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

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. The act of March 10, 1949 (P.L.30, No.14), known
9as the Public School Code of 1949, is amended by adding sections
10to read:

11Section 1733-A. Charter School Fund Balance Limit.--(a) For 
12the 2012-2013 school year and each school year thereafter, a 
13charter school that is not a cyber charter school shall not 
14accumulate an unassigned fund balance greater than the charter 
15school fund balance limit, which will be determined as follows:

16  17Charter School Entity 18Total Budgeted Expenditures

Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures

19Less than or equal to $11,999,999	12%
20130SB0993PN1168 -1-
1Between $12,000,000 and $12,999,999	11.5%
2Between $13,000,000 and $13,999,999	11%
3Between $14,000,000 and $14,999,999	10.5%
4Between $15,000,000 and $15,999,999	10%
5Between $16,000,000 and $16,999,999	9.5%
6Between $17,000,000 and $17,999,999	9%
7Between $18,000,000 and $18,999,999	8.5%
8Greater than or equal to $19,000,000	8%

9(b) Any unassigned fund balance in place on June 30, 2013,
10that exceeds the charter school fund balance limit shall be
11refunded on a per student pro rata basis within ninety (90) days
12to all school districts that made payments under section 1725-A
13in the 2011-2012 and 2012-2013 school years. The funds may not
14be used to pay bonuses to any administrator, board of trustees
15member, employe, staff or contractor or be transferred to a
16charter school foundation.

17(c) For the 2013-2014 school year and each school year
18thereafter, any unassigned fund balance in excess of the charter
19school fund balance limit shall be refunded on a per student pro
20rata basis to all school districts that made payments under
21section 1725-A in the prior school year.

22(d) By August 15, 2013, and by August 15 of each year
23thereafter, each charter school shall provide the department
24with information certifying compliance with this section. The
25information shall be provided in a form and manner prescribed by
26the department and shall include information on the charter
27school's estimated ending unassigned fund balance expressed as a
28dollar amount and as a percentage of the charter school's total
29budgeted expenditures for that school year.

30(e) As used in this section, "unassigned fund balance" shall

1mean that portion of the fund balance which represents the part
2of the spendable fund balance that has not been categorized as
3restricted, committed or assigned.

4Section 1752-A. Cyber charter school fund balance limit.

5(a) Limit.--For the 2013-2014 school year and each school 
6year thereafter, no cyber charter school shall accumulate an 
7unassigned fund balance greater than the cyber charter school 
8fund balance limit, which shall be determined as follows:

9  10Charter School Entity 11Total Budgeted Expenditures

Maximum Unassigned Fund Balance as Percentage of Total Budgeted Expenditures

12Less than or equal to $11,999,999	12%
13Between $12,000,000 and $12,999,999	11.5%
14Between $13,000,000 and $13,999,999	11%
15Between $14,000,000 and $14,999,999	10.5%
16Between $15,000,000 and $15,999,999	10%
17Between $16,000,000 and $16,999,999	9.5%
18Between $17,000,000 and $17,999,999	9%
19Between $18,000,000 and $18,999,999	8.5%
20Greater than or equal to $19,000,000	8%

21(b) Distribution.--Any unassigned fund balance in place on
22June 30, 2013, that exceeds the cyber charter school fund
23balance limit shall be distributed by the cyber charter school
24on a per student pro rata basis within 90 days to all school
25districts that made payments under section 1725-A to the cyber
26charter school in the 2011-2012 and 2012-2013 school years. The
27funds may not be used to pay bonuses to any administrator, board
28of trustees member, employee, staff or contractor or be
29transferred to a charter school foundation.

30(c) Refunds.--For the 2013-2014 school year and each school

1year thereafter, any unassigned fund balance in excess of the
2cyber charter school fund balance limit shall be refunded on a
3per student pro rata basis to all school districts that made
4payments to the cyber charter school under section 1725-A in the
5prior school year.

6(d) Certification of compliance.--By August 15, 2013, and by
7August 15 of each year thereafter, each cyber charter school
8shall provide the department with information certifying
9compliance with this section. The information shall be provided
10in a form and manner prescribed by the department and shall
11include information on the cyber charter school's estimated
12ending unassigned fund balance expressed as a dollar amount and
13as a percentage of the cyber charter school's total budgeted
14expenditures for that school year.

15(e) Definition.--As used in this section, "unassigned fund
16balance" shall mean that portion of the fund balance which
17represents the part of the spendable fund balance that has not
18been categorized as restricted, committed or assigned.

19Section 2. This act shall take effect immediately.