HB 1329 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in school finances, providing for limitations on certain unassigned fund balance limits for a charter school entity.

Bill Text

• Printer's No. 1688 View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes specific limitations on the unassigned fund balances that charter school entities may maintain, along with requirements for refunds and reporting.

• Section 688.1

  Section 688.1. Limitations on Certain Unassigned Fund Balance Limits for a Charter School Entity.--(a) Fund balance limits shall be as follows: (1) For the 2019-2020 school year and each school year thereafter, a charter school entity shall not accumulate an unassigned fund balance greater than the charter school entity unassigned fund balance limit, which is determined as follows: Maximum Unassigned Fund Charter School Entity Balance as Percentage of Total Budgeted Expenditures Total Budgeted Expenditures Less Than or Equal to $11,999,999 12% Between $12,000,000 and $12,999,999 11.5% Between $13,000,000 and $13,999,999 11% Between $14,000,000 and $14,999,999 10.5% Between $15,000,000 and $15,999,999 10% Between $16,000,000 and $16,999,999 9.5% Between $17,000,000 and $17,999,999 9% Between $18,000,000 and $18,999,999 8.5% Greater Than or Equal to $19,000,000 8%; (2) For the 2019-2020 school year and each school year thereafter, the unassigned fund balance in place on June 30, 2020, and on June 30 of each year thereafter, in excess of the charter school entity unassigned fund balance limit, shall be refunded on a pro rata basis within ninety (90) days to all school districts that paid tuition to the charter school entity in the prior school year, based on the number of students for whom each school district paid tuition to the charter school entity multiplied by the school district's per student payment under section 1725-A.; (3) By October 31, 2020, and by October 31 of each year thereafter, each charter school entity shall provide the Department of Education and all school districts that paid tuition to the charter school entity in the prior school year with information certifying compliance with this section. The information shall be provided in a form and manner prescribed by the department and shall include information on the charter school entity's estimated ending unassigned fund balance expressed as a dollar amount and as a percentage of the charter school entity's total budgeted expenditures for that school year.; (4) Unassigned funds of a charter school entity in excess of the unassigned fund balance limit may not be used to pay a bonus to an administrator, board of trustees member, employe, staff member or contractor and may not be transferred to a charter school foundation. If a charter school entity uses funds in excess of the unassigned fund balance limit to pay bonuses or as a fund transfer, the value of that amount shall be refunded on a pro rata basis to all school districts that paid tuition to the charter school entity in the prior school year, based upon the number of students for whom each school district paid tuition to the charter school entity multiplied by the school district's per student payment under section 1725-A.; (b) As used in this section, "unassigned fund balance" shall mean the portion of the fund balance of a charter school entity that provides funding which serves to support the charter school entity and is: (1) Available for expenditure and not legally or otherwise segregated for a specific or tentative future use.; (2) Held in the General Fund accounts of the charter school entity.

  This adds a new section outlining restrictions on unassigned fund balances for charter schools, establishes refunding processes for excess funds, and defines unassigned fund balances.

Action History

1. May 02, 2019

   PN 1688 Referred to EDUCATION

Sponsors

• Jeanne McNeill · Cosponsor
• Brett R. Miller · Cosponsor
• Tina M. Davis · Cosponsor
• Andre D. Carroll · Primary
• Michael H. Schlossberg · Cosponsor
• Carol Hill-Evans · Cosponsor
• Caltagirone · Cosponsor
• Roebuck · Cosponsor
• Longietti · Cosponsor
• Robert Freeman · Cosponsor
• Dan Frankel · Cosponsor
• Donatucci · Cosponsor
• Millard · Cosponsor
• Joe Ciresi · Cosponsor
• Ed Neilson · Cosponsor
• Sturla · Cosponsor
• Deluca · Cosponsor
• Goodman · Cosponsor
• Peter Schweyer · Cosponsor
• Mike Zabel · Cosponsor

Subjects