PRINTER'S NO. 1535
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1143
Session of
2015
INTRODUCED BY ROEBUCK, YOUNGBLOOD, DERMODY, HANNA, FRANKEL,
GOODMAN, MARKOSEK, STURLA, COHEN, SCHREIBER, BROWNLEE,
PASHINSKI, KINSEY, O'BRIEN, DEAN, SCHWEYER, M. DALEY, KIM,
SCHLOSSBERG, McNEILL, FABRIZIO, CARROLL, DAVIDSON, KAVULICH,
DeLISSIO, THOMAS, C. PARKER AND ROZZI, MAY 12, 2015
REFERRED TO COMMITTEE ON EDUCATION, MAY 12, 2015
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in charter schools, further providing
for school staff and for funding for charter schools;
providing for refund of excess revenue to school districts;
further providing for applicability of other provisions of
this act and of other acts and resolutions; in reimbursements
by Commonwealth and between school districts, providing for
basic education funding for 2014-2015 school year and for
basic education accountability for 2014-2015 school year;
and, in reimbursements by Commonwealth and between school
districts, further providing for payments to intermediate
units and for special education payments to school districts
and providing for further limitation on new applications for
Department of Education approval of public school building
projects and for safe schools advocate.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1724-A(c) of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949,
amended June 30, 2011 (P.L.112, No.24), is amended to read:
Section 1724-A. School Staff.--* * *
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(c) All employes of a charter school shall be enrolled in
the Public School Employees' Retirement System in the same
manner as set forth in 24 Pa.C.S. § 8301(a) (relating to
mandatory and optional membership) unless at the time of the
application for the charter school the sponsoring district or
the board of trustees of the charter school has a retirement
program which covers the employes or the employe is currently
enrolled in another retirement program. [The Commonwealth shall
make contributions on behalf of charter school employes enrolled
in the Public School Employees' Retirement System.] The charter
school shall be considered a public school [district] as defined
in 24 Pa.C.S. § 8102 (relating to definitions) and shall make
quarterly payments by employers to the Public School Employees'
Retirement System and monthly payments on account of Social
Security as established under 24 Pa.C.S. Pt. IV (relating to
retirement for school employees). [The market value/income aid
ratio used in calculating payments as prescribed in this
subsection shall be the market value/income aid ratio for the
school district in which the charter school is located or, in
the case of a regional charter school, shall be a composite
market value/income aid ratio for the participating school
districts as determined by the department.] Except as otherwise
provided, employes of a charter school shall make regular member
contributions as required for active members under 24 Pa.C.S.
Pt. IV. If the employes of the charter school participate in
another retirement plan, then those employes shall have no
concurrent claim on the benefits provided to public school
employes under 24 Pa.C.S. Pt. IV. [For purposes of this
subsection, a charter school shall be deemed to be a "public
school" as defined in 24 Pa.C.S. § 8102 (relating to
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definitions).] Notwithstanding any other provision of law to the
contrary, nothing in this article shall be construed to require
the Commonwealth to make payments to charter schools or
contributions on behalf of charter school employes from
appropriated funds, as provided in 24 Pa.C.S. §§ 8326 (relating
to contribution by the Commonwealth) and 8535 (relating to
payments to school entities by the Commonwealth) on account of
charter school employes enrolled in the Public School Employees'
Retirement System and 24 Pa.C.S. § 8329(a) (relating to payments
on account of social security deductions from appropriations) on
account of Social Security payments made by a charter school.
* * *
Section 2. Section 1725-A(a)(2) and (3) of the act, amended
June 29, 2002 (P.L.524, No.88), are amended to read:
Section 1725-A. Funding for Charter Schools.--(a) Funding
for a charter school shall be provided in the following manner:
* * *
(2) For non-special education students[, the]:
(i) A charter school shall receive for each student enrolled
no less than the budgeted total expenditure per average daily
membership of the prior school year, as defined in section
2501(20), minus the budgeted expenditures of the district of
residence for nonpublic school programs; adult education
programs; community/junior college programs; student
transportation services; for special education programs;
facilities acquisition, construction and improvement services;
and other financing uses, including debt service and fund
transfers as provided in the Manual of Accounting and Related
Financial Procedures for Pennsylvania School Systems established
by the department. This amount shall be paid by the district of
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residence of each student.
