PRINTER'S NO. 1963
No. 1561 Session of 2003
INTRODUCED BY LEWIS, BENNINGHOFF, CAPPELLI, COLEMAN, CORRIGAN,
CRAHALLA, CREIGHTON, DALLY, FEESE, FORCIER, GEORGE, GODSHALL,
GOODMAN, HERMAN, METCALFE, MUNDY, REICHLEY, SCAVELLO,
E. Z. TAYLOR AND YOUNGBLOOD, JUNE 9, 2003
REFERRED TO COMMITTEE ON EDUCATION, JUNE 9, 2003
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," providing for estimated, ending
6 undesignated, unreserved fund balance.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
10 as the Public School Code of 1949, is amended by adding a
11 section to read:
12 Section 688. Estimated, Ending Undesignated, Unreserved Fund
13 Balance.--(a) For the 2003-2004 school year and each school
14 year thereafter, no school district shall approve an increase in
15 real property taxes unless it has adopted a budget that includes
16 an estimated, ending undesignated, unreserved fund balance less
17 than or equal to six per centum (6%) of its total budgeted
18 expenditures for that school year.
19 (b) By August 15, 2003, and each year thereafter, each
1 school district that approves an increase in real property taxes
2 shall provide the department with information certifying
3 compliance with this section. Such information shall be provided
4 in a form and manner prescribed by the department and shall
5 include information on the school district's estimated, ending
6 undesignated, unreserved fund balance expressed as a dollar
7 amount and as a percentage of the school district's total
8 budgeted expenditures for that school year.
9 (c) By July 31, 2003, and each year thereafter, each school
10 district shall provide the department and the Legislative Budget
11 and Finance Committee with a copy of its prior year, audited
12 financial statements. The department shall hold all State
13 disbursements to any school district that is not in compliance
14 with this subsection until such noncompliance is remedied.
15 (d) (1) By August 15, 2003, and each year thereafter, the
16 department shall establish for each school district a financial
17 amount for each district's:
18 (i) General fund undesignated, unreserved fund balance.
19 (ii) Total general fund expenditures.
20 (2) The department shall immediately publish in writing and
21 on its World Wide Web site, a listing of these figures for each
22 school district, showing:
23 (i) A column listing the audited total general fund
24 expenditures.
25 (ii) A column listing the audited general fund,
26 undesignated, unreserved fund balances.
27 (iii) A column calculating the percentage of general fund,
28 undesignated, unreserved fund balance to the total general fund
29 expenditures.
30 (3) The department shall develop and similarly publish in
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1 writing and on its World Wide Web site a listing of every school
2 district with a percentage greater than ten per centum (10%) of
3 general fund, undesignated, unreserved fund balance to the total
4 general fund expenditures.
5 (4) On or before September 1, 2003, and each year
6 thereafter, the department shall deliver a copy of the Taxpayer
7 Watch List to the Governor, the members of the General Assembly
8 and the Legislative Finance and Budget Committee.
9 (e) Every school district listed on the Taxpayer Watch List
10 shall immediately reduce its general fund, undesignated,
11 unreserved fund balance to under six per centum (6%) of its
12 total general fund expenditures for the 2003-2004 school year
13 and each school year thereafter. The department shall withhold
14 all State disbursements to any school district not in compliance
15 with this section.
16 (f) (1) On or before September 1, 2003, and each year
17 thereafter, each school district shall file a written
18 certification with the department in a form and manner
19 prescribed by the department, signed by the majority of the
20 members of the school board, the superintendent or acting
21 superintendent and the business manager or equivalent of the
22 school district.
23 (2) The written certification shall include a statement that
24 the information submitted to the department is true and correct,
25 that the school district's general fund, undesignated,
26 unreserved fund balance is below six per centum (6%) of its
27 total general fund expenditures according to the government
28 generally accepted accounting principles.
29 (g) As used in this section, the following words and phrases
30 shall have the meanings given to them in this subsection:
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1 "Department." The Department of Education of the
2 Commonwealth.
3 "Estimated, ending undesignated, unreserved fund balance."
4 That portion of the fund balance which is appropriable for
5 expenditure or not legally or otherwise segregated for a
6 specific or tentative future use and projected for the close of
7 the school year for which a school district's budget was
8 adopted.
9 "Taxpayer Watch List." The listing required under subsection
10 (d)(3).
11 "Total general fund expenditures." A school district's total
12 actual expenditures as reported in its audited financial
13 statements, according to government generally accepted
14 accounting principles.
15 Section 2. This act shall take effect immediately.
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