PRINTER'S NO. 2154

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1638

Session of

2019

INTRODUCED BY STURLA, FRANKEL, A. DAVIS, D. MILLER, MERSKI,

SCHLOSSBERG, OTTEN, ISAACSON, JOHNSON-HARRELL, McCLINTON,

ROEBUCK, READSHAW, LONGIETTI AND SCHWEYER, JUNE 17, 2019

REFERRED TO COMMITTEE ON EDUCATION, JUNE 17, 2019

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," in preliminary provisions, further

providing for Basic Education Funding Commission; and, in

reimbursements by Commonwealth and between school districts,

further providing for student-weighted basic education

funding and providing for student-weighted basic education

funding for school year 2019-2020 and each school year

thereafter.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 123(h) of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949, is

amended by adding clauses to read:

Section 123. Basic Education Funding Commission.--* * *

(h) The commission shall develop a basic education funding

formula and identify factors that may be used to determine the

distribution of basic education funding among the school

districts in this Commonwealth. The factors identified under

this subsection may include all of the following:

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* * *

(8.1) Whether a school district has a high level of students

who are chronically absent.

(8.2) Whether a school district has a high level of students

in foster care.

(8.3) Whether a school district has a high level of students

who are homeless.

* * *

Section 2. Section 2502.53 heading and (b) introductory

paragraph of the act are amended to read:

Section 2502.53. Student-Weighted Basic Education Funding

for School Years 2015-2016 Through 2018-2019 .--* * *

(b) For the 2015-2016 school year [and each school year

thereafter] through the 2018-2019 school year , the Commonwealth

shall pay to each school district a basic education funding

allocation which shall consist of the following:

* * *

Section 3. The act is amended by adding a section to read:

Section 2502.55. Student-Weighted Basic Education Funding

for School Year 2019-2020 and Each School Year Thereafter.--(a)

The General Assembly finds and declares that the student-

weighted basic education funding formula is the result of the

work of the Basic Education Funding Commission established

pursuant to section 123.

(b) For the 2019-2020 school year and each school year

thereafter, the Commonwealth shall pay to each school district a

basic education funding allocation which shall consist of the

following:

(1) An amount equal to the sum of the school district's

basic education funding allocation for the 2013-2014 school

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year.

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

(i) Multiply the school district's student-weighted average

daily membership by the median household income index and local

effort capacity index.

(ii) Multiply the product in subparagraph (i) by the

difference between the amount appropriated for the allocation of

basic education funding to school districts and the amount

appropriated for the allocation in paragraph (1).

(iii) Divide the product in subparagraph (ii) by the sum of

the products in subparagraph (i) for all school districts.

(c) For the purpose of this section:

(1) Student-weighted average daily membership for a school

district shall be the sum of the following:

(i) The average of the school district's three most recent

years' average daily membership.

(ii) The acute poverty average daily membership calculated

as follows:

(A) Multiply the school district's acute poverty percentage

by its average daily membership.

(B) Multiply the product in clause (A) by six-tenths (0.6).

(iii) The poverty average daily membership calculated as

follows:

(A) Multiply the school district's poverty percentage by its

average daily membership.

(B) Multiply the product in clause (A) by three-tenths

(0.3).

(iv) The concentrated poverty average daily membership for

qualifying school districts with an acute poverty percentage

equal to or greater than thirty percent (30%), to be calculated

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as follows:

(A) Multiply the school district's acute poverty percentage

by its average daily membership.

(B) Multiply the product in clause (A) by three-tenths

(0.3).

(v) The number of the school district's limited English-

proficient students multiplied by six-tenths (0.6).

(vi) The average daily membership for the school district's

students enrolled in charter schools and cyber charter schools

multiplied by two-tenths (0.2).

(vii) The sparsity/size adjustment for qualifying school

districts with a sparsity/size ratio greater than the

sparsity/size ratio that represents the seventieth percentile

sparsity/size ratio for all school districts calculated as

follows:

(A) Divide the school district's sparsity/size ratio by the

sparsity/size ratio that represents the seventieth percentile

for all school districts.

