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                                                      PRINTER'S NO. 3500

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2564 Session of 1998


        INTRODUCED BY MICOZZIE, CIVERA, FLICK, BARRAR, DeLUCA AND
           COLAFELLA, APRIL 29, 1998

        REFERRED TO COMMITTEE ON EDUCATION, APRIL 29, 1998

                                     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," further providing for funding for
     6     charter schools.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 1725-A of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949, added
    11  June 19, 1997 (P.L.225, No.22), is amended to read:
    12     Section 1725-A.  Funding for Charter Schools.--(a)  Funding
    13  for a charter school shall be provided in the following manner:
    14     (1)  There shall be no tuition charge for a resident or
    15  nonresident student attending a charter school.
    16     (2)  For non-special education students, the charter school
    17  shall receive for each student enrolled [no less than]:
    18     (i)  the budgeted total expenditure per average daily
    19  membership of the prior school year, as defined in section


     1  2501(20), minus the budgeted expenditures of the district of
     2  residence for nonpublic school programs; adult education
     3  programs; community/junior college programs; student
     4  transportation services; for special education programs;
     5  facilities acquisition, construction and improvement services;
     6  and other financing uses, including debt service and fund
     7  transfers as provided in the Manual of Accounting and Related
     8  Financial Procedures for Pennsylvania School Systems established
     9  by the department; or
    10     (ii)  upon petition by the charter school applicant, a lesser
    11  amount approved by the local board of school directors.
    12  This amount shall be paid by the district of residence of each
    13  student.
    14     (3)  For special education students, the charter school shall
    15  receive for each student enrolled the same funding as for each
    16  non-special education student as provided in clause (2), plus an
    17  additional amount determined by dividing the district of
    18  residence's total special education expenditure by the product
    19  of multiplying the combined percentage of section 2509.5(k)
    20  times the district of residence's total average daily membership
    21  for the prior school year. This amount shall be paid by the
    22  district of residence of each student.
    23     (4)  A charter school may request the intermediate unit in
    24  which the charter school is located to provide services to
    25  assist the charter school to address the specific needs of
    26  exceptional students. The intermediate unit shall assist the
    27  charter school and bill the charter school for the services. The
    28  intermediate unit may not charge the charter school more for any
    29  service than it charges the constituent districts of the
    30  intermediate unit.
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     1     (5)  Payments shall be made to the charter school in twelve
     2  (12) equal monthly payments, by the fifth day of each month,
     3  within the operating school year. A student enrolled in a
     4  charter school shall be included in the average daily membership
     5  of the student's district of residence for the purpose of
     6  providing basic education funding payments and special education
     7  funding pursuant to Article XXV. If a school district fails to
     8  make a payment to a charter school as prescribed in this clause,
     9  the secretary shall deduct the amount, as documented by the
    10  charter school, from any and all State payments made to the
    11  district after receipt of documentation from the charter school.
    12     (b)  The Commonwealth shall provide temporary financial
    13  assistance to a school district due to the enrollment of
    14  students in a charter school who attended a nonpublic school in
    15  the prior school year in order to offset the additional costs
    16  directly related to the enrollment of those students in a public
    17  charter school. The Commonwealth shall pay the school district
    18  of residence of a student enrolled in a nonpublic school in the
    19  prior school year who is attending a charter school an amount
    20  equal to the school district of residence's basic education
    21  subsidy for the current school year divided by the district's
    22  average daily membership for the prior school year. This payment
    23  shall occur only for the first year of the attendance of the
    24  student in a charter school, starting with school year 1997-
    25  1998. Total payments of temporary financial assistance to school
    26  districts on behalf of a student enrolling in a charter school
    27  who attended a nonpublic school in the prior school year shall
    28  be limited to funds appropriated for this program in a fiscal
    29  year. If the total of the amount needed for all students
    30  enrolled in a nonpublic school in the prior school year who
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     1  enroll in a charter school exceeds the appropriation for the
     2  temporary financial assistance program, the amount paid to a
     3  school district for each qualifying student shall be pro rata
     4  reduced. Receipt of funds under this subsection shall not
     5  preclude a school district from applying for a grant under
     6  subsection (c).
     7     (c)  The Commonwealth shall create a grant program to provide
     8  temporary transitional funding to a school district due to the
     9  budgetary impact relating to any student attending a charter
    10  school. A school district that approves one or more charter
    11  schools may apply for a grant under this subsection. The
    12  department shall develop criteria which shall include, but not
    13  be limited to, the overall fiscal impact on the budget of the
    14  school district resulting from students of a school district
    15  attending a charter school. The criteria shall be published in
    16  the Pennsylvania Bulletin. Payments under this subsection shall
    17  be made for the first year of operation of the charter school.
    18  The authority to make grants under this subsection shall expire
    19  on June 30, 1999. This subsection shall not apply to a public
    20  school converted to a charter school under section 1717-A(b).
    21     (d)  It shall be lawful for any charter school to receive,
    22  hold, manage and use, absolutely or in trust, any devise,
    23  bequest, grant, endowment, gift or donation of any property,
    24  real or personal and/or mixed, which shall be made to the
    25  charter school for any of the purposes of this article.
    26     (e)  It shall be unlawful for any trustee of a charter school
    27  or any board of trustees of a charter school or any other person
    28  affiliated in any way with a charter school to demand or
    29  request, directly or indirectly, any gift, donation or
    30  contribution of any kind from any parent, teacher, employe or
    19980H2564B3500                  - 4 -

     1  any other person affiliated with the charter school as a
     2  condition for employment or enrollment and/or continued
     3  attendance of any pupil. Any donation, gift or contribution
     4  received by a charter school shall be given freely and
     5  voluntarily.
     6     Section 2.  This act shall take effect in 60 days.
















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