PRINTER'S NO. 3655
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2227
Session of
2015
INTRODUCED BY O'NEILL, BARBIN, BARRAR, DiGIROLAMO, EVERETT,
GODSHALL, A. HARRIS, KOTIK, McNEILL, MILNE, ORTITAY, PEIFER,
QUINN, RAPP, ROEBUCK, SCHLOSSBERG AND WATSON, JUNE 28, 2016
REFERRED TO COMMITTEE ON EDUCATION, JUNE 28, 2016
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 pupils and attendance, further
providing for exceptional children and education and training
and for cost of tuition and maintenance of certain
exceptional children in approved institutions; in charter
schools, further providing for funding for charter schools;
and, in reimbursements by Commonwealth and between school
districts, further providing for special education payments
to school districts and for extraordinary special education
program expenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1372(8) of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, added
May 10, 2000 (P.L.44, No.16), is amended to read:
Section 1372. Exceptional Children; Education and
Training.--* * *
(8) Reporting of Expenditures Relating to Exceptional
Students.
(i) By December 31, 2000, and each year thereafter, each
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school district shall compile information listing the number of
students with disabilities for which expenditures are between
twenty-five thousand dollars ($25,000) and fifty thousand
dollars ($50,000), which shall be known as Category 2; between
fifty thousand dollars ($50,000) and seventy-five thousand
dollars ($75,000), which shall be known as Category 3A; and over
seventy-five thousand dollars ($75,000), which shall be known as
Category 3B, for the prior school year. The information shall be
submitted to the department in a form prescribed by the
department. By February 1, 2001, and each year thereafter, the
department shall submit to the chairman and minority chairman of
the Education and Appropriations Committees of the Senate and
the chairman and minority chairman of the Education and
Appropriations Committees of the House of Representatives a
report listing this information by school district.
(ii) By December 31, 2016, and each year thereafter, each
school district shall compile information listing the number of
students with disabilities for which expenditures are under
twenty-five thousand dollars ($25,000), which shall be known as
Category 1. The information shall be submitted to the department
in a form prescribed by the department.
(iii) Beginning with the 2016-2017 school year, the
department shall annually adjust the dollar ranges for which the
information is collected under this section by the percent
change in the Consumer Price Index for All Urban Consumers for
the Pennsylvania, New Jersey, Delaware and Maryland area
reported by the Bureau of Labor Statistics for the twelve (12)
month period ending in December of the school year for which the
data is being collected.
Section 2. Section 1376 of the act is amended by adding a
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subsection to read:
Section 1376. Cost of Tuition and Maintenance of Certain
Exceptional Children in Approved Institutions.--* * *
(c.9) Beginning with audited data for the 2015-2016 school
year, the total of the amounts remitted to the Commonwealth
under subsection (c.2)(5)(ii) shall be distributed to each
approved private school with reportable costs that exceed the
amount of revenue received as follows:
(1) Subtract the amount of revenue received under subsection
(a.2) from the reportable costs in the audit submitted to the
Department of Education under subsection (c.2)(4).
(2) Multiply the amount in paragraph (1) by the lesser of
the total of the amounts remitted to the Commonwealth under
subsection (c.2)(5)(ii) or the total of the amounts in paragraph
(1).
(3) Divide the amount in paragraph (2) by the total of the
amounts in paragraph (1).
(4) Funds distributed under this subsection shall be paid in
May of the following school year.
(5) Funds distributed under this subsection shall not be
included in determining the payment amount under subsection
(a.2).
* * *
Section 3. Section 1725-A(a)(3) of the act, amended June 29,
2002 (P.L.524, No.88), is amended and the subsection is amended
by adding clauses to read:
Section 1725-A. Funding for Charter Schools.--(a) Funding
for a charter school shall be provided in the following manner:
* * *
(3) For the 1997-1998 school year through the 2015-2016
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school year, for special education students, the charter school
shall receive for each student enrolled the same funding as for
each non-special education student as provided in clause (2),
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.
(3.1) (i) For the 2016-2017 school year and each school
year thereafter, subject to the provisions in clause (3.2) ,
which provides for the transition to the new student-based
funding methodology established in this clause, for special
education students, the charter school shall receive for each
student enrolled an amount which shall be paid by the district
of residence of each student to be determined as follows:
(A) For each special education student enrolled in the
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 as provided in clause (2) by one and fifty-one
hundredths (1.51).
