PRINTER'S NO. 3613
No. 2449 Session of 2008
INTRODUCED BY ROEBUCK, PAYTON, McCALL, McILVAINE SMITH, HARKINS,
LEACH, BEYER, WHEATLEY, BRENNAN, DALEY, EACHUS, FRANKEL,
GODSHALL, JOSEPHS, KORTZ, KOTIK, MANN, MICOZZIE, MUNDY,
PARKER, MANDERINO, SANTONI, SIPTROTH, STURLA, J. TAYLOR,
THOMAS, BELFANTI, YOUNGBLOOD AND DERMODY, APRIL 15, 2008
REFERRED TO COMMITTEE ON EDUCATION, APRIL 15, 2008
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," providing for basic education funding
6 for student achievement and for accountability to
7 Commonwealth taxpayers.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
11 as the Public School Code of 1949, is amended by adding sections
12 to read:
13 Section 2502.48. Basic Education Funding for Student
14 Achievement.--(a) The Department of Education shall annually
15 calculate a base cost per student. In the 2008-2009 school year,
16 the base cost per student shall be eight thousand three dollars
17 ($8,003) increased by the index. In the 2009-2010 school year
18 and each school year thereafter, the Department of Education
19 shall increase the prior year's base cost per student by the
1 index.
2 (b) The Department of Education shall annually calculate an
3 adequacy target for each school district by determining the sum
4 of the following:
5 (1) A base cost calculated by taking the product of the base
6 cost per student and the school district's modified ADM.
7 (2) A poverty supplement calculated by taking the product
8 of:
9 (i) the base cost per student;
10 (ii) the number of students enrolled in the school district
11 on October 31 of the funding year who were eligible for free or
12 reduced price meals under the school lunch program; and
13 (iii) forty-three one-hundredths (.43).
14 (3) A district size supplement calculated by taking the
15 maximum of zero and the product of:
16 (i) the base cost per student;
17 (ii) the school district's funding year adjusted average
18 daily membership; and
19 (iii) the sum of four hundred eighty-three one-thousands
20 (.483) and the product of the natural logarithm of the school
21 district's funding year adjusted average daily membership and
22 negative five one-hundredths (-.05);
23 (4) An English language learner supplement calculated by
24 taking the product of:
25 (i) the base cost per student;
26 (ii) the number of enrolled students identified as limited
27 English proficient in the funding year in the school district;
28 and
29 (iii) the sum of three and seven hundred fifty-three one-
30 thousandths (3.753) and the product of the natural logarithm of
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1 the school district's funding year adjusted average daily
2 membership and negative twenty-three one-hundredths (-.23),
3 provided that such amount shall be no less than one and forty-
4 eight one-hundredths (1.48) and no greater than two and forty-
5 three one-hundredths (2.43).
6 (5) An adjustment for geographic price differences
7 calculated as follows:
8 (i) Add the amounts under paragraphs (1), (2), (3) and (4).
9 (ii) Multiply:
10 (A) the sum under subparagraph (i); by
11 (B) the school district's location cost metric.
12 (iii) Subtract:
13 (A) the sum under subparagraph (i); from
14 (B) the product under subparagraph (ii).
15 (c) The Department of Education shall determine a State
16 funding target for each school district by calculating the
17 product of:
18 (1) the difference between the school district's adequacy
19 target and its actual spending for the funding year minus any
20 amount provided under subsection (d)(3) in the funding year, or
21 zero, whichever is greater;
22 (2) the school district's market value/income aid ratio for
23 the school year in which funding occurs; and
24 (3) the lesser of one (1) and the school district's funding
25 year equalized millage divided by the equalized millage that
26 represents the seventy-fifth percentile of the equalized millage
27 of all school districts in the funding year.
28 (d) The Commonwealth shall pay to each school district a
29 basic education funding allocation calculated as follows:
30 (1) The amount equal to the school district's basic
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1 education funding allocation under sections 2502.13(m), 2502.47
2 and 2504.4(a.3) plus, in the 2009-2010 school year and each
3 school year thereafter, the amount of transition funding in the
4 2008-2009 school year under subsection (e).
5 (2) If a school district has been declared a Commonwealth
6 partnership school district under Article XVII-B, an amount
7 equal to four million dollars ($4,000,000).
8 (3) (i) Except as provided in subparagraph (iii), for a
9 school district with 2006-2007 equalized millage that is greater
10 than or equal to the equalized millage that represents the
11 eightieth percentile of the equalized millage of all school
12 districts:
13 (A) In the 2008-2009 school year, sixteen and seventy-five
14 one hundredths percent (16.75%) of the State funding target.
