HB 1115 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in charter schools, providing for fund balance limits.

PRINTER'S NO.    1237

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1115
                                                 Session of
                                                   2025

     INTRODUCED BY FRIEL, MADDEN, SANCHEZ, KHAN, PIELLI, PROKOPIAK,
        VENKAT, SALISBURY, PROBST, HANBIDGE, GALLAGHER, HADDOCK,
        CERRATO, OTTEN, INGLIS, BOROWSKI, DONAHUE, RIVERA, STEELE,
        GREEN AND CIRESI, APRIL 3, 2025

     REFERRED TO COMMITTEE ON EDUCATION, APRIL 3, 2025


                                     AN ACT
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," in charter schools, providing for
 6      fund balance limits.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
10   as the Public School Code of 1949, is amended by adding a
11   section to read:
12   Section 1741.1-A.    Fund balance limits.
13      (a)   Limits.--Beginning with the 2024-2025 school year and
14   each school year thereafter, a cyber charter school may not
15   accumulate any of the following:
16            (1)   An estimated ending unreserved, undesignated fund
17      balance that exceeds 8% of total budgeted expenditures.
18            (2)   A combined assigned fund balance and committed fund
19      balance that exceeds 4% of total budgeted expenditures.
 1            (3)   A combined assigned, estimated ending unreserved,
 2      undesignated and committed fund balance that exceeds 12% of
 3      total budgeted expenditures.
 4      (b)   Definitions.--As used in this section, the following
 5   words and phrases shall have the meanings given to them in this
 6   subsection unless the context clearly indicates otherwise:
 7      "Assigned fund balance."    An amount intended or constrained
 8   to be used for a specific purpose as authorized by the governing
 9   body of the cyber charter school.
10      "Committed fund balance."    An amount intended or constrained
11   to be used for a specific purpose as authorized by a committee
12   or individual authorized by the governing body of the cyber
13   charter school.
14      "Estimated ending unreserved, undesignated fund balance."
15   The portion of the fund balance which is appropriable for
16   expenditure or not legally or otherwise segregated for a
17   specific or tentative future use, projected for the close of the
18   school year for which a cyber charter school's budget was
19   adopted and held in the general fund accounts of the cyber
20   charter school.
21      Section 2.     This act shall take effect in 60 days.




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