SB 315 — An act amending the act of March 10, 1949 (P.L.30, No.14), entitled "An act relating to the public school system, including certain provisions applicable as well to private and parochial schools; amending, revising, consolidating and changing the laws relating thereto," in preliminary provisions, further providing for Special Education Funding Commission and for minimum number of days or hours; in duties and powers of boards of school directors, providing for admission fees for school-sponsored activities; in intermediate units, further providing for staff; in certification of teachers, further providing for certificates qualifying persons to teach and for instructional certificate grade spans and age levels and duties of department, providing for instructional certificate grade spans and age levels and for State certificate fee reduction, further providing for standard employment application, for career and technical instructional certificate, for program of continuing professional and paraprofessional education and for postbaccalaureate certification, providing for assessment of basic skills, further providing for professional educator discipline fee and providing for career and technical administrative director certification flexibility; in pupils and attendance, further providing for attendance policy at charter, regional charter and cyber charter schools, for procedure when child is truant, for procedure by school when child habitually truant, for procedure upon filing of citation, for penalties for violating compulsory school attendance requirements and for study of truancy procedure, providing for department supports to prevent truancy and further providing for reports to Superintendent of Public Instruction and for exceptional children and education and training; in student supports, further providing for definitions; in school safety and security, further providing for definitions, for School Safety and Security Committee, for school safety and security assessment providers, for School Safety and Security Grant Program, for school safety and security coordinator and for school safety and security training, providing for school safety and mental health grants for 2025-2026 school year and further providing for reporting and memorandum of understanding; in school security, further providing for training, for school resource officers, for school security guards and for duties of commission; in Safe2Say Program, further providing for intent, for definitions, for Safe2Say Program and for annual report; in threat assessment, further providing for definitions, for threat assessment teams and for threat assessment guidelines, training and information materials; in Drug and Alcohol Recovery High School Program, further providing for scope of program and selection of students and for enrollment of students; in evidence-based reading instruction, further providing for definitions and providing for school entity duties related to evidence-based reading instruction, for school entity duties related to reading screening, for reading deficiency identification and parental notification, for reading intervention plans, for grant program, for funding, for reporting, for accountability and for construction; in high schools, further providing for attendance in other districts and providing for Free Application for Federal Student Aid; in interscholastic athletics accountability, further providing for council recommendations and standards; in charter schools, further providing for funding for cyber charter schools, for enrollment and notification and for enrollee wellness checks; in career and technical education, further providing for capital reserve fund for approved purchases of equipment and facility maintenance, for career and technical education equipment grants, for Cosmetology Training through Career and Technical Center Pilot Program and for Barber Training through Career and Technical Center Pilot Program; providing for Nursing Shortage Assistance Program; in community colleges, further providing for financial program and reimbursement of payments; in the State System of Higher Education, further providing for definitions and for Grow Pennsylvania Merit Scholarship Program; in educational tax credits, further providing for limitations; in higher education accountability and transparency, further providing for exit counseling; in miscellaneous provisions relating to institutions of higher education, repealing provisions relating to State-related university performance-based funding model, further providing for prohibition on scholarship displacement at public institutions of higher education and providing for cooperation and for State scholarship renewals; in institutions of higher education, further providing for powers and duties of State Board of Higher Education, for definitions, for Performance-based Funding Council and for public institution of higher education reporting, providing for State-related University Performance Fund, for performance-based funding formula and for public accountability and further providing for agency duties, for grant priority and for report; in Ready-to-Succeed Scholarship, further providing for agency; in funding for public libraries, providing for State aid for fiscal year 2025-2026; in reimbursements by Commonwealth and between school districts, further providing for student-weighted basic education funding beginning with 2023-2024 school year, for extraordinary special education program expenses, for assistance to school districts declared to be in financial recovery status or identified for financial watch status and for Ready-to-Learn Block Grant; in construction and renovation of buildings by school entities, further providing for applicability; abrogating regulations; and making an editorial change.

(VI) PRORATED COST OF SCHOOL NURSING SERVICES IF SERVICES ARE PROVIDED TO A GROUP OF STUDENTS.

(VII) TOTAL COST OF A ONE-ON-ONE NURSE IF THE NURSE IS ASSIGNED TO A STUDENT RECEIVING SERVICES.

(C) ELIGIBLE SPECIALIZED EQUIPMENT COSTS PER SPECIAL EDUCATION STUDENT WHEN SPECIFIED IN THE STUDENT'S INDIVIDUALIZED EDUCATION PLAN SHALL INCLUDE:

(I) TOTAL COST OF BRAILLE MATERIALS FOR THE STUDENT RECEIVING SERVICES.

(II) TOTAL COST OF ASSISTIVE TECHNOLOGY FOR THE STUDENT RECEIVING SERVICES.

(III) TOTAL COST OF OTHER EQUIPMENT FOR THE STUDENT RECEIVING SERVICES.

(D) INELIGIBLE COSTS THAT MAY NOT BE USED IN THE CALCULATION INCLUDE:

(I) ADMINISTRATIVE COSTS.

(II) NONSPECIALIZED TRANSPORTATION COSTS.

(III) GENERAL EDUCATION COSTS, WHICH ARE NOT APPLICABLE TO SPECIAL EDUCATION SERVICES.

SECTION 3.

SECTION 1306-B(H) OF THE ACT IS AMENDED BY ADDING A PARAGRAPH TO READ:

SECTION 1306-B.

SCHOOL SAFETY AND SECURITY GRANT PROGRAM.

20250SB0315PN1226 - 4 - * * * (H) SCHOOL SAFETY AND SECURITY FUND.-- * * * (14) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, DURING THE 2025-2026 FISCAL YEAR, MONEY IN THE FUND SHALL BE USED AS FOLLOWS:

(I) ONE HUNDRED MILLION DOLLARS SHALL BE USED FOR SCHOOL SAFETY AND MENTAL HEALTH GRANTS UNDER SECTION 1314.2-B.

(II) TWENTY MILLION SEVEN HUNDRED THOUSAND DOLLARS SHALL BE USED FOR TARGETED SCHOOL SAFETY GRANTS UNDER SECTION 1306.1-B.

* * * SECTION 4.

THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 1314.2-B.

SCHOOL SAFETY AND MENTAL HEALTH GRANTS FOR 2025-2026 SCHOOL YEAR.

(A) FUNDING.--FOR THE 2025-2026 SCHOOL YEAR, THE MONEY UNDER SECTION 1306-B(H)(14)(I) SHALL BE USED BY THE COMMITTEE TO AWARD SCHOOL SAFETY AND MENTAL HEALTH GRANTS TO SCHOOL ENTITIES IN ACCORDANCE WITH THIS SECTION.

(B) PURPOSE OF GRANTS.-- (1) A SCHOOL ENTITY SHALL BE ELIGIBLE FOR SCHOOL SAFETY AND MENTAL HEALTH GRANTS TO MEET THE LEVEL 1 BASELINE CRITERIA FOR PHYSICAL SECURITY OR BEHAVIORAL HEALTH AND SCHOOL CLIMATE CRITERIA ESTABLISHED BY THE COMMITTEE.

(2) IF A SCHOOL ENTITY HAS MET THE LEVEL 1 BASELINE CRITERIA FOR PHYSICAL SECURITY, THE SCHOOL ENTITY SHALL BE ELIGIBLE TO EXPEND FUNDING FOR ACTIVITIES OUTLINED IN SECTION 1306-B(J)(1), (2), (3), (4), (5), (7), (8), (9), (11), (12), (13), (14), (16), (18), (22) AND (23).

20250SB0315PN1226 - 5 - (3) IF A SCHOOL ENTITY HAS MET THE LEVEL 1 BASELINE CRITERIA FOR BEHAVIORAL HEALTH AND SCHOOL CLIMATE, THE SCHOOL ENTITY SHALL BE ELIGIBLE TO EXPEND FUNDING FOR ACTIVITIES OUTLINED IN SECTION 1306-B(J)(6), (10), (15), (17), (19), (20), (21), (23), (24), (25), (26), (27), (28), (29), (30) AND (31).

(C) AMOUNT OF GRANTS.--THE COMMITTEE SHALL AWARD SCHOOL SAFETY AND MENTAL HEALTH GRANTS TO EACH SCHOOL ENTITY THAT SUBMITS AN APPLICATION IN THE FOLLOWING AMOUNTS:

(1) A SCHOOL DISTRICT SHALL RECEIVE:

(I) $100,000;

AND (II) THE AMOUNT DETERMINED UNDER PARAGRAPH (3).