15 (B) In the 2009-2010 school year, forty-seven percent (47%)
16 of the State funding target.
17 (C) In the 2010-2011 school year, seventy-two and nine-
18 tenths percent (72.9%) of the State funding target.
19 (D) In the 2011-2012 school year and each school year
20 thereafter, the State funding target.
21 (ii) Except as provided in subparagraph (iii), for a school
22 district with 2006-2007 equalized millage that is less than the
23 equalized millage that represents the eightieth percentile of
24 the equalized millage of all school districts:
25 (A) In the 2008-2009 school year, ten percent (10%) of the
26 State funding target.
27 (B) In the 2009-2010 school year, fifteen and one-half
28 percent (15.5%) of the State funding target.
29 (C) In the 2010-2011 school year, twenty-seven and nine-
30 tenths percent (27.9%) of the State funding target.
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1 (D) In the 2011-2012 school year, thirty-five percent (35%)
2 of the State funding target.
3 (E) In the 2012-2013 school year, sixty-nine and four-tenths
4 percent (69.4%) of the State funding target.
5 (F) In the 2013-2014 school year and each school year
6 thereafter, the State funding target.
7 (iii) The equalized millage used for a school district of
8 the first class shall be the school district's municipal
9 equalized millage.
10 (e) The Department of Education shall provide transition
11 funding in the 2008-2009 school year to any school district
12 where the amount determined under subsection (d)(3) provides an
13 amount less than one and one-half percent (1.5%) of the amount
14 provided under subsection (d)(1). The amount of transition
15 funding shall be the amount required so that the sum of
16 subsection (d)(3) and this paragraph equals one and one-half
17 percent (1.5%) of the amount provided under subsection (d)(1).
18 (f) For the purpose of this section, the following terms
19 shall have the meanings given to them in this subsection:
20 (1) "Actual Spending." An amount equal to a school
21 district's total expenditures to include General Fund
22 expenditures in all functional classifications, as designated in
23 the Manual of Accounting and Related Financial Procedures for
24 Pennsylvania School Systems, except for special education; adult
25 education; higher education; student transportation; community
26 services; scholarships and awards; facilities acquisition;
27 construction and improvement services; other expenditures and
28 financing uses; and tuition for patrons.
29 (2) "Adjusted Average Daily Membership" or "Adjusted ADM."
30 The average daily membership adjusted by the weight for each
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1 level of instruction as follows:
2 (i) Half-time prekindergarten and half-time kindergarten:
3 .50.
4 (ii) Full-time prekindergarten, full-time kindergarten,
5 elementary and secondary: 1.00.
6 (3) "Funding Year." The most recent school year for which
7 all school districts were required by the Department of
8 Education to submit an annual financial report prior to the date
9 the executive budget is proposed.
10 (4) "Index." As established by the Department of Education
11 in each calendar year for the subsequent fiscal year, the
12 average of:
13 (i) The amount determined by the Department of Labor and
14 Industry in the same manner as it determines the average weekly
15 wage under section 404(e)(2) of the act of December 5, 1936 (2nd
16 Sp.Sess., 1937 P.L.2897, No.1), known as the "Unemployment
17 Compensation Law," except that it shall be calculated for the
18 preceding calendar year.
19 (ii) The most recent official figures reported by the United
20 States Department of Labor, Bureau of Labor Statistics for the
21 previous twelve-month period beginning July 1 and ending June 30
22 for the Employment Cost Index Series for Elementary and
23 Secondary Schools.
24 (5) "Location Cost Metric." An index of geographic cost
25 differences for each county published by the Department of
26 Education in the Pennsylvania Bulletin.
27 (6) "Modified Average Daily Membership" or "Modified ADM."
28 The sum of the following products:
29 (i) fifty-two one-hundredths (.52) and the school district's
30 adjusted average daily membership in the funding year;
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1 (ii) twenty-six one-hundredths (.26) and the school
2 district's adjusted average daily membership in the school year
3 prior to the funding year;
4 (iii) thirteen one-hundredths (.13) and the school
5 district's adjusted average daily membership two (2) school
6 years prior to the funding year;
7 (iv) six one-hundredths (.06) and the school district's
8 adjusted average daily membership three (3) school years prior
9 to the funding year; and
10 (v) three one-hundredths (.03) and the school district's
11 adjusted average daily membership four (4) school years prior to
12 the funding year.
