Bill Text: PA HB1050 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for temporary special aid to school districts suffering loss of tax revenue due to bankruptcy of businesses in the school district; and providing for temporary special aid to school districts suffering loss of payment in lieu of taxes from local sources.

Spectrum: Strong Partisan Bill (Democrat 14-1)

Status: (Introduced - Dead) 2011-03-08 - Referred to APPROPRIATIONS [HB1050 Detail]

Download: Pennsylvania-2011-HB1050-Introduced.html

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PRINTER'S NO. 1056
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1050 Session of2011
INTRODUCED BY HARHAI, CALTAGIRONE, CARROLL, FREEMAN, GOODMAN, HORNAMAN, KAVULICH, KORTZ, KOTIK, KULA, LONGIETTI, MURT, STURLA AND YOUNGBLOOD, MARCH 8, 2011
REFERRED TO COMMITTEE ON APPROPRIATIONS, MARCH 8, 2011
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," further providing for temporary
special aid to school districts suffering loss of tax revenue
due to bankruptcy of businesses in the school district; and
providing for temporary special aid to school districts
suffering loss of payment in lieu of taxes from local
sources.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2502.16(f) of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, added
October 20, 1988 (P.L.827, No.110), is amended to read:
Section 2502.16. Temporary Special Aid to School Districts
Suffering Loss of Tax Revenue Due to Bankruptcy of Businesses in
the School District.--* * *
(f) The special payments authorized by this section and
[section] sections 2502.10 and 2502.50 shall be paid from a
restricted revenue account, which is hereby established, for
such payments. Funds shall be transferred by the Secretary of
the Budget only to the extent necessary to make the payments
authorized by this section and [section] sections 2502.10 and
2502.50.
* * *
Section 2. The act is amended by adding a section to read:
Section 2502.50. Temporary Special Aid to School Districts
Suffering Loss of Payment in Lieu of Taxes From Local Sources.--
(a) For the school year 2010-2011 and each school year
thereafter, a school district that:
(1) experiences at least a twenty-five percent (25%) loss in
payment in lieu of taxes from local sources for the support of
the public schools in any one year due to the relocation of one
or more businesses within the boundaries of the public school
district to a location outside the boundaries of the public
school district; and
(2) has less than five percent (5%) of the district's total
operating budget in the estimated ending unreserved,
undesignated fund balance shall qualify for temporary special
aid under the provisions of this section for a period of two (2)
years as provided for in subsection (b): Provided, however, That
a school district that qualified for such payments prior to the
date of this amendatory act shall receive its first payment in
the year this amendatory act is enacted.
(b) If sufficient funds exist in the restricted revenue
account, such temporary special aid shall be equal to the loss
of total revenues provided for in subsection (a), payable to the
school district during the school year in which such loss due to
business relocation is suffered, plus an amount equal to fifty
percent (50%) of such amount payable to the school district
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during the succeeding school year. Payments shall only be made
to school districts when the total amount payable under this
section is greater than five thousand dollars ($5,000).
(1) Such temporary special aid shall be paid only once for
each such business relocation under subsection (a) and only upon
the condition that the school district tax rates which were in
effect at the time of the business relocation are not reduced.
(2) A school district which suffered the loss in total
revenue provided for in subsection (a) during the 2010-2011 or
the 2011-2012 school year shall be eligible to receive its first
payment of temporary special aid during the 2011-2012 school
year.
(c) The special aid authorized by this section shall be paid
from any funds not expended, enumerated or committed from
appropriations for grants and subsidies made to the Department
of Education: Provided, That no funds available from
appropriations for library-related activities may be used for
these payments.
(d) Nothing contained in this section shall disqualify a
school district from receiving temporary special aid due to real
property reassessments provided for in section 2502.10 or
disqualify a school district from receiving temporary special
aid due to bankruptcy of businesses in the school district
provided for in section 2502.16: Provided, however, That school
districts eligible for assistance under section 2502.10 or
2502.16 and which receive funds pursuant to those sections shall
not qualify for temporary special aid for such revenue loss
according to provisions of this section.
(e) The special payments authorized by this section,
sections 2502.10 and 2502.16 shall be paid from the restricted
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revenue account established under section 2502.16(f). Funds
shall be transferred by the Secretary of the Budget only to the
extent necessary to make the payments authorized by this section
and sections 2502.10 and 2502.16. If insufficient funds exist in
the restricted revenue account, payments shall be made on a pro
rata basis.
(f) The Secretary of the Budget shall provide to the
chairman and minority chairman of the Appropriations Committee
of the Senate and the chairman and minority chairman of the
Appropriations Committee of the House of Representatives
information concerning the appropriation from which funds have
been transferred and the amounts transferred. The Department of
Education shall have a written policy concerning the method for
making payments to school districts, including the date by which
payments shall be made each fiscal year.
Section 3. This act shall take effect immediately.
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