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," in pupils and attendance, further
6providing for exceptional children, education and training, 
7for cost of tuition and maintenance of certain exceptional
8children in approved institutions; in charter schools,
9further providing for funding for charter schools; and, in
10reimbursements by Commonwealth and between school districts,
11further providing for special education payments to school
12districts and for extraordinary special education program
13expenses <-and repealing provisions relating to special 
14education funding for eligible students with disabilities in 
15Cost Category 3.

16The General Assembly of the Commonwealth of Pennsylvania
17hereby enacts as follows:

18Section 1. Section 1372(8) of the act of March 10, 1949
19(P.L.30, No.14), known as the Public School Code of 1949, added
20May 10, 2000 (P.L.44, No.16), is amended to read:

21Section 1372. Exceptional Children; Education and
22Training.--* * *

23(8) Reporting of Expenditures Relating to Exceptional

1Students. By December 31, 2000, and each year thereafter, each
2school district shall compile information listing the number of
3students with disabilities for which expenditures are between
4twenty-five thousand dollars ($25,000) and fifty thousand
5dollars ($50,000), between fifty thousand dollars ($50,000) and
6seventy-five thousand dollars ($75,000) and over seventy-five
7thousand dollars ($75,000) for the prior school year. The
8information shall be submitted to the department in a form
9prescribed by the department. By February 1, 2001, and each year
10thereafter, the department shall submit to the chairman and
11minority chairman of the Education and Appropriations Committees
12of the Senate and the chairman and minority chairman of the
13Education and Appropriations Committees of the House of
14Representatives a report listing this information by school
15district. The department shall annually adjust the dollar ranges 
16by the Consumer Price Index for All Urban Consumers for the 
17Pennsylvania, New Jersey, Delaware and Maryland area. <-The 
18department shall develop guidelines for school districts to 
19report expenditures for students with disabilities as required 
20by this section no later than August 1, 2014.

21Section 2. Section 1376 of the act is amended by adding a
22subsection to read:

23Section 1376. Cost of Tuition and Maintenance of Certain
24Exceptional Children in Approved Institutions.--* * *

25(c.9) (1) Beginning in fiscal year 2014-2015, in any fiscal
26year when there is no increase in the State allocation to
27approved private schools under subsection (a.2), an amount equal
28to the funds remitted to the Commonwealth by the approved
29private schools pursuant to subsection (c.2)(5)(ii) from the
30previous fiscal year is appropriated to the Department of

1Education for the purpose of making payments to the approved
2private schools for pupils who are enrolled with the approval of
3the Department of Education.

4(2) The funds available for payment pursuant to paragraph
5(1) shall be distributed as follows:

6(i) Divide the amount of funding paid to the approved
7private school during the previous year under subsection (a.2)
8by the total allocation of funding paid to approved private
9schools under subsection (a.2) during the previous year.

10(ii) Multiply the quotient from subparagraph (i) by the
11amount of funding available for payment under paragraph (1).

12(3) Funds distributed under this subsection shall be paid in
13twelve (12) equal monthly payments.

14* * *

15Section 3. Section 1725-A(a)(3) of the act, amended June 29,
162002 (P.L.524, No.88), is amended and the subsection is amended
17by adding clauses to read:

18Section 1725-A. Funding for Charter Schools.--(a) Funding
19for a charter school shall be provided in the following manner:

20* * *

21(3) For the 1997-1998 school year through the 2013-2014 
22school year, for special education students, the charter school
23shall receive for each student enrolled the same funding as for
24each non-special education student as provided in clause (2),
25plus an additional amount determined by dividing the district of
26residence's total special education expenditure by the product
27of multiplying the combined percentage of section 2509.5(k)
28times the district of residence's total average daily membership
29for the prior school year. This amount shall be paid by the
30district of residence of each student.

