PRIOR PRINTER'S NO. 1085
PRINTER'S NO. 1672
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
910
Session of
2015
INTRODUCED BY SMUCKER, DINNIMAN, BROWNE, FOLMER, COSTA, TEPLITZ,
HAYWOOD, TARTAGLIONE, ALLOWAY, FARNESE, FONTANA, VOGEL,
GORDNER, YAW, VULAKOVICH, WOZNIAK, SCHWANK, AUMENT, RAFFERTY,
HUGHES, WILLIAMS, YUDICHAK, BREWSTER, BLAKE, MENSCH, SABATINA
AND WAGNER, JUNE 22, 2015
SENATOR BROWNE, APPROPRIATIONS, RE-REPORTED AS AMENDED,
APRIL 5, 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 reimbursements by Commonwealth and
between school districts, providing for student-weighted
basic education funding.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section to read:
Section 2502.53. Student-Weighted Basic Education Funding.--
(a) For each 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 the school district's basic education
funding allocation for the base school year.
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(2) A student-based allocation to be calculated as follows:
(i) Multiply the sum of the school district's weighted basic
education student head count and the school district's
sparsity/size adjustment by the school district's median
household income index and local effort capacity index.
(ii) Multiply the product in subparagraph (i) by the
difference between the amount appropriated for the allocation of
basic education funding and the sum of the amounts allocated in
paragraph (1) for all school districts.
(iii) Divide the product in subparagraph (ii) by the sum of
the products in subparagraph (i) for all school districts.
(b) For the purposes of this section:
(1) The weighted basic education student headcount shall be
calculated for each school district as follows:
(i) Multiply the school district's average daily membership
by one (1).
(ii) Multiply the school district's number of students
living in acute poverty by six-tenths (0.6).
(iii) Multiply the school district's number of students
living in poverty by three-tenths (0.3).
(iv) Multiply the school district's number of students
living in concentrated poverty by three-tenths (0.3).
(v) Multiply the school district's number of limited English
proficient students by six-tenths (0.6).
(vi) Multiply the charter and cyber charter school average
daily membership applicable to the school district by two-tenths
(0.2).
(vii) Add the products in subparagraphs (i), (ii), (iii),
(iv), (v) and (vi).
(2) The sparsity ratio shall be calculated for each school
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district as follows:
(i) Divide the school district's average daily membership
per square mile by the State's average daily membership per
square mile.
(ii) Multiply the quotient in subparagraph (i) by five-
tenths (0.5).
(iii) Subtract the product in subparagraph (ii) from one
(1).
(3) The size ratio for each school district shall be
calculated as follows:
(i) Divide the school district's average daily membership by
the average of the average daily membership of all school
districts.
(ii) Multiply the quotient in subparagraph (i) by five-
tenths (0.5).
(iii) Subtract the product in subparagraph (ii) from one
(1).
(4) The sparsity/size ratio for each school district shall
be calculated by adding forty percent (40%) of the school
district's sparsity ratio and sixty percent (60%) of the school
district's size ratio.
(5) The sparsity/size adjustment for each school district
shall be calculated as follows:
(i) 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 for all school
districts, the school district's sparsity/size adjustment shall
be zero.
(ii) For a school district with a sparsity/size ratio
greater than the sparsity/size ratio that represents the
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seventieth percentile of the sparsity/size ratio for all school
districts, the school district's sparsity/size adjustment shall
be calculated as follows:
(A) Divide the school district's sparsity/size ratio by the
sparsity/size ratio that represents the seventieth percentile of
the sparsity/size ratio for all school districts.
(B) Subtract one (1) from the quotient in clause (A).
(C) Multiply the remainder in clause (B) by seven-tenths
(0.7).
(D) Multiply the product in clause (C) by the school
district's weighted basic education student headcount.
(6) The number of students living in acute poverty for each
school district shall be calculated by multiplying the school
district's percentage of students who are six (6) to seventeen
(17) years of age according to the United States Census Bureau's
Ratio of Income to Poverty less than or equal to ninety-nine
percent (99%) of the Federal poverty guidelines by the school
district's average daily membership.
(7) The number of students living in poverty for each school
district shall be calculated by multiplying the school
district's percentage of students who are six (6) to seventeen
(17) years of age according to the United States Census Bureau's
Ratio of Income to Poverty greater than ninety-nine percent
(99%) and less than one hundred and eighty-five percent (185%)
of the Federal poverty guidelines by the school district's
average daily membership.