(B) For each special education student enrolled in the
charter school for which the annual expenditure is equal to or
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 as provided in clause (2) by three and
seventy-seven hundredths (3.77).
(C) For each special education student enrolled in the
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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 as provided in clause (2) by seven and
forty-six hundredths (7.46).
(ii) Pursuant to guidelines developed by the department, to
be eligible to receive funding for special education students
under subclause (i)(B) and (C), the charter school must document
the cost of providing an education to the student and provide
the documentation to the department.
(iii) For each weight provided in subclause (i)(A), (B) and
(C) for each school district, the department shall annually make
the following adjustment:
(A) Divide the school district's total expenditure for
special education programs and services excluding gifted
education by the number of special education students who reside
in the school district.
(B) Divide total expenditure for special education programs
and services excluding gifted education for all school districts
by the total number of special education students residing in
all school districts.
(C) Divide the quotient in unit (A) by the quotient in unit
(B).
(D) If the quotient in unit (C) is greater than one (1),
multiply the quotient by the weight to determine the school
district adjustment.
(E) In no case shall the adjustment made in subclause (i)(A)
and (B) result in a payment that exceeds the maximum amount
within the category's dollar range and in no case shall the
adjustment in subclause (i)(C) result in a payment that exceeds
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the actual cost of providing an education to the student as
determined under subclause (ii).
(iv) The department shall annually adjust the dollar ranges
in subclause (i)(A), (B) and (C) by the Consumer Price Index for
All Urban Consumers for the Pennsylvania, New Jersey, Delaware
and Maryland area.
(v) The annual expenditure amounts used to calculate funding
under subclause (i)(A), (B) and (C) shall be based on the
amounts used in making reports to the department under section
1372(8).
(3.2) To transition to the new student-based funding
methodology for special education students under clause (3.1), a
charter school shall receive for each student enrolled an amount
to be paid by the district of residence and determined as
follows:
(i) For each special education student under clause (3.1)(i)
(A) in Category 1, the following shall apply:
(A) Determine the number of special education students under
clause (3.1)(i)(A) from the school district who were enrolled in
a charter school with individualized education plans as required
under the Individuals with Disabilities Education Act (Public
Law 91-230, 20 U.S.C. § 1400 et seq.) as of May 31, 2016.
(B) Divide the number determined in unit (A) by the total
number of students enrolled in a charter school from the school
district under clause (3.1)(i)(A) as of October 1.
(C) Multiply the lesser of the quotient in unit (B) or one
(1) by the amount for the same special education student
determined in clause (3) for the 2015-2016 school year.
(D) Subtract the lesser of the quotient in unit (B) or one
(1) from one (1) and multiply the difference by the amount for
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the same special education student in clause (3.1)(i)(A).
(E) Add the amounts in units (C) and (D) to determine the
amount paid by the school district.
(ii) For each special education student under clause (3.1)
(i)(B) in Category 2, the following shall apply:
(A) Determine the number of special education students under
clause (3.1)(i)(B) from the school district who were enrolled in
a charter school with individualized education plans as of May
31, 2016.
(B) Divide the number determined in unit (A) by the total
number of students enrolled in a charter school from the school
district under clause (3.1)(i)(B) as of October 1.
(C) Multiply the lesser of the quotient in unit (B) or one
(1) by the amount for the same special education student
determined in clause (3) for the 2015-2016 school year.
(D) Subtract the lesser of the quotient in unit (B) or one
(1) from one (1) and multiply the difference by the amount for
the same special education student in clause (3.1)(i)(B).
(E) Add the amounts in units (C) and (D) to determine the
amount paid by the school district.
(iii) For each special education student under clause (3.1)
(i)(C) in Category 3, the following shall apply:
(A) Determine the number of special education students under
clause (3.1)(i)(C) from the school district who were enrolled in
a charter school with individualized education plans as of May
31, 2016.
(B) Divide the number determined in unit (A) by the total
number of students enrolled in a charter school from the school
district under clause (3.1)(i)(C) as of October 1.
(C) Multiply the lesser of the quotient in unit (B) or one
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(1) by the amount for the same special education student
determined in clause (3) for the 2015-2016 school year.
