Section 329.4. Limitation of payment increase in fiscal year 1979-1980 and each year thereafter

If the sums appropriated for the basic instruction subsidy in the 1979-80 fiscal year and each fiscal year thereafter are not sufficient to pay in full the total amounts to which all qualified school districts and intermediate units are entitled under sections 917.1-A, 919.1-A, 2501, 2502, 2502.3 and 2502.4 of the School Code (24 P. S. § § 9-967.1, 9-969.1, 25-2501, 25-2502, 25-2502.3 and 25-2502.4), allocations to school districts shall be reduced as follows:

(1) After the reduction fraction has been determined, the computed base subsidy of each district shall be multiplied by the reduction fraction.

(i) If the product of the computed base subsidy and the reduction fraction is greater than the guaranteed base subsidy, the computed base subsidy of the district shall be added to all other payments on account of instruction and the result shall be multiplied by the reduction fraction. In the case where school districts qualify for payments under section 2502(f.1) of the School Code (24 P. S. § 25-2502(f.1)), the computed base subsidy shall be added to all other payments on account of instruction except the payment made on account of the super density factor. The result shall be multiplied by the reduction fraction. The super density payment shall then be added to the product of this multiplication.

(ii) If the product of the computed base subsidy and the reduction fraction is less than the guaranteed base subsidy, the guaranteed base subsidy shall be added to the product of the reduction fraction times all other payments on account of instruction for which the district is qualified. In the case where school districts qualify for payments under section 2502(f.1) of the School Code, the guaranteed base subsidy and the super density payment shall be added to the product of the reduction fraction times all other payments on account of instruction.

(2) Compare the amounts determined in paragraph (1) with the district’s prior year basic instruction subsidy to determine if the district is entitled to additional funds under the provisions of section 2502.6 of the School Code (24 P. S. § 25-2502.6). The adjustment factor shall be applied to that portion of these funds a district qualifies for, because of a decrease in the base subsidy over the base subsidy of the prior year. For the purpose of this computation, the 1978-79 and 1979-80 basic instruction subsidy shall be determined by assuming that all school entities had the mandated days of instruction.

(3) The data used to determine the basic instruction subsidy shall be the data certified by the Secretary of Education to the General Assembly for the June 1 tertiary payments under section 2501(12) of the School Code (24 P. S. § 25-2501(12)).

(4) If the sums appropriated for the basic instruction subsidy in the 1979-80 fiscal year and each fiscal year thereafter are not sufficient to pay in full the total amounts to which all qualified school districts and intermediate units are entitled, the intermediate unit allocations shall be reduced by multiplying the total amount to which the intermediate units are entitled by the reduction fraction under section 967.1 and 969.1 of the School Code (24 P. S. § § 9-967.1 and 9-969.1).

The provisions of this § 329.4 adopted May 25, 1979, effective May 26, 1979, 9 Pa.B. 1688; amended May 30, 1980, effective May 31, 1980, 10 Pa.B. 2156. Immediately preceding text appears at serial page (42260).