(8) The number of students living in concentrated poverty
for each school district shall be calculated as follows:
(i) For a school district in which the percentage of
students living in acute poverty is less than thirty percent
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(30%), the school district's number of students living in
concentrated poverty shall be zero.
(ii) For a school district in which the percentage of
students living in acute poverty is equal to or greater than
thirty percent (30%), multiply the school district's percentage
of students living in acute poverty by the school district's
average daily membership.
(9) The median household income index for each school
district shall be calculated as follows:
(i) Divide the school district's median household income by
the median household income for Pennsylvania as determined by
the United States Census Bureau.
(ii) Divide one (1) by the quotient in subparagraph (i).
(10) The local effort for each school district shall be
calculated by adding the school district's State property tax
reduction allocation, taxes levied and assessed by the local
education agency, delinquencies on taxes levied and assessed by
the local education agency, revenue from local government units,
and other local revenues not specified elsewhere, as designated
in the Department of Education's Manual of Accounting and
Financial Reporting for Pennsylvania Public Schools.
(11) The local effort per household for each school district
shall be calculated as follows:
(i) Divide the school district's local effort by the school
district's number of households as determined by the United
States Census Bureau.
(ii) Divide the quotient in subparagraph (i) by the school
district's median household income as determined by the United
States Census Bureau.
(iii) Multiply the quotient in subparagraph (ii) by one-
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thousand (1,000).
(12) The local effort factor for each school district shall
be calculated by dividing the school district's local effort per
household by the State median local effort per household for all
school districts.
(13) The current expenditure per weighted student for each
school district shall be calculated by dividing the school
district's current expenditures by the sum of the school
district's average daily membership, sparsity size adjustment
and the amounts determined for the school district under
subsection (b)(1)(ii), (iii), (iv), (v) and (vi).
(14) The excess expenditure factor for each school district
shall be calculated as follows:
(i) Divide the school district's current expenditure per
weighted student by the State median current expenditure per
weighted student for all school districts.
(ii) Divide one (1) by the quotient in subparagraph (i).
(15) The local effort index for each school district shall
be calculated as follows:
(i) For a school district with an excess expenditure factor
equal to or greater than one (1), multiply the school district's
local effort factor by one (1).
(ii) For a school district with an excess expenditure factor
less than one (1), multiply the school district's local effort
factor by the school district's excess expenditure factor.
(16) The local effort rate for each school district shall be
calculated by dividing the school district's local effort by the
sum of the school district's market value and adjusted personal
income.
(17) The local capacity per weighted student for each school
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district shall be calculated as follows:
(i) Multiply the sum of the school district's market value
and adjusted personal income by the State median local effort
rate for all school districts.
(ii) Divide the product in subparagraph (i) by the sum of
the school district's average daily membership, sparsity size
adjustment and the amounts determined for the school district
under subsection (b)(1)(ii), (iii), (iv), (v) and (vi).
(18) The local capacity index for each school district shall
be calculated as follows:
(i) For a school district with a local capacity per weighted
student equal to or greater than the State median local capacity
per weighted student, the local capacity index for the school
district shall be zero.
(ii) For a school district with a local capacity per
weighted student less than the State median local capacity per
weighted student, the local capacity index shall be calculated
as follows:
(A) Divide the school district's local capacity per weighted
student by the State median local capacity per weighted student
for all school districts.
(B) Subtract the quotient in clause (A) from one (1).
(19) The local effort capacity index for each school
district shall be calculated by adding the school district's
local effort index to the school district's local capacity
index.
(c) The data used to calculate the factors in this section
shall be based on the most recent year for which data is
available as determined by the Department of Education. The
average daily membership shall be the average of the three (3)
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most recent years' average daily membership. The average daily
membership used in subsection (b)(6), (7), (8), (13) and (17)
shall be based on the most recent year's average daily
membership. Information utilized from the United States Census
Bureau shall be from the most recent American Community Survey
5-Year Estimate of the United States Census Bureau. (A) THE
GENERAL ASSEMBLY FINDS AND DECLARES THAT THE STUDENT-WEIGHTED
BASIC EDUCATION FUNDING FORMULA IS THE RESULT OF THE WORK OF THE
BASIC EDUCATION FUNDING COMMISSION ESTABLISHED PURSUANT TO
SECTION 123.
