(a) Annually, before the first day of July, every intermediate unit shall submit, for prior review and approval by the Department of Education, an estimate of the cost for transportation of pupils to and from classes and schools for exceptional children, and of eligible young children to and from early intervention programs, whether or not such classes, schools or programs are conducted by the intermediate unit. On or before the first day of September, the Commonwealth shall pay to the intermediate unit a sum equal to one-half of the approved annual cost of such transportation in the prior year and, on or before the first day of February, shall pay a sum equal to one-quarter of the approved estimated annual cost of such transportation for the current school year, and on or before June 30, the Commonwealth shall pay the remaining quarter adjusted to reflect actual approved cost.

(b) On or before the first day of July 1991, every intermediate unit shall submit, for prior review and approval by the Department of Education, an estimate of the cost of operating and administering classes or schools for institutionalized children operated by the intermediate unit during the 1990-1991 school year. During the 1991-1992 school year, the Commonwealth shall pay each intermediate unit the approved amount.

(b.1) For programs operated during the 1992-1993 school year and each school year thereafter, the Commonwealth shall pay intermediate units, based on their costs of operating and administering classes or schools for institutionalized children, an amount to be determined by the Department of Education following review of annual reports of the costs of such classes or schools for the immediately preceding year. To qualify for such payments, each intermediate unit that operates and administers classes or schools for institutionalized children annually shall submit to the Department of Education on or before the first day of July a report of the cost of operating and administering such classes or schools. Notwithstanding the foregoing, intermediate units may submit their annual reports for the 1991-1992 school year until June 30, 1993, although this date may be extended as deemed necessary by the Secretary of Education provided that for programs operated during the 1992-1993 school year and the 1993-1994 school year the aggregate amounts paid on this account shall not exceed twenty million six hundred thousand dollars ($20,600,000) per year.

(b.2) Up to twenty-one million two hundred thousand dollars ($21,200,000) may be utilized for programs operated during the 1994-1995 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.3) Up to twenty-two million dollars ($22,000,000) may be utilized for programs operated during the 1995-1996 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.4) Up to twenty million dollars ($20,000,000) may be utilized for programs operated during the 1996-1997 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.5) Up to twelve million dollars ($12,000,000) may be utilized for programs administered and operated during the 1997-1998 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.6) Up to nine million dollars ($9,000,000) may be utilized for programs administered and operated during the 1998-1999 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.7) Up to nine million five hundred thousand dollars ($9,500,000) may be utilized for programs administered and operated during the 1999-2000 school year for institutionalized children by intermediate units as established in subsection (b.1).

(b.8) Up to nine million dollars ($9,000,000) may be utilized for programs administered and operated by intermediate units during the 2000-2001 school year for institutionalized children as provided in subsection (b.1).

(b.9) Up to nine million five hundred thousand dollars ($9,500,000) may be utilized for programs administered and operated by intermediate units during the 2001-2002 school year for institutionalized children as provided in subsection (b.1).

(b.10) Up to nine million five hundred thousand dollars ($9,500,000) may be utilized for programs administered and operated by intermediate units during the 2002-2003 school year for institutionalized children as established in subsection (b.1).

(b.11) Up to nine million five hundred thousand dollars ($9,500,000) may be utilized for programs administered and operated by intermediate units during the 2003-2004 school year for institutionalized children as established in subsection (b.1).

(b.12) Up to nine million seven hundred and fifty thousand dollars ($9,750,000) may be utilized for programs administered and operated by intermediate units during the 2004-2005 school year for institutionalized children as established in subsection (b.1).

(b.13) Up to ten million two hundred fifty thousand dollars ($10,250,000) may be utilized for programs administered and operated by intermediate units during the 2005-2006 school year for institutionalized children as established in subsection (b.1).

(b.14) Up to ten million seven hundred and fifty thousand dollars ($10,750,000) may be utilized for programs administered and operated by intermediate units during the 2006-2007 school year for institutionalized children as established in subsection (b.1).

(b.15) Up to eleven million two hundred thousand dollars ($11,200,000) may be utilized for programs administered and operated by intermediate units during the 2007-2008 school year for institutionalized children as established in subsection (b.1).

(b.16) Up to eleven million five hundred thousand dollars ($11,500,000) may be utilized for programs administered and operated by intermediate units during the 2008-2009 through the 2010-2011 school years for institutionalized children as established in subsection (b.1).

(b.17) Up to nine million dollars ($9,000,000) may be utilized for programs administered and operated by intermediate units during the 2011-2012 school year and each school year thereafter for institutionalized children as established in subsection (b.1).

(c) For the 1991-1992 through the 2010-2011 school years, five percent (5%) of the State special education appropriation shall be paid to the intermediate units on account of special education services. Of this five percent (5%), thirty-five percent (35%) shall be distributed equally among all twenty-nine (29) intermediate units. The remaining sixty-five percent (65%) shall be distributed to each intermediate unit in proportion to the number of average daily membership of the component school districts of each intermediate unit as compared to the Statewide total average daily membership.

(c.1) For the 2011-2012 through the 2013-2014 school years, five and one-half percent (5.5%) of the State special education appropriation shall be paid to intermediate units on account of special education services. Of this five and one-half percent (5.5%), thirty-five percent (35%) shall be distributed equally among all intermediate units. The remaining sixty-five percent (65%) shall be distributed to each intermediate unit in proportion to the number of average daily membership of the component school districts of each intermediate unit as compared to the Statewide total average daily membership.

(c.2) The following apply:

(e) For the 1991-1992 school year and for each school year thereafter, payments to intermediate units under this section shall consist of an amount payable in three (3) installments during the school year as follows: in August, fifty percent (50%) of the payments due; in November, forty-five percent (45%) of the payments due; and on June 1, the balance of the payments due.

(f) For each school year up to and including 1990-1991, for each child enrolled in any special class or school for exceptional children operated by an intermediate unit, the school district in which the child is resident shall pay to the Commonwealth a sum equal to the “tuition charge per elementary pupil” or the “tuition charge per high school pupil,” as determined for the schools operated by the district or by a joint board of which the district is a member, for the same year in which the special class or school is operated, as provided for in section two thousand five hundred sixty-one of the act to which this is an amendment. In the event that any school district has not established such “tuition charge per elementary pupil” or “tuition charge per high school pupil,” the Secretary of Education shall fix a reasonable charge for such district for the year in question. Except that for the 1990-1991 school year, the school district payment to the Commonwealth under this subsection, for each child enrolled in other than intermediate unit classes or schools for institutionalized children, shall be limited to twenty-five percent (25%) of the applicable tuition charges in the case of all intermediate units. In addition, the district shall pay on account of transportation by the intermediate unit of pupils to and from classes and schools for exceptional children, whether or not conducted by the intermediate unit, an amount to be determined by subtracting from the cost of transportation per pupil the reimbursement due the district on account of such transportation. In order to facilitate such payments by the several school districts, the Secretary of Education shall withhold from any moneys due to such district out of any state appropriation, except from reimbursements due on account of rentals as provided in section two thousand five hundred eleven point one of the act to which this is an amendment, the amounts due by such school districts to the Commonwealth. All amounts so withheld are hereby specifically appropriated to the Department of Education for the support of public schools.