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§ 6-687. Annual budget; additional or increased appropriations; transfer of funds

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 24 P.S. EducationEffective: August 27, 2019

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 24 P.S. Education
Chapter 1. Public School Code of 1949 (Refs & Annos)
Article VI. School Finances (Refs & Annos)
Subarticle (e). Second, Third and Fourth Class School Districts (Refs & Annos)
Effective: August 27, 2019
24 P.S. § 6-687
§ 6-687. Annual budget; additional or increased appropriations; transfer of funds
(a)(1) The board of school directors of each school district of the second, third, or fourth class shall, annually, at least thirty (30) days prior to the adoption of the annual budget, prepare a proposed budget of the amount of funds that will be required by the school district in its several departments for the following fiscal year. Such proposed budget shall be prepared on a uniform form, prepared and furnished by the Department of Education. The uniform form shall require identification of specific function, subfunction and major object of expenditure. On the date of adoption of the proposed budget required under this section, the president of the board of school directors shall certify to the Department of Education that the proposed budget has been prepared, presented and will be made available for public inspection using the uniform form prepared and furnished by the Department of Education. The certification shall be in a form and manner as required by the Department of Education. Final action shall not be taken on any proposed budget that has not been prepared, presented and made available for public inspection using the uniform form prepared and furnished by the Department of Education. Final action shall not be taken on any proposed budget in which the estimated expenditures exceed two thousand dollars ($2000) until after ten (10) days' public notice. Nothing in this act shall be construed to prevent any school district whose total estimated expenditures do not exceed two thousand dollars ($2000) from holding a public hearing.
(2)(i) The proposed budget, on the uniform form required by the Department of Education, shall be printed or otherwise made available for public inspection to all persons and shall be made available for duplication to any person, on request, at least twenty (20) days prior to the date set for the adoption of the budget.
(ii) Fees for duplication under this paragraph by photocopying, printing from electronic media or microfilm, copying onto electronic media, transmission by facsimile or other electronic means and other means of duplication must be reasonable and based on prevailing fees for comparable duplication services provided by local business entities.
(b) The board of school directors, after making such revisions and changes therein as appear advisable, shall adopt the budget and the necessary appropriation measures required to put it into effect. The total amount of such budget shall not exceed the amount of funds, including the proposed annual tax levy and State appropriation, available for school purposes in that district. Within fifteen (15) days after the adoption of the budget, the board of school directors shall submit an electronic copy of the budget to the Department of Education for publication on the Department of Education's publicly accessible Internet website no later than thirty (30) days after the receipt of the budget.
(c) The board of school directors may, during any fiscal year, make additional appropriations or increase existing appropriations to meet emergencies, such as epidemics, floods, fires, or other catastrophes, or to provide for the payment for rental under leases or contracts to lease from the State Public School Building Authority or any municipality authority entered into subsequent to the date of the adoption of the budget. The funds therefor shall be provided from unexpended balances in existing appropriations, from unappropriated revenue, if any, or from temporary loans. Such temporary loans, when made, shall be approved by a two-thirds vote of the board of school directors.
(d) The board of school directors shall have power to authorize the transfer of any unencumbered balance, or any portion thereof, from one class of expenditure or item, to another, but such action shall be taken only during the last nine (9) months of the fiscal year.
(e) For the fiscal year 1980-1981, a school district may, by a majority vote of the board of school directors, reopen its budget for the purpose of reallocating any surplus funds in the district budget for the retirement of any outstanding indebtedness of the district or for the reduction of property taxes for the fiscal year 1980-1981.
(f) For the fiscal year 1980-1981, a school district may, by a majority vote of the board of school directors, reopen its budget for the purpose of reallocating any surplus funds in the district budget for the retirement of any outstanding indebtedness of the district or for the reduction of property taxes for the fiscal year 1980-1981.
(g)(1) Notwithstanding any other provisions of this act, the board of school directors of each school district is required to, and shall, reopen its 1991-1992 budget during the month of August 1991 for the purposes of adjusting their budgets to reflect the following increased State allocations for fiscal year 1991-1992 provided by the General Assembly through the act of August 4, 1991 (P.L. 484, No. 7A), known as the “General Appropriation Act of 1991”: subsidy payments on account of instruction; small district assistance payment; payments on account of transportation of nonpublic school pupils; and State reimbursement for health services.
(2) In those districts which levy taxes and where the increased State allocations exceed the State revenue figures utilized by the school district at the time of adoption of its original fiscal year 1991-1992 budget, the district shall use these increases in State allocations to abate local property tax or nuisance taxes, or both, which were levied at the time of original budget adoption within sixty (60) days of the reopening of the district's budget. Districts may implement such tax abatements in the form of tax credits against 1992-1993 tax bills or may use such increases in State allocations to reduce or retire outstanding school district indebtedness.
(3) Those districts which levy taxes and in which the increased State allocations, when compared to State revenue figures utilized in their originally adopted budget, exceed the budgeted figures by an amount insufficient to cost-effectively prepare and mail adjusted tax notices shall apply to the Department of Education for a waiver of this tax rebate provision.
(4) Districts that obtain waivers from the Department of Education shall use all the increased State allocations to meet fiscal year 1991-1992 program needs. Districts that do not obtain waivers from the Department of Education shall use all the increased State allocations to abate local tax levies. Districts that implement such tax abatement in the form of a credit against 1992-1993 tax bills may hold the increased State allocations in a reserve account or fund balance during the 1991-1992 fiscal year. Under no other circumstances shall any of these increased State allocations be used to increase a district's existing fund balance or for deposit into any district reserve accounts.
(5) At such time as school districts mail out adjusted tax notices resulting from 1991-1992 budget reopening actions, such notice shall include the following statement:
“These decreased school district tax assessments result from additional revenues allocated to the district as a result of passage of the ‘General Appropriation Act of 1991’ by the Pennsylvania General Assembly.”
(6) The Department of Education shall establish the administrative procedures necessary to implement and to audit school district compliance with the provisions of this section and shall report its findings to the Education Committee of the Senate and the Education Committee of the House of Representatives.
(h) Beginning with the adjusted final fiscal year 1991-1992 budget, and each fiscal year thereafter, on or before September 15, each school district shall furnish to the Department of Education an electronic copy of the school district's final adopted annual budget to include the amount of district revenues being held in excess of its total budgeted expenditures. Such documentation shall include an explanation of the district's need to maintain the revenues in this fund balance. The Department of Education shall publish the information received under this section on the Department of Education's publicly accessible Internet website no later than thirty (30) days after the receipt of the information.
(i)(1) Notwithstanding any other provisions of this act, the board of school directors of each school district is required to and shall reopen its 2002-2003 budget during the month of July 2002 to reflect the increased State allocations under sections 2502.13, 2502.40, 2509.3 and 2591.11 for fiscal year 2002-2003 provided by the General Assembly through the act of June 29, 2002 (P.L. 2106, No. 7A) known as the “General Appropriation Act of 2002.”
(2) In those school districts which levy taxes and where the increased State allocations exceed the State revenue figures utilized by the school district at the time of adoption of its original fiscal year 2002-2003 budget, the board of school directors shall use the increases in State allocations to do any of the following:
(i) abate any local taxes which were levied at the time of original budget adoption. Such tax abatements shall occur within sixty (60) days of the reopening of the school district's budget and may take the form of tax reductions, rebates or credits;
(ii) reduce or retire any outstanding indebtedness of the school district; or
(iii) restore funding to any educational programs which were reduced or eliminated for the 2002-2003 school year.
(3) Under no circumstances shall any increased State allocations be used to increase a school district's reserved or unreserved fund balance.
(j) Notwithstanding any other provisions of this act, the board of school directors of each school district may reopen its 2003-2004 budget, its 2004-2005 budget, its 2005-2006 budget, its 2006-2007 budget, its 2007-2008 budget or its 2008-2009 budget to reflect any State allocations for fiscal year 2003-2004, fiscal year 2004-2005, fiscal year 2005-2006, fiscal year 2006-2007, fiscal year 2007-2008 or fiscal year 2008-2009 provided by the General Assembly through this act.