(ii) For the 2015-2016 school year, a cyber charter school
shall receive five thousand nine hundred fifty dollars ($5,950)
for each non-special education student enrolled. For the 2016-
2017 school year and each school year thereafter, the amount per
non-special education student shall be adjusted by the index
calculated under section 2501(28).
(3) For special education students[, the]:
(i) A charter school shall receive for each student enrolled
the same funding as for each non-special education student as
provided in clause (2)(i), plus an additional amount determined
by dividing the district of residence's total special education
expenditure by the product of multiplying the combined
percentage of section 2509.5(k) times the district of
residence's total average daily membership for the prior school
year. This amount shall be paid by the district of residence of
each student.
(ii) For the 2015-2016 school year and each school year
thereafter, a cyber charter school shall receive for each
special education student enrolled the same amount as for each
non-special education student as under clause (2)(ii), plus an
additional amount to be paid by the district of residence of
each student calculated as follows:
(A) For each special education student enrolled in the cyber
charter school for which the annual expenditure is less than
twenty-five thousand dollars ($25,000), which shall be known as
Category 1, multiply the same funding as for each non-special
education student by fifty-one hundredths (.51).
(B) For each special education student enrolled in the cyber
charter school for which the annual expenditure is equal to or
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greater than twenty-five thousand dollars ($25,000) and less
than fifty thousand dollars ($50,000), which shall be known as
Category 2, multiply the same funding as for each non-special
education student by two and seventy-seven hundredths (2.77).
(C) For each special education student enrolled in the cyber
charter school for which the annual expenditure is equal to or
greater than fifty thousand dollars ($50,000), which shall be
known as Category 3, multiply the same funding as for each non-
special education student by six and forty-six hundredths
(6.46).
* * *
Section 3. The act is amended by adding a section to read:
Section 1733-A. Annual Reconciliation Based on Audited
Charter School Expenditures.--(a) For the 2014-2015 school year
and each school year thereafter, a charter school shall refund
any revenue in excess of its audited total expenditures as
reported on the annual financial report within thirty (30) days
of the submission deadline under section 218. Each school
district that paid tuition to the charter school shall receive a
refund calculated as follows:
(1) Subtract audited total expenditures from total revenues.
(2) Multiply the difference in clause (1) by the amount of
tuition revenue received from the school district.
(3) Divide the product in clause (2) by the total tuition
revenue received from all school districts.
(b) By November 30 of each year, each charter school shall
provide the department and all school districts that paid
tuition to the charter school in the prior school year with
information certifying compliance with this section. The
certification shall be provided in a form and manner prescribed
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by the department.
(c) Nothing shall prohibit a charter school from returning a
portion of or all of an unassigned fund balance to school
districts that paid tuition.
Section 4. Section 1749-A(a)(1) of the act, added June 29,
2002 (P.L.524, No.88), is amended to read:
Section 1749-A. Applicability of other provisions of this act
and of other acts and regulations.
(a) General requirements.--Cyber charter schools shall be
subject to the following:
(1) Sections 108, 110, 111, 321, 325, 326, 327, 431,
436, 443, 510, 518, 527, 708, 752, 753, 755, 771, 776, 777,
808, 809, 810, 1109, 1111, 1112(a), 1205.1, 1205.2, 1301,
1302, 1310, 1317.2, 1318, 1330, 1332, 1303-A, 1518, 1521,
1523, 1531, 1547, 1702-A, 1703-A, 1714-A, 1715-A, 1716-A,
1719-A, 1721-A, 1722-A, 1723-A(a) and (b), 1724-A, 1725-A,
1727-A, 1729-A, 1730-A, 1731-A(a)(1) and (b), 1733-A and
2014-A and Articles XII-A, XIII-A and XIV.
