This bill improves the charter school tuition rate formula by using a data-driven approach to more closely align the tuition rate with school districts’ actual cost to educate a student. This is accomplished by updating the formula to use actual school district expenditures and actual student counts rather than budgeted expenditures and estimated student counts.

School districts pay tuition for each resident student enrolled in a charter school using a formula established in state law. In 2024/25, 10% of public school students attended a charter school, and Pennsylvania’s 500 school districts paid a total of $3.3 billion in charter school tuition.

Currently, part of the tuition rate calculation is based upon an outdated assumption that dates back to 1997 when the Charter School Law was enacted. Specifically, the per-student special education tuition rate paid by school districts to brick-and-mortar charter schools is calculated by dividing the school district’s special education expenditures by 16% of the school districts’ average daily membership. Today, with the growth in special education, the median school district has a special education enrollment closer to 21%.

In my legislative district, Morrisville Borough School District has a wide disparity between budgeted and actual student count – while the formula currently assumes that special education students account for 16% of the total student population (131 students), in reality, the special education share is 26.3%  (215 students).

By dividing by this outdated 16% assumption, the formula artificially inflates most school districts’ tuition calculations, imposing undue financial strain on districts that are already facing substantial cost pressures.
The simple fix is to get rid of the 16% assumption and use actual student counts. This change, and the change from budgeted expenditures to actual expenditures, would take effect for 2027/28.

Additionally, this bill includes the cyber charter school funding reforms proposed by the governor in his 2026/27 budget. These reforms include applying the excess spending factor and deducting a greater share of costs, such as facility maintenance, that cyber charter schools do not have because they provide education online.
Please join me in co-sponsoring this legislation to improve fairness in payments between school districts and charter schools.