PRIOR PRINTER'S NO. 300                       PRINTER'S NO. 3522

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 276 Session of 1987


        INTRODUCED BY LESCOVITZ, LLOYD, DALEY, TRELLO, VEON, PRESTON,
           SEVENTY, WOZNIAK AND FISCHER, FEBRUARY 10, 1987

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 21, 1988

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for payments to
     6     certain merged school districts.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 2517(d) of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended July 1, 1985 (P.L.103, No.31), is amended to read:
    12     Section 2517.  Payments.--* * *
    13     (d)  Subsection (c) of this section shall apply to:
    14     (1)  All payments to which a school district is entitled
    15  under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
    16  2502.9 and 2592 for the school year 1981-1982.
    17     (2)  Payments to which a school district is entitled under
    18  any provision of sections 2502, 2502.8 and 2502.11 for the
    19  school year 1982-1983 and the school year 1983-1984.

     1     (3)  Payments to which a school district is entitled under
     2  any provision of sections 2502, 2502.8, 2502.11 and 2502.13 for
     3  the school [year 1984-1985 and each school year thereafter.]
     4  years 1984-1985 and 1985-1986.
     5     (4)  Payments to which a school district is entitled under
     6  any provision of sections 2502, 2502.8, 2502.11, 2502.13 and
     7  2594 for the school year 1986-1987 1987-1988 and each school      <--
     8  year thereafter.
     9     Section 2.  The act is amended by adding a section to read:
    10     Section 2594.  Subsidy Incentives Payable to Certain Merged
    11  School Districts.--(a)  The provisions of this section shall be
    12  applicable to any school district created by the voluntary
    13  merger of two or more former school districts on or after July
    14  1, 1986, in accordance with the provisions of section 224 of
    15  this act: Provided, That at least one of the former school        <--
    16  districts had fewer than one thousand five hundred ($1,500)
    17  students in students in average daily membership during the last
    18  year of its existence as a school district and was less than
    19  twenty-five (25) square miles in size.
    20     (b)  The subsidy incentives provided for in this section
    21  shall be paid to all qualified school districts in addition to
    22  any other subsidies in which such districts shall be entitled:
    23  Provided, however, That such incentives shall not be considered
    24  to be part of any such school district's equalized subsidy for
    25  basic education and shall not be considered in the computation
    26  of any such school district's subsidy entitlements in future
    27  years.
    28     (c)  An aid ratio incentive shall be computed as follows:
    29     (1)  During the first four years of existence of a qualifying
    30  district, the Department of Education shall compute and pay the
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     1  district the equalized subsidy for basic education to which it
     2  is entitled, according to the provisions of sections 2501, 2502,
     3  2502.5, 2502.10(d) and 2502.11 of this act, in addition to which
     4  the department shall compute and pay the aid ratio incentives
     5  provided for in clause (2) during the first such year, in clause
     6  (3) during the second such year, in clause (4) during the third
     7  such year and in clause (5) during the fourth such year.
     8     (2)  During the first year of existence of a qualifying
     9  district, the department shall compute the district's
    10  entitlement to the equalized subsidy for basic education using
    11  only the aid ratio of the former district with the highest aid
    12  ratio, and shall add to the payment provided for in clause (1)
    13  the difference between the amounts computed in clauses (1) and
    14  (2).
    15     (3)  During the second year of existence of a qualifying
    16  district, the department shall compute the district's
    17  entitlement to the equalized subsidy for basic education using
    18  only the aid ratio of the former district with the highest aid
    19  ratio, and shall add to the payment provided for in clause (1)
    20  seventy-five (75%) per centum of the difference between the
    21  amounts computed in clauses (1) and (3).
    22     (4)  During the third year of existence of a qualifying
    23  district, the department shall compute the district's
    24  entitlement to the equalized subsidy for basic education using
    25  only the aid ratio of the former district with the highest aid
    26  ratio, and shall add to the payment provided for in clause (1)
    27  fifty (50%) per centum of the difference between the amounts
    28  computed in clauses (1) and (4).
    29     (5)  During the fourth year of existence of a qualifying
    30  district, the department shall compute the district's
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     1  entitlement to the equalized subsidy for basic education using
     2  only the aid ratio of the former district with the highest aid
     3  ratio, and shall add to the payment provided for in clause (1)
     4  twenty-five (25%) per centum of the difference between the
     5  amounts computed in clauses (1) and (5).
     6     (6)  During the fifth year of existence of a qualifying
     7  district, the department shall compute and pay such district
     8  only the amount of equalized subsidy for basic education to
     9  which it is entitled, in accordance with the provisions cited in
    10  clause (1).
    11     (d)  A pupil incentive grant shall be computed as follows:
    12     (1)  During the first year of existence of a qualifying
    13  district, the Department of Education shall compute and pay the
    14  district a grant determined by multiplying twenty (20%) per
    15  centum of the Statewide median actual instruction expense per     <--
    16  weighted average daily membership the previous year AVERAGE       <--
    17  ACTUAL INSTRUCTION EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP
    18  OF THE FORMER DISTRICTS FOR THE PREVIOUS YEAR by the total
    19  weighted average daily membership of the former districts the
    20  previous year.
    21     (2)  During the second year of existence of a qualifying
    22  district, the department shall compute and pay the district a
    23  grant determined by multiplying fifteen (15%) per centum of the
    24  Statewide median actual instruction expense per weighted average  <--
    25  daily membership the previous year AVERAGE ACTUAL INSTRUCTION     <--
    26  EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP OF THE FORMER
    27  DISTRICTS FOR THE PREVIOUS YEAR by the number of pupils in
    28  weighted average daily membership in the district the previous
    29  year.
    30     (3)  During the third year of existence of a qualifying
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     1  district, the department shall compute and pay the district a
     2  grant determined by multiplying ten (10%) per centum of the
     3  Statewide median actual instruction expense per weighted average  <--
     4  daily membership the previous year AVERAGE ACTUAL INSTRUCTION     <--
     5  EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP OF THE FORMER
     6  DISTRICTS FOR THE PREVIOUS YEAR by the number of pupils in
     7  weighted average daily membership in the district the previous
     8  year.
     9     (4)  During the fourth year of existence of a qualifying
    10  district, the department shall compute and pay the district a
    11  grant determined by multiplying five (5%) per centum of the
    12  Statewide median actual instruction expense per weighted average  <--
    13  daily membership the previous year AVERAGE ACTUAL INSTRUCTION     <--
    14  EXPENSE PER WEIGHTED AVERAGE DAILY MEMBERSHIP OF THE FORMER
    15  DISTRICTS FOR THE PREVIOUS YEAR by the number of pupils in
    16  weighted average daily membership in the district the previous
    17  year.
    18     (e)  Annually, in his initial budget request, the Secretary
    19  of Education shall report to the Governor on mergers anticipated
    20  the following year which would qualify districts for the subsidy
    21  incentives provided for in this section, along with an estimate
    22  of the appropriation needed to meet the requirements of this
    23  section. Annually, the Governor shall include such information
    24  in his budget message to the General Assembly.
    25     (f)  Any funds appropriated by the General Assembly for the
    26  purposes of this section which, at the end of any year, remain
    27  unexpended shall be lapsed in accordance with the provisions of
    28  section 621 of the act of April 9, 1929 (P.L.177, No.175), known
    29  as "The Administrative Code of 1929."
    30     Section 3.  This act shall take effect July 1, 1987 1988.      <--
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