H1552B2178A07199 DMS:JMT 05/13/16 #90 A07199

AMENDMENTS TO HOUSE BILL NO. 1552

Sponsor: SENATOR KILLION

Printer's No. 2178

Amend Bill, page 1, line 6, by striking out the period after

"Education" and inserting

; in reimbursements by Commonwealth and between school

districts, providing for student-weighted basic education

funding and for supplemental payment of basic education

funding for 2014-2015 school year; and making an

appropriation.

Amend Bill, page 1, lines 10 and 11, by striking out "a

section" and inserting

sections

Amend Bill, page 2, line 29, by striking out all of said line

and inserting

Section 2502.53. Student-Weighted Basic Education Funding.--

(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 2015-2016 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:

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(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

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:

(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).

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(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

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) "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.

(2) "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.

(3) "Local tax-related revenue" shall mean the sum of school

district revenues for State property tax reduction allocation,

taxes levied and assessed, delinquencies on taxes levied and

assessed, revenue from local government units, and other local

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revenues not specified elsewhere, as designated in the Manual of

Accounting and Financial Reporting for Pennsylvania Public

Schools.

(4) "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.

(5) "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).

(6) "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.

(7) "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).

(8) "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.

(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).

(9) "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).

Section 2502.54. Supplemental Payment of Basic Education

Funding for the 2014-2015 School Year.--(a) The Commonwealth

shall make the following supplemental basic education funding

payments for the 2014-2015 school year as follows:

(1) For a third class school district identified in

financial watch status under section 611-A to curtail its

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educational program and assign pupils to a neighboring school

district through a written agreement, an amount of three million

dollars ($3,000,000).

(2) For a second class school district declared to be in

financial recovery status under section 621-A(a)(1)(i)(B) to

reduce its structural deficit, an amount equal to twelve million

dollars ($12,000,000).

(b) Payments made under this section shall be deemed to be

part of the school district's allocation amount under section

2502.53(b)(1) for the 2015-2016 school year and each year

thereafter.

Section 2. The sum of $15,000,000 is hereby appropriated to

the Department of Education for the purpose of supplemental

payments of basic education funding for the 2014-2015 school

year in accordance with section 2502.54 of the act.

Section 3. This act shall take effect as follows:

(1) The addition of section 2502.53 of the act shall

take effect July 1, 2016, or immediately, whichever is later.

(2) The remainder of this act shall take effect

immediately.

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