1(3.1) (i) For the 2014-2015 school year and each <-school
2year thereafter, subject to the provisions in <-clauses clause
3(3.2), (3.3), (3.4), (3.5) and (3.6) which <-provide provides for
4the transition to the new student-based funding methodology
5established in this clause, for special education students, the
6charter school shall receive for each student enrolled an amount
7which shall be paid by the district of residence of each student
8to be determined as follows:

9(A) For each special education student enrolled in the
10charter school for which the annual expenditure is less than
11twenty-five thousand dollars ($25,000), which shall be known as
12Category 1, multiply the same funding as for each non-special
13education student as provided in clause (2) by one and fifty-one
14hundredths (1.51).

15(B) For each special education student enrolled in the
16charter school for which the annual expenditure is equal to or
17greater than twenty-five thousand dollars ($25,000) and less
18than fifty thousand dollars ($50,000), which shall be known as
19Category 2, multiply the same funding as for each non-special
20education student as provided in clause (2) by three and
21seventy-seven hundredths (3.77).

22(C) For each special education student enrolled in the
23charter school for which the annual expenditure is equal to or
24greater than fifty thousand dollars ($50,000), which shall be
25known as Category 3, multiply the same funding as for each non-
26special education student as provided in clause (2) by seven and
27forty-six hundredths (7.46).

28(ii) <-(A) Pursuant to guidelines developed by the
29department, to be eligible to receive funding for special
30education students under subclause (i)(B) and (C), the charter

1school must document the cost of providing an education to the
2student and provide the documentation to the department.

<-3(B) If there is a disagreement between the department and a
4charter school with regard to the cost of providing an education
5to a student as documented in unit (A), a charter school may
6request that the costs attributed to the student be reviewed by
7a special education cost review panel. The special education
8cost review panel shall be made up of individuals experienced in
9providing services to students with disabilities and shall
10consist of a representative of the student's school district of
11residence, a representative of the charter school and a third
12party agreed upon by both the student's school district of
13residence and the charter school. If the parties cannot agree
14upon the third party panel member within fifteen days from the
15date of the appeal, the department shall appoint the panel
16member. Within thirty days from the date of the appeal, the
17special education cost review panel shall render a decision
18which shall be binding for the remainder of the school year.
19Until a decision on the appeal is made by the panel, the charter
20school shall be paid the rate based upon the department's
21original determination with regard to the cost of providing an
22education to the student.

23(iii) <-The department shall annually adjust the weights
24provided in subclause (i)(A), (B) and (C) for each school
25district based on the percentage difference in the school
26district's average annual expenditure for special education
27students when compared to the Statewide average annual
28expenditure for special education students. <-For each weight
29provided in subclause (i)(A), (B) and (C) for each school
30district, the department shall annually make the following

1adjustment:

2(A) Divide the school district's total expenditure for
3special education programs and services excluding gifted
4education by the number of special education students who reside
5in the school district.

6(B) Divide total expenditure for special education programs
7and services excluding gifted education for all school districts
8by the total number of special education students residing in
9all school districts.

10(C) Divide the quotient in unit (A) by the quotient in unit
11(B).

12(D) If the quotient in unit (C) is greater than one (1),
13multiply the quotient by the weight to determine the school
14district adjustment.

15(E) In no case shall the adjustment made in subclause (i)(A)
16and (B) result in a payment that exceeds the maximum amount
17within the category's dollar range and in no case shall the
18adjustment in subclause (i)(C) result in a payment that exceeds
19the actual cost of providing an education to the student as
20determined under subclause (ii).

21(iv) The department shall annually adjust the dollar ranges
22in subclause (i)(A), (B) and (C) by the Consumer Price Index for
23All Urban Consumers for the Pennsylvania, New Jersey, Delaware
24and Maryland area.

25(v) The annual expenditure amounts used to calculate funding
26under subclause (i)(A), (B) and (C) shall be based on the
27amounts used in making reports to the department under section
281372(8).

