this 
3section and the resulting services and supports for eligible 
4students through the special education plans, revisions, updates 
5and amendments required by section 2509.15.]

6Section 6. This act shall take effect July 1, 2014, or
7immediately, whichever occurs later.