(2) AN INTERMEDIATE UNIT, AREA CAREER AND TECHNICAL SCHOOL, CHARTER SCHOOL, REGIONAL CHARTER SCHOOL AND CYBER CHARTER SCHOOL SHALL RECEIVE $70,000.

(3) AN AMOUNT DETERMINED AS FOLLOWS:

(I) MULTIPLY THE 2023-2024 ADJUSTED AVERAGE DAILY MEMBERSHIP FOR EACH SCHOOL DISTRICT BY THE DIFFERENCE BETWEEN THE AMOUNT ALLOCATED IN SUBSECTION (A) AND THE SUM OF THE AMOUNTS DISTRIBUTED UNDER PARAGRAPHS (1) AND (2).

(II) DIVIDE THE PRODUCT FROM SUBPARAGRAPH (I) BY THE 2023-2024 ADJUSTED AVERAGE DAILY MEMBERSHIP FOR ALL SCHOOL DISTRICTS.

(D) AVAILABILITY OF APPLICATIONS.--THE COMMITTEE SHALL MAKE AN APPLICATION FOR GRANTS UNDER THIS SECTION AVAILABLE TO SCHOOL ENTITIES NO LATER THAN 45 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

THE APPLICATION REQUIREMENTS SHALL BE LIMITED TO THE SCHOOL ENTITY'S CONTACT INFORMATION, THE SPECIFIC PURPOSE OF THE GRANT BASED UPON THE CATEGORIES SPECIFIED IN SUBSECTION (B), 20250SB0315PN1226 - 6 - WITH BOXES ON THE APPLICATION FOR THE APPLICANT TO INDICATE THE SCHOOL ENTITY'S ANTICIPATED USE AND CERTIFICATION BY THE APPLICANT THAT THE MONEY WILL BE USED FOR THE STATED PURPOSE.

(E) EFFECT OF REVENUE RECEIVED.--GRANT MONEY RECEIVED UNDER THIS SECTION MAY NOT BE INCLUDED WHEN CALCULATING THE AMOUNT TO BE PAID UNDER SECTION 1725-A.

(F) AUDIT AND MONITORING.--THE COMMITTEE SHALL RANDOMLY AUDIT AND MONITOR GRANT RECIPIENTS TO ENSURE THE APPROPRIATE USE OF GRANT MONEY AND COMPLIANCE WITH PROVISIONS OF THE GRANT PROGRAM.

(G) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"SCHOOL ENTITY." A SCHOOL DISTRICT, AREA CAREER AND TECHNICAL SCHOOL, INTERMEDIATE UNIT, CHARTER SCHOOL, REGIONAL CHARTER SCHOOL AND CYBER CHARTER SCHOOL.

SECTION 5.

SECTIONS 1403-A(A) AND 1403.1-A(A)(2) OF THE ACT ARE AMENDED TO READ:

SECTION 1403-A.

SCOPE OF PROGRAM AND SELECTION OF STUDENTS.

(A) MAXIMUM PARTICIPATION.-- (1) BEGINNING IN THE 2017-2018 SCHOOL YEAR, A MAXIMUM OF 20 STUDENTS IN GRADES 9 THROUGH 12 MAY BE ENROLLED IN THE RECOVERY HIGH SCHOOL UNDER THE PROGRAM AT ANY ONE TIME.

(2) BEGINNING IN THE 2025-2026 SCHOOL YEAR, A MAXIMUM OF 35 STUDENTS IN GRADES 9 THROUGH 12 MAY BE ENROLLED IN THE RECOVERY HIGH SCHOOL UNDER THE PROGRAM AT ANY ONE TIME.

* * * SECTION 1403.1-A.

ENROLLMENT OF STUDENTS.

(A) CONDITIONS.--A STUDENT MAY ENROLL IN THE RECOVERY HIGH SCHOOL UNDER THE PROGRAM ESTABLISHED IN SECTION 1402-A IF THE 20250SB0315PN1226 - 7 - FOLLOWING APPLY:

* * * (2) IF FEWER THAN [20 STUDENTS] THE MAXIMUM NUMBER OF STUDENTS THAT MAY BE ENROLLED UNDER SUBSECTION 1403-A RESIDING IN A SCHOOL DISTRICT OF THE FIRST CLASS ENROLL IN THE RECOVERY HIGH SCHOOL UNDER THE PROGRAM AT ANY TIME, A STUDENT WHO RESIDES IN A SCHOOL DISTRICT OTHER THAN A SCHOOL DISTRICT OF THE FIRST CLASS MAY ENROLL IN THE RECOVERY HIGH SCHOOL UNDER THE PROGRAM IF THE STUDENT'S PARENT OR GUARDIAN HAS APPLIED FOR ENROLLMENT IN THE RECOVERY HIGH SCHOOL ON THE STUDENT'S BEHALF.

* * * SECTION 5.1.

SECTION 1725.1-A OF THE ACT, ADDED JULY 11, 2024 (P.L.618, NO.55), IS AMENDED TO READ:

SECTION 1725.1-A.

FUNDING FOR CYBER CHARTER SCHOOLS.--(A) THERE SHALL BE NO TUITION CHARGE FOR A RESIDENT OR NONRESIDENT STUDENT ATTENDING A CYBER CHARTER SCHOOL.

(B) NOTWITHSTANDING [SECTION 1725-A(A)(3)] SECTION 1725-A(A) (2) AND (3), PER-STUDENT FUNDING AMOUNTS FOR NON-SPECIAL EDUCATION STUDENTS AND SPECIAL EDUCATION STUDENTS ATTENDING A CYBER CHARTER SCHOOL SHALL BE CALCULATED IN ACCORDANCE WITH THIS SECTION AND SHALL BE PAID BY THE SCHOOL DISTRICT OF RESIDENCE OF EACH STUDENT.

(C) EFFECTIVE JANUARY 1, 2025, [AND THE ENTIRETY OF EACH SCHOOL YEAR THEREAFTER] THROUGH THE END OF THE 2024-2025 SCHOOL YEAR, FOR SPECIAL EDUCATION STUDENTS, A CYBER CHARTER SCHOOL SHALL RECEIVE FOR EACH STUDENT ENROLLED THE LESSER OF:

(1) THE AMOUNT CALCULATED UNDER SECTION 1725-A(A)(3);

OR (2) THE SAME FUNDING AS FOR EACH NON-SPECIAL EDUCATION STUDENT AS PROVIDED IN SECTION 1725-A(A)(2), PLUS AN ADDITIONAL 20250SB0315PN1226 - 8 - AMOUNT DETERMINED BY DIVIDING THE DISTRICT OF RESIDENCE'S TOTAL SPECIAL EDUCATION EXPENDITURE BY THE SCHOOL DISTRICT OF RESIDENCE'S TOTAL SPECIAL EDUCATION AVERAGE DAILY MEMBERSHIP FOR THE PRIOR SCHOOL YEAR.

(D) FOR THE 2024-2025 SCHOOL YEAR, THE MONTHLY PAYMENTS FOR JULY THROUGH DECEMBER FOR SPECIAL EDUCATION STUDENTS SHALL BE BASED UPON THE RATE CALCULATED UNDER SECTION 1725-A(A)(3) AND THE MONTHLY PAYMENTS FOR JANUARY THROUGH JUNE FOR SPECIAL EDUCATION STUDENTS SHALL BE BASED UPON THE RATE CALCULATED IN SUBSECTION (C).

(E) FOR THE 2025-2026 SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, FOR NON-SPECIAL EDUCATION STUDENTS, A CYBER CHARTER SCHOOL SHALL RECEIVE FOR EACH STUDENT ENROLLED AN AMOUNT CALCULATED AS FOLLOWS:

(1) THE AMOUNT UNDER SECTION 1725-A(A)(2) ADJUSTED AS FOLLOWS:

(I) THE BUDGETED EXPENDITURES OF THE SCHOOL DISTRICT SHALL INCLUDE THE FOLLOWING ADDITIONAL DEDUCTIONS:

TUITION PAID TO CYBER CHARTER SCHOOLS FOR NON-SPECIAL EDUCATION STUDENTS;

TAX ASSESSMENT AND COLLECTION SERVICES;

SIXTY PER CENTUM OF STUDENT ACTIVITIES;

AND SIXTY PER CENTUM OF OPERATIONS AND MAINTENANCE OF PLANT SERVICES.

(II) THE AVERAGE DAILY MEMBERSHIP OF THE SCHOOL DISTRICT FOR STUDENTS ENROLLED IN A CYBER CHARTER SCHOOL SHALL BE DEDUCTED FROM THE AVERAGE DAILY MEMBERSHIP OF THE SCHOOL DISTRICT.

