24 Pa. Stat. § 13-1376

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 13-1376 - Cost of tuition and maintenance of certain exceptional children in approved institutions

(a) When any child between school entry age and twenty-one (21) years of age and resident in this Commonwealth, who is blind or deaf, or has cerebral palsy and/or neurological impairment and/or muscular dystrophy and/ or is intellectually disabled and/or has a serious emotional disability and/or has autism/pervasive developmental disorder and is enrolled, with the approval of the Department of Education, as a pupil in an approved private school approved by the Department of Education, in accordance with standards and regulations promulgated by the State Board of Education, the school district in which such child is resident or, for students placed by a charter school, the charter school in which the student was enrolled shall pay the greater of either twenty per centum (20%) of the actual audited cost of tuition and maintenance of such child in such school, as determined by the Department of Education, or its "tuition charge per elementary pupil" or its "tuition charge per high school pupil," as calculated pursuant to section 2561, and the Commonwealth shall pay, out of funds appropriated to the department for special education, the balance due for the costs of such child's tuition and maintenance, as determined by the department. For the school years 1989-1990, 1990-1991 and 1991-1992, the school district payment shall be no greater than forty percent (40%) of the actual audited costs of tuition and maintenance of such child in such school. For the 1992-1993 school year through the 2003-2004 school year, the school district or charter school payment shall be the greater of forty percent (40%) of the actual audited costs of tuition and maintenance of such child in such school, as determined by the Department of Education, or its "tuition charge per elementary pupil" or its "tuition charge per high school pupil," as calculated pursuant to section 2561, and the Commonwealth shall pay, out of funds appropriated to the department for approved private schools, the balance due for the costs of such child's tuition and maintenance, as determined by the department. For the 2004-2005 school year and each school year thereafter, the school district or charter school payment shall be the greater of forty percent (40%) of the approved tuition rate as established pursuant to subsection (c.3) or (c.5) or the school district or charter school's "tuition charges per elementary pupil" or "tuition charges per secondary pupil" as calculated under section 2561, and the Commonwealth shall pay out of funds appropriated to the department for approved private schools the balance of the approved tuition rate due for the cost of such child's tuition and maintenance. The department will credit the district of residence with average daily membership for such child consistent with the rules of procedure developed in accordance with section 2501. If the residence of such child in a particular school district cannot be determined, the Commonwealth shall pay the whole cost of tuition and maintenance of such child as established under subsection (c.3) or (c.5).

(a.1) For the 2004-2005 school year, the following shall apply:

(1) The Department of Education shall determine the payment amount for each approved private school for all students enrolled in an approved private school for the 2003-2004 school year based on the average of:

(i) The preliminary budget submitted to the Department of Education by the approved private school for the 2004-2005 school year.

(ii) The midyear budget submitted to the Department of Education by the approved private school for the 2003-2004 school year.

(iii) The audit issued by the Governor's Office of the Budget for the 2002-2003 school year, excluding questioned costs.

(2) Where the 2002-2003 audit is not available, the Department of Education shall use the claim form submitted to it by the approved private school for the 2002-2003 school year. In the event that an approved private school has not submitted a claim form for the 2002-2003 school year, the Department of Education shall use the audit or, where the audit is not available, the claim form for the 2001-2002 school year.

(3) For the purposes of determining the payment under paragraph (1) for an approved private school that was not in operation for the 2002-2003 school year, the Department of Education shall utilize the approved private school's preliminary budget for the 2004-2005 school year instead of the audit identified under paragraph (1)(iii).

(4) No later than August 10, 2004, the Department of Education shall notify each school district of residence or charter school of a child enrolled in an approved private school of its payment amount under subsection (a).

(5) The Department of Education shall pay each approved private school the total amount calculated pursuant to this subsection divided into twelve (12) monthly payments. The Department of Education shall withhold the school district or charter school payment amount calculated under subsection (a) from the amount of any and all State payments made to the school district or charter school. In no event shall the sum of the Commonwealth's share of payments to approved private schools under this subsection exceed the appropriation for approved private schools.

(a.2) For the 2005-2006 school year and each school year thereafter, the Department of Education shall determine the payment amount for each approved private school for all students enrolled in an approved private school for the prior school year as follows:

(1)

(i) Multiply the payment determined for the immediate preceding school year by one hundred and twenty-five percent (125%) of the percentage increase in the appropriation for special education for the fiscal year prior to the fiscal year in which payments under this subsection are made.

(ii) Add the product from subparagraph (i) to the payment determined for the immediate preceding school year.

(2) No later than May 10, 2005, and no later than May 10 of each year thereafter, the Department of Education shall notify each school district of residence or charter school of a child enrolled in an approved private school of its payment amount under subsection (a).

(3) The Department of Education shall pay each approved private school the total amount calculated pursuant to this subsection divided into twelve (12) monthly payments. The Department of Education shall withhold the school district or charter school payment amount calculated under subsection (a) from the amount of any and all State payments made to the school district or charter school. In no event shall the sum of the Commonwealth's share of payments to approved private schools under this subsection exceed the appropriation for approved private schools.

