PRINTER'S NO. 648
No. 593 Session of 1977
INTRODUCED BY GALLAGHER, PANCOAST, LINCOLN, BURNS, WISE, DAVIES,
DiCARLO, MILANOVICH, GARZIA, BERLIN AND W. D. HUTCHINSON,
MARCH 14, 1977
REFERRED TO COMMITTEE ON EDUCATION, MARCH 14, 1977
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," changing and adding definitions and
6 further providing for subsidies.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Clauses (9), (12) and (15) of section 2501, act
10 of March 10, 1949 (P.L.30, No.14), known as the "Public School
11 Code of 1949," clause (9) amended June 12, 1968 (P.L.192,
12 No.96), clauses (12) and (15) amended June 26, 1974 (P.L.370,
13 No.125), are amended and the section is amended by adding
14 clauses to read:
15 Section 2501. Definitions.--For the purposes of this article
16 the following terms shall have the following meanings:
17 * * *
18 (9) ["Valuation."] "Real Property Valuation." A school
19 district's or vocational school district's real property
1 valuation, to be used for purposes of computing the basic
2 account standard reimbursement fraction, the subsidiary account
3 reimbursement fraction, and the aid ratio shall be the valuation
4 placed upon its taxable real property by the State Tax
5 Equalization Board.
6 (9.1) "Personal Income Valuation." A school district's
7 personal income valuation for purposes of reimbursement to a
8 school district under subsections (d), (e), and (f) of section
9 2502, and section 2592 shall be the valuation of the total
10 personal income determined under Article III of the act of March
11 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
12 for each school district each year by the Secretary of Revenue
13 and certified to the Secretary of Education.
14 (9.2) "Equalized Millage." A school district's tax effort
15 to be used for purposes of determining the base earned for
16 reimbursement and used for reimbursement under subsections (d)
17 and (e) of section 2502, shall be the amount of local school
18 taxes collected during the year for which reimbursement is being
19 computed, divided by the most recent real property valuation of
20 the school district.
21 (9.3) "Median Equalized Millage." For the school year 1976-
22 1977 and each year thereafter, the Secretary of Education shall
23 annually calculate the equalized millage for which an equal
24 number of districts are above and below for that year.
25 * * *
26 (12) "State's Share of Total Cost." For the school year
27 1966-1967 and each school year thereafter, the State's share of
28 total reimbursable cost shall be fifty percent (50%). Total
29 reimbursable cost shall be the lesser of actual expense per WADM
30 as defined in clause (11.1) or a maximum amount to be fixed by
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1 the General Assembly [from time to time] each year to represent
2 the estimated [average actual] median actual instruction expense
3 per WADM in the year for which the reimbursement is to be
4 payable. For the school year commencing the first day of July
5 [1973] 1976 and each school year thereafter the maximum amount
6 shall be [seven hundred fifty dollars ($750)] the median actual
7 instruction expense per WADM in the year for which the
8 reimbursement is to be payable. The Secretary of Education
9 annually shall calculate the State [average "actual] "median
10 actual instruction expense per weighted average daily
11 membership" and shall supply the same to the General Assembly
12 [to assist the General Assembly in evaluating the adequacy of
13 such maximum amount].
14 (12.1) "Median Actual Instruction Expense Per Weighted
15 Average Daily Membership." For the school year 1976-1977 and
16 each school year thereafter, the Secretary of Education shall
17 annually calculate the actual instruction expense per weighted
18 average daily membership for which an equal number of districts
19 are above and below for that year.