<-29(3.2) Notwithstanding the provisions of clause (3.1), for
30the 2014-2015 school year, for special education students, the

1charter school shall receive for each student enrolled an amount
2which shall be paid by the district of residence as follows:

3(i) If the funding for each special education student in
4clause (3) for the 2013-2014 school year is equal to or greater
5than the funding for the same special education student in
6clause (3.1) for the 2014-2015 school year, the amount shall be
7determined as follows:

8(A) Subtract the amount of funding for each special
9education student in clause (3.1) for the 2014-2015 school year
10from the amount of funding for the same special education
11student in clause (3) for the 2013-2014 school year.

12(B) Multiply the difference in paragraph (A) by one hundred
13and sixty-seven thousandths (0.167).

14(C) Subtract the product in paragraph (B) from the amount of
15funding for the same special education student in clause (3) for
16the 2013-2014 school year.

17(ii) If the funding for each special education student in
18clause (3) for the 2013-2014 school year is less than the amount
19of funding for the same special education student in clause
20(3.1) for the 2014-2015 school year, the amount shall be
21determined as follows:

22(A) Subtract the amount of funding for each special
23education student in clause (3) for the 2013-2014 school year
24from the amount of funding for the same special education
25student in clause (3.1) for the 2014-2015 school year.

26(B) Multiply the difference in paragraph (A) by one hundred
27and sixty-seven thousandths (0.167).

28(C) Add the product in paragraph (B) to the amount of
29funding for the same special education student in clause (3) for
30the 2013-2014 school year.

1(3.3) Notwithstanding the provisions of clause (3.1), for
2the 2015-2016 school year, for special education students, the
3charter school shall receive for each student enrolled an amount
4which shall be paid by the district of residence as follows:

5(i) If the funding for each special education student in
6clause (3) for the 2013-2014 school year is equal to or greater
7than the funding for the same special education student in
8clause (3.1) for the 2015-2016 school year, the amount shall be
9determined as follows:

10(A) Subtract the amount of funding for each special
11education student in clause (3.1) for the 2015-2016 school year
12from the amount of funding for the same special education
13student in clause (3) for the 2013-2014 school year.

14(B) Multiply the difference in paragraph (A) by three
15hundred and thirty-three thousandths (0.333).

16(C) Subtract the product in paragraph (B) from the amount of
17funding for the same special education student in clause (3) for
18the 2013-2014 school year.

19(ii) If the funding for each special education student in
20clause (3) for the 2013-2014 school year is less than the
21funding for the same special education student in clause (3.1)
22for the 2015-2016 school year, the amount shall be determined as
23follows:

24(A) Subtract the amount of funding for each special
25education student in clause (3) for the 2013-2014 school year
26from the amount of funding for the same special education
27student in clause (3.1) for the 2015-2016 school year.

28(B) Multiply the difference in paragraph (A) by three
29hundred and thirty-three thousandths (0.333).

30(C) Add the product in paragraph (B) to the amount of

1funding for the same special education student in clause (3) for
2the 2013-2014 school year.

3(3.4) Notwithstanding the provisions of clause (3.1), for
4the 2016-2017 school year, for special education students, the
5charter school shall receive for each student enrolled an amount
6which shall be paid by the district of residence as follows:

7(i) If the funding for each special education student in
8clause (3) for the 2013-2014 school year is equal to or greater
9than the funding for the same special education student in
10clause (3.1) for the 2016-2017 school year, the amount shall be
11determined as follows:

12(A) Subtract the amount of funding for each special
13education student in clause (3.1) for the 2016-2017 school year
14from the amount of funding for the same special education
15student in clause (3) for the 2013-2014 school year.

16(B) Multiply the difference in paragraph (A) by five hundred
17thousandths (0.500).

18(C) Subtract the product in paragraph (B) from the amount of
19funding for the same special education student in clause (3) for
20the 2013-2014 school year.