(b) When any person less than school entry age or more than twenty-one (21) years of age and resident in this Commonwealth, who is blind or deaf, or has cerebral palsy and/or has neurological impairment and/or has muscular dystrophy, or has autism/pervasive developmental delay, and is enrolled, with the approval of the Department of Education, as a pupil in an approved private school approved by the Department of Education, the Commonwealth shall pay to such school the approved tuition rate for such child's tuition and maintenance, and in addition, in the case of any child less than school entry age, who is blind, the cost, as determined by the Department of Education of instructing the parent of such blind child in caring for such child.

(b.1) Deleted by 2004, July 4, P.L. 536, No. 70, § 10, imd. effective.

(c) Deleted by 2003, Dec. 23, P.L. 304, No. 48, § 11, imd. effective.

(c.1) Deleted by 2011, June 30, P.L. 112, No. 24, § 19, effective July 1, 2011.

(c.2)

(1) to (3) Deleted by 2005, July 13, P.L. 226, No. 46, § 5, imd. effective.

(4) Beginning with the 2004-2005 school year and each school year thereafter, each approved private school shall maintain an accounting and bookkeeping system and be subject to audit as provided in standards promulgated by the Department of Education. Such standards shall require that each approved private school submit an audit to the Department of Education by November 1 of each year. Such audit shall be conducted in accordance with generally accepted accounting standards by an independent certified public accountant. Such standards shall include a definition of administrative costs, which costs shall not exceed ten percent (10%) of each approved private school's total costs.

(5)

(i) Where the amount of an approved private school's reportable costs in the 2004-2005 fiscal year is less than the amount of revenues received by the approved private school for the 2004-2005 fiscal year from the Commonwealth for the provision of educational services to children who have been approved by the Department of Education, the difference may be retained by the approved private school for use in the 2005-2006 fiscal year.

(ii) Beginning in the 2005-2006 fiscal year, where the amount of reportable costs in a fiscal year is less than the amount of revenues received in that fiscal year by the approved private school from the Commonwealth for the provision of educational services to children who have been approved by the Department of Education, the approved private school shall remit the difference to the Commonwealth. Any such funds shall be deposited in the Audit Resolution Fund for the resolution of previous audits.

(6) Audits of cost reports submitted for school years prior to the 2004-2005 school year shall be completed in a manner consistent with prior audit practices. An approved private school may submit an audit for the 2003-2004 school year prepared by an independent certified public accountant provided the following have occurred:

(i) The Department of Education has failed to process and settle the cost reports within twelve (12) months from submission by the approved private school.

(ii) The Department of Education has failed to settle any appeals or postsettlement resolution within fifteen (15) months from submission by the approved private school.

(iii) The approved private school has responded to reasonable requests for information and documents by the Department of Education.

Upon receipt of the independent audit for the 2003-2004 school year, the Department of Education shall have three (3) months to review the audit and settle any outstanding payments due to or from the approved private school.

(c.3) For payments made during the 2004-2005 school year, the Department of Education shall establish an approved tuition rate for each approved private school by dividing the amount calculated under subsection (a.1) by the full-time equivalent enrollment for the approved private school for the 2003-2004 school year. This calculation shall be adjusted for residential and non-residential students. The approved tuition rate multiplied by the full-time equivalent enrollment shall not exceed the amount calculated under subsection (a.1).

(c.4) Beginning August 15, 2004, and no later than August 15 of each year thereafter, each approved private school shall submit budget information for the current school year on forms and in a manner determined by the Department of Education. The budget information shall include a proposed tuition rate or rates and projected full-time equivalent enrollment for the current year. An approved private school may submit separate proposed tuition rates for up to three levels of services and for day and residential students, pursuant to the guidelines established under subsection (c.7).

(c.5) For payments made during the 2005-2006 school year and each school year thereafter, beginning January 15, 2005, and no later than January 15 of each year thereafter, the Department of Education shall establish an approved tuition rate or rates and full-time equivalent enrollment for each approved private school for the current school year. Where an approved private school has submitted one tuition rate, the approved tuition rate shall be determined by dividing the amount calculated under subsection (a.2) by the full-time equivalent enrollment for the approved private school for the prior school year. Where an approved private school has submitted more than one tuition rate, the sum of the products of each approved tuition rate and corresponding full-time equivalent enrollment for the approved private school for the prior school year shall equal the amount calculated under subsection (a.2). An approved private school may enroll students in excess of the approved full-time equivalent enrollment. Where an approved private school enrolls students in excess of the approved full-time equivalent enrollment, it must show a corresponding decrease in its approved tuition rate.

(c.6) No later than May 1, 2005, and May 1 of each school year thereafter, the department shall annually publish a report on the department's publicly accessible World Wide Web site that shall include, but not be limited to:

(1) The approved tuition rate or rates for each approved private school for the current school year.

(2) A description of the exceptionalities each approved private school is approved to serve.

(3) A description of all programs and services offered by each approved private school.

(c.7) No later than November 1, 2004, the Department of Education shall issue guidelines establishing the levels of services to assist each approved private school in determining its proposed tuition rate or rates. The guidelines shall allow an approved private school to establish approved tuition rates for up to three levels of services and for day and residential students.