(2) MULTIPLY THE AMOUNT DETERMINED UNDER PARAGRAPH (1) BY THE FOLLOWING:

(I) FOR A SCHOOL DISTRICT OF THE FIRST CLASS A, THE LESSER OF ONE (1) OR THE AMOUNT DETERMINED UNDER SECTION 2502.56(D)(2) (II) FOR THE SCHOOL DISTRICT FOR THE MOST RECENT YEAR AVAILABLE 20250SB0315PN1226 - 9 - AS OF THE FIRST DAY OF JUNE PRECEDING THE SCHOOL YEAR FOR WHICH THE PER-STUDENT FUNDING AMOUNTS APPLY.

(II) FOR ALL OTHER SCHOOL DISTRICTS, ONE (1).

(F) FOR THE 2025-2026 SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, FOR SPECIAL EDUCATION STUDENTS, A CYBER CHARTER SCHOOL SHALL RECEIVE FOR EACH STUDENT ENROLLED THE LESSER OF:

(1) THE SAME FUNDING AS FOR EACH NON-SPECIAL EDUCATION STUDENT AS PROVIDED IN SECTION 1725-A(A)(2), PLUS AN ADDITIONAL AMOUNT DETERMINED BY DIVIDING THE SCHOOL DISTRICT OF RESIDENCE'S TOTAL SPECIAL EDUCATION EXPENDITURE BY THE SCHOOL DISTRICT OF RESIDENCE'S TOTAL SPECIAL EDUCATION AVERAGE DAILY MEMBERSHIP FOR THE PRIOR SCHOOL YEAR;

OR (2) THE AMOUNT DETERMINED UNDER SUBSECTION (E) FOR THE SCHOOL DISTRICT MULTIPLIED BY ONE AND EIGHTY-NINE HUNDREDTHS (1.89).

(G) NOTWITHSTANDING SECTION 1725-A(A)(5), PAYMENTS SHALL BE MADE TO THE CYBER CHARTER SCHOOL IN TWELVE (12) EQUAL MONTHLY PAYMENTS, BY THE FIFTH DAY OF EACH MONTH, WITHIN THE OPERATING SCHOOL YEAR.

A STUDENT ENROLLED IN A CYBER CHARTER SCHOOL SHALL BE INCLUDED IN THE AVERAGE DAILY MEMBERSHIP OF THE STUDENT'S SCHOOL DISTRICT OF RESIDENCE FOR THE PURPOSE OF PROVIDING BASIC EDUCATION FUNDING PAYMENTS AND SPECIAL EDUCATION FUNDING PURSUANT TO ARTICLE XXV.

IF A SCHOOL DISTRICT FAILS TO MAKE A PAYMENT TO A CYBER CHARTER SCHOOL AS PRESCRIBED IN THIS SUBSECTION, THE SECRETARY SHALL DEDUCT THE ESTIMATED AMOUNT, AS DOCUMENTED BY THE CYBER CHARTER SCHOOL USING THE MOST RECENTLY AVAILABLE PER-STUDENT AMOUNTS POSTED UNDER SECTION 1725-A(A)(7), FROM ANY AND ALL STATE PAYMENTS MADE TO THE DISTRICT AFTER RECEIPT OF DOCUMENTATION FROM THE CYBER CHARTER SCHOOL.

THE SECRETARY SHALL NOT MAKE A DEDUCTION ON BEHALF OF A CYBER 20250SB0315PN1226 - 10 - CHARTER SCHOOL UNLESS THE DOCUMENTATION FROM THE CYBER CHARTER SCHOOL USES THE PER-STUDENT AMOUNT THAT IS POSTED UNDER SECTION 1725-A(A)(7).

NO LATER THAN OCTOBER 1 OF EACH YEAR, A CYBER CHARTER SCHOOL SHALL SUBMIT TO THE SCHOOL DISTRICT OF RESIDENCE OF EACH STUDENT FINAL DOCUMENTATION OF PAYMENT TO BE MADE USING THE PER-STUDENT AMOUNTS POSTED UNDER 1725-A(A)(7) AND THE AVERAGE DAILY MEMBERSHIP FOR THE STUDENTS ENROLLED IN THE CYBER CHARTER SCHOOL FROM THE SCHOOL DISTRICT FOR THE PREVIOUS SCHOOL YEAR.

IF A SCHOOL DISTRICT FAILS TO MAKE PAYMENT TO THE CYBER CHARTER SCHOOL, THE SECRETARY SHALL DEDUCT AND PAY THE AMOUNT AS DOCUMENTED BY THE CYBER CHARTER SCHOOL USING THE PER-STUDENT AMOUNTS REPORTED UNDER SECTION 1725-A(A)(7) FROM ANY AND ALL STATE PAYMENTS MADE TO THE SCHOOL DISTRICT AFTER RECEIPT OF DOCUMENTATION FROM THE CYBER CHARTER SCHOOL FROM THE APPROPRIATIONS FOR THE FISCAL YEAR IN WHICH THE FINAL DOCUMENTATION OF PAYMENT WAS SUBMITTED TO THE SCHOOL DISTRICT OF RESIDENCE.

(H) NOTWITHSTANDING SECTION 1725-A(A)(6), NOT LATER THAN THIRTY (30) DAYS AFTER THE SECRETARY MAKES THE DEDUCTION DESCRIBED IN SUBSECTION (G), A SCHOOL DISTRICT MAY NOTIFY THE SECRETARY THAT THE DEDUCTION MADE FROM STATE PAYMENTS TO THE SCHOOL DISTRICT UNDER THIS SUBSECTION IS INACCURATE.

THE SECRETARY SHALL PROVIDE THE SCHOOL DISTRICT WITH AN OPPORTUNITY TO BE HEARD CONCERNING WHETHER THE CYBER CHARTER SCHOOL DOCUMENTED THAT ITS STUDENTS WERE ENROLLED IN THE CYBER CHARTER SCHOOL, THE PERIOD OF TIME DURING WHICH EACH STUDENT WAS ENROLLED, THE SCHOOL DISTRICT OF RESIDENCE OF EACH STUDENT AND WHETHER THE AMOUNTS DEDUCTED FROM THE SCHOOL DISTRICT WERE ACCURATE.

SECTION 6.

SECTION 1855 OF THE ACT IS AMENDED BY ADDING A 20250SB0315PN1226 - 11 - SUBSECTION TO READ:

SECTION 1855.

CAREER AND TECHNICAL EDUCATION EQUIPMENT GRANTS.--* * * (F.1) THE DEPARTMENT OF EDUCATION SHALL USE DATA FOR THE CALCULATIONS REQUIRED UNDER THIS SECTION BASED ON THE MOST RECENT YEARS FOR WHICH DATA IS AVAILABLE, AS DETERMINED BY THE DEPARTMENT OF EDUCATION, AND SHALL FIX THE DATA AS OF THE FIRST DAY OF JUNE PRECEDING THE SCHOOL YEAR IN WHICH THE ALLOCATION OCCURS.

IF THE DATA BASED ON THE FIRST DAY OF JUNE IS FOUND BY THE DEPARTMENT OF EDUCATION TO BE INCORRECT, THE DEPARTMENT OF EDUCATION SHALL REVISE THE CALCULATIONS ACCORDINGLY.

* * * SECTION 7.

SECTION 1913-A(B)(1.6) OF THE ACT IS AMENDED BY ADDING A SUBCLAUSE TO READ:

SECTION 1913-A.

FINANCIAL PROGRAM;

REIMBURSEMENT OF PAYMENTS.--* * * (B) * * * (1.6) FOR THE 2006-2007 FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER, THE PAYMENT FOR A COMMUNITY COLLEGE SHALL CONSIST OF THE FOLLOWING:

* * * (XXI) FOR FISCAL YEAR 2025-2026, EACH COMMUNITY COLLEGE SHALL RECEIVE AN AMOUNT EQUAL TO THE FOLLOWING:

(A) AN AMOUNT EQUAL TO THE REIMBURSEMENT RECEIVED IN FISCAL YEAR 2024-2025 UNDER SUBCLAUSES (XIX)(A) AND (C) AND (XX).

(B) AN AMOUNT EQUAL TO THE ECONOMIC DEVELOPMENT STIPEND RECEIVED IN FISCAL YEAR 2024-2025 UNDER SUBCLAUSE (XIX)(B).

* * * SECTION 8.

SECTION 2011-L(C)(6) OF THE ACT, ADDED JULY 17, 2024 (P.L.818, NO.69), IS AMENDED TO READ:

20250SB0315PN1226 - 12 - SECTION 2011-L.

