PRINTER'S NO. 1661
No. 1409 Session of 1991
INTRODUCED BY BORTNER AND ROBBINS, NOVEMBER 12, 1991
REFERRED TO EDUCATION, NOVEMBER 12, 1991
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 annual budgets
6 of school districts.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 687(g) and (h) of the act of March 10,
10 1949 (P.L.30, No.14), known as the Public School Code of 1949,
11 added August 5, 1991 (P.L. , No.25), are amended to read:
12 Section 687. Annual Budget; Additional or Increased
13 Appropriations; Transfer of Funds.--* * *
14 (g) [(1)] Notwithstanding any other provisions of this act,
15 the board of school directors of each school district is
16 required to, and shall, reopen its 1991-1992 budget during the
17 month of August 1991 for the purposes of adjusting their budgets
18 to reflect the following increased allocations for fiscal year
19 1991-1992 provided by the General Assembly through the act of
1 August 4, 1991 (P.L. , No.7A), known as the "General
2 Appropriation Act of 1991": subsidy payments on account of
3 instruction; small district assistance payment; payments on
4 account of transportation of nonpublic school pupils; State
5 reimbursement for health services; and local savings accruing as
6 a result of decreases in employer retirement contribution rates.
7 [(2) In those districts which levy taxes and where the
8 additional State revenues provided by the General Assembly and
9 the local savings as a result of a decrease in employer
10 retirement contribution rates exceed the State revenue figures
11 and local revenues utilized by the school district at the time
12 of adoption of its original fiscal year 1991-1992 budget, the
13 district shall use these additional State funds to abate local
14 property tax or nuisance taxes, or both, which were levied at
15 the time of original budget adoption within sixty (60) days of
16 the reopening of the district's budget.
17 (3) Those districts which levy taxes and in which the
18 additional State revenues generated as a result of passage of
19 the "General Appropriation Act of 1991," when compared to State
20 revenue figures utilized in their originally adopted budget,
21 exceed the budgeted figures by an amount insufficient to cost-
22 effectively prepare and mail adjusted tax notices shall apply to
23 the Department of Education for a waiver of this tax rebate
24 provision.
25 (4) Under no circumstances shall any of these additional
26 State revenues be used to increase a district's existing fund
27 balance or for deposit into any district reserve accounts but
28 shall be specifically utilized to meet fiscal year 1991-1992
29 program needs and to reduce local tax levies.
30 (5) At such time as school districts mail out adjusted tax
19910S1409B1661 - 2 -
1 notices resulting from budget reopening actions, such notice
2 shall include the following statement:
3 "These decreased school district tax assessments result
4 from additional revenues allocated to the district as a
5 result of passage of the 'General Appropriation Act of
6 1991' by the Pennsylvania General Assembly."
7 (6) The Department of Education shall establish the
8 administrative procedures necessary to audit school district
9 compliance with the provisions of this section and shall report
10 its findings to the Education Committee of the Senate and the
11 Education Committee of the House of Representatives.
12 (h) Beginning with the adjusted final fiscal year 1991-1992
13 budget, and each fiscal year thereafter, on or before September
14 15, each school district shall furnish to the Education
15 Committee of the Senate and the Education Committee of the House
16 of Representatives a copy of the school district's final adopted
17 annual budget to include the amount of district revenues being
18 held in excess of its total budgeted expenditures. Such
19 documentation shall include an explanation of the district's
20 need to maintain the revenues in this fund balance.]
21 Section 2. This act shall take effect immediately.
I11L24DGS/19910S1409B1661 - 3 -