(c.8) Within sixty (60) days of the effective date of this subsection, the Department of Education shall promulgate interim standards necessary to implement subsection (c.2) which shall be published in the Pennsylvania Bulletin. The interim standards shall not be subject to review pursuant to the act of June 25, 1982 (P.L. 633, No. 181), known as the "Regulatory Review Act," and shall not be subject tosections 201 through 205 of the act of July 31, 1968 (P.L. 769, No. 240), referred to as the Commonwealth Documents Law. The interim standards shall apply to audits conducted after July 1, 2005. Within one year of publication of the interim standards in the Pennsylvania Bulletin, the Department of Education shall deposit proposed standards. The interim standards shall remain in effect until the effective date of the final standards.

(c.9) Beginning with audited data for the 2016-2017 school year, the total of the amounts remitted to the commonwealth under subsection (c.2)(5)(ii) shall be distributed to each approved private school with reportable costs that exceed the amount of revenue received as follows:

(1) Subtract the amount of revenue received under subsection (a.2) from the reportable costs in the audit submitted to the department of education under subsection (c.2)(4).

(2) Multiply the amount in paragraph (1) by the lesser of the total of the amounts remitted to the commonwealth under subsection (c.2)(5)(ii) or the total of the amounts in paragraph (1).

(3) Divide the amount in paragraph (2) by the total of the amounts in paragraph (1).

(4) Funds distributed under this subsection shall be paid in may of the following school year.

(5) Funds distributed under this subsection shall not be included in determining the payment amount under subsection (a.2).

(d) No private institution receiving payment in accordance with this section shall impose any charge on the student and/or parents who are Pennsylvania approved reimbursable residents for a program of individualized instruction and maintenance appropriate to the child's needs; except that charges for services not part of such program may be made if agreed to by the parents.

(e) The following words and phrases as used in this section shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"Approved full-time equivalent enrollment" means the full-time equivalent enrollment set by the Department of Education pursuant to the provisions of subsection (c.3) or (c.5).

"Approved tuition rate" means the final tuition rate set by the Department of Education pursuant to the provisions of subsection (c.3) or (c.5).

"Audit," for the purpose of subsection (a.1), means the fiscal audit issued by the Governor's Office of the Budget, excluding questioned costs.

"Claim form," for the purpose of subsection (a.1), means the form that each approved private school submitted following the end of the fiscal year showing the final costs claimed for the fiscal year.

"Current school year" means the year in which payment is being made.

"Full-time equivalent enrollment" means the number of students enrolled in an approved private school pursuant to subsection (a) or (b).

"Independent certified public accountant" means a member of the American Institute of Certified Public Accountants that has a minimum of five (5) years' verifiable experience in performing audits of government funds for nonprofit organizations with a comparable or larger annual budget.

"Midyear budget," for the purpose of subsection (a.1), means the adjusted budget for the 2003-2004 school year submitted by each approved private school in January 2004.

"Preliminary budget," for the purpose of subsection (a.1), means the budget for the 2004-2005 school year submitted by each approved private school in June 2004.

"Prior school year" means the year for which payment is made during the current year.

"Proposed tuition rate" means the amount submitted by each approved private school to the Department of Education to be used in establishing the cost that the approved private school incurred to provide instructional and residential services for each full-time equivalent student. An approved private school may submit information to establish costs for up to three (3) levels of services and for day and residential students.

24 P.S. § 13-1376

Amended by P.L. TBD 2023 No. 33,§ 10.2, eff. 12/13/2023.

Amended by P.L. 716 2016 No. 86, § 6, eff. 7/13/2016.

1949, March 10, P.L. 30, art. XIII, § 1376. Amended 1949, May 9, P.L. 1027, § 1; 1961, Sept. 12, P.L. 1245, § 6; 1963, Aug. 8, P.L. 610, § 1; 1965, Dec. 6, P.L. 1029, § 1; 1965, Dec. 22, P.L. 1158, § 1; 1968, Dec. 10, P.L. 1165, No. 369, §§ 1, 2; 1972, Nov. 15, P.L. 1229, No. 273, § 1, imd. effective; 1975, Dec. 15, P.L. 484, No. 144, § 1, imd. effective; 1979 , May 31, P.L. 33, No. 11, § 1, effective 7/1/1979; 1983 , Dec. 20, P.L. 267, No. 73, § 3, imd. effective; 1989 , July 8, P.L. 253, No. 43, § 6, imd. effective; 1991, Aug. 5, P.L. 219, No. 25, § 4, imd. effective; 1993, June 7, P.L. 49, No. 16, § 9, effective 7/1/1993; 1995, June 30, P.L. 220, No. 26, § 6, imd. effective; 2001, June 22, P.L. 530, No. 35, § 14, effective 7/1/2001; 2003, Dec. 23, P.L. 304, No. 48, § 11, imd. effective; 2004, July 4, P.L. 536, No. 70, § 10, imd. effective; 2005 , July 13, P.L. 226, No. 46, § 5, imd. effective; 2011, June 30, P.L. 112, No. 24, § 19, effective 7/1/2011.