Penn-Trafford briefing: Act 47 lowers cyber-charter rate; district projects roughly $88,000 in annual savings
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Summary
A district presenter summarized recent state changes to cyber charter tuition under Act 47 and the PDE 363 form, saying Penn-Trafford’s regular cyber rate falls from $13,008.99 to $12,300.99 and the district expects about $88,000 in savings for the year based on December counts.
A district presenter told the Penn-Trafford School District board on Feb. 2 that changes made under Act 47 to section 1725a of the Public School Code will slow the growth of cyber charter tuition and produce modest savings for the district.
The presenter said the state now distinguishes four tuition categories — cyber regular, brick-and-mortar regular, and two special-education rates — and that the district’s non–special-education cyber rate would drop from $13,008.99 per pupil per year to $12,300.99. "For this school year, based on our students through December, we will save approximately almost $88,000," the presenter said during the meeting.
The presenter explained the Pennsylvania Department of Education’s 363 form uses last year’s budget and last year’s average daily membership when calculating rates, so the conversion will apply retroactively to July 1 and affect the full billing year. She listed three categories of new policy changes that helped the district’s calculation: a residency-proof schedule (residency proof due Nov. 1 and March 1), restrictions that prevent habitually truant students (six unexcused absences) from automatically transferring to cyber charters, and a set of new allowable deductions (including tax-collection costs and portions of operations and student activities) that reduced the district’s cyber tuition base.
Board members pressed on enrollment trends and said the district currently counts about 100 cyber students for whom it is financially responsible, a decline from prior years. The presenter said local options such as the district’s own WIU/PT Academy online program remain lower-cost in some cases — "we pay probably one third of what we do for the cyber school" — and emphasized the need to budget conservatively because student counts fluctuate during the year.
Why it matters: the change reduced one recurring expense line in the district budget and will give the district modest additional budget flexibility heading into the next fiscal year. The board’s presenters and members also noted the residency and truancy provisions may limit inappropriate transfers to cyber providers and reduce erroneous billing to districts.
What’s next: the district will use updated figures from the PDE 363 form and the July 1 rate reset to finalize invoices and reflect savings in the district budget.