(B) FOR THE 2014-2015 SCHOOL YEAR AND EACH SCHOOL YEAR
THEREAFTER, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT A
BASIC EDUCATION FUNDING ALLOCATION WHICH SHALL CONSIST OF THE
FOLLOWING:
(1) AN AMOUNT EQUAL TO THE SCHOOL DISTRICT'S BASIC EDUCATION
FUNDING ALLOCATION FOR THE 2013-2014 SCHOOL YEAR .
(2) A STUDENT-BASED ALLOCATION TO BE CALCULATED AS FOLLOWS:
(I) MULTIPLY THE SCHOOL DISTRICT'S STUDENT-WEIGHTED AVERAGE
DAILY MEMBERSHIP BY THE MEDIAN HOUSEHOLD INCOME INDEX AND LOCAL
EFFORT CAPACITY INDEX.
(II) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (I) BY THE
DIFFERENCE BETWEEN THE AMOUNT APPROPRIATED FOR THE ALLOCATION OF
BASIC EDUCATION FUNDING TO SCHOOL DISTRICTS AND THE AMOUNT
APPROPRIATED FOR THE ALLOCATION IN PARAGRAPH (1).
(III) DIVIDE THE PRODUCT IN SUBPARAGRAPH (II) BY THE SUM OF
THE PRODUCTS IN SUBPARAGRAPH (I) FOR ALL SCHOOL DISTRICTS.
(C) FOR THE PURPOSE OF THIS SECTION:
(1) STUDENT-WEIGHTED AVERAGE DAILY MEMBERSHIP FOR A SCHOOL
DISTRICT SHALL BE THE SUM OF THE FOLLOWING:
(I) THE AVERAGE OF THE SCHOOL DISTRICT'S THREE MOST RECENT
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YEARS' AVERAGE DAILY MEMBERSHIP.
(II) THE ACUTE POVERTY AVERAGE DAILY MEMBERSHIP CALCULATED
AS FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S ACUTE POVERTY PERCENTAGE
BY ITS AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY SIX-TENTHS (0.6).
(III) THE POVERTY AVERAGE DAILY MEMBERSHIP CALCULATED AS
FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S POVERTY PERCENTAGE BY ITS
AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY THREE-TENTHS
(0.3).
(IV) THE CONCENTRATED POVERTY AVERAGE DAILY MEMBERSHIP FOR
QUALIFYING SCHOOL DISTRICTS WITH AN ACUTE POVERTY PERCENTAGE
EQUAL TO OR GREATER THAN THIRTY PERCENT (30%), TO BE CALCULATED
AS FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S ACUTE POVERTY PERCENTAGE
BY ITS AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY THREE-TENTHS
(0.3).
(V) THE NUMBER OF THE SCHOOL DISTRICT'S LIMITED ENGLISH-
PROFICIENT STUDENTS MULTIPLIED BY SIX-TENTHS (0.6).
(VI) THE AVERAGE DAILY MEMBERSHIP FOR THE SCHOOL DISTRICT'S
STUDENTS ENROLLED IN CHARTER SCHOOLS AND CYBER CHARTER SCHOOLS
MULTIPLIED BY TWO-TENTHS (0.2).
(VII) THE SPARSITY/SIZE ADJUSTMENT FOR QUALIFYING SCHOOL
DISTRICTS WITH A SPARSITY/SIZE RATIO GREATER THAN THE
SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE
SPARSITY/SIZE RATIO FOR ALL SCHOOL DISTRICTS CALCULATED AS
FOLLOWS:
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(A) DIVIDE THE SCHOOL DISTRICT'S SPARSITY/SIZE RATIO BY THE
SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE
FOR ALL SCHOOL DISTRICTS.
(B) SUBTRACT ONE (1) FROM THE QUOTIENT IN CLAUSE (A).
(C) MULTIPLY THE SUM OF SUBPARAGRAPHS (I), (II), (III),
(IV), (V) AND (VI) BY THE AMOUNT IN CLAUSE (B).
(D) MULTIPLY THE PRODUCT IN CLAUSE (C) BY SEVEN-TENTHS
(0.7).
(2) LOCAL EFFORT INDEX FOR A SCHOOL DISTRICT SHALL BE
CALCULATED AS FOLLOWS:
(I) DETERMINE THE SCHOOL DISTRICT'S LOCAL EFFORT FACTOR
CALCULATED AS FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME
BY ITS NUMBER OF HOUSEHOLDS.
(B) DIVIDE THE SCHOOL DISTRICT'S LOCAL TAX-RELATED REVENUE
BY THE PRODUCT IN CLAUSE (A).
