HB 2025

                                                 PRINTER'S NO.     2584
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2025
                                           Session of
                                             2025
INTRODUCED BY CURRY, PROBST, WEBSTER, RIVERA, KHAN, SAPPEY,
   HOHENSTEIN, DONAHUE, HILL-EVANS, SANCHEZ AND HARKINS,
   NOVEMBER 10, 2025
REFERRED TO COMMITTEE ON APPROPRIATIONS, NOVEMBER 12, 2025
                                AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2    act relating to the public school system, including certain
3    provisions applicable as well to private and parochial
4    schools; amending, revising, consolidating and changing the
5    laws relating thereto," in reimbursements by Commonwealth and
6    between school districts, providing for reimbursements for
7    borrowing costs during budget impasse; and establishing the
8    School District Impasse Recovery Fund.
9    The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11    Section 1.    The act of March 10, 1949 (P.L.30, No.14), known
12 as the Public School Code of 1949, is amended by adding a
13 section to read:
14    Section 2599.9.     Reimbursements for Borrowing Costs During
15 Budget Impasse.--(a)    The following shall apply to the School
16 District Impasse Recovery Fund:
17    (1)   The School District Impasse Recovery Fund is
18 established.
19    (2)   Money in the fund is appropriated on a continuing basis
20 to the department for the purpose of providing reimbursements in
1 accordance with this section.
2    (3)    The fund shall consist of all money appropriated for use
3 under this section and any interest that accrues on the money.
4    (4)    Money in the fund:
5    (i)    May only be used for the reimbursements authorized under
6 this section.
7    (ii)    May not be transferred or diverted to any other purpose
8 by administrative action.
9    (iii)   Shall be used to reimburse school entities for
10 eligible expenses incurred during an impasse period in
11 accordance with this section.
12    (b)    The department shall reimburse school entities for all
13 eligible expenses incurred during an impasse period in the
14 fiscal year following the fiscal year in which the impasse
15 period occurred.
16    (c)    The total amount of reimbursement under this section for
17 a school entity may not exceed the documented eligible expenses
18 submitted by the school entity.
19    (d)    The department shall develop an application to enable
20 school entities to apply for reimbursement under this section.
21 The application must include:
22    (1)    Itemized documentation of each claimed eligible expense.
23    (2)    Proof of payment or financial obligation.
24    (3)    Certification by the school entity's business
25 administrator.
26    (4)    Other information deemed necessary by the department.
27    (e)    The department shall determine the method or manner in
28 which applications under this section are submitted to the
29 department.
30    (f)    Applications for reimbursement under this section must
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1 be submitted to the department no later than forty-five (45)
2 days following the end of the impasse period.
3    (g)   Not later than thirty (30) days following receipt of an
4 application submitted in accordance with this section, the
5 department shall review the application and, as appropriate,
6 approve the reimbursement.
7    (h)   Not later than May 31 of the year following an impasse
8 period, the department shall provide the following with
9 aggregated data on the total eligible expenses incurred during
10 the impasse period:
11    (1)   The Governor.
12    (2)   The chairperson and minority chairperson of the
13 Appropriations Committee of the Senate.
14    (3)   The chairperson and minority chairperson of the
15 Appropriations Committee of the House of Representatives.
16    (4)   The chairperson and minority chairperson of the
17 Education Committee of the Senate.
18    (5)   The chairperson and minority chairperson of the
19 Education Committee of the House of Representatives.
20    (i)   The General Assembly shall appropriate money to the fund
21 sufficient to reimburse school entities for all eligible
22 expenses in the General Appropriation Act enacted for the fiscal
23 year following the end of an impasse period.
24    (j)   As used in this section, the following words and phrases
25 shall have the meanings given to them in this subsection unless
26 the context clearly indicates otherwise:
27    "Department" shall mean the Department of Education of the
28 Commonwealth.
29    "Eligible expenses" shall include:
30    (1)   Interest on short-term borrowing.
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1    (2)   Fees for lines of credit.
2    (3)   Penalties for deferred payments to vendors or service
3 providers.
4    (4)   Other costs associated with emergency financial measures
5 taken due to an impasse period.
6    "Fund" shall mean the School District Impasse Recovery Fund
7 established in subsection (a)(1).
8    "Impasse period" shall mean a period after the beginning of a
9 new fiscal year during which the General Appropriation Act for
10 that fiscal year has not been enacted.
11    "School entity" shall mean a school district, intermediate
12 unit or area career and technical school.
13    Section 2.   This act shall take effect immediately.
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