20 * * *
21 (14.1) "Market Value/Income Aid Ratio." For purposes of
22 reimbursement to a school district under subsections (d), (e),
23 and (f) of section 2502, and section 2592, shall be the
24 Commonwealth's method of determining the combined market value
25 and income wealth for each pupil, and shall be computed as
26 follows:
27 (a)(i) Divide the market value per weighted average daily
28 membership of the district by the market value per weighted
29 average daily membership of the State;
30 (ii) Determine the product of (a)(i) multiplied by the
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1 district's share of total costs which is .5;
2 (iii) Subtract the resultant product in (a)(ii) from 1.000
3 to determine the market value portion of the aid ratio as
4 follows:
5 (District Market Value/WADM
6 Market Value Aid Ratio = 1 - _________________________ x.5)
7 (State Market Value/WADM
8 (b)(i) Divide the income per weighted average daily
9 membership of the district by the average personal income per
10 weighted average daily membership of the State;
11 (ii) Determine the product of (b)(i) multiplied by the
12 district's share of total costs which is .5;
13 (iii) Subtract the resultant product in (b)(ii) from 1.0000
14 to determine the income aid ratio as follows:
15 (District Income/WADM
16 Income Aid Ratio = 1 - _____________________ x.5)
17 (State Income/WADM
18 (c) Add the market value aid ratio to the income aid ratio
19 and divide the sum by 2 to determine the market value/income aid
20 ratio as follows:
21 Market Value Aid Ratio + Income
22 Market Value/Income Aid Ratio
23 Aid Radio = _______________________________
24 2
25 (15) "Minimum Subsidy." [In] For the school year 1976-1977
26 and each school year thereafter, in no case shall a district
27 receive for each pupil in weighted average daily membership
28 [through the school year 1969-1970], an amount less than ten
29 percent (10%) of the actual cost of instruction or [fifty-five
30 dollars ($55)] ten percent (10%) of the base earned for
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1 reimbursement whichever is the lesser amount. [For the school
2 year 1973-1974 and each school year thereafter, in no case shall
3 a district receive for each pupil in weighted average daily
4 membership an amount less than ten percent (10%) of the actual
5 cost of instruction, or seventy-five dollars ($75) whichever is
6 the lesser amount.] For 1976-1977 and each school year
7 thereafter, a district whose actual instruction expense per
8 weighted average daily membership is more than two hundred
9 dollars ($200) less than the median actual instruction expense
10 per weighted average daily membership, and whose equalized
11 millage is within fifteen percent (15%) of the median equalized
12 millage, the reimbursement shall be two hundred dollars ($200)
13 below the median actual instruction expense per weighted average
14 daily membership times the district's aid ratio for each
15 weighted average daily membership.
16 * * *
17 (17.1) "Base Earned for Reimbursement." Shall be the lesser
18 of (a) the actual instruction expense per weighted average daily
19 membership of the district, or (b) the amount earned as follows:
20 (i) Where the equalized millage is thirty percent (30%) or
21 more above the median equalized millage, rounded to a whole
22 mill, the amount shall be the median actual instruction expense
23 per weighted average daily membership rounded to the nearest ten
24 dollars ($10) amount.
25 (ii) Where the equalized millage is fifteen percent (15%) or
26 more and less than thirty percent (30%) above above the median
27 equalized millage, rounded to a whole mill, the amount shall be
28 fifty dollars ($50) less than the median actual instruction
29 expense per weighted average daily membership.
30 (iii) Where the equalized millage is less than fifteen
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1 percent (15%) above or below the median equalized millage,
2 rounded to a whole mill, the amount shall be one hundred dollars
3 ($100) less than the median actual instruction expense per
4 weighted average daily membership.
5 (iv) Where the equalized millage is fifteen percent (15%) to
6 thirty percent (30%) below the median equalized millage, rounded
7 to a whole mill, the amount shall be one hundred fifty dollars
8 ($150) less than the median actual instruction expense per
9 weighted average daily membership.
10 (v) Where the equalized millage is more than thirty percent
11 (30%) below the median equalized millage, the amount shall be
12 two hundred dollars ($200) less than the median actual
13 instruction expense per weighted average daily membership.