(C) MULTIPLY THE QUOTIENT IN CLAUSE (B) BY ONE THOUSAND
(1,000).
(D) DIVIDE THE PRODUCT IN CLAUSE (C) BY THE STATEWIDE MEDIAN
OF CLAUSE (C).
(II) DETERMINE THE SCHOOL DISTRICT'S EXCESS SPENDING FACTOR,
TO BE CALCULATED AS FOLLOWS:
(A) DIVIDE THE SCHOOL DISTRICT'S CURRENT EXPENDITURES BY THE
SUM OF ITS AVERAGE DAILY MEMBERSHIP AND THE AMOUNTS IN PARAGRAPH
(1)(II), (III), (IV), (V), (VI) AND (VII).
(B) DIVIDE THE QUOTIENT IN CLAUSE (A) BY THE STATEWIDE
MEDIAN OF CLAUSE (A).
(C) DIVIDE ONE (1) BY THE QUOTIENT IN CLAUSE (B).
(III) MULTIPLY THE SCHOOL DISTRICT'S LOCAL EFFORT FACTOR BY
THE LESSER OF ONE (1) OR THE SCHOOL DISTRICT'S EXCESS SPENDING
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FACTOR.
(3) LOCAL CAPACITY INDEX FOR A QUALIFYING SCHOOL DISTRICT
SHALL BE CALCULATED AS FOLLOWS:
(I) DIVIDE THE SCHOOL DISTRICT'S LOCAL TAX-RELATED REVENUE
BY THE SUM OF ITS MARKET VALUE AND PERSONAL INCOME VALUATION.
(II) MULTIPLY THE SUM OF THE SCHOOL DISTRICT'S MARKET VALUE
AND PERSONAL INCOME VALUATION BY THE STATEWIDE MEDIAN OF
SUBPARAGRAPH (I).
(III) DETERMINE THE SCHOOL DISTRICT'S LOCAL CAPACITY PER
STUDENT BY DIVIDING THE PRODUCT IN SUBPARAGRAPH (II) BY THE SUM
OF ITS AVERAGE DAILY MEMBERSHIP AND THE AMOUNTS IN PARAGRAPH (1)
(II), (III), (IV), (V), (VI) AND (VII).
(IV) IF THE SCHOOL DISTRICT'S LOCAL CAPACITY PER STUDENT IS
LESS THAN THE STATEWIDE MEDIAN OF SUBPARAGRAPH (III):
(A) DIVIDE THE SCHOOL DISTRICT'S LOCAL CAPACITY PER STUDENT
BY THE STATEWIDE MEDIAN.
(B) SUBTRACT THE QUOTIENT IN CLAUSE (A) FROM ONE (1).
(4) LOCAL EFFORT CAPACITY INDEX FOR A SCHOOL DISTRICT SHALL
EQUAL THE SUM OF ITS LOCAL EFFORT INDEX AND LOCAL CAPACITY
INDEX.
(5) THE DATA USED TO CALCULATE THE FACTORS AND INDEXES IN
THIS SECTION SHALL BE BASED ON THE MOST RECENT YEARS FOR WHICH
DATA IS AVAILABLE AS DETERMINED BY THE DEPARTMENT OF EDUCATION.
(D) FOR PURPOSES OF THIS SECTION:
(1) "HOUSEHOLDS" SHALL MEAN THE NUMBER OF HOUSEHOLDS IN EACH
SCHOOL DISTRICT AS DETERMINED BY THE MOST RECENT FIVE-YEAR
ESTIMATE OF THE UNITED STATES CENSUS BUREAU'S AMERICAN COMMUNITY
SURVEY.
(2) "LOCAL TAX-RELATED REVENUE" SHALL MEAN THE SUM OF SCHOOL
DISTRICT REVENUES FOR STATE PROPERTY TAX REDUCTION ALLOCATION,
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TAXES LEVIED AND ASSESSED, DELINQUENCIES ON TAXES LEVIED AND
ASSESSED, REVENUE FROM LOCAL GOVERNMENT UNITS, AND OTHER LOCAL
REVENUES NOT SPECIFIED ELSEWHERE, AS DESIGNATED IN THE MANUAL OF
ACCOUNTING AND FINANCIAL REPORTING FOR PENNSYLVANIA PUBLIC
SCHOOLS.