21(ii) If the funding for each special education student in
22clause (3) for the 2013-2014 school year is less than the amount
23of funding for the same special education student in clause
24(3.1) for the 2016-2017 school year, the amount shall be
25determined as follows:

26(A) Subtract the amount of funding for each special
27education student in clause (3) for the 2013-2014 school year
28from the amount of funding for the same special education
29student in clause (3.1) for the 2016-2017 school year.

30(B) Multiply the difference in paragraph (A) by five hundred

1thousandths (0.500).

2(C) Add the product in paragraph (B) to the amount of
3funding for the same special education student in clause (3) for
4the 2013-2014 school year.

5(3.5) Notwithstanding the provisions of clause (3.1), for
6the 2017-2018 school year, for special education students, the
7charter school shall receive for each student enrolled an amount
8which shall be paid by the district of residence as follows:

9(i) If the funding for each special education student in
10clause (3) for the 2013-2014 school year is equal to or greater
11than the funding for the same special education student in
12clause (3.1) for the 2017-2018 school year, the amount shall be
13determined as follows:

14(A) Subtract the amount of funding for each special
15education student in clause (3.1) for the 2017-2018 school year
16from the amount of funding for the same special education
17student in clause (3) for the 2013-2014 school year.

18(B) Multiply the difference in paragraph (A) by six hundred
19and sixty-seven thousandths (0.667).

20(C) Subtract the product in paragraph (B) from the amount of
21funding for the same special education student in clause (3) for
22the 2013-2014 school year.

23(ii) If the funding for each special education student in
24clause (3) for the 2013-2014 school year is less than the amount
25of funding for the same special education student in clause
26(3.1) for the 2017-2018 school year, the amount shall be
27determined as follows:

28(A) Subtract the amount of funding for each special
29education student in clause (3) for the 2013-2014 school year
30from the amount of funding for the same special education

1student in clause (3.1) for the 2017-2018 school year.

2(B) Multiply the difference in paragraph (A) by six hundred
3and sixty-seven thousandths (0.667).

4(C) Add the product in paragraph (B) to the amount of
5funding for the same special education student in clause (3) for
6the 2013-2014 school year.

7(3.6) Notwithstanding the provisions of clause (3.1), for
8the 2018-2019 school year, for special education students, the
9charter school shall receive for each student enrolled an amount
10which shall be paid by the district of residence as follows:

11(i) If the funding for each special education student in
12clause (3) for the 2013-2014 school year is equal to or greater
13than the funding for the same special education student in
14clause (3.1) for the 2018-2019 school year, the amount shall be
15determined as follows:

16(A) Subtract the amount of funding for each special
17education student in clause (3.1) for the 2018-2019 school year
18from the amount of funding for the same special education
19student in clause (3) for the 2013-2014 school year.

20(B) Multiply the difference in paragraph (A) by eight
21hundred and thirty-three thousandths (0.833).

22(C) Subtract the product in paragraph (B) from the amount of
23funding for the same special education student in clause (3) for
24the 2013-2014 school year.

25(ii) If the funding for each special education student in
26clause (3) for the 2013-2014 school year is less than the amount
27of funding for the same special education student in clause
28(3.1) for the 2018-2019 school year, the amount shall be
29determined as follows:

30(A) Subtract the amount of funding for each special

1education student in clause (3) for the 2013-2014 school year
2from the amount of funding for the same special education
3student in clause (3.1) for the 2018-2019 school year.

4(B) Multiply the difference in paragraph (A) by eight
5hundred and thirty-three thousandths (0.833).

6(C) Add the product in paragraph (B) to the amount of
7funding for the same special education student in clause (3) for
8the 2013-2014 school year.

<-9(3.2) To transition to the new student-based funding
10methodology for special education students under clause (3.1), a 
11charter school shall receive for each student enrolled an amount 
12to be paid by the district of residence and determined as 
13follows:

14(i) For each special education student under clause (3.1)(i)
15(A) in Category 1, the following shall apply:

16(A) Determine the number of special education students under 
17clause (3.1)(i)(A) from the school district who were enrolled in 
18a charter school with individualized education plans as required 
19under the Individuals with Disabilities Education Act (Public 
20Law 91-230, 20 U.S.C. § 1400 et seq.), as of May 31, 2014.

