PRINTER'S NO. 1731
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1248
Session of
2024
INTRODUCED BY COSTA, JUNE 12, 2024
REFERRED TO EDUCATION, JUNE 12, 2024
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for institutions of higher
education.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XX-L
INSTITUTIONS OF HIGHER EDUCATION
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 2001-L. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Higher Education Assistance
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Agency.
"Board." The State Board of Higher Education established
under section 2010-L.
"Community college." An institution created under Article
XIX-A or the act of August 24, 1963 (P.L.1132, No.484), known as
the Community College Act of 1963.
"Department." The Department of Education of the
Commonwealth.
"Financial aid." Funding to help a student pay for
postsecondary education, including grants, work study, loans and
scholarships.
"Grant program." The Pennsylvania Tuition Assistance Grant
Program established under section 2040-L.
"High-priority occupation." An occupation identified by the
Department of Labor and Industry under the act of December 18,
2001 (P.L.949, No.114), known as the Workforce Development Act.
"Higher Education Scholarship Law." The act of January 25,
1966 (1965 P.L.1546, No.541), referred to as the Higher
Education Scholarship Law.
"Independent institution of higher education." An
institution of higher education which is operated not for
profit, located in and incorporated or chartered by the
Commonwealth and entitled to confer degrees as specified in 24
Pa.C.S. § 6505 (relating to power to confer degrees) and to
apply to itself the designation "college" or "university" as
provided for by the standards and qualifications prescribed by
the State Board of Education under 24 Pa.C.S. Ch. 65 (relating
to private colleges, universities and seminaries).
"Institution of higher education." As defined in section
1501-L.
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"Institutional aid." Financial aid offered to an eligible
student directly by an institution of higher education,
including merit aid, gift aid and athletic awards.
"Pell Grant." The Federal Pell Grant or any successor
program.
"Pennsylvania State grant." A grant or scholarship awarded
under the Higher Education Scholarship Law.
"Private scholarship." Financial aid awards funded by
entities other than the Federal or State Government, including
awards by companies, service groups, foundations, organizations
and individuals.
"Program." The State-Related University Grant Program
established under section 2032-L.
"Public institution of higher education." A State-owned
university, community college or State-related university.
"State-owned university." An institution which is part of
the State System of Higher Education under Article XX-A.
"State-related university." The Pennsylvania State
University, the University of Pittsburgh, Temple University,
Lincoln University and the Pennsylvania College of Technology.
"State System of Higher Education." The system established
under Article XX-A.
Section 2002-L. Findings and purpose.
The General Assembly finds and declares as follows:
(1) Pennsylvanians deserve the freedom to chart their
own course and the opportunity to succeed by entering the
workforce or pursuing higher education.
(2) Accessible, affordable higher education is a
critical component to prepare our workforce and serve as the
foundation of Pennsylvania's economic success.
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(3) For decades, Pennsylvania has not prioritized
investment in its higher education sector, leaving the
financial burden of higher education on institutions and
students.
(4) The lack of Statewide coordination or a strategic
vision aligned to the needs of Pennsylvanians has led to too
much competition and duplication in some parts of the
Commonwealth, and too little access to postsecondary
education in others.
(5) The establishment of the State Board of Higher
Education will provide leadership and coordination for the
Commonwealth's higher education system, institutions and
governing boards to achieve excellence for postsecondary
education through the efficient and effective utilization and
concentration of all available resources. The board shall
ensure that Pennsylvania is producing the postsecondary
credentials and degrees needed to address current and future
workforce gaps.
(6) Funding to public institutions of higher education
via predictable, transparent and outcomes-focused formulas
established in this article will align State dollars with the
needs of this Commonwealth.
(7) The grant program and the Pennsylvania State grant
supplement established in this article will put this
Commonwealth on a path to prosperity by ensuring that
students have an affordable pathway to a high-quality college
credential or degree.
SUBARTICLE B
COORDINATION OF HIGHER EDUCATION
Section 2010-L. State Board of Higher Education.
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(a) Establishment.--The State Board of Higher Education is
established within the department.
(b) Purpose.--The purpose of the board is to provide
direction, coordination and support to ensure that institutions
of higher education fully meet the workforce and economic
development needs of this Commonwealth and ensure that all
residents of this Commonwealth have access to affordable, world-
class postsecondary education.
(c) Membership and appointment.--The board shall consist of
15 voting members. In making appointments to the board, the
Governor shall ensure that the appointee is a Pennsylvania
resident and has the background and experience suitable for
performing the statutory responsibility of a member of the
board. Membership of the board shall be as follows:
(1) The Secretary of Education or a designee who shall
be an employee of the department.
(2) The Secretary of Labor and Industry or a designee
who shall be an employee of the Department of Labor and
Industry.
(3) One member of the Senate appointed by the President
pro tempore of the Senate or a designee who shall be an
employee of the Senate.