(3) "MEDIAN HOUSEHOLD INCOME" SHALL MEAN THE MEDIAN
HOUSEHOLD INCOME FOR SCHOOL DISTRICTS AND THE STATE AS
DETERMINED BY THE MOST RECENT FIVE-YEAR ESTIMATE OF THE UNITED
STATES CENSUS BUREAU'S AMERICAN COMMUNITY SURVEY.
(4) "MEDIAN HOUSEHOLD INCOME INDEX" SHALL MEAN A NUMBER
CALCULATED AS FOLLOWS:
(I) DIVIDE A SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME BY
THE STATE MEDIAN HOUSEHOLD INCOME.
(II) DIVIDE ONE (1) BY THE QUOTIENT IN SUBPARAGRAPH (I).
(5) "SIZE RATIO" SHALL MEAN A NUMBER CALCULATED AS FOLLOWS:
(I) DIVIDE THE AVERAGE OF A SCHOOL DISTRICT'S THREE MOST
RECENT YEARS' AVERAGE DAILY MEMBERSHIP BY THE STATEWIDE AVERAGE
OF THE THREE MOST RECENT YEARS' AVERAGE DAILY MEMBERSHIP FOR ALL
SCHOOL DISTRICTS.
(II) MULTIPLY THE AMOUNT IN SUBPARAGRAPH (I) BY FIVE-TENTHS
(0.5).
(III) SUBTRACT THE AMOUNT IN SUBPARAGRAPH (II) FROM ONE (1).
(6) "SPARSITY RATIO" SHALL MEAN A NUMBER CALCULATED AS
FOLLOWS:
(I) DIVIDE THE AVERAGE OF A SCHOOL DISTRICT'S THREE MOST
RECENT YEARS' AVERAGE DAILY MEMBERSHIP BY ITS TOTAL SQUARE MILES
AS REPORTED IN THE LATEST DECENNIAL CENSUS AS REPORTED BY THE
UNITED STATES CENSUS BUREAU.
(II) DIVIDE THE STATE TOTAL AVERAGE DAILY MEMBERSHIP BY THE
STATE TOTAL SQUARE MILES.
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(III) DIVIDE THE QUOTIENT IN SUBPARAGRAPH (I) BY THE
QUOTIENT IN SUBPARAGRAPH (II).
(IV) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (III) BY FIVE-
TENTHS (0.5).
(V) SUBTRACT THE PRODUCT IN SUBPARAGRAPH (IV) FROM ONE (1).
(7) "SPARSITY/SIZE RATIO" SHALL MEAN A NUMBER CALCULATED BY
ADDING THE FOLLOWING AMOUNTS:
(I) THE SPARSITY RATIO MULTIPLIED BY FOUR-TENTHS (0.4).
(II) THE SIZE RATIO MULTIPLIED BY SIX-TENTHS (0.6).
(8) "ACUTE POVERTY PERCENTAGE" SHALL MEAN THE NUMBER OF
CHILDREN SIX (6) TO SEVENTEEN (17) YEARS OF AGE LIVING IN A
HOUSEHOLD WHERE THE RATIO OF INCOME TO POVERTY IS LESS THAN ONE
HUNDRED PERCENT (100%) OF THE FEDERAL POVERTY GUIDELINES DIVIDED
BY THE TOTAL NUMBER OF CHILDREN SIX (6) TO SEVENTEEN (17) YEARS
OF AGE AS DETERMINED BY THE MOST RECENT FIVE-YEAR ESTIMATE OF
THE UNITED STATES CENSUS BUREAU'S AMERICAN COMMUNITY SURVEY.
(9) "POVERTY PERCENTAGE" SHALL MEAN THE NUMBER OF CHILDREN
SIX (6) TO SEVENTEEN (17) YEARS OF AGE LIVING IN A HOUSEHOLD
WHERE THE RATIO OF INCOME TO POVERTY IS BETWEEN ONE HUNDRED
PERCENT (100%) AND ONE HUNDRED EIGHTY-FOUR PERCENT (184%) OF THE
FEDERAL POVERTY GUIDELINES DIVIDED BY THE TOTAL NUMBER OF
CHILDREN SIX (6) TO SEVENTEEN (17) YEARS OF AGE AS DETERMINED BY
THE MOST RECENT FIVE-YEAR ESTIMATE OF THE UNITED STATES CENSUS
BUREAU'S AMERICAN COMMUNITY SURVEY.
Section 2. This act shall take effect in 60 days
IMMEDIATELY.
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