POWERS AND DUTIES OF STATE BOARD OF HIGHER EDUCATION.

* * * (C) DUTIES.--THE BOARD SHALL PERFORM ALL DUTIES APPROPRIATE TO CARRY OUT AND EFFECTUATE THE BOARD'S PURPOSES UNDER THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO:

* * * [(6) ESTABLISH THE COUNCIL TO CARRY OUT THE PURPOSES OF SUBARTICLE C.] * * * SECTION 9.

SECTION 2031-L OF THE ACT IS AMENDED BY ADDING DEFINITIONS TO READ:

SECTION 2031-L.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"COUNCIL." THE PERFORMANCE-BASED FUNDING COUNCIL ESTABLISHED AND RECONSTITUTED UNDER SECTION 2032-L.

"DEPARTMENT." THE DEPARTMENT OF EDUCATION OF THE COMMONWEALTH.

"FUND." THE STATE-RELATED UNIVERSITY PERFORMANCE FUND ESTABLISHED UNDER SECTION 2034-L.

"HIGH-DEMAND DEGREE." A BACHELOR'S DEGREE THAT IS ALIGNED WITH THE IN-DEMAND OCCUPATIONS IN THE GROW PENNSYLVANIA SCHOLARSHIP GRANT PROGRAM UNDER SUBARTICLE D.

"HIGHER EDUCATION PRICE INDEX." THE AVERAGE TOTAL COST OF ATTENDANCE FOR COLLEGES AND UNIVERSITIES NATIONALLY, DETERMINED BY THE COUNCIL IN CONSULTATION WITH THE DEPARTMENT, USING PUBLICLY AVAILABLE DATA, INCLUDING INFORMATION PUBLISHED BY THE COMMONFUND INSTITUTE.

20250SB0315PN1226 - 13 - "LOW-MATRICULATION HIGH SCHOOL." A PUBLIC HIGH SCHOOL IN THIS COMMONWEALTH DETERMINED TO HAVE A COLLEGE MATRICULATION RATE LESS THAN OR EQUAL TO 40%.

"SHORT-TERM WORKFORCE DEMAND PROJECTION." THE SUM OF ALL STATEWIDE SHORT-TERM PROJECTED JOB OPENINGS, AS PUBLISHED BY THE DEPARTMENT OF LABOR AND INDUSTRY, IN OCCUPATIONS THAT REQUIRE AT LEAST A BACHELOR'S DEGREE AND ALIGN WITH THE IN-DEMAND OCCUPATIONS IN THE GROW PENNSYLVANIA SCHOLARSHIP GRANT PROGRAM UNDER SUBARTICLE D.

* * * SECTION 10.

SECTION 2032-L(A), (C), (D), (E), (I) AND (L) OF THE ACT, ADDED JULY 17, 2024 (P.L.960, NO.90), ARE AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 2032-L.

PERFORMANCE-BASED FUNDING COUNCIL.

(A) PURPOSE.--THE PERFORMANCE-BASED FUNDING COUNCIL [IS ESTABLISHED AND] SHALL [DEVELOP]:

(1) DEVELOP A PROCESS TO DISTRIBUTE FUNDING TO THE STATE-RELATED UNIVERSITIES.

THE PROCESS SHALL UTILIZE PERFORMANCE-BASED METRICS DESIGNED TO INCREASE DEGREE ATTAINMENT, ENCOURAGE AFFORDABILITY IN HIGHER EDUCATION, MEET WORKFORCE NEEDS AND GROW THE ECONOMY.

(2) OVERSEE THE PERFORMANCE-BASED FUNDING FORMULA BY ASSIGNING PERFORMANCE GOALS AND WEIGHTS.

(3) MAKE LEGISLATIVE RECOMMENDATIONS TO THE GOVERNOR AND THE GENERAL ASSEMBLY REGARDING THE PERFORMANCE-BASED FUNDING FORMULA.

(A.1) ESTABLISHMENT AND RECONSTITUTION.-- (1) THE PERFORMANCE-BASED FUNDING COUNCIL IS ESTABLISHED.

(2) THE COUNCIL SHALL BE RECONSTITUTED ON THE EFFECTIVE 20250SB0315PN1226 - 14 - DATE OF THIS SUBSECTION.

* * * (C) MEMBERSHIP.-- (1) THE COUNCIL SHALL CONSIST OF VOTING MEMBERS APPOINTED UNDER PARAGRAPH (2) AND NONVOTING MEMBERS, WHO SHALL SERVE IN AN ADVISORY ROLE, DESCRIBED UNDER PARAGRAPH (3).

(2) THE VOTING MEMBERS OF THE COUNCIL SHALL CONSIST OF THE FOLLOWING MEMBERS [OF THE STATE BOARD OF HIGHER EDUCATION UNDER SECTION 2010-L(C)]:

(I) THE SECRETARY OF EDUCATION [APPOINTED UNDER SECTION 2010-L(C)(1)] OR A DESIGNEE WHO IS A DEPUTY SECRETARY OF THE DEPARTMENT.

(II) ONE MEMBER OF THE SENATE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE [APPOINTED UNDER SECTION 2010-L(C)(3)].

(III) ONE MEMBER OF THE SENATE APPOINTED BY THE MINORITY LEADER OF THE SENATE [APPOINTED UNDER SECTION 2010-L(C)(4)].

(IV) ONE MEMBER OF THE HOUSE OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES [APPOINTED UNDER SECTION 2010-L(C)(5)].

(V) ONE MEMBER OF THE HOUSE OF REPRESENTATIVES APPOINTED BY THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES [APPOINTED UNDER SECTION 2010-L(C)(6)].

(3) THE NONVOTING MEMBERS OF THE COUNCIL SHALL BE:

(I) THE PRESIDENT OF THE PENNSYLVANIA STATE UNIVERSITY OR A DESIGNEE.

(II) THE CHANCELLOR OF THE UNIVERSITY OF PITTSBURGH OR A DESIGNEE.

20250SB0315PN1226 - 15 - (III) THE PRESIDENT OF TEMPLE UNIVERSITY OR A DESIGNEE.

(C.1) TERM.--VOTING MEMBERS OF THE COUNCIL APPOINTED UNDER SUBSECTION (C)(2)(II), (III), (IV) AND (V) SHALL SERVE A TERM OF OFFICE COTERMINOUS WITH THE RESPECTIVE ELECTIVE TERM OF THE MEMBERS OF THE GENERAL ASSEMBLY.

THE SECRETARY OF EDUCATION SHALL SERVE AS LONG AS THE SECRETARY OF EDUCATION IS IN OFFICE.

(D) CHAIRPERSON.--THE VOTING MEMBERS OF THE COUNCIL SHALL APPOINT A MEMBER TO SERVE AS THE CHAIRPERSON.

THE COUNCIL SHALL VOTE NOT LATER THAN EVERY 24 MONTHS TO APPOINT A MEMBER TO SERVE AS CHAIRPERSON.

(E) COUNCIL MEETINGS.--THE MEETINGS OF THE COUNCIL SHALL BE [HELD BIMONTHLY AND] AT THE CALL OF THE CHAIRPERSON AS NECESSARY AND SHALL BE CONDUCTED IN ACCORDANCE WITH THE REQUIREMENTS OF 65 PA.C.S.

CH.

7 (RELATING TO OPEN MEETINGS).

* * * (H.1) ADMINISTRATIVE SUPPORT.--THE GENERAL ASSEMBLY AND THE DEPARTMENT SHALL PROVIDE ADMINISTRATIVE SUPPORT FOR THE COUNCIL.

(I) POWERS AND DUTIES.--THE COUNCIL [SHALL]:

(1) [CONSULT] MAY CONSULT WITH COMMONWEALTH AGENCIES AND EXPERTS TO ASSIST IN CARRYING OUT THE DUTIES OF THIS SECTION.

(2) [HOLD] MAY HOLD PUBLIC HEARINGS AT [EACH ONE OF THE STATE-RELATED UNIVERSITIES AND RECEIVE INPUT FROM EXPERTS AND INTERESTED PARTIES, INCLUDING PARENTS AND STUDENTS.] THE CALL OF THE CHAIR TO RECEIVE INPUT FROM EXPERTS AND INTERESTED PARTIES.

(3) [DEVELOP] SHALL DEVELOP RECOMMENDATIONS FOR A PROCESS THAT UTILIZES PERFORMANCE-BASED METRICS TO DISTRIBUTE FUNDING.