* * *
Section 5. The act is amended by adding sections to read:
Section 2502.53. Basic Education Funding for 2014-2015
School Year.--(a) For the 2014-2015 school year, the
Commonwealth shall pay to each school district a basic education
funding allocation which shall consist of the following:
(1) An amount equal to its basic education funding
allocation for the 2013-2014 school year, under section 1722-
J(16) of the act of April 9, 1929 (P.L.343, No.176), known as
"The Fiscal Code."
(2) An amount equal to its basic education formula
enhancement allocation paid in the 2014-2015 school year.
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(3) An amount equal to its allocation under section 1722-
J(21) of "The Fiscal Code."
(4) An amount equal to its original accountability block
grant allocation in 2010-2011 under section 2599.2 minus its
allocation under section 1722-J(21)(i) of "The Fiscal Code."
(5) An amount equal to its original educational assistance
program funding allocation in 2010-2011 under section 1722-L(9)
of "The Fiscal Code".
(6) An amount on account of tuition costs for resident
students enrolled in a charter school approved under section
1717-A or 1718-A or a cyber charter school approved under
section 1741-A calculated as follows:
(i) Multiply the tuition to Pennsylvania charter schools and
cyber charter schools as reported on the school district's 2013-
2014 annual financial report by one hundred fifty million
dollars ($150,000,000).
(ii) Divide the product in paragraph (i) by the sum of
products in paragraph (i) for all school districts.
(7) An amount to further restore basic education funding
calculated as follows:
(i) Subtract its basic education funding allocation for the
2009-2010 school year under section 1722-L(a)(14) of "The Fiscal
Code" from its basic education allocation for the 2013-2014
school year under section 1722-J(16) of "The Fiscal Code."
(ii) If the difference in paragraph (i) is less than zero
($0), multiply the difference in paragraph (i) by fifty-three
million, eight hundred seventy-nine thousand dollars
($53,879,000).
(iii) Divide the product in paragraph (ii) by the sum of the
differences in paragraph (i) for all school districts where the
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difference is less than zero ($0).
(b) For the 2014-2015 school year and each school year
thereafter, the Commonwealth shall pay to each school entity
that received educational assistance funding in 2010-2011 under
section 1722-L(9) of "The Fiscal Code" and that did not receive
an allocation under subsection (a) an amount equal to its
educational assistance funding received in 2010-2011 under
section 1722-L(9) of "The Fiscal Code".
Section 2502.54. Basic Education Accountability for 2014-
2015 School Year.--(a) Each school district shall develop and
make available to the public before approval by the board of
school directors an accountability plan for the use of the
increase in basic education funding allocated for the 2014-2015
school year, describing:
(1) the intended investment; and
(2) how the funds will increase opportunities for student
success, including specific performance targets.
(b) The accountability plan shall describe the school
district's intended investment in the following eligible uses
for the portion of the percentage increase that exceeds the
index:
(1) High-quality early childhood programs, including
prekindergarten and full-day kindergarten.
(2) Additional instructional time for students through
extension of the school day and year.
(3) Summer learning programs.
(4) Professional development, curriculum, classroom
materials and other strategies necessary to successfully
implement high academic standards for all students and prepare
students for college and careers.
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(5) Reduced class size in prekindergarten through third
grade.
(6) Academic and other enrichment programs and courses, such
as music, arts, world languages and library services.
(7) Community partnerships and wraparound programs that
provide health and human services to students and their
families, which may include trauma-informed education and
positive behavioral support.
(8) Offering or partnering with an institution of higher
education to make available advanced courses, including dual
enrollment, that prepare students for college.
(9) Personalized help and interventions for struggling
students.
