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, further providing for funding for charter schools and for funding for cyber charter schools.

PRIOR PRINTER'S NO. 3600 PRINTER'S NO. 3624
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2634
Session of
2026
INTRODUCED BY PROKOPIAK, MADDEN, BOROWSKI, KHAN, OTTEN, DONAHUE,
RIVERA, McNEILL, MAZZOCCO, PIELLI, BRENNAN, BRADFORD,
SANCHEZ, SCHWEYER, T. DAVIS AND D. WILLIAMS, JUNE 12, 2026
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 16, 2026
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, further providing
for funding for charter schools and for funding for cyber
charter schools.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1725-A(a)(2), (3), (5) and (7) of the act
of March 10, 1949 (P.L.30, No.14), known as the Public School
Code of 1949, are amended and subsection (a) is amended by
adding paragraphs to read:
Section 1725-A. Funding for Charter Schools.--(a) Funding
for a charter school shall be provided in the following manner:
* * *
(2) For non-special education students, the charter school
shall receive for each student enrolled no less than the
[budgeted] total expenditure per average daily membership [of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
the prior school year], as defined in section 2501(20), minus
the [budgeted] expenditures of the district of residence for
nonpublic school programs; adult education programs;
community/junior college programs; student transportation
services; for special education programs; facilities
acquisition, construction and improvement services; and other
financing uses, including debt service and fund transfers as
provided in the Manual of Accounting and Related Financial
Procedures for Pennsylvania School Systems established by the
department. This amount shall be paid by the district of
residence of each student.
(2.1) For the 2027-2028 school year and each school year
thereafter, the amount under clause (2) shall be adjusted as
follows:
(i) The deducted expenditures of the school district shall
include tuition paid to charter school entities.
(ii) The average daily membership of the school district for
students enrolled in a charter school entity shall be deducted
from the average daily membership of the school district.
(2.2) For the 2027-2028 school year and each school year
thereafter, the amount calculated under clause (2) and adjusted
under clause (2.1) shall be multiplied by the sum of one (1) and
the average of the most recent percentage increase INCREASES in
the Statewide average weekly wage and the employment cost index
as defined in THOSE TERMS ARE DEFINED IN SECTION 302 OF the act
of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the
"Taxpayer Relief Act."
(3) [For] Through the 2026-2027 school year, for special
education students, the charter school shall receive for each
student enrolled the same funding as for each non-special
20260HB2634PN3624 - 2 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
education student as provided in clause (2), plus an additional
amount determined by dividing the district of residence's total
special education expenditure by the product of multiplying the
combined percentage of section 2509.5(k) times the district of
residence's total average daily membership for the prior school
year. This amount shall be paid by the district of residence of
each student.
(3.1) For the 2027-2028 school year and each school year
thereafter, for special education students, the charter school
shall receive for each student enrolled an amount, to be paid by
the district of residence of each student, equal to the same
adjusted amount for each non-special education student
determined under clause (2.1) (2.2) , plus an additional amount
calculated as follows:
(i) Subtract special education payments to charter school
entities from the district of residence's total special
education expenditure.
(ii) Subtract the average daily membership of the school
district for special education students enrolled in a charter
school entity from the school district of residence's total
special education average daily membership.
(iii) Divide the amount determined under subclause (i) by
the amount determined under subclause (ii).
* * *
(5) Payments shall be made to the charter school in twelve
(12) equal monthly payments, by the fifth day of each month,
within the operating school year. A student enrolled in a
charter school shall be included in the average daily membership
of the student's district of residence for the purpose of
providing basic education funding payments and special education
20260HB2634PN3624 - 3 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
funding pursuant to Article XXV. If a school district fails to
make a payment to a charter school as prescribed in this clause,
the secretary shall deduct the estimated amount, as documented
by the charter school using the most recently available per-
student amount posted under clause (7), from any and all State
payments made to the district after receipt of documentation
from the charter school. The secretary may not make a deduction
on behalf of a charter school unless the documentation from the
cyber charter school uses the per-student amount that is posted
under clause (7). No later than October 1 of each year, a
charter school shall submit to the school district of residence
of each student final documentation of payment to be made [based
on] using the per-student amount posted under clause (7) and the
average daily membership for the students enrolled in the
charter school from the school district for the previous school
year. If a school district fails to make payment to the charter
school, the secretary shall deduct and pay the amount as
documented by the charter school using the per-student amount
posted under clause (7) from any and all State payments made to
the district after receipt of documentation from the charter
school from the appropriations for the fiscal year in which the
final documentation of payment was submitted to the school
district of residence.
* * *
(7) The following shall apply:
(i) Beginning November 1, 2024, [and each year thereafter]
through the 2026-2027 school year, each school district shall
report the per-student amount to be paid and the component
financial data used to calculate the per-student amount to be
paid in clauses (2) and (3) and section 1725.1-A for the current
20260HB2634PN3624 - 4 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
school year in a manner and form prescribed by the department.
Any subsequent revision to the information reported under this
clause shall be reported to the department within fifteen (15)
days of the revision. The department shall post the information
received under this clause within thirty (30) days of receipt in
an electronic format on the department's publicly accessible
Internet website.
(ii) For the 2027-2028 school year and each school year
thereafter, the department shall calculate the per-student
amount to be paid using the annual financial report submitted to
the department under section 218 for the most recent year
available as of the first day of June preceding the school year
for which the per-student funding amounts apply. Data fixed on
the first day of June shall be revised by the department if it
is subsequently found to be incorrect. If a school district has
not timely submitted the annual financial report to the
department under section 218, the department shall calculate a
temporary per-student amount equal to a five per centum growth
over the school district's previous year's per-student amount.
The department shall post the information under this clause by
the fifteenth day of June in an electronic format on the
department's publicly accessible Internet website.
* * *
Section 2. Section 1725.1-A(e)(1) introductory paragraph and
(2) introductory paragraph and (f) introductory paragraph of the
act, amended November 12, 2025 (P.L.244, No.47), are amended,
subsection (e) is amended by adding paragraphs and the section
is amended by adding a subsection to read:
Section 1725.1-A. Funding for Cyber Charter Schools.--* * *
(e) For the 2025-2026 school year and each school year
20260HB2634PN3624 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
thereafter, for non-special education students, a cyber charter
school shall receive for each student enrolled an amount
calculated as follows:
(1) [The] For the 2025-2026 school year, the amount under
section 1725-A(a)(2) adjusted as follows:
* * *
(2) [Multiply] For the 2025-2026 school year, multiply the
amount determined under paragraph (1) by the following:
* * *
(3) For the 2026-2027 school year:
(i) The amount under section 1725-A(a)(2) adjusted as
follows:
(A) The budgeted expenditures of the school district shall
include the following additional deductions: tuition paid to
cyber charter schools; tax assessment and collection services;
eighty per centum of student activities; and eighty per centum
of operations and maintenance of plant services.
(B) The average daily membership of the school district for
students enrolled in a cyber charter school shall be deducted
from the average daily membership of the school district.
(ii) Multiply the amount determined under subclause (i) by
the lesser of one (1) or the amount determined under section
2502.56(d)(2)(ii) for the school district for the most recent
year available as of the first day of June preceding the school
year for which the per-student amount applies.
(4) For the 2027-2028 school year and each school year
thereafter:
(i) The adjusted amount under section 1725-A(a)(2.1) shall
be further adjusted by including the following additional
deductions: tuition paid to cyber charter schools; tax
20260HB2634PN3624 - 6 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
assessment and collection services; eighty per centum of student
activities; and eighty per centum of operations and maintenance
of plant services.
(II) THE AMOUNT CALCULATED UNDER SUBCLAUSE (I) SHALL BE
MULTIPLIED BY THE SUM OF ONE (1) AND THE AVERAGE OF THE MOST
RECENT PERCENTAGE INCREASES IN THE STATEWIDE AVERAGE WEEKLY WAGE
AND THE EMPLOYMENT COST INDEX AS THOSE TERMS ARE DEFINED IN
SECTION 302 OF THE ACT OF JUNE 27, 2006 (1ST SP.SESS., P.L.1873,
NO.1), KNOWN AS THE "TAXPAYER RELIEF ACT."
(ii) (III) Multiply the amount determined under subclause
(i) (II) by the lesser of one (1) or the amount determined under
section 2502.56(d)(2)(ii) for the school district for the most
recent year available as of the first day of June preceding the
school year for which the per-student funding amount applies.
(f) For the 2025-2026 school year and [each school year
thereafter] the 2026-2027 school year, for special education
students, a cyber charter school shall receive for each student
enrolled the lesser of:
* * *
(f.1) For the 2027-2028 school year and each school year
thereafter, for special education students, a cyber charter
school shall receive for each student enrolled the lesser of:
(1) the same adjusted amount for each non-special education
student AMOUNT determined under section 1725-A(a)(3.1); or
(2) the amount determined under subsection (e) (E)(4) for
the school district multiplied by one and seventy-one hundredths
(1.71).
* * *
Section 3. This act shall take effect as follows:
(1) The amendment or addition of section 1725.1-A(e)(1)
20260HB2634PN3624 - 7 -
<--
<--
<--
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
introductory paragraph, (2) introductory paragraph, (3) and
(4), (f) introductory paragraph and (f.1) of the act shall
take effect immediately.
(2) This section shall take effect immediately.
(3) The remainder of this act shall take effect July 1,
2027.
20260HB2634PN3624 - 8 -
1
2
3
4
5
6