21(B) Divide the number determined in unit (A) by the total
22number of students enrolled in a charter school from the school
23district under clause (3.1)(i)(A) as of October 1.

24(C) Multiply the lesser of the quotient in unit (B) or one
25(1) by the amount for the same special education student
26determined in clause (3) for the 2013-2014 school year.

27(D) Subtract the lesser of the quotient in unit (B) or one
28(1) from one (1) and multiply the difference by the amount for
29the same special education student in clause (3.1)(i)(A).

30(E) Add the amounts in units (C) and (D) to determine the

1amount paid by the school district.

2(ii) For each special education student under clause (3.1)
3(i)(B) in Category 2, the following shall apply:

4(A) Determine the number of special education students under
5clause (3.1)(i)(B) from the school district who were enrolled in
6a charter school with individualized education plans as of May
731, 2014.

8(B) Divide the number determined in unit (A) by the total
9number of students enrolled in a charter school from the school
10district under clause (3.1)(i)(B) as of October 1.

11(C) Multiply the lesser of the quotient in unit (B) or one
12(1) by the amount for the same special education student
13determined in clause (3) for the 2013-2014 school year.

14(D) Subtract the lesser of the quotient in unit (B) or one
15(1) from one (1) and multiply the difference by the amount for
16the same special education student in clause (3.1)(i)(B).

17(E) Add the amounts in units (C) and (D) to determine the
18amount paid by the school district.

19(iii) For each special education student under clause (3.1)
20(i)(C) in Category 3, the following shall apply:

21(A) Determine the number of special education students under
22clause (3.1)(i)(C) from the school district who were enrolled in
23a charter school with individualized education plans as of May
2431, 2014.

25(B) Divide the number determined in unit (A) by the total
26number of students enrolled in a charter school from the school
27district under clause (3.1)(i)(C) as of October 1.

28(C) Multiply the lesser of the quotient in unit (B) or one
29(1) by the amount for the same special education student
30determined in clause (3) for the 2013-2014 school year.

1(D) Subtract the lesser of the quotient in unit (B) or one
2(1) from one (1) and multiply the difference by the amount for
3the same special education student in clause (3.1)(i)(C).

4(E) Add the amounts in units (C) and (D) to determine the
5amount paid by the school district.

6(iv) In no case shall a payment made under subclause (iii)
7exceed the amount allowed for the same student under clause
8(3.1).

9(v) At such time that the amount determined under subclause
10(i) for a student in Category 1 is greater than the amount
11determined for a student under clause (3) for the 2013-2014
12school year, payment made by the school district of residence
13shall be based on the provisions under clause (3.1) and the
14transition under this clause shall expire.

15(vi) The department shall develop guidelines to collect the
16enrollment data required under this clause and calculate
17estimated payments until such time as actual enrollments are
18determined.

19* * *

20Section 4. Section 2509.5 of the act is amended by adding a
21subsection to read:

22Section 2509.5. Special Education Payments to School
23Districts.--* * *

24(bbb) (1) For the 2014-2015 school year and each year 
25thereafter, when the special education funding allocation made 
26to school districts exceeds the amount allocated under 
27subsection (aaa), the Commonwealth shall pay to each school 
28district a special education funding allocation which shall 
29consist of the following:

30(i) An amount equal to the special education funding

1allocation under subsection (aaa).

2(ii) A student-based allocation to be calculated as follows:

3(A) Multiply the sum of the school district's weighted
4special education student headcount and its sparsity/size
5adjustment by its market value/income aid ratio and its
6equalized millage multiplier.

7(B) Multiply the product in clause (A) by the difference
8between the amount appropriated for the allocation of special
9education funding and the sum of the amounts allocated in
10subparagraph (i).

