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Pennsylvania Statutes Title 24 P.S. Education § 6-691. When district distressed

Current as of January 01, 2025 | Updated by Findlaw Staff

<Section added by 1959, Dec. 15, P.L. 1842, No. 675, § 2. See also, section added by 1959, Nov. 30, P.L. 1597, No. 577, § 1.>

(a) Except for a school district of the first class A, second class, third class or fourth class, a school district shall be deemed to be distressed when any one of the following circumstances shall arise and the Secretary of Education, after proper investigation of the district's financial condition, the administrative practices of the board and such other matters deemed appropriate by the Secretary of Education, has issued a certificate declaring such district in financial distress:

(1) The salaries of any teachers or other employes have remained unpaid for a period of ninety (90) days.

(2) The tuition due another school district remains unpaid on and after January first of the year following the school year it was due and there is no dispute regarding the validity or amount of the claim.

(3) Any amount due any joint board of school directors under a joint board agreement remains unpaid for a period of ninety (90) calendar days beyond the due date specified in the joint board's articles of agreement.

(4) The school district has defaulted in payment of its bonds or interest on such bonds or in payment of rentals due any authority for a period of ninety (90) calendar days and no action has been initiated within that period of time to make payment.

(5) The school district has contracted any loan not authorized by law.

(6) The school district has accumulated and has operated with a deficit equal to two per centum (2%) or more of the assessed valuation of the taxable real estate within the district for two successive years.

(7) A new, merged or union school district has been formed and one or more of the former school districts which compose the merged or union school district was a distressed school district at the time of the formation of the merged or union school district.

(b) No school district shall be deemed to be distressed by reason of any of the above circumstances arising as a result of the failure of the Commonwealth to make any payment of money due the district at the time such payment is due.

(c) In addition to the circumstances to determine financial distress under subsection (a), the Secretary of Education may declare a school district of the first class to be distressed if the Secretary of Education determines that:

(1) the school district of the first class failed to adopt or to comply with a valid budget to operate the school district for a minimum instructional school year under section 1501;  1

(2) the school district of the first class failed to allocate or transfer revenues to ensure that funds are sufficient to provide a minimum instructional school year under section 1501;

(3) the city of the first class failed to transfer revenues to the school district consistent with the current budget; or

(4) the school district of the first class has failed or will fail to provide for an educational program in compliance with the provisions of this act, regulations of the State Board of Education or standards of the Secretary of Education.

1 24 P.S. § 15-1501.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 24 P.S. Education § 6-691. When district distressed - last updated January 01, 2025 | https://codes.findlaw.com/pa/title-24-ps-education/pa-st-sect-24-6-691/

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