PRINTER'S NO. 3744
No. 2692 Session of 1990
INTRODUCED BY FREIND, RYAN, ADOLPH, CIVERA, DURHAM, GANNON,
MICOZZIE, RAYMOND, R. C. WRIGHT, FOX, J. L. WRIGHT, BUSH,
PERZEL, DIETTERICK, D. W. SNYDER, ANGSTADT, CORNELL, MARSICO,
O'BRIEN, DEMPSEY, BURD, FARMER, WOGAN, E. Z. TAYLOR, NAILOR,
JACKSON, CESSAR, McVERRY, NAHILL, TELEK, JADLOWIEC, WASS,
VROON, SAURMAN, HASAY, LANGTRY, FLICK, LASHINGER, NOYE,
HERSHEY, PITTS, SCHULER AND REBER, JUNE 18, 1990
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 18, 1990
AN ACT
1 Amending the act of July 1, 1985 (P.L.120, No.32), entitled "An
2 act creating a special fund in the Treasury Department for
3 use in attracting major industry into this Commonwealth;
4 establishing a procedure for the appropriation and use of
5 moneys in the fund; establishing the Tax Stabilization
6 Reserve Fund; and providing for expenditures from such
7 account," providing that requests for appropriations from the
8 Tax Stabilization Reserve Fund may be initiated by the
9 General Assembly.
10 The Commonwealth has not complied with statutory requirements
11 for payment of special education funds to school districts. This
12 is evidenced by the payment of $99 million dollars to school
13 districts for previously incurred expenses for these programs in
14 the 1989-1990 budget. The anticipated deficit for payments to
15 school districts for the 1989-1990 school year is $84,224,958.
16 The administration is proposing to delay payment of these funds
17 until the 1990-1991 fiscal year. Current year payments as
18 required under section 2509 of the act of March 10, 1949
19 (P.L.30, No.14), known as the Public School Code of 1949, will
1 not be provided. This will require school districts to absorb
2 these expenses, necessitating increases in property taxes, or
3 other taxes, in many districts. The General Assembly finds that
4 the continuing deficits in special education funding, the
5 inability of the Commonwealth to provide required funding to
6 school districts, and the resulting increases in taxes, to meet
7 the requirements for an emergency involving the health, safety
8 or welfare of the citizens of the Commonwealth, a prerequisite
9 for the use of funds from the Tax Stabilization Reserve Fund. In
10 order to restore predictability in the funding of this vital
11 government service and to use funds from the Tax Stabilization
12 Reserve Fund to provide for the continuation of this program the
13 law must be amended to permit members of the House of
14 Representatives and the Senate to introduce legislation
15 providing for the expenditure of funds to provide special
16 education funding to school districts.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 205(a) of the act of July 1, 1985
20 (P.L.120, No.32), entitled "An act creating a special fund in
21 the Treasury Department for use in attracting major industry
22 into this Commonwealth; establishing a procedure for the
23 appropriation and use of moneys in the fund; establishing the
24 Tax Stabilization Reserve Fund; and providing for expenditures
25 from such account," is amended to read:
26 Section 205. Disposition of funds.
27 (a) Appropriation.--Whenever the Governor [determines] and
28 the General Assembly determine that moneys from this fund are
29 necessary to meet emergencies involving the health, safety or
30 welfare of the citizens of this Commonwealth or to
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1 counterbalance downturns of the economy which result in
2 significant unanticipated revenue shortfalls, [he] the Governor,
3 or members of the House of Representatives or the Senate shall
4 present a request for an appropriation along with the specifics
5 of the proposal and such suggested ancillary and substantive
6 legislation as may be necessary to the chairmen of the Senate
7 and House Appropriations Committees. The General Assembly may
8 then through approval of a separate appropriation bill by a vote
9 of two-thirds of the members elected to the Senate and the House
10 of Representatives appropriate money from the fund to meet the
11 needs identified in the [Governor's] proposal. Any money
12 appropriated according to this section which has then lapsed
13 shall be returned to the fund.
14 * * *
15 Section 2. This act shall take effect immediately.
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