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
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in charter schools, providing for
fund balance limits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section to read:
Section 1741.1-A. Fund balance limits.
(a) Limits.--Beginning with the 2024-2025 school year and
each school year thereafter, a cyber charter school may not
accumulate any of the following:
(1) An estimated ending unreserved, undesignated fund
balance that exceeds 8% of total budgeted expenditures.
(2) A combined assigned fund balance and committed fund
balance that exceeds 4% of total budgeted expenditures.
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(3) A combined assigned, estimated ending unreserved,
undesignated and committed fund balance that exceeds 12% of
total budgeted expenditures.
(b) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Assigned fund balance." An amount intended or constrained
to be used for a specific purpose as authorized by the governing
body of the cyber charter school.
"Committed fund balance." An amount intended or constrained
to be used for a specific purpose as authorized by a committee
or individual authorized by the governing body of the cyber
charter school.
"Estimated ending unreserved, undesignated fund balance."
The portion of the fund balance which is appropriable for
expenditure or not legally or otherwise segregated for a
specific or tentative future use, projected for the close of the
school year for which a cyber charter school's budget was
adopted and held in the general fund accounts of the cyber
charter school.
Section 2. This act shall take effect in 60 days.
20250HB1115PN1237 - 2 -
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