PRINTER'S NO. 917
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
739
Session of
2019
INTRODUCED BY TOMLINSON, KILLION, DINNIMAN, BOSCOLA AND STEFANO,
JUNE 10, 2019
REFERRED TO EDUCATION, JUNE 10, 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 charter schools, further providing
for funding for charter schools.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1725-A(a) of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, is
amended to read:
Section 1725-A. Funding for Charter [Schools] School
Entities.--(a) Funding for a charter school shall be provided
in the following manner:
(1) There shall be no tuition charge for a resident or
nonresident student attending a charter school entity.
(2) For non-special education students, beginning July 1,
2019, the charter school entity shall receive for each student
enrolled [no less than the budgeted] the total expenditure per
average daily membership determined from the annual financial
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report of the prior school year, as defined in section 2501(20),
minus the [budgeted] actual expenditures of the district of
residence determined from the annual financial report of the
prior school year for nonpublic school programs; adult education
programs; community/junior college programs; student
transportation services; for special education programs;
facilities acquisition, construction and improvement services;
and other financing uses, including debt service and fund
transfers as provided in the Manual of Accounting and Related
Financial Procedures for Pennsylvania School Systems established
by the department. This amount shall be paid by the district of
residence of each student.
(3) [For] Beginning July 1, 2019, for special education
students, the charter school entity shall receive for each
student enrolled the same funding as for each non-special
education student as provided in clause (2), plus an additional
amount determined by dividing the district of residence's total
special education expenditure determined from the annual
financial report of the prior school year by the product of
multiplying the combined percentage of section 2509.5(k) times
the district of residence's total average daily membership for
the prior school year. This amount shall be paid by the district
of residence of each student.
(3.1) The department shall make the annual financial reports
necessary to make the calculations in clauses (2) and (3)
available on the department's publicly accessible Internet
website on:
(i) December 31, 2019, and each December 31 thereafter, for
all school districts other than school districts of the first
class; and
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(ii) March 1, 2020, and each March 1 thereafter, for school
districts of the first class.
(3.2) Until the annual financial report under clause (3.1)
is available, the payment amount shall be the same as the prior
year adjusted by the average percentage increases in the
Statewide average weekly wage and the Employment Cost Index
Series for Elementary and Secondary Schools for the prior year.
(3.3) The department shall calculate the payment amounts
under clauses (2), (3) and (3.2) and post the amounts on the
department's publicly accessible Internet website to facilitate
timely and accurate payments.
(3.4) The department shall calculate the amount of payments
to be reconciled by a school district and a charter school
entity based on the actual amounts determined from the annual
financial report under clauses (2) and (3) on:
(i) February 15, 2020, and each February 15 thereafter, for
all school districts other than school districts of the first
class; and
(ii) March 21, 2020, and each March 21 thereafter, for
school districts of the first class.
(3.5) Beginning in 2020, the difference calculated in clause
(3.4) shall be paid by a school district or charter school
entity needing to make reconciliation payments in four equal
monthly payments by the last day of:
(i) March, April, May and June for all school districts
other than school districts of the first class; and
(ii) April, May, June and July for school districts of the
first class.
(4) A charter school entity may request the intermediate
unit in which the charter school entity is located to provide
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services to assist the charter school entity to address the
specific needs of exceptional students. The intermediate unit
shall assist the charter school entity and bill the charter
school entity for the services. The intermediate unit may not
charge the charter school entity more for any service than it
charges the constituent districts of the intermediate unit.
(5) Payments shall be made to the charter school entity in
twelve (12) equal monthly payments, by the fifth day of each
month, within the operating school year. A charter school
entity's initial request for payment each year from a school
district for a student enrolled in the charter school entity
shall include proof of enrollment in the charter school entity
and proof of residency within the school district. A student
enrolled in a charter school shall be included in the average
daily membership of the student's district of residence for the
purpose of providing basic education funding payments and
special education funding pursuant to Article XXV. [If] Under
clauses (5.1), (5.2) and (5.3), if a school district fails to
make a payment to a charter school entity as prescribed in this
clause, the secretary shall deduct the estimated amount, as
documented by the charter school entity, from any and all State
payments made to the district after receipt of documentation
from the charter school entity. No later than October 1 of each
year, a charter school entity shall submit to the school
district of residence of each student final documentation of
payment to be made based on the average daily membership for the
students enrolled in the charter school entity from the school
district for the previous school year. If a school district
fails to make payment to the charter school entity, the
secretary shall deduct and pay the amount as documented by the
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charter school entity from any and all State payments made to
the district after receipt of documentation from the charter
school entity from the appropriations for the fiscal year in
which the final documentation of payment was submitted to the
school district of residence.
(5.1) The secretary shall only make a deduction under
clause (5) if the charter school entity provides the secretary
with proof that:
(i) The school district was billed for payment by the
charter school entity at least thirty (30) days prior to the
date for payment under clause (5).
(ii) The school district did not make a payment prior to or
on the date prescribed in clause (5).
(iii) The rate used on the invoice was the rate that was
posted as of one (1) day prior to the invoice date on the
department's Internet website as calculated under clauses (2),
(3) and (3.2).
(5.2) Prior to making a deduction from a State payment due
to the district, the secretary shall verify the accuracy of the
charter school entity's request and documentation. The secretary
may not make a deduction if the department determines that the
charter school entity's request is inaccurate or that the
documentation is incomplete.
(5.3) The secretary shall notify the school district prior
to making any deductions from State payments and shall provide
the school district with the amount of the deduction.
(5.4) The following apply:
(i) Within thirty (30) days after the payment is made to the
charter school entity under clause (5), a school district may
notify the secretary that the estimated amount, as documented by
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the charter school entity, is inaccurate.
(ii) Within thirty (30) days of the notice by the school
district under subclause (i), the secretary shall provide the
school district with a hearing concerning whether the charter
school entity documented that students were enrolled in the
charter school entity, the period of time during which each
student was enrolled in the charter school entity, the school
district of residence of each student enrolled in the charter
school entity and whether the amounts deducted from or paid by
the school district were accurate.
(iii) The secretary shall determine the accuracy of the
amount documented by the charter school entity. Any necessary
payment adjustment shall be made within thirty (30) days of the
hearing.
(6) Within thirty (30) days after the secretary makes the
deduction described in clause (5), a school district may notify
the secretary that the deduction made from State payments to the
district under this subsection is inaccurate. The secretary
shall provide the school district with an opportunity to be
heard concerning whether the charter school documented that its
students were enrolled in the charter school, the period of time
during which each student was enrolled, the school district of
residence of each student and whether the amounts deducted from
the school district were accurate.
* * *
Section 2. This act shall take effect in 60 days.
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