11(C) Divide the product from clause (B) by the sum of the
12products in clause (A) for all school districts.

13(2) For the purposes of this section:

14(i) The weighted special education student headcount shall
15be calculated for each school district as follows:

16(A) Multiply the number of special education students who
17reside in the school district for which the annual expenditure
18is less than twenty-five thousand dollars ($25,000), which shall
19be known as Category 1, by one and fifty-one hundredths (1.51).

20(B) Multiply the number of special education students that
21reside in the school district for which the annual expenditure
22is greater than or equal to twenty-five thousand dollars
23($25,000) but less than fifty thousand dollars ($50,000), which
24shall be known as Category 2, by three and seventy-seven
25hundredths (3.77).

26(C) Multiply the number of special education students who
27reside in the school district for which the annual expenditure
28is greater than or equal to fifty thousand dollars ($50,000),
29which shall be known as Category 3, by seven and forty-six
30hundredths (7.46).

1(D) Add the products in clauses (A), (B) and (C).

2The Department of Education shall annually adjust the dollar
3ranges in clauses (A), (B) and (C) by the Consumer Price Index
4for All Urban Consumers for the Pennsylvania, New Jersey,
5Delaware and Maryland area. The annual expenditure amount used
6to calculate funding shall be based on the information reported
7to the department under section 1372(8).

8(ii) The sparsity ratio shall be calculated for each school
9district as follows:

10(A) Divide the school district's average daily membership
11per square mile by the State's average daily membership per
12square mile.

13(B) Multiply the quotient of clause (A) by five tenths
14(0.5).

15(C) Subtract the product in clause (B) from one (1).

16(iii) The size ratio for each school district shall be
17calculated as follows:

18(A) Divide the school district's average daily membership by
19the average of the average daily membership of all school
20districts.

21(B) Multiply the quotient of clause (A) by five tenths
22(0.5).

23(C) Subtract the product in clause (B) from one (1).

24(iv) The sparsity/size ratio for each school district shall
25be calculated by adding forty percent (40%) of the sparsity
26ratio and sixty percent (60%) of the size ratio.

27(v) The sparsity/size adjustment for each school district
28shall be calculated as follows:

29(A) For a school district with a sparsity/size ratio less
30than or equal to the sparsity/size ratio that represents the

1seventieth (70th) percentile of the sparsity/size ratio of all
2school districts, the school district's sparsity/size adjustment
3shall be zero (0).

4(B) For a school district with a sparsity/size ratio greater
5than the sparsity/size ratio that represents the seventieth
6(70th) percentile of the sparsity/size ratio of all school
7districts, the school district's sparsity/size adjustment shall
8be calculated as follows:

9(I) Divide the school district's sparsity/size ratio by the
10sparsity/size ratio that represents the seventieth (70th)
11percentile of the sparsity/size ratio of all school districts.

12(II) Subtract one (1) from the quotient in subclause (I).

13(III) Multiply the remainder in subclause (II) by five
14tenths (0.5).

15(IV) Multiply the product in subclause (III) by the school
16district's weighted special education student headcount.

17(vi) The equalized millage multiplier for each school
18district shall be calculated as follows:

19(A) For a school district with an equalized millage rate
20greater than or equal to the equalized millage rate that
21represents the seventieth (70th) percentile of the equalized
22millage rate of all school districts, the school district's
23equalized millage multiplier shall be one (1).

24(B) For a school district with an equalized millage rate
25less than the equalized millage rate that represents the
26seventieth (70th) percentile of the equalized millage rate of
27all school districts, the school district's equalized millage
28multiplier shall be calculated as follows:

29(I) Divide the school district's equalized millage rate by
30the equalized millage rate that represents the seventieth (70th)

1percentile of the equalized millage rate of all school
2districts.

3(II) (Reserved).