(4) One member of the Senate appointed by the Minority
Leader of the Senate or a designee who shall be an employee
of the Senate.
(5) One member of the House of Representatives appointed
by the Speaker of the House of Representatives or a designee
who shall be an employee of the House of Representatives.
(6) One member of the House of Representatives appointed
by the Minority Leader of the House of Representatives or a
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designee who shall be an employee of the House of
Representatives.
(7) Nine members shall be appointed by the Governor as
follows:
(i) One representative of a State-owned university,
including a president, administrator or local trustee.
(ii) One representative of a community college,
including a president, administrator or board member.
(iii) One representative of an independent
institution of higher education, including a president,
administrator or board member.
(iv) One representative of a State-related
university, including a president, administrator or local
trustee.
(v) One representative of a historically black
college and university, including a president,
administrator or board member.
(vi) One representative of a union representing
employees at public institutions of higher education.
(vii) One representative of business.
(viii) Two students who attend an institution of
higher education.
(d) Term.--The term of office of appointed members under
subsection (c)(7)(i), (ii), (iii), (iv), (v), (vi) and (vii)
shall be for a period of six years or until a successor is
appointed and qualified, except that, of the initial appointees,
the Governor shall designate two members to serve terms of two
years, two members to serve terms of four years and three
members to serve terms of six years. The Secretary of Education
and the Secretary of Labor and Industry shall serve as long as
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they continue in office. Members of the board appointed by the
General Assembly shall serve a term of office concurrent with
their respective elective terms as members of the General
Assembly. A student's term shall be for a period of two years or
upon graduation, separation or failure to maintain good academic
standing at the institution of higher education in which the
student is enrolled.
(e) Organization.--The Governor shall designate a chair and
vice chair of the board. The members shall select from among
themselves such officers as they deem necessary.
(f) Quorum and meetings.--
(1) A majority of members shall constitute a quorum for
the transaction of any business.
(2) The board shall meet to conduct official business no
less than once every three months or by the call of the
chair.
(g) Expenses.--Members shall receive no compensation for
their services but shall be reimbursed for the expenses
necessarily incurred by them in the performance of their duties.
(h) Initial appointment and vacancies.--An appointing
authority shall appoint members to the board within 30 days of
the establishment of the board. If a vacancy occurs on the
board, the appointing authority shall appoint a successor member
within 30 days of the vacancy.
(i) Removal of board members.--An appointed member who fails
to attend three consecutive board meetings shall forfeit their
membership on the board, unless the chair, upon written request
from the member, determines that the member should be excused
from a meeting or meetings for good cause.
(j) Administrative services and staff.--
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(1) The board shall select an individual to serve as the
executive director to advise the board on the formulation of
the board's policies, oversee the implementation of the
board's policies and responsibilities and supervise the
board's development of the higher education strategic plan,
the collection and analysis of data, the development of
policy recommendations and the production of annual reports
and other activities.
(2) The department shall, in consultation with the
executive director, provide administrative services and
additional staff to the board. The board shall be entitled to
legal counsel as designated by the Office of General Counsel.
(k) Applicability.--The following acts shall apply to the
board:
(1) The act of July 19, 1957 (P.L.1017, No.451), known
as the State Adverse Interest Act.
(2) The act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to
open meetings) and 11 (relating to ethics standards and
financial disclosure).
Section 2011-L. Powers and duties of State Board of Higher
Education.
(a) General rule.--The board is charged with the duty to
take an active part in promoting quality, accessible and
affordable postsecondary education throughout this Commonwealth
by:
(1) Providing planning and policy leadership, including
setting the Commonwealth's higher education policy agenda.
(2) Developing and advancing the higher education policy
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agenda of the Commonwealth to address the challenges facing
Pennsylvania.
(3) Developing public consensus and awareness for the
Commonwealth's higher education policy agenda.
(b) General powers.--The board shall have and may exercise
all powers appropriate to carry out and effectuate the board's
purposes under this article, including, but not limited to:
(1) Adopt bylaws, if necessary.
(2) Make and execute contracts, grants and other
instruments.
(3) Apply for and receive money from any source
consistent with the purposes of this article.
(4) Establish subcommittees composed of members of the
board as the chair or board deems necessary.
(5) Establish advisory committees composed of nonmembers
of the board to consult with and advise the board.
(6) Hold public hearings, solicit public comment and
seek stakeholder input on the direction of higher education
in this Commonwealth.
(7) Perform other operational activities necessary or
appropriate to further the purposes of this article.
(c) Duties.--The board shall perform all duties appropriate
to carry out and effectuate the board's purposes under this
article, including, but not limited to:
(1) Develop and implement a higher education strategic
plan.
(2) Develop policy recommendations, including:
(i) Recommendations related to the alignment to the
higher education strategic plan that promote greater
postsecondary access, quality, affordability and
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accountability.
(ii) Recommendations related to tuition and fees at
public institutions of higher education.
(iii) Recommendations related to new programs at
institutions of higher education to assist in avoiding
duplication and aligning to workforce needs.
(iv) Recommendations related to financial aid
policies of the Commonwealth.
(v) Recommendations related to the efficient and
effective use of State money for higher education.
(vi) Recommendations related to private licensed
schools, including recommended updates to the act of
December 15, 1986 (P.L.1585, No.174), known as the
Private Licensed Schools Act.
(3) Create a comprehensive data system for the
collection and analysis of postsecondary data to inform
policy recommendations and regularly assess progress against
strategic plan goals and performance against key outcomes.
The following apply:
(i) The board may require institutions of higher
education to report data for the purposes of this
paragraph in a form and manner prescribed by the board.
(ii) The provisions of section 118 shall not apply
to data collected under this paragraph.
(4) Facilitate the coordination and cooperation of
institutions of higher education to:
(i) Ensure broad access to high quality and
affordable postsecondary credentials and degrees.
(ii) Ensure the seamless transfer of credits and
credentials.
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(iii) Utilize dual enrollment and credit to create
strong pathways to postsecondary education and reduce
time to degree.
(iv) Increase postsecondary credential attainment.
(v) Meet the economic and workforce development
needs of this Commonwealth with a focus on meeting the
needs of high-priority occupations.
(5) In conjunction with the K-12 sector, coordinate
workforce development and economic development sectors, with
a focus on meeting the needs of high-priority occupations, to
develop affordable pathways to postsecondary credentials that
are aligned to current and future workforce and economic
needs.
(6) Oversee the implementation of the higher education
funding formulas established under section 2030-L.
(7) Assist institutions of higher education with
assessing their fiscal health and provide technical support
as needed.
(d) Transfer of powers and duties.--
(1) All powers and duties of the State Board of
Education and the Council of Higher Education under Article
XIX-A shall be transferred to the board. This paragraph does
not apply to any application for a withdrawal of sponsorship
under section 1910-A filed prior to the effective date of
this paragraph.
(2) All powers and duties of the State Board of
Education and the Council of Higher Education under Article
XXVI-B related to community colleges shall be transferred to
the board.
(3) All files, records, contracts, agreements and other
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materials which are used by the State Board of Education or
the Council of Higher Education in connection with the
powers, duties or functions exercised by the State Board of
Education or the Council of Higher Education related to
community colleges are hereby transferred to the board.
(4) A regulation adopted under Article XIX-A shall be
enforced by the board in collaboration with the State Board
of Education and shall continue to have the same force and
effect until modified or revised by the board.
(5) The board may promulgate regulations in order to
implement this subsection.
(6) The board, in consultation with the State Board of
Education, shall make recommendations to the Governor and
General Assembly no later than May 1, 2025, regarding the
appropriate delineation of roles and responsibilities of the
board, State Board of Education and department related to
higher education, including recommended legislation to update
Articles XIX-A and XXVI-B, and other related provisions of
this act.
(e) Coordination with State and local entities.--The board
shall:
(1) In consultation with the department, promote strong
pathways from grades K-12 through postsecondary credentials
and degrees.
(2) In consultation with the State Board of Education,
promote greater postsecondary access, quality and
affordability, including the use and quality of dual credit
and career and technical pathways.
(3) In consultation with the Pennsylvania Workforce
Development Board and local workforce development boards,
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support institutions of higher education to offer programs in
high-priority occupations that meet this Commonwealth's
current and future workforce needs.
Section 2012-L. Annual funding request.
In addition to the submission required under section 610 of
the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, a public institution of higher
education shall provide a copy of its budget request to the
board.
Section 2013-L. Long-term strategic planning.
(a) Development of strategic plan.--The board shall be
responsible for developing a higher education strategic plan for
the Commonwealth. The plan shall:
(1) Establish long-term, measurable goals and provide
strategies for implementing those goals.
(2) Assess the higher education needs of this
Commonwealth as well as each region of this Commonwealth.
(3) Include all components required of the master plan
for higher education under section 2603-B(h).
(b) Adoption of strategic plan.--No later than September 1,
2025, the board shall adopt a higher education strategic plan.
The plan shall be reviewed and revised, as necessary, every five
years.
(c) Consultation.--In development of the strategic plan, the
board shall:
(1) Consult with and seek input from stakeholders,
including, but not limited to, faculty, staff, students and
administrators from institutions of higher education and
other stakeholders.
(2) Make the strategic plan available for review and
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public comment for a period of not less than 30 days.
(3) Hold at least six regional public hearings as part
of the public comment process under paragraph (2).
(d) Annual reports.--Beginning May 1, 2026, and each May 1
thereafter, the board shall develop an annual report on the
status of the board and institutions of higher education. The
report shall include an update on the progress of the
implementation of the higher education strategic plan. As part
of the first annual report, the board