(4) [NO] SHALL, NO LATER THAN [APRIL 30, 2025,] MAY 5, 20250SB0315PN1226 - 16 - 2025, TRANSMIT THE RECOMMENDATIONS TO THE GOVERNOR, THE BOARD, THE DEPARTMENT AND THE GENERAL ASSEMBLY, INCLUDING DRAFT LEGISLATION TO IMPLEMENT THE PROCESS TO DISTRIBUTE FUNDING.

(5) SHALL ANNUALLY ASSIGN PERFORMANCE GOALS AND WEIGHTS UNDER SECTION 2035-L FOR THE PERFORMANCE-BASED FUNDING FORMULA.

* * * (L) [DISSOLUTION AND RECONSTITUTION.-- (1) UPON TRANSMITTAL OF THE REPORT UNDER SUBSECTION (I) (4), THE COUNCIL SHALL DISSOLVE UNTIL RECONSTITUTED UNDER PARAGRAPH (2).

(2) THE BOARD SHALL RECONSTITUTE THE COUNCIL EVERY FIVE YEARS TO REEVALUATE THE PERFORMANCE METRICS UTILIZED FOR THE DISTRIBUTION OF FUNDS TO STATE-RELATED UNIVERSITIES.] (RESERVED).

(M) WORKFORCE OUTCOMES.-- (1) THE DEPARTMENT OF LABOR AND INDUSTRY AND THE DEPARTMENT SHALL DEVELOP AN ANALYSIS ON POSTSECONDARY GRADUATE EMPLOYMENT OUTCOMES FOR STATE-RELATED UNIVERSITIES, INCLUDING EARNINGS AND EMPLOYMENT OUTCOMES FOR GRADUATES BY DEGREE LEVEL, DEGREE MAJOR AND STATE IN WHICH AN INDIVIDUAL IS EMPLOYED.

(2) THE COUNCIL SHALL CONSIDER THE INFORMATION AND ANALYSIS ON POSTSECONDARY GRADUATE EMPLOYMENT OUTCOMES AS PART OF FUTURE RECOMMENDATIONS BY THE COUNCIL RELATING TO IMPROVEMENT AND AFFORDABILITY UNDER SECTION 2035-L(F).

SECTION 11.

SECTION 2033-L OF THE ACT, ADDED JULY 17, 2024 (P.L.960, NO.90), IS AMENDED TO READ:

SECTION 2033-L.

PUBLIC INSTITUTION OF HIGHER EDUCATION 20250SB0315PN1226 - 17 - REPORTING.

(A) REQUIREMENTS.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE FOLLOWING INFORMATION SHALL BE REPORTED, INCLUDING DISAGGREGATED DATA SETS FOR RESIDENT STUDENTS, NONRESIDENT STUDENTS, UNDERGRADUATE STUDENTS AND GRADUATE STUDENTS, TO THE DEPARTMENT BY PUBLIC INSTITUTIONS OF HIGHER EDUCATION:

(1) STUDENT ENROLLMENT[, INCLUDING IN-STATE AND OUT-OF- STATE STUDENTS,] DISAGGREGATED BY DEMOGRAPHICS, ENROLLMENT STATUS AND DEGREE TYPE [AND LEVEL].

(2) STUDENTS REACHING 30, 60, 90 AND 120 CREDIT HOUR THRESHOLDS.

(3) STUDENTS COMPLETING CREDENTIALS, INCLUDING CREDENTIALS ALIGNED TO HIGH-PRIORITY OCCUPATIONS.

(4) STUDENTS INCLUDED IN PRIORITY POPULATIONS, INCLUDING LOW-INCOME STUDENTS, UNDERREPRESENTED MINORITY STUDENTS AND ACADEMICALLY UNPREPARED STUDENTS.

(4.1) FOR STATE-RELATED UNIVERSITIES, PERFORMANCE METRICS DATA UNDER SECTION 2034-L(E).

(5) ANY OTHER DATA REQUIRED BY THE DEPARTMENT, INCLUDING DATA RELATED TO THE METRICS UNDER SECTION 2032-L.

(B) TRANSMITTAL.-- (1) A PUBLIC INSTITUTION OF HIGHER EDUCATION SHALL REPORT INFORMATION REQUIRED UNDER THIS SECTION TO THE DEPARTMENT IN A MANNER AND FORM PRESCRIBED BY THE DEPARTMENT.

(2) EACH STATE-RELATED UNIVERSITY SHALL ANNUALLY TRANSMIT DATA TO THE DEPARTMENT NO LATER THAN FEBRUARY 1 OF EACH YEAR.

THE DEPARTMENT SHALL TRANSMIT DATA TO THE COUNCIL IN A TIMELY MANNER.

(C) SUBMISSION.--THE SYSTEM MAY SUBMIT THE INFORMATION REQUIRED UNDER THIS SECTION ON BEHALF OF THE STATE-OWNED 20250SB0315PN1226 - 18 - UNIVERSITIES.

(D) EXCLUSION.--THE PROVISIONS OF SECTION 118 SHALL NOT APPLY TO ANY DATA REQUIRED UNDER THIS SECTION.

(E) DATA SHARING.-- (1) THE DEPARTMENT MAY SHARE DATA COLLECTED UNDER THIS SECTION WITH THE BOARD [AND THE COUNCIL].

(2) THE DEPARTMENT SHALL SHARE DATA COLLECTED UNDER THIS SECTION WITH THE COUNCIL.

(3) THE FOLLOWING SHALL APPLY TO CONFIDENTIAL DATA SHARED UNDER THIS SUBSECTION:

(I) WITHIN 120 DAYS OF THE EFFECTIVE DATE OF THIS SUBSECTION, THE DEPARTMENT SHALL ENTER INTO A DATA USE AGREEMENT WITH THE COUNCIL.

THE DATA USE AGREEMENT SHALL INCLUDE TERMS TO ENSURE THAT THE DATA IS KEPT CONFIDENTIAL AND SECURE AND REMAIN CONFIDENTIAL IN ACCORDANCE WITH THE FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT OF 1974 (PUBLIC LAW 90-247, 20 U.S.C.

§ 1232G) AND OTHER APPLICABLE LAWS GOVERNING DATA SHARING.

(II) THE DEPARTMENT SHALL ENTER INTO A DATA USE AGREEMENT WITH THE BOARD PRIOR TO SHARING DATA UNDER PARAGRAPH (1) AND INCLUDE THE SAME TERMS IN SUBPARAGRAPH (I).

(III) THE DEPARTMENT MAY UTILIZE A DISCLOSURE METHOD TO PROTECT STUDENT PRIVACY TO PREVENT THE IDENTIFICATION OF STUDENTS.

(F) DEFINITION.--AS USED IN THIS SECTION, THE TERM "STUDENT" MEANS AN INDIVIDUAL WHO ATTENDS AN INSTITUTION OF HIGHER EDUCATION, WHETHER ENROLLED ON A FULL-TIME, PART-TIME, DEGREE- SEEKING, NON-DEGREE-SEEKING, CREDIT OR NONCREDIT BASIS.

(G) CONSTRUCTION.--NOTHING IN THE SECTION SHALL BE CONSTRUED 20250SB0315PN1226 - 19 - TO LIMIT THE OBLIGATIONS OF A STATE-RELATED UNIVERSITY TO PROVIDE DATA OR OTHER INFORMATION TO THE DEPARTMENT OR THE GENERAL ASSEMBLY AS REQUIRED BY LAW.

SECTION 12.

THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 2034-L.

STATE-RELATED UNIVERSITY PERFORMANCE FUND.

(A) ESTABLISHMENT.--THE STATE-RELATED UNIVERSITY PERFORMANCE FUND IS ESTABLISHED IN THE STATE TREASURY.

(B) COMPOSITION.--THE FUND SHALL CONSIST OF MONEY APPROPRIATED OR TRANSFERRED TO THE FUND AND ALL INTEREST EARNINGS RECEIVED FROM INVESTMENT OF MONEY IN THE FUND.

(C) APPROPRIATIONS.--MONEY IN THE FUND SHALL NOT BE APPROPRIATED EXCEPT IN ACCORDANCE WITH SECTION 30 OF ARTICLE III OF THE CONSTITUTION OF PENNSYLVANIA.

(D) PAYMENTS.--THE COMMONWEALTH SHALL PAY, ON AN EQUAL MONTHLY BASIS DURING THE FISCAL YEAR, MONEY FROM THE FUND AS PROVIDED UNDER SUBSECTION (C) TO EACH STATE-RELATED UNIVERSITY IN THE AMOUNT CALCULATED UNDER SECTION 2035-L FOR THAT FISCAL YEAR.

