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
6commission.

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
17members:

18(i)  The chair and minority chair of the Education Committee
19of the Senate and the chair and minority chair of the Education

1Committee of the House of Representatives or their designees.

2(ii)  Two (2) legislators from each of the four (4)
3legislative caucuses, to be appointed by the President pro
4tempore of the Senate and the Speaker of the House of
5Representatives, in consultation with the Majority Leader and
6Minority Leader of the Senate and the Majority Leader and
7Minority Leader of the House of Representatives.

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

9(iv)  The Deputy Secretary for Elementary and Secondary
10Education or a designee.

11(v) An individual appointed by the Governor from within the
12Governor's Administration.

13(2)  The commission shall appoint a member to serve as chair
14of the commission.

15(d)  The commission shall hold its first meeting within
16forty-five (45) days of the effective date of this section,
17regardless of whether the Governor or all legislative caucuses
18have actually approved members to the commission.

19(e)  The commission shall hold meetings at the call of the
20chair.

21(f)  The members may not receive compensation for their
22services, but shall be reimbursed for all necessary travel and
23other reasonable expenses incurred in connection with the
24performance of their duties as members of the commission.

25(g)  The General Assembly shall provide administrative
26support, meeting space and any other assistance required by the
27commission to carry out its duties under this section in
28cooperation with the department. The department shall provide
29the commission with data, research and other information upon
30request by the commission.

1(h)  The commission shall develop a basic education funding
2formula and identify factors that may be used to determine the
3distribution of basic education funding among the school
4districts in this Commonwealth. The factors identified under
5this subsection may include all of the following:

6(1)  The market value/personal income aid ratio averaged for
7each of the three (3) most recent years for each school
8district.

9(2)  The equalized millage rate averaged for each of the
10three (3) most recent years for each school district.

11(3)  Geographic price differences identified for each school
12district.

13(4)  Whether a school district has experienced exceptionally
14high enrollment growth.

15(5)  Whether a school district has an exceptionally high
16level of local support.

17(6) Whether a school district has a high level of its
18students in poverty as identified as eligible for free or
19reduced price meals under the National School Lunch Program.

20(7) Whether a school district has students identified as
21limited English proficient.

22(8) Whether the district has a scarce or dense population in
23relation to the district size.

24(9)  Other factors related to the distribution of basic
25education funding.

26(i)  The commission shall have all of the following powers
27and duties:

28(1)  Review and make findings and recommendations related to
29basic education funding in this Commonwealth.

30(2)  Consult with and utilize experts to assist the

1commission in carrying out the duties under this subsection.

2(3)  Receive input from interested parties, including, but
3not limited to, school districts and charter and cyber charter
4school operators.

5(4)  Hold public hearings in different regions of this
6Commonwealth.

7(5)  Review and consider basic education funding formulas and
8factors utilized throughout the United States.

9(6)  In identifying the basic education funding factors under
10subsection (h) and in completing the report required under this
11subsection, consider the impact these factors may have on the
12distribution of basic education funding among the school
13districts.

14(7)  Review the administration of State and regional basic
15education programs and services to determine if cost savings may
16be achieved and make recommendations to implement the savings.

17(8) Prior to recommending a basic education funding formula
18under this section, consider the potential consequences of a
19basic education funding formula that does not allocate to each
20school district at least the same level or proportion of State
21basic education funding as the school district received in the
22prior school year.

23(9)  Prior to recommending a basic education funding formula
24under this section, consider nationally accepted accounting and
25budgeting standards.

26(10) Develop a proposed basic education funding formula and
27factors pursuant to subsection (h).

28(11)  Draft proposed regulations and proposed legislation
29based on the commission's findings.

30(12)  Issue a report of the commission's findings and

1recommendations to the Governor, the President pro tempore of
2the Senate, the Majority Leader and Minority Leader of the
3Senate, the Education Committee of the Senate, the Speaker of
4the House of Representatives, the Majority Leader and Minority
5Leader of the House of Representatives, the Education Committee
6of the House of Representatives, the Secretary of Education and
7the State Board of Education not later than one year after the
8effective date of this section.

9(j)  The basic education formula developed by the commission
10shall not go into effect unless the formula is approved by an
11act of the General Assembly enacted after the effective date of
12this section.

13(k)  Every five (5) years the commission shall be
14reconstituted in accordance with subsection (c) and shall meet
15and hold public hearings to review the operation of the basic
16education funding provisions of this section, shall make a
17further report and shall issue the report to the recipients
18listed in subsection (i)(11).

19(l)  The General Assembly shall, through the annual
20appropriations process, determine the level of State funding for
21basic education.

22(m)  As used in this section, the following words and phrases
23shall have the meanings given to them in this subsection unless
24the context clearly indicates otherwise:

25"Commission."  The Basic Education Funding Commission
26established under this section.

27"Department."  The Department of Education of the
28Commonwealth.

29Section 2. This act shall take effect immediately.