(B) Subtract one (1) from the quotient in clause (A).

(C) Multiply the sum of subparagraphs (i), (ii), (iii),

(iv), (v) and (vi) by the amount in clause (B).

(D) Multiply the product in clause (C) by seven-tenths

(0.7).

(viii) The school district's chronic absenteeism percentage

calculated as follows:

(A) Multiply the school district's chronic absenteeism

percentage by its average daily membership.

(B) Multiply the product in clause (A) by five-tenths (0.5).

(ix) Except if the school district has ten (10) or fewer

foster students, the school district's foster student percentage

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calculated as follows:

(A) Multiply the school district's foster student percentage

by its average daily membership.

(B) Multiply the product in clause (A) by five-tenths (0.5).

(x) Except if the school district has ten (10) or fewer

homeless students, the school district's homeless student

percentage calculated as follows:

(A) Multiply the school district's homeless student

percentage by its average daily membership.

(B) Multiply the product in clause (A) by five-tenths (0.5).

(2) Local effort index for a school district shall be

calculated as follows:

(i) Determine the school district's local effort factor

calculated as follows:

(A) Multiply the school district's median household income

by its number of households.

(B) Divide the school district's local tax-related revenue

by the product in clause (A).

(C) Multiply the quotient in clause (B) by one thousand

(1,000).

(D) Divide the product in clause (C) by the Statewide median

of clause (C).

(ii) Determine the school district's excess spending factor,

to be calculated as follows:

(A) Divide the school district's current expenditures by the

sum of its average daily membership and the amounts in paragraph

(1)(ii), (iii), (iv), (v), (vi) and (vii).

(B) Divide the quotient in clause (A) by the Statewide

median of clause (A).

(C) Divide one (1) by the quotient in clause (B).

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(iii) Multiply the school district's local effort factor by

the lesser of one (1) or the school district's excess spending

factor.

(3) Local capacity index for a qualifying school district

shall be calculated as follows:

(i) Divide the school district's local tax-related revenue

by the sum of its market value and personal income valuation.

(ii) Multiply the sum of the school district's market value

and personal income valuation by the Statewide median of

subparagraph (i).

(iii) Determine the school district's local capacity per

student by dividing the product in subparagraph (ii) by the sum

of its average daily membership and the amounts in paragraph (1)

(ii), (iii), (iv), (v), (vi) and (vii).

(iv) If the school district's local capacity per student is

less than the Statewide median of subparagraph (iii):

(A) Divide the school district's local capacity per student

by the Statewide median.

(B) Subtract the quotient in clause (A) from one (1).

(4) Local effort capacity index for a school district shall

equal the sum of its local effort index and local capacity

index.

(5) The data used to calculate the factors and indexes in

this section shall be based on the most recent years for which

data is available as determined by the Department of Education

and be fixed as of the first day of June preceding the school

year in which the allocation occurs. Data fixed on the first day

of June shall be revised by the Department of Education if it is

subsequently found to be incorrect.

(6) The student-based allocations calculated under paragraph

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(2)(viii), (ix) and (x) shall only be directed toward support

services deemed necessary by the school district.

(d) The Department of Education shall publish the

allocations calculated under this section for each school

district on the Department of Education's publicly accessible

Internet website, including the student-based allocations

calculated under subsection (c)(2)(viii), (ix) and (x) for each

school district.

(e) For purposes of this section:

(1) "Acute poverty percentage" shall mean the number of

children six (6) to seventeen (17) years of age living in a

household where the ratio of income to poverty is less than one

hundred percent (100%) of the Federal poverty guidelines divided

by the total number of children six (6) to seventeen (17) years

of age as determined by the most recent five-year estimate of

the United States Census Bureau's American Community Survey.