14 Section 2. Subsections (d), (f) and (g) of section 2502 of
15 the act, subsection (d), amended June 26, 1974 (P.L.370,
16 No.125), and subsections (f) and (g) amended August 18, 1971
17 (P.L.339, No.88), are amended to read:
18 Section 2502. Payments on Account of Instruction.--
19 * * *
20 (d) For the school year [commencing the first day of July
21 within the year of the effective date of this amendment] 1976-
22 1977 and each school year thereafter, each school district shall
23 be paid by the Commonwealth on account of instruction of the
24 district's pupils an amount to be determined by multiplying the
25 market value/income aid ratio times the actual instruction
26 expense per weighted average daily membership or by [five
27 hundred fifty dollars ($550),] the base earned for
28 reimbursement, whichever is less, and by the weighted average
29 daily membership for the district. [For the school year 1973-
30 1974 and each school year thereafter, each school district shall
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1 be paid by the Commonwealth on account of instruction of the
2 district's pupils an amount to be determined by multiplying the
3 aid ratio times the actual instruction expense per weighted
4 average daily membership or by seven hundred fifty dollars
5 ($750), whichever is less.] For the school year 1976-1977 any
6 school district which, as a result of the impact on payments
7 under subsections (d), (e) and (f) and under section 2592 by
8 reason of the market value/income aid ratio or the application
9 of equalized millage to the base earned for reimbursement, shall
10 suffer a reduction in subsidy entitlement, shall be held
11 harmless from this impact and shall receive an amount which is
12 no less than that received for 1976-1977 under such subsections
13 and under section 2592.
14 * * *
15 (f) For the school year commencing the first day of July
16 within the year of the effective date of this amendment, and
17 each school year thereafter, each school district so entitled
18 shall be paid, in addition to any other subsidy to which it is
19 entitled, an amount for density or sparsity of population.
20 Except as provided in clause (17) of section 2501 and as
21 provided below, this amount shall be paid on account of
22 expenditures in excess of four hundred dollars ($400) per
23 weighted average daily membership, not to exceed for the school
24 year 1966-1967 one hundred dollars ($100), for the school year
25 1967-1968 one hundred fifty dollars ($150), for the school year
26 1968-1969 two hundred dollars ($200), for the school year 1969-
27 1970 and each school year thereafter two hundred fifty dollars
28 ($250), an amount to be determined by multiplying the excess
29 expenditures by the market value/income aid ratio or by three
30 hundred seventy-five thousandths (.375) whichever is greater,
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1 and by the number of weighted average daily membership, such
2 amount to be in addition to any other payment for such pupils:
3 Provided, however, a school district entitled to additional
4 payment for density or sparsity of population may, in lieu of
5 the above payment, elect for any school year to be paid and the
6 Commonwealth shall pay such additional entitlement on account of
7 excess expenditures per weighted average daily membership in
8 excess of four hundred dollars ($400) a sum of thirty dollars
9 ($30) per weighted average daily membership, such amount to be
10 in addition to any other payments for such pupils.
11 The payment for the density factor for those qualifying
12 school districts with a WADM in excess of fifty thousand
13 (50,000) shall be the actual cost of instruction per WADM
14 multiplied by fifteen percent (15%) through the 1969-1970 school
15 year or by nineteen percent (19%) for the 1970-1971 school year
16 and thereafter and by the WADM of the district.
17 (g) It is hereby stated to be the objective of the
18 Commonwealth to provide to each child educated in the schools of
19 Pennsylvania, a minimum [education of five hundred fifty dollars
20 ($550) per pupil in weighted average daily membership.
21 To this end, and except as hereinafter provided, for the
22 1970-1971 school year, each district whose actual cost of
23 instruction per weighted average daily membership is less than
24 five hundred fifty dollars ($550), shall receive an additional
25 payment (provided such amount is positive) by subtracting from
26 the product of five hundred fifty dollars ($550) times the WADM,
27 the sum of the payment provided in section 2502(d) plus the
28 payment for density or sparsity under subsection (f) of section
29 2502, plus the payment for poverty under section 2502.3 and the
30 product of the most recent market value of the district as
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1 released by the State Tax Equalization Board multiplied by
2 sixteen and twenty-four one-hundredths mills (.01624)]
3 educational imput that is within two hundred dollars ($200) of
4 the median actual instruction expense per WADM, for the school
5 year 1976-1977 and each school year thereafter.
6 Section 3. This act shall take effect immediately.
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