(a) Before the first day of July of every year up to and including 1990, every school district or joint board of school directors planning to conduct classes or schools for exceptional children shall submit, for prior review and approval to establish the amount on which reimbursement will be paid by the Department of Education, an estimate of the cost of classes or schools for exceptional children to be operated by the district or joint board during the ensuing school year, and for transportation of pupils to and from classes and schools for exceptional children conducted by the district or joint board of school directors. From the school term of 1954-1955 up to and including the school term of 1990-1991, every school district, regardless of classification, shall be paid by the Commonwealth an amount to be determined by multiplying the average daily membership in a course or courses for exceptional children, (1) at the elementary level, by an amount determined by subtracting the “instruction cost per elementary pupil,” as defined in section 2561 of this act,¹ from the “instruction cost per special class pupil,” as hereinafter defined, for the preceding school term, or from the instruction cost per special class elementary pupil as approved for reimbursement by the Department of Education in the budget for classes or schools for exceptional children for the school year in which the class is operated, whichever is the lesser, (2) at the secondary level, by an amount determined by subtracting the “instruction cost per high school pupil,” as defined in section 2561 of this act, from the “instruction cost per special class pupil,” as hereinafter defined, for the preceding school term, or from the instruction cost per special classes secondary pupil as approved for reimbursement by the Department of Education in the budget for classes or school for exceptional children for the school year in which the class is operated, whichever is the lesser.

(b) To find the “instruction cost per special class pupil,” add (1) salaries of directors and supervisors of special education, public school psychologists, principals of special schools and assistants, teachers of approved special classes for children with disabilities, clerks and assistants employed in the district's program for special education, (2) the district's contribution to the retirement fund on behalf of directors and supervisors of special education, public school psychologists, principals of special schools and assistants, teachers of approved special classes for children with disabilities, clerks and assistants employed in the district's program for special education, (3) the cost of textbooks and supplies of the second class used in the district's special education classes or schools, (4) the cost of telephonic system equipment which enables children with physical or intellectual disabilities to remain in their homes and still participate in classroom activities. Divide the sum of (1), (2), (3), and (4) on that part thereof which is approved by the Department of Education for reimbursement by the total number of pupils, including those pupils who have available for use telephonic system equipment whereby they may remain at home and still participate in classroom activities, in average daily membership in the district's approved special classes for children with disabilities. The quotient so obtained shall be the “instruction cost per student with a disability.”

(c) The average daily membership of speech correction classes for every school term up to and including the 1990-1991 school term shall be calculated by multiplying (1) the average number of pupils in speech correction classes per week by (2) the number of periods per week that speech correction is provided for the individual pupil by (3) the number of minutes per period in speech correction class. Divide the product of (1), (2) and (3) by the total number of minutes spent in all classes weekly by the average pupil. The quotient thus obtained will be the “average daily membership for pupils in speech correction classes.”

(d) From the school term of 1972-1973 up to and including the school term of 1988-1989, such payments shall consist of an amount payable in two equal installments during the year of operation, with adjustments to be made during the next succeeding school year. The amount to be paid in equal installments on or about the first day of August and on or about the first day of January of the operating year shall be the sum of the products determined by multiplying the anticipated equivalent full-time average daily membership in courses for exceptional children as reported on the approved budget for the operating year (1) at the elementary level times an amount determined by subtracting the estimated instruction cost per elementary pupil, as defined in section 2561 of this act, for the preceding school term from the budgeted instruction cost per special class elementary pupil as approved by the Department of Education for the operating year and (2) at the secondary level times an amount determined by subtracting the estimated instruction cost per high school pupil, as defined in section 2561 of this act, for the preceding school term from the budgeted instruction cost per special class secondary pupil as approved by the Department of Education for the operating year.

(e) For every operating year up to and including the 1987-1988 school year, the adjustment to be made during the school year immediately succeeding the operating year shall be determined by subtracting the payments made during the preceding year from the actual amount of reimbursement which would have been payable for said year if calculated as during the year 1954-1955 through 1971-1972. When determined, the adjusted amount, if positive, shall be paid promptly to the district and, if negative, shall be withheld from any moneys due to such district out of any State appropriation.

(f) During the 1991-1992 school year, the Commonwealth shall pay to each school district the estimated amount due on account of approved special education programs operated by each school district during the 1990-1991 school term. Such payments shall consist of an amount payable in six (6) installments as follows: in July of 1991, fifteen percent (15%) of the estimated amount due; in September of 1991, fifteen percent (15%) of the estimated amount due; in November of 1991, fifteen percent (15%) of the estimated amount due; in January of 1992, fifteen percent (15%) of the estimated amount due; in March of 1992, fifteen percent (15%) of the estimated amount due; and in June of 1992, the remainder due, determined by adding the payments made during July, September, November, January and March and subtracting the result from the actual reimbursable amount earned for the 1990-1991 school term.