(2) "Chronic absenteeism" shall mean students who have been

enrolled in school for sixty (60) or more school days and absent

for more than ten percent (10%) of school days during the school

year or eighteen (18) days in a 180-day school year.

(3) "Current expenditures" shall mean the General Fund

expenditures in functional classifications of instruction,

support services and operation of noninstructional services.

Beginning with the 2016-2017 school year, "current expenditures"

shall mean the General Fund expenditures in functional

classifications of instruction, support services and operation

of noninstructional services, minus General Fund revenues for

tuition from patrons.

(4) "Foster student" shall mean a student who is placed away

from the student's parents or guardians at a home that is

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administered by a State agency and who receives 24-hour

substitute care. The term includes, but is not limited to, a

student who is placed in a foster family home, foster home of a

relative, group home, emergency shelter, residential facility,

child care institution or pre-adoptive home.

(5) "Homeless student" shall mean any of the following:

(i) A student who is sharing housing with other persons due

to the student's loss of housing, economic hardship or a similar

reason.

(ii) A student who is living in a motel, hotel or camping

ground due to the lack of alternative adequate accommodations.

(iii) A student who is living in an emergency or

transitional shelter.

(iv) A student who is abandoned in a hospital.

(v) A student who has a primary nighttime residence that is

a public or private place not designed for or ordinarily used as

a regular sleeping accommodation for individuals.

(vi) A student who is living in a car, park, public space,

abandoned building, substandard housing, bus or train station or

similar settings.

(6) "Households" shall mean the number of households in each

school district as determined by the most recent five-year

estimate of the United States Census Bureau's American Community

Survey.

(7) "Local tax-related revenue" shall mean the sum of school

district revenues for State property tax reduction allocation,

taxes levied and assessed, delinquencies on taxes levied and

assessed, revenue from local government units and other local

revenues not specified elsewhere, as designated in the Manual of

Accounting and Financial Reporting for Pennsylvania Public

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Schools. Beginning with the 2016-2017 school year, revenues

received by a school district from the sales and use tax and the

cigarette tax shall be included when determining a school

district's local tax-related revenue under this section.

(8) "Median household income" shall mean the median

household income for school districts and the State as

determined by the most recent five-year estimate of the United

States Census Bureau's American Community Survey.

(9) "Median household income index" shall mean a number

calculated as follows:

(i) Divide a school district's median household income by

the State median household income.

(ii) Divide one (1) by the quotient in subparagraph (i).

(10) "Poverty percentage" shall mean the number of children

six (6) to seventeen (17) years of age living in a household

where the ratio of income to poverty is between one hundred

percent (100%) and one hundred eighty-four percent (184%) of the

Federal poverty guidelines divided by the total number of

children six (6) to seventeen (17) years of age as determined by

the most recent five-year estimate of the United States Census

Bureau's American Community Survey.

(11) "Size ratio" shall mean a number calculated as follows:

(i) Divide the average of a school district's three (3) most

recent years' average daily membership by the Statewide average

of the three (3) most recent years' average daily membership for

all school districts.

(ii) Multiply the amount in subparagraph (i) by five-tenths

(0.5).

(iii) Subtract the amount in subparagraph (ii) from one (1).

(12) "Sparsity ratio" shall mean a number calculated as

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follows:

(i) Divide the average of a school district's three (3) most

recent years' average daily membership by its total square miles

as reported in the latest decennial census as reported by the

United States Census Bureau.

(ii) Divide the State total average daily membership by the

State total square miles.

(iii) Divide the quotient in subparagraph (i) by the

quotient in subparagraph (ii).

(iv) Multiply the quotient in subparagraph (iii) by five-

tenths (0.5).

(v) Subtract the product in subparagraph (iv) from one (1).

(13) "Sparsity/size ratio" shall mean a number calculated by

adding the following amounts:

(i) The sparsity ratio multiplied by four-tenths (0.4).

(ii) The size ratio multiplied by six-tenths (0.6).

Section 4. This act shall take effect in 60 days.

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