13 Section 2502.49. Accountability to Commonwealth Taxpayers.--
14 (a) In any school district where the amount of basic education
15 funding allocated pursuant to section 2502.48 exceeds the amount
16 of basic education funding allocated to the school district in
17 the prior fiscal year by more than the index, the board of
18 school directors shall use one hundred percent (100%) of the
19 portion of the increase that exceeds the index as follows:
20 (1) At least eighty percent (80%) of such funds shall be
21 used to offer any of the following for the first time or to
22 expand any of the following:
23 (i) Programs that increase the amount of student
24 instructional time, which may include tutoring, an extension of
25 the school day or school calendar or intensive support for
26 students who have limited English proficiency.
27 (ii) Implementation of new curricula or course offerings
28 that increase the number of students who graduate from high
29 school prepared for college and high-skill careers.
30 (iii) Training of professional employes in the delivery of a
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1 curriculum that increases the number of students who graduate
2 from high school prepared for college and high-skill careers, in
3 strategies for addressing the learning needs of students at risk
4 of academic failure or needing remediation or in strategies to
5 ensure that students stay in school until graduation and
6 successfully transition to postsecondary education or the work
7 force.
8 (iv) Reduction of class size.
9 (v) Prekindergarten or full-day kindergarten.
10 (vi) Incentives for the most effective highly qualified
11 teachers and principals to work in a school identified for
12 improvement or corrective action.
13 (vii) Incentives for the adoption of performance contracts
14 by superintendents, assistant superintendents and principals.
15 (2) No more than ten percent (10%) of such funds may be used
16 to maintain existing programs that meet the criteria of
17 paragraph (1) or for one-time costs necessary to the delivery of
18 instruction that shall include books, materials or other
19 supplies.
20 (3) No more than ten percent (10%) of such funds may be used
21 for other programs or activities that are essential to achieving
22 or maintaining academic performance targets and that are based
23 on sound research or for one-time costs necessary to the
24 delivery of instruction that shall include books, materials or
25 other supplies.
26 (b) The following shall apply:
27 (1) A school district subject to this section shall submit a
28 plan to the Department of Education no later than August 1,
29 2008, and no later than April 15 of each year thereafter,
30 detailing its intended use of funds subject to this section in
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1 the subsequent fiscal year. If a general appropriation bill that
2 includes basic education funding for the applicable fiscal year
3 has not been enacted prior to the deadline, a school district
4 shall base its plan on the amount of basic education funding
5 proposed in an executive budget and posted on the department's
6 Internet website.
7 (2) The department shall review all plans and may provide
8 recommendations to school districts within forty-five (45) days
9 of receipt of the plan.
10 (3) Within ninety (90) days of receipt of a plan submitted
11 by a school district identified for warning, improvement or
12 corrective action or a school district with one or more schools
13 identified for improvement or corrective action, the department
14 shall approve or disapprove the plan. The department shall
15 provide a written explanation to the board of school directors
16 of any school district whose plan is disapproved.
17 (4) A school district whose plan has been disapproved shall
18 amend and resubmit its plan as necessary until approved by the
19 department.
20 (c) The department shall approve any school district
21 achievement plan that:
22 (1) meets the requirements of this section;
23 (2) addresses the academic challenges identified in the
24 school district's most recent student achievement results, with
25 specific focus on individual schools, grade levels and
26 populations of students that demonstrate inadequate levels of
27 student achievement; and
28 (3) in the determination of the department, describes
29 programs and strategies that are most likely to improve student
30 achievement in the school district.
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1 (d) For any school district where approval of a plan is
2 required pursuant to subsection (b), and notwithstanding any
3 other provision of law to the contrary, the department shall
4 withhold the portion of the increase in basic education funding
5 which exceeds the index until such a time as a plan is approved.
6 (e) The Department of Education shall:
7 (1) Provide technical assistance to any school district upon
8 request for the development of a plan pursuant to this section.
9 (2) Determine the form and manner in which school districts
10 shall submit a plan pursuant to this section.
11 (3) Review all plans submitted to the department and approve
12 or disapprove plans as required pursuant to this section.
13 (f) For the purpose of this section, "index" shall be as
14 established by the Department of Education in each calendar year
15 for the subsequent fiscal year and defined as the average of the
16 following:
17 (1) That amount determined by the Department of Labor and
18 Industry in the same manner that it determines the average
19 weekly wage under section 404(e)(2) of the act of December 5,
20 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the
21 "Unemployment Compensation Law," except that it shall be
22 calculated for the preceding calendar year.
23 (2) The most recent official figures for the previous
24 twelve-month period beginning July 1 and ending June 30 for the
25 Employment Cost Index Series for Elementary and Secondary
26 Schools, reported by the United States Department of Labor,
27 Bureau of Labor Statistics.
28 Section 2. This act shall take effect July 1, 2008, or
29 immediately, whichever is later.
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