(D) Subtract the lesser of the quotient in unit (B) or one
(1) from one (1) and multiply the difference by the amount for
the same special education student in clause (3.1)(i)(C).
(E) Add the amounts in units (C) and (D) to determine the
amount paid by the school district.
(iv) In no case shall a payment made under subclause (iii)
exceed the amount allowed for the same student under clause
(3.1).
(v) At such time that the amount determined under subclause
(i) for a student in Category 1 is greater than the amount
determined for a student under clause (3) for the 2015-2016
school year, payment made by the school district of residence
shall be based on the provisions under clause (3.1), and the
transition under this clause shall expire.
(vi) The department shall develop guidelines to collect the
enrollment data required under this clause and calculate
estimated payments until such time as actual enrollments are
determined.
* * *
Section 4. Section 2509.5 of the act is amended by adding a
subsection to read:
Section 2509.5. Special Education Payments to School
Districts.--* * *
(bbb) (1) During the 2016-2017 school year and each school
year thereafter, each school district shall receive an amount
equal to the amount it received during the 2013-2014 school year
under subsection (aaa) and a student-based allocation equal to
the difference between the amount allocated for special
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education payments for school districts and the sum of the
amounts paid under subsection (aaa) during the 2013-2014 school
year to all school districts. The student-based allocation for
each school district shall be calculated as follows:
(i) Multiply the sum of the school district's weighted
special education student headcount and its sparsity/size
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 in 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 in 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 in 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). For the purposes of
subparagraph (i), Category 3 shall be the sum of the students
reported in Categories 3A and 3B 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
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used to calculate the provisions under subparagraphs (ii),
(iii), (iv), (v) and (vi) shall be averaged for the three most
recent years for which data is available as determined by the
Department of Education.
Section 5. Section 2509.8(e) of the act, added December 23,
2003 (P.L.304, No.48), is amended and the section is amended by
adding a subsection to read:
Section 2509.8. Extraordinary Special Education Program
Expenses.--* * *
(e) For the 2003-2004 school year [and each school year
thereafter] through the 2013-2014 school year, the Department of
Education shall set aside one percent (1%) of the special
education appropriation for extraordinary expenses incurred in
providing a special education program or service to one or more
students with disabilities as approved by the Secretary of
Education. Such special education program or service shall
include, but not be limited to, the transportation of students
with disabilities; services related to occupational therapy,
physical therapy, speech and language, hearing impairments or
visual impairments; or training in orientation and mobility for
children who are visually impaired or blind.
(f) (i) For the 2016-2017 school year and each school year
thereafter, an amount equal to one percent (1%) of the special
education appropriation shall be distributed to school districts
and charter schools for extraordinary expenses incurred in
providing a special education program or service to one or more
students with disabilities as approved by the Secretary of
Education. Such special education program or service shall
include, but not be limited to, the transportation of students
with disabilities; services related to occupational therapy,
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physical therapy, speech and language, hearing impairments or
visual impairments; or training in orientation and mobility for
children who are visually impaired or blind.
(ii) Funds distributed to a school district or charter
school under this subsection shall be allocated for students for
which expenses are incurred on an annual basis that are equal to
or greater than seventy-five thousand dollars ($75,000) as
follows:
(A) For a student for whom expenses are equal to or greater
than seventy-five thousand dollars ($75,000) and less than or
equal to one hundred thousand dollars ($100,000), subtract the
State subsidies paid on behalf of the student to the school
district or, for a student enrolled in a charter school, the
charter school payment received by the charter school where the
child is enrolled from the expense incurred for the student and
multiply the difference by the school district's or charter
school's market value/personal income aid ratio.
(B) For a student for which expenses are greater than one
hundred thousand dollars ($100,000), subtract the State
subsidies paid on behalf of the student to the school district
or, for a student enrolled in a charter school, the charter
school payment received by the charter school where the child is
enrolled from the expense incurred for the student.
(iii) No school district or charter school shall in any
school year receive an amount under subclause (i) which exceeds
the total amount of funding available multiplied by the
percentage equal to the greatest percentage of the State's
special education students enrolled in a school district or
charter school.
Section 6. This act shall take effect in 60 days.
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