(E) REMAINING BALANCE.--ANY AVAILABLE BALANCE IN THE FUND NOT AWARDED BY THE ALLOCATION UNDER SECTION 2035-L DURING A FISCAL YEAR MAY NOT BE EXPENDED IN THAT FISCAL YEAR BUT SHALL REMAIN IN THE FUND FOR APPROPRIATION UNDER SUBSECTION (C) IN A SUBSEQUENT FISCAL YEAR.

SECTION 2035-L.

PERFORMANCE-BASED FUNDING FORMULA.

(A) FINDINGS AND DECLARATIONS.--THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE PERFORMANCE-BASED FUNDING FORMULA IS THE RESULT OF THE WORK OF THE COUNCIL.

(B) STUDENT-WEIGHTED COUNT.-- (1) NO LATER THAN JUNE 1, 2026, AND EACH JUNE 1 THEREAFTER, THE COUNCIL SHALL ASSIGN WEIGHTS TO THE FOLLOWING 20250SB0315PN1226 - 20 - CATEGORIES OF IN-STATE STUDENTS IN A STATE-RELATED UNIVERSITY:

(I) FULL-TIME, FALL UNDERGRADUATE STUDENTS.

(II) STUDENTS WHO HAVE RECEIVED A PELL GRANT.

(III) STUDENTS WHO TRANSFERRED FROM A COMMUNITY COLLEGE.

(IV) STUDENTS FROM A LOW-MATRICULATION HIGH SCHOOL.

(V) STUDENTS WHO EARNED A HIGH-DEMAND DEGREE.

(2) USING THE CATEGORIES OF STUDENTS AND THE WEIGHTS ASSIGNED BY THE COUNCIL UNDER PARAGRAPH (1), THE DEPARTMENT SHALL ANNUALLY CALCULATE THE STUDENT-WEIGHTED COUNT USING THE MOST RECENT DATA AVAILABLE FOR EACH STATE-RELATED UNIVERSITY.

(C) MAXIMUM PERFORMANCE ALLOCATION.-- (1) NO LATER THAN JUNE 1, 2026, AND EACH JUNE 1 THEREAFTER, THE COUNCIL SHALL ASSIGN:

(I) A PROPORTION BETWEEN 0 AND 1 OF THE MAXIMUM ALLOCATION THAT IS BASED UPON AN EQUAL SHARE BETWEEN EACH STATE-RELATED UNIVERSITY.

(II) A PROPORTION BETWEEN 0 AND 1 OF THE MAXIMUM ALLOCATION THAT IS BASED UPON EACH STATE-RELATED UNIVERSITY'S SHARE OF THE TOTAL STUDENT-WEIGHTED COUNT DETERMINED UNDER SUBSECTION (B)(2).

(III) THE SUM OF THE ASSIGNED PROPORTIONS UNDER SUBPARAGRAPHS (I) AND (II) SHALL EQUAL 1.

(2) THE DEPARTMENT SHALL ANNUALLY CALCULATE THE MAXIMUM PERFORMANCE ALLOCATION FOR EACH STATE-RELATED UNIVERSITY AS FOLLOWS:

(I) MULTIPLY THE AMOUNT AVAILABLE IN THE FUND BY 0.95.

(II) MULTIPLY THE PRODUCT DETERMINED IN SUBPARAGRAPH 20250SB0315PN1226 - 21 - (I) BY THE PROPORTION DETERMINED UNDER PARAGRAPH (1)(II).

(III) DIVIDE THE STATE-RELATED UNIVERSITY'S STUDENT- WEIGHTED COUNT CALCULATED UNDER SUBSECTION (B)(2) BY THE SUM OF THE STUDENT-WEIGHTED COUNT FOR ALL STATE-RELATED UNIVERSITIES CALCULATED UNDER SUBSECTION (B)(2).

(IV) MULTIPLY THE PRODUCT DETERMINED UNDER SUBPARAGRAPH (II) BY THE QUOTIENT DETERMINED UNDER SUBPARAGRAPH (III).

(V) MULTIPLY ONE-THIRD BY THE PROPORTION DETERMINED UNDER PARAGRAPH (1)(I).

(VI) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (I) BY THE PRODUCT IN SUBPARAGRAPH (V).

(VII) ADD THE PRODUCTS IN SUBPARAGRAPHS (IV) AND (VI).

(D) PERFORMANCE METRICS AND GOALS.-- (1) THE STATE-RELATED UNIVERSITY'S PERFORMANCE ALLOCATION UNDER SUBSECTION (E) SHALL BE CALCULATED BASED ON PERFORMANCE ACROSS THE FOLLOWING METRICS:

(I) FOUR-YEAR GRADUATION RATES FOR IN-STATE, UNDERGRADUATE STUDENTS.

(II) SIX-YEAR GRADUATION RATES FOR IN-STATE, UNDERGRADUATE STUDENTS.

(III) SIX-YEAR GRADUATION RATES FOR IN-STATE, PELL- GRANT-RECIPIENT UNDERGRADUATE STUDENTS.

(IV) HIGH-DEMAND DEGREE PRODUCTION FOR IN-STATE UNDERGRADUATE STUDENTS.

(2) NO LATER THAN JUNE 1, 2026, AND EACH JUNE 1 THEREAFTER, THE COUNCIL SHALL ASSIGN WEIGHTS TO EACH OF THE PERFORMANCE METRICS UNDER PARAGRAPH (1) FOR THE PURPOSE OF CALCULATING EACH STATE-RELATED UNIVERSITY'S PROGRESS TOWARDS 20250SB0315PN1226 - 22 - THE STATE-RELATED UNIVERSITY'S GOAL.

(3) NO LATER THAN JUNE 1, 2026, AND EACH JUNE 1 THEREAFTER, THE COUNCIL SHALL ADOPT A GOAL RATE FOR EACH PERFORMANCE METRIC UNDER PARAGRAPH (1).

(4) THE HIGH-DEMAND DEGREE PRODUCTION GOAL FOR EACH STATE-RELATED UNIVERSITY SHALL BE ASSIGNED BY THE COUNCIL AS FOLLOWS:

(I) A HIGH-DEMAND DEGREE PRODUCTION TARGET RATE SHALL BE DETERMINED AS A PROPORTION BETWEEN 0 AND 1.

(II) DIVIDE A STATE-RELATED UNIVERSITY'S TOTAL BACHELOR'S DEGREES AWARDED FOR THE MOST RECENT YEAR AVAILABLE BY THE STATEWIDE BACHELOR'S DEGREES AWARDED FOR THE MOST RECENT YEAR AVAILABLE.

(III) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (II) BY THE SHORT-TERM WORKFORCE DEMAND PROJECTION.

(IV) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (III) BY THE PROPORTION IN SUBPARAGRAPH (I).

(E) PERFORMANCE ALLOCATION.-- (1) THE DEPARTMENT SHALL CALCULATE THE PROGRESS TOWARD THE GOAL FOR EACH STATE-RELATED UNIVERSITY AS FOLLOWS:

(I) FOR THE PERFORMANCE METRICS IN SUBSECTION (D)(1) (I), (II) AND (III), DIVIDE THE CURRENT RATE OF EACH METRIC FOR THE MOST RECENT YEAR AVAILABLE BY EACH METRIC'S RESPECTIVE GOAL RATE AS DETERMINED IN SUBSECTION (D)(3).

(II) FOR THE METRIC IN SUBSECTION (D)(1)(IV), DIVIDE THE NUMBER OF HIGH-DEMAND DEGREES FOR THE MOST RECENT YEAR AVAILABLE BY THE PRODUCT IN SUBSECTION (D)(4)(IV).

(III) CALCULATE THE AVERAGE OF THE QUOTIENTS IN SUBPARAGRAPHS (I) AND (II).

20250SB0315PN1226 - 23 - (2) THE DEPARTMENT SHALL CALCULATE THE PERFORMANCE ALLOCATION FOR EACH STATE-RELATED UNIVERSITY BY MULTIPLYING THE STATE-RELATED UNIVERSITY'S MAXIMUM PERFORMANCE ALLOCATION DETERMINED UNDER SUBSECTION (C)(2) BY THE STATE-RELATED UNIVERSITY'S PROGRESS TOWARD THE GOAL DETERMINED UNDER PARAGRAPH (1).

(F) IMPROVEMENT AND AFFORDABILITY ALLOCATION.-- (1) THE DEPARTMENT SHALL ANNUALLY CALCULATE THE TOTAL AMOUNT AVAILABLE FOR THE IMPROVEMENT AND AFFORDABILITY ALLOCATION BY MULTIPLYING THE AMOUNT IN THE FUND BY 0.05.