(10) College and career counseling in middle and high
schools.
(11) Secondary career and technical education aligned with
employer needs in science, technology, engineering and
mathematics and other high-demand and emerging occupations.
(12) Alternative school settings and programs.
(13) Hybrid and innovative learning options.
(14) Restoration of other cuts to programs and personnel
which were the result of reductions in State or other funding.
Personnel covered under Article X are not eligible.
(c) The accountability plan shall establish quantitative
goals for student performance linked to the increased
investment, which may include:
(1) Percent of additional students proficient or advanced in
reading by the end of third grade.
(2) Percent of additional students who graduate from high
school on track for success in college and careers.
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(3) Improvements in high school graduation and dropout
rates.
(4) Improvements in student attendance and truancy rates.
(5) Reductions in achievement gaps.
(6) Successful program completion for English language
learners.
(7) Rates of matriculation for students in college, job
training and/or apprenticeship programs.
(8) Rates of retention and successful completion for
students in college, job training and/or apprenticeship
programs.
(9) Employment rates and wages for graduates.
(d) After approval by the school board, the school district
shall submit its accountability plan to the Department of
Education for review and approval. By June 1, 2015, or within
fifteen (15) days of receipt of an accountability plan,
whichever is later, the Department of Education shall approve
the plan as submitted, approve the plan with amendments
requiring further action by the school district or reject for
noncompliance the submitted plan. Plans requiring further action
and plans rejected for noncompliance shall be revised and
resubmitted within 15 days of notification by the Department of
Education. The department shall publish guidelines on its
publicly accessible Internet website detailing the criteria by
which a plan will be reviewed and approved.
Section 6. Section 2509.1 of the act is amended by adding a
subsection to read:
Section 2509.1. Payments to Intermediate Units.--* * *
(c.2) (1) For the 2015-2016 school year, five and two-
tenths percent (5.2%) of the State special education
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appropriation shall be paid to intermediate units on account of
special education services.
(2) Thirty-five percent (35%) of the amount under paragraph
(1) shall be distributed equally among all intermediate units.
(3) Sixty-five percent (65%) of the amount under paragraph
(1) shall be distributed to each intermediate unit in proportion
to the number of average daily membership of the component
school districts of each intermediate unit as compared to the
Statewide total average daily membership.
* * *
Section 7. Section 2509.5(aaa) of the act, amended July 9,
2013 (P.L.408, No.59), is amended and the section is amended by
adding a subsection to read:
Section 2509.5. Special Education Payments to School
Districts.--* * *
(aaa) During the 2009-2010 [through the 2013-2014 school
years] school year and each school year thereafter, each school
district shall be paid the amount it received during the 2008-
2009 school year under subsection (zz). If insufficient funds
are appropriated, the payments shall be made on a pro rata
basis.
(bbb) (1) During the 2014-2015 school year and each school
year thereafter, a student-based allocation equal to the
difference between the total amount allocated for special
education payments for school districts and the total amounts
paid under subsection (aaa) shall be used to provide additional
funding to school districts. Each school district shall receive
a student-based allocation calculated as follows:
(i) Multiply the sum of the school district's weighted
special education student headcount and its sparsity/size
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adjustment calculated under paragraph (2)(v) by its market
value/income aid ratio and its equalized millage multiplier
calculated under paragraph (2)(vi).
(ii) Multiply the product under subparagraph (i) by the
total amount available for the student-based allocation.
(iii) Divide the product under subparagraph (ii) by the sum
of the products under subparagraph (i) for all school districts.
(2) For the purposes of paragraph (1)(i):
(i) The weighted special education student headcount shall
be calculated for each school district as follows:
(A) Multiply the number of special education students who
reside in the school district for which the annual expenditure
is less than twenty-five thousand dollars ($25,000), which shall
be known as Category 1, by one and fifty-one hundredths (1.51).
(B) Multiply the number of special education students who
reside in the school district for which the annual expenditure
is equal to or greater than twenty-five thousand dollars
($25,000), but less than fifty thousand dollars ($50,000), which
shall be known as Category 2, by three and seventy-seven
hundredths (3.77).
(C) Multiply the number of special education students who
reside in the school district for which the annual expenditure
is equal to or greater than fifty thousand dollars ($50,000),
which shall be known as Category 3, by seven and forty-six
hundredths (7.46).
(D) Add the products under clauses (A), (B) and (C).
(ii) The sparsity ratio shall be calculated for each school
district as follows:
(A) Divide the school district's average daily membership
per square mile by the Commonwealth's average daily membership
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per square mile.
(B) Multiply the quotient under clause (A) by one-half
(0.5).
(C) Subtract the product under clause (B) from one (1).
(iii) The size ratio for each school district shall be
calculated as follows:
(A) Divide the school district's average daily membership by
the average of the average daily membership of all school
districts.
(B) Multiply the quotient under clause (A) by one-half
(0.5).
(C) Subtract the product under clause (B) from one (1).
(iv) The sparsity/size ratio for each school district shall
be calculated by adding forty percent (40%) of the sparsity
ratio and sixty percent (60%) of the size ratio.
(v) The sparsity/size adjustment for each school district
shall be calculated as follows:
(A) For a school district with a sparsity/size ratio less
than or equal to the sparsity/size ratio that represents the
seventieth percentile of the sparsity/size ratio of all school
districts, the school district's sparsity/size adjustment shall
be zero (0).
(B) For a school district with a sparsity/size ratio greater
than the sparsity/size ratio that represents the seventieth
percentile of the sparsity/size ratio of all school districts,
the school district's sparsity/size adjustment shall be
calculated as follows:
(I) Divide the school district's sparsity/size ratio by the
sparsity/size ratio that represents the seventieth percentile of
the sparsity/size ratio of all school districts.
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(II) Subtract one (1) from the quotient under subclause (I).
(III) Multiply the remainder under subclause (II) by one-
half (0.5).
(IV) Multiply the product under subclause (III) by the
school district's weighted special education student headcount.
(vi) The equalized millage multiplier for each school
district shall be calculated as follows:
(A) For a school district with an equalized millage rate
greater than or equal to the equalized millage rate that
represents the seventieth percentile of the equalized millage
rate of all school districts, the school district's equalized
millage multiplier shall be one (1).
(B) For a school district with an equalized millage rate
less than the equalized millage rate that represents the
seventieth percentile of the equalized millage rate of all
school districts, the school district's equalized millage
multiplier shall be calculated by dividing the school district's
equalized millage rate by the equalized millage rate that
represents the seventieth percentile of the equalized millage
rate of all school districts.
(vii) The dollar ranges for the annual expenditure amounts
designated as Category 1, Category 2 and Category 3 under
subparagraph (i) shall be based on the information reported to
the department under section 1372(8 ).
(viii) The data used to calculate the weighted special
education student headcount under subparagraph (i) shall be
based on information from the most recent year for which data is
available as determined by the Department of Education. The data
used to calculate the provisions under subparagraphs (ii),
(iii), (iv), (v) and (vi) shall be averaged for the three most
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recent years for which data is available as determined by the
Department of Education.
Section 8. The act is amended by adding sections to read:
Section 2574.4. Further Limitation on New Applications for
Department of Education Approval of Public School Building
Projects.--For the 2015-2016 fiscal year, the Department of
Education may not accept or approve new school building
construction or reconstruction project applications. Completed
school building construction or reconstruction project
applications received by the Department of Education before July
1, 2015, are not subject to this provision.
Section 2599.6. Safe Schools Advocate.--Beginning July 1,
2015, the safe school advocate for each school district of the
first class will be transferred to the Department of Education
and the advocate shall maintain an office within the school
district.
Section 9. This act shall take effect immediately.
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