4(3) The data used to calculate the weighted special
5education student headcount in clause (2)(i) shall be based on
6information from the most recent year for which data is
7available as determined by the Department of Education. The data
8used to calculate the remainder of the provisions contained in
9this section shall be averaged for the three (3) most recent
10years for which data is available as determined by the
11Department of Education.

12Section 5. Section 2509.8(e) of the act, added December 23,
132003 (P.L.304, No.48), is amended and the section is amended by
14adding a subsection to read:

15Section 2509.8. Extraordinary Special Education Program
16Expenses.--* * *

17(e) For the 2003-2004 school year [and each school year
18thereafter] through the 2013-2014 school year, the Department of
19Education shall set aside one percent (1%) of the special
20education appropriation for extraordinary expenses incurred in
21providing a special education program or service to one or more
22students with disabilities as approved by the Secretary of
23Education. Such special education program or service shall
24include, but not be limited to, the transportation of students
25with disabilities; services related to occupational therapy,
26physical therapy, speech and language, hearing impairments or
27visual impairments; or training in orientation and mobility for
28children who are visually impaired or blind.

29(f) (i) For the 2014-2015 school year and each school year 
30thereafter, an amount equal to one percent (1%) of the special
 

1education appropriation shall be distributed to school districts 
2and charter schools for extraordinary expenses incurred in 
3providing a special education program or service to one or more 
4students with disabilities as approved by the Secretary of 
5Education. Such special education program or service shall 
6include, but not be limited to, the transportation of students 
7with disabilities; services related to occupational therapy, 
8physical therapy, speech and language, hearing impairments or 
9visual impairments; or training in orientation and mobility for 
10children who are visually impaired or blind.

11(ii) Funds distributed to a school district or charter
12school under this subsection shall be allocated for students for
13which expenses are incurred on an annual basis that are equal to
14or greater than seventy-five thousand dollars ($75,000) as
15follows:

16(A) For a student for whom expenses are equal to or greater
17than seventy-five thousand dollars ($75,000) and less than or
18equal to one hundred thousand dollars ($100,000), subtract the
19State subsidies paid on behalf of the student to the school
20district or, for a student enrolled in a charter school, the
21charter school payment received by the charter school where the
22child is enrolled from the expense incurred for the student and
23multiply the difference by the school district's or charter
24school's market value/personal income aid ratio.

25(B) For a student for which expenses are greater than one
26hundred thousand dollars ($100,000), subtract the State
27subsidies paid on behalf of the student to the school district
28or, for a student enrolled in a charter school, the charter
29school payment received by the charter school where the child is
30enrolled from the expense incurred for the student.

1(iii) No school district or charter school shall in any
2school year receive an amount under subclause (i) which exceeds
3the total amount of funding available multiplied by the
4percentage equal to the greatest percentage of the State's
5special education students enrolled in a school district or
6charter school.

7Section 6. Section 2509.14 of the act, added April 25, 2013
8(P.L.12, No.3), is repealed:

9[Section 2509.14. Special Education Funding for Eligible
10Students with Disabilities in Cost Category 3.--(a) For the
112014-2015 school year and each school year thereafter, the
12Department of Education shall set aside an amount not less than
13one percent (1%) of the State special education appropriation
14above the level of the appropriation in the base year. The
15Department of Education shall distribute this amount as provided
16in subsection (b).

17(b) For the 2014-2015 school year and each school year
18thereafter, each school district in this Commonwealth shall
19receive a pro rata share of the amount set aside under
20subsection (a) based upon the number of eligible students
21residing or enrolled in each school district and classified in
22Cost Category 3 during the immediately preceding school year.

23(c) The funding provided under this section shall be 
24accounted for as part of actual special education spending and 
25as part of the special education allocation received by a school 
26district, according to the definitions in section 2501. School 
27districts shall also account for the funding provided under this 
28section and the resulting services and supports for eligible 
29students through the special education plans, revisions, updates 
30and amendments required by section 2509.15.]

1Section 7. This act shall take effect July 1, 2014, or
2immediately, whichever occurs later.