(2) THE DEPARTMENT SHALL ANNUALLY CALCULATE AN IMPROVEMENT BONUS FOR EACH STATE-RELATED UNIVERSITY AS FOLLOWS:

(I) ADD THE POSITIVE PERCENTAGE POINT INCREASES IN THE RATES OF THE PERFORMANCE METRICS IN SUBSECTION (D)(1) (I), (II) AND (III) FROM THE MOST RECENT YEAR OF DATA AVAILABLE COMPARED TO THE PRIOR YEAR.

(II) SUBTRACT THE HIGH-DEMAND DEGREES AWARDED FOR THE MOST RECENT YEAR DATA IS AVAILABLE BY THE HIGH-DEMAND DEGREES AWARDED FOR THE PRIOR YEAR.

(III) DIVIDE THE DIFFERENCE IN SUBPARAGRAPH (II) BY THE HIGH-DEMAND DEGREES AWARDED FOR THE PRIOR YEAR.

(IV) DETERMINE THE GREATER OF THE QUOTIENT FOUND IN SUBPARAGRAPH (III) OR ZERO.

(V) ADD THE AMOUNTS IN SUBPARAGRAPHS (I) AND (IV).

(3) NO LATER THAN JUNE 1, 2026, AND EACH JUNE 1 THEREAFTER, THE COUNCIL SHALL ANNUALLY ASSIGN A PERCENTAGE POINT AFFORDABILITY BONUS FOR EACH STATE-RELATED UNIVERSITY ON THE BASIS THAT THE STATE-RELATED UNIVERSITY MAINTAINS THE PERCENTAGE INCREASE IN THEIR TOTAL COST OF ATTENDANCE FOR THE 20250SB0315PN1226 - 24 - CURRENT YEAR OVER THE PRIOR YEAR BY AN AMOUNT LESS THAN THE PERCENTAGE INCREASE IN THE HIGHER EDUCATION PRICE INDEX FOR THE MOST RECENT YEAR AVAILABLE.

(4) THE IMPROVEMENT AND AFFORDABILITY ALLOCATION FOR EACH STATE-RELATED UNIVERSITY SHALL BE CALCULATED BY THE DEPARTMENT AS FOLLOWS:

(I) ADD THE AMOUNTS IN PARAGRAPH (2)(V) FOR EACH STATE-RELATED UNIVERSITY.

(II) ADD THE AMOUNTS IN PARAGRAPH (3) FOR EACH STATE-RELATED UNIVERSITY.

(III) ADD THE SUMS IN SUBPARAGRAPHS (I) AND (II).

(IV) ADD THE SUM IN PARAGRAPH (2)(V) FOR THE STATE- RELATED UNIVERSITY TO THE AMOUNT IN PARAGRAPH (3) FOR THE STATE-RELATED UNIVERSITY.

(V) DIVIDE THE SUM IN SUBPARAGRAPH (IV) FOR THE STATE-RELATED UNIVERSITY BY THE SUM IN SUBPARAGRAPH (III).

(VI) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (V) BY THE AMOUNT AVAILABLE FOR THE IMPROVEMENT AND AFFORDABILITY ALLOCATION UNDER PARAGRAPH (1).

SECTION 2036-L.

PUBLIC ACCOUNTABILITY.

(A) GOALS AND WEIGHTS.--AFTER THE COUNCIL ASSIGNS THE PERFORMANCE GOALS AND WEIGHTS UNDER SECTION 2035-L, THE CHAIR OF THE COUNCIL SHALL TRANSMIT THE PERFORMANCE GOALS AND WEIGHTS TO THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE NEXT AVAILABLE ISSUE OF THE PENNSYLVANIA BULLETIN.

(B) PUBLIC POSTING.--THE DEPARTMENT AND EACH STATE-RELATED UNIVERSITY SHALL POST ON THE PUBLICLY ACCESSIBLE INTERNET WEBSITE OF THE DEPARTMENT AND EACH STATE-RELATED UNIVERSITY THE FOLLOWING:

20250SB0315PN1226 - 25 - (1) THE CURRENT YEAR DATA FOR EACH OF THE METRICS INCLUDED IN THE STUDENT-WEIGHTED COUNT AND EACH METRIC INCLUDED AS PERFORMANCE METRIC UNDER SECTION 2035-L.

(2) THE PERFORMANCE GOALS AND WEIGHTS ASSIGNED BY THE COUNCIL AND PUBLISHED IN THE PENNSYLVANIA BULLETIN FOR THE PERFORMANCE METRICS.

SECTION 2329.

STATE AID FOR FISCAL YEAR 2025-2026.

NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, EACH LIBRARY SUBJECT TO 24 PA.C.S.

CH.

93 (RELATING TO PUBLIC LIBRARY CODE) SHALL BE ELIGIBLE FOR STATE AID FOR FISCAL YEAR 2025-2026 AS FOLLOWS:

(1) FUNDS APPROPRIATED FOR LIBRARIES SHALL BE DISTRIBUTED TO EACH LIBRARY UNDER THE FOLLOWING FORMULA:

(I) DIVIDE THE SUM OF THE AMOUNT OF FUNDING THE LIBRARY RECEIVED IN FISCAL YEAR 2024-2025 UNDER SECTION 2328 BY THE TOTAL STATE-AID SUBSIDY FOR FISCAL YEAR 2024- 2025.

(II) MULTIPLY THE QUOTIENT UNDER SUBPARAGRAPH (I) BY THE TOTAL STATE-AID SUBSIDY FOR FISCAL YEAR 2025-2026.

(2) FOLLOWING DISTRIBUTION OF FUNDS APPROPRIATED FOR STATE AID TO LIBRARIES UNDER PARAGRAPH (1), ANY REMAINING FUNDS MAY BE DISTRIBUTED AT THE DISCRETION OF THE STATE LIBRARIAN.

(3) IF FUNDS APPROPRIATED FOR STATE AID TO LIBRARIES IN FISCAL YEAR 2025-2026 ARE LESS THAN FUNDS APPROPRIATED IN FISCAL YEAR 2002-2003, THE STATE LIBRARIAN MAY WAIVE STANDARDS AS PRESCRIBED IN 24 PA.C.S.

CH.

93.

(4) EACH LIBRARY SYSTEM RECEIVING STATE AID UNDER THIS SECTION MAY DISTRIBUTE THE LOCAL LIBRARY SHARE OF THAT AID IN A MANNER AS DETERMINED BY THE BOARD OF DIRECTORS OF THE 20250SB0315PN1226 - 26 - LIBRARY SYSTEM.

(5) IN THE CASE OF A LIBRARY SYSTEM THAT CONTAINS A LIBRARY OPERATING IN A CITY OF THE SECOND CLASS, CHANGES TO THE DISTRIBUTION OF STATE AID TO THE LIBRARY SHALL BE MADE BY MUTUAL AGREEMENT BETWEEN THE LIBRARY AND THE LIBRARY SYSTEM.

(6) IN THE EVENT OF A CHANGE IN DISTRICT LIBRARY CENTER POPULATION PRIOR TO THE EFFECTIVE DATE OF THIS SECTION AS A RESULT OF:

(I) A CITY, BOROUGH, TOWN, TOWNSHIP, SCHOOL DISTRICT OR COUNTY MOVING FROM ONE LIBRARY CENTER TO ANOTHER;

OR (II) A TRANSFER OF DISTRICT LIBRARY CENTER STATUS TO A COUNTY LIBRARY SYSTEM;

FUNDING OF DISTRICT LIBRARY CENTER AID SHALL BE PAID BASED ON THE POPULATION OF THE NEWLY ESTABLISHED OR RECONFIGURED DISTRICT LIBRARY CENTER.

(7) IN THE EVENT OF A CHANGE IN DIRECT SERVICE AREA FROM ONE LIBRARY TO ANOTHER, THE STATE LIBRARIAN, UPON AGREEMENT OF THE AFFECTED LIBRARIES, MAY REDISTRIBUTE THE LOCAL LIBRARY SHARE OF AID TO THE LIBRARY CURRENTLY SERVICING THE AREA.

SECTION 13.

SECTION 2502.56(B)(2)(II) OF THE ACT, ADDED JULY 11, 2024 (P.L.618, NO.55), IS AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 2502.56.

STUDENT-WEIGHTED BASIC EDUCATION FUNDING BEGINNING WITH 2023-2024 SCHOOL YEAR.--* * * (B) FOR THE 2023-2024 SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT A BASIC EDUCATION FUNDING ALLOCATION WHICH SHALL CONSIST OF THE FOLLOWING:

* * * (2) A STUDENT-BASED ALLOCATION TO BE CALCULATED AS FOLLOWS:

20250SB0315PN1226 - 27 - * * * (II) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (I) BY THE DIFFERENCE BETWEEN THE AMOUNT APPROPRIATED FOR THE ALLOCATION OF BASIC EDUCATION FUNDING TO SCHOOL DISTRICTS AND THE SUM OF THE AMOUNTS APPROPRIATED FOR THE ALLOCATION IN PARAGRAPH (1) AND [SUBSECTION (C)] SUBSECTIONS (C) AND (C.1).

* * * (C.1) FOR THE 2024-2025 SCHOOL YEAR, THE COMMONWEALTH SHALL PAY AN AMOUNT EQUAL TO FIVE MILLION DOLLARS ($5,000,000) TO A SCHOOL DISTRICT LOCATED IN A COUNTY OF THE SECOND CLASS A WITH A 2021-2022 ADJUSTED AVERAGE DAILY MEMBERSHIP GREATER THAN 5,590 AND LESS THAN 5,595 AND A 2021-2022 CURRENT EXPENDITURE OF LESS THAN $110,000,000.

PAYMENTS UNDER THIS SUBSECTION SHALL BE DEEMED TO BE PART OF THE SCHOOL DISTRICT'S ALLOCATION AMOUNT UNDER SUBSECTION (B)(1) FOR THE IMMEDIATELY SUCCEEDING SCHOOL YEAR AND EACH SCHOOL YEAR THEREAFTER.

* * * SECTION 14.

SECTIONS 2510.3(A)(2), 2599.6(A.4), (A.6)(2), (A.7)(2), (A.8) AND (F)(1) AND 2608-J OF THE ACT, AMENDED OR ADDED JULY 11, 2024 (P.L.618, NO.55), ARE AMENDED TO READ:

SECTION 2510.3.

ASSISTANCE TO SCHOOL DISTRICTS DECLARED TO BE IN FINANCIAL RECOVERY STATUS OR IDENTIFIED FOR FINANCIAL WATCH STATUS.--(A) THE FOLLOWING APPLY:

* * * (2) FOR THE 2017-2018, 2018-2019, 2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024 [AND], 2024-2025 AND 2025-2026 FISCAL YEARS, THE DEPARTMENT OF EDUCATION MAY UTILIZE UP TO SEVEN MILLION DOLLARS ($7,000,000) OF UNDISTRIBUTED FUNDS NOT EXPENDED, ENCUMBERED OR COMMITTED FROM APPROPRIATIONS FOR GRANTS, SUBSIDIES AND ASSESSMENTS MADE TO THE DEPARTMENT OF 20250SB0315PN1226 - 28 - EDUCATION TO ASSIST SCHOOL DISTRICTS DECLARED TO BE IN FINANCIAL RECOVERY STATUS UNDER SECTION 621-A, IDENTIFIED FOR FINANCIAL WATCH STATUS UNDER SECTION 611-A OR 694-A OR SUBJECT TO OVERSIGHT DURING THE TRANSITION PERIOD UNDER SECTION 625-A.

THE FUNDS SHALL BE TRANSFERRED BY THE SECRETARY OF THE BUDGET TO A RESTRICTED ACCOUNT AS NECESSARY TO MAKE PAYMENTS UNDER THIS SECTION AND, WHEN TRANSFERRED, ARE HEREBY APPROPRIATED TO CARRY OUT THE PROVISIONS OF THIS SECTION.

* * * SECTION 2599.6.

READY-TO-LEARN BLOCK GRANT.--* * * (A.4) FOR THE 2023-2024 SCHOOL YEAR [AND EACH SCHOOL YEAR THEREAFTER], EACH SCHOOL ENTITY SHALL RECEIVE A READY-TO-LEARN BLOCK GRANT IN AN AMOUNT NOT LESS THAN THE AMOUNT RECEIVED BY THE SCHOOL ENTITY FROM THE APPROPRIATION FOR THE READY-TO-LEARN BLOCK GRANT DURING THE 2022-2023 FISCAL YEAR.

* * * (A.6) THE COMMONWEALTH SHALL PAY AN ADEQUACY SUPPLEMENT FROM THE READY-TO-LEARN BLOCK GRANT APPROPRIATION AS FOLLOWS:

* * * (2) [(RESERVED).] FOR THE 2025-2026 SCHOOL YEAR:

(I) DIVIDE THE AMOUNT DETERMINED IN SUBSECTION (F)(1) BY THE SUM OF THE AMOUNTS DETERMINED IN SUBSECTION (F)(1) FOR EACH SCHOOL DISTRICT.

(II) MULTIPLY THE QUOTIENT DETERMINED IN SUBPARAGRAPH (I) BY $526,440,000.

(III) ADD THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (II) AND AN AMOUNT CALCULATED AS FOLLOWS:

(A) IF THE SUM OF THE AMOUNTS DETERMINED UNDER SUBPARAGRAPH (II) AND SUBSECTION (A.7)(2) FOR THE SCHOOL DISTRICT IS LESS THAN $50,000, THE DIFFERENCE OF $50,000 MINUS THE SUM OF THE 20250SB0315PN1226 - 29 - AMOUNTS DETERMINED UNDER SUBPARAGRAPH (II) AND SUBSECTION (A.7) (2) FOR THE SCHOOL DISTRICT.

(B) IF THE SUM OF THE AMOUNTS DETERMINED UNDER SUBPARAGRAPH (II) AND SUBSECTION (A.7)(2) FOR THE SCHOOL DISTRICT IS GREATER THAN OR EQUAL TO $50,000, $0.

(A.7) THE COMMONWEALTH SHALL PAY A TAX EQUITY SUPPLEMENT FROM THE READY-TO-LEARN BLOCK GRANT APPROPRIATION AS FOLLOWS:

* * * (2) [(RESERVED).] FOR THE 2025-2026 SCHOOL YEAR:

(I) SUBTRACT THE AMOUNT RECEIVED UNDER PARAGRAPH (1) FROM THE AMOUNT DETERMINED IN SUBSECTION (G)(1).

(II) DIVIDE THE DIFFERENCE IN SUBPARAGRAPH (I) BY THE SUM OF THE AMOUNTS DETERMINED IN SUBPARAGRAPH (I) FOR EACH SCHOOL DISTRICT.

(III) MULTIPLY THE QUOTIENT DETERMINED IN SUBPARAGRAPH (II) BY $32,202,000.

(A.8) NO SCHOOL DISTRICT THAT RECEIVES FUNDING UNDER SUBSECTION (A.6) OR (A.7) SHALL SEEK A REFERENDUM EXCEPTION UNDER SECTION 333 OF THE ACT OF JUNE 27, 2006 (1ST SP.SESS., P.L.1873, NO.1), KNOWN AS THE TAXPAYER RELIEF ACT, FOR THE 2025- 2026 AND 2026-2027 SCHOOL [YEAR] YEARS.

* * * (F) THE PROVISIONS IN THIS SUBSECTION RELATE TO THE ADEQUACY SUPPLEMENT.

THE FOLLOWING SHALL APPLY:

(1) THE DEPARTMENT SHALL CALCULATE AN ADEQUACY GAP FOR EACH SCHOOL DISTRICT AS FOLLOWS:

(I) FOR EACH SCHOOL DISTRICT, MULTIPLY $14,120 BY THE SCHOOL DISTRICT'S STUDENT-WEIGHTED AVERAGE DAILY MEMBERSHIP CALCULATED UNDER SUBSECTION (E)(2).

(II) SUBTRACT THE SCHOOL DISTRICT'S CURRENT EXPENDITURES 20250SB0315PN1226 - 30 - FROM THE AMOUNT CALCULATED FOR THE SCHOOL DISTRICT UNDER SUBPARAGRAPH (I).

(III) DETERMINE THE GREATER OF $0 OR THE DIFFERENCE CALCULATED UNDER SUBPARAGRAPH (II).

(IV) SUBTRACT THE ADEQUACY ADJUSTMENT UNDER PARAGRAPH (3) FROM THE AMOUNT DETERMINED IN SUBPARAGRAPH (III).

FOR THE 2025- 2026 FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER, THE ADEQUACY ADJUSTMENT DETERMINED IN PARAGRAPH (3) FOR EACH SCHOOL DISTRICT SHALL BE ZERO.

* * * SECTION 2608-J.

APPLICABILITY.

THIS ARTICLE SHALL APPLY TO PROJECTS FOR WHICH APPROVAL AND REIMBURSEMENT IS SOUGHT AND TO THE MAINTENANCE PROJECT GRANT PROGRAM BEGINNING JULY 1, [2025] 2026.

SECTION 15.

THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

20250SB0315PN1226 - 31 -