Credits

1949, March 10, P.L. 30, No. 14, art. VI, § 687. Amended 1949, May 23, P.L. 1017, § 1; 1952, Jan. 21, P.L. (1951) 2195, § 2; 1970, Jan. 14, P.L. (1969) 468, § 13, effective July 1, 1970; 1970, May 4, P.L. 326, No. 103, § 1; 1981, June 30, P.L. 140, No. 45, § 1, imd. effective; 1982, Feb. 4, P.L. 1, No. 1, § 2, imd. effective; 1991, Aug. 5, P.L. 219, No. 25, § 1, retroactive effective July 1, 1991; 1992, June 30, P.L. 392, No. 85, § 1, retroactive effective Aug. 5, 1991; 2002, June 29, P.L. 524, No. 88, § 6, effective July 1, 2002; 2003, Dec. 23, P.L. 304, No. 48, § 7, imd. effective; 2004, July 4, P.L. 536, No. 70, § 6, imd. effective; 2005, July 13, P.L. 226, No. 46, § 1; 2006, July 11, P.L. 1092, No. 114, § 2, imd. effective; 2007, July 20, P.L. 278, No. 45, § 2, imd. effective; 2008, July 9, P.L. 846, No. 61, § 3, retroactive effective July 1, 2008; 2013, July 9, P.L. 408, No. 59, § 3, imd. effective; 2019, June 28, P.L. 117, No. 16, § 3, effective in 60 days [Aug. 27, 2019].

Footnotes

24 P.S. §§ 25-2502.13, 25-2502.40, 25-2509.3 and 25-2591.1.
24 P.S. § 6-687, PA ST 24 P.S. § 6-687
Current through the end of the 2023 Regular Session. Some statute sections may be more current, see credits for details.
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