A Resolution directing the Legislative Budget and Finance Committee to conduct an effectiveness and results audit and issue a report on all existing incentives for public school district consolidation and sharing of services, and to make recommendations related to incentivizing the reorganization, consolidation and shared services of school districts of a specific enrollment size.

PRINTER'S NO. 2668
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No. 377
Session of
2025
INTRODUCED BY SCOTT, HARKINS, DONAHUE, HILL-EVANS, SANCHEZ,
CEPEDA-FREYTIZ AND ZIMMERMAN, DECEMBER 3, 2025
REFERRED TO COMMITTEE ON EDUCATION, DECEMBER 3, 2025
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
conduct an effectiveness and results audit and issue a report
on all existing incentives for public school district
consolidation and sharing of services, and to make
recommendations related to incentivizing the reorganization,
consolidation and shared services of school districts of a
specific enrollment size.
WHEREAS, The Commonwealth has seen a significant reduction in
the number of its school districts since the early twentieth
century, with the number of districts at its highest point being
2,599; and
WHEREAS, The most significant reduction, from 2,277 to 669,
in school districts resulted from the consolidation laws of 1961
and 1963; and
WHEREAS, The Legislative Budget and Finance Committee
performed a study on the cost-effectiveness of consolidating
Pennsylvania school districts in 2007 and found that there
should be a focus on the potential benefits of consolidating
relatively high-spending, smaller districts into lower-spending,
larger districts; and
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WHEREAS, Former Governor Ed Rendell's 2009 Budget Proposal
sought to expand shared services and consolidation incentives by
proposing an additional $1.5 million for a total funding of
nearly $2.5 million; and
WHEREAS, The 2009 Budget Proposal also provided a Proposed
Education Initiative, which proposed a legislative commission
conduct a study and produce a report on consolidation; and
WHEREAS, The 2009 proposal had the goal of consolidating the
Commonwealth's 501 public school districts into 100; and
WHEREAS, The Legislative Budget and Finance Committee
conducted a 2015 study on the feasibility and cost-effectiveness
of merging Pennsylvania public school district health care plans
and found modest savings opportunities of approximately 5% to 6%
of costs in the near-term; and
WHEREAS, The Joint State Government Commission performed a
staff study with the Independent Fiscal Office on school
district consolidations in 2017; and
WHEREAS, Today, there are approximately 500 school districts
currently operating within this Commonwealth; and
WHEREAS, Costs to support school districts and property taxes
are increasing; and
WHEREAS, Enrollments in school districts, especially rural
school districts, are declining, making it challenging to offer
more than basic educational programs; and
WHEREAS, School district consolidation and shared service
initiatives have the potential to save money and improve student
educational achievement, however no school districts have
voluntarily consolidated since 2009 and many school districts do
not share services with other districts; and
WHEREAS, The act of August 4, 1959 (P.L.587, No.195),
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provides the Legislative Budget and Finance Committee the power
to request, receive, review, examine, study, ascertain and
compare fiscal information concerning the budget, revenues and
expenditures of the Commonwealth and to make recommendations to
the General Assembly, when found advisable, directed to the
elimination of unnecessary expenditures and to the promotion of
economy in the government of the Commonwealth; and
WHEREAS, The Legislative Budget and Finance Committee has the
power to examine and, when pertinent, make reports concerning
the current condition of all State funds, appropriations and
other moneys, whether or not such appropriations are being
currently expended for the purposes and within the statutory
restrictions provided by the General Assembly, and concerning
the current availability of revenue to meet expenditures under
appropriations; therefore be it
RESOLVED, That the House of Representatives direct the
Legislative Budget and Finance Committee to conduct an
effectiveness and results audit to determine what incentives
exist for school district consolidation and shared services and
why they are not utilized; and be it further
RESOLVED, That the audit include an examination and review of
all current programs designed to incentivize school district
consolidation and shared services; and be it further
RESOLVED, That the audit determine why these programs are not
producing the intended results and make recommendations related
to incentivizing school districts to reorganize and consolidate
or share services; and be it further
RESOLVED, That the audit provide a review of other states'
programs for incentivizing school district consolidation and the
sharing of services among districts; and be it further
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RESOLVED, That the Legislative Budget and Finance Committee
prepare a report of its findings and recommendations in the
audit and submit the report to the General Assembly no later
than one year after the adoption of this resolution.
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