(a) The following term, whenever used or referred to in this section, shall have the following meaning. “Chartered school” shall mean any of the four (4) chartered schools for the education of the deaf or the blind: the Pennsylvania School for the Deaf; the Overbrook School for the Blind; the Western Pennsylvania School for Blind Children; and the Western Pennsylvania School for the Deaf.

(b) When any child of school age resident in this Commonwealth, who is blind or deaf, is enrolled with the approval of the Department of Education as a pupil in any of the four (4) chartered schools in accordance with standards and regulations promulgated by the State Board of Education, the school district in which such child is resident shall pay the greater of either twenty percent (20%) of the actual cost of tuition and maintenance of such child in such institution, as determined by the department; or its “tuition charge per elementary pupil” or its “tuition charge per high school pupil,” 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 1989-90, 1990-91 and 1991-92, 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 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, or its “tuition charge per elementary pupil” or its “tuition charge per high school pupil,” and the Commonwealth shall pay out of funds appropriated to the department for chartered 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 established in subsection (f.1) or (f.3) or the school district's or charter school's “tuition charges per elementary pupil” or “tuition charges per secondary pupil” as calculated under section 2561,¹ and the Commonwealth shall pay out of funds appropriated to the department for chartered schools the balance of the approved tuition rate due for 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 2501.² 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 (f.1) or (f.3).

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

(b.2) Payments are as follows:

(c) When any person less than school age resident in this Commonwealth who is blind or deaf is enrolled, with the approval of the department, as a residential pupil in any of the four (4) chartered schools, the Commonwealth shall pay to the school the approved tuition rate for such child's tuition and maintenance, and in addition, in the case of any child less than school age, who is blind, the cost, as determined by the department of instructing the parent of such blind child in caring for such child.

(d) None of the chartered schools receiving payment in accordance with this section shall impose any charge on the student and/or parents who are approved reimbursable residents for a program of instruction and maintenance appropriate to the child's needs; except that charges for programs not part of the normal school year may be made.

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

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 chartered school.

(f.1) For payments made during the 2004-2005 school year, the department shall establish an approved tuition rate for each chartered school by dividing the amount calculated under subsection (b.1) by the full-time equivalent enrollment for the chartered 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 (b.1).

(f.2) Beginning August 15, 2004, and no later than August 15 of each year thereafter, each chartered school shall submit budget information for the current school year on forms and in a manner determined by the department. The budget information shall include a proposed tuition rate and projected full-time equivalent enrollment for the current year.

(f.3) 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 shall establish an approved tuition rate and full-time equivalent enrollment for each chartered school for the current school year. The approved tuition rate shall be determined by dividing the amount calculated under subsection (b.2) by the full-time equivalent enrollment for the chartered school for the prior school year. This calculation shall be adjusted for residential and non-residential students. A chartered school may enroll students in excess of the approved full-time equivalent enrollment. Where a chartered school enrolls students in excess of the approved full-time equivalent enrollment, it must show a corresponding decrease in its approved tuition rate.

(f.4) No later than May 1, 2005, and May 1 of each school year thereafter, the department shall annually issue a report for publication on the department's publicly accessible World Wide Web site that shall include, but not be limited to:

(f.5) Within sixty (60) days of the effective date of this subsection, the Department of Education shall promulgate interim standards necessary to implement subsection (f) 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),³ known as the “Regulatory Review Act,” and shall not be subject to sections 201 through 205 of the act of July 31, 1968 (P.L. 769, No. 240),⁴ 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.

(g) The following words and phrases 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 (f.3)

“Approved tuition rate” means the final tuition rate set by the Department of Education pursuant to the provisions of subsections (f.1) and (f.3).

“Audit,” for the purposes of subsection (b.1), means the fiscal audit issued by the Governor's Office of the Budget, excluding questioned costs.

“Claim form,” for the purposes of subsection (b.1), means the form that each chartered 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 a chartered school pursuant to subsection (b) or (c).

“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 purposes of subsection (b.1), means the adjusted budget for the 2003-2004 school year submitted by each chartered school in January 2004.

“Preliminary budget,” for the purposes of subsection (b.1), means the budget for the 2004-2005 school year submitted by each chartered 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 chartered school to the Department of Education to be used in establishing the cost that the chartered school incurred to provide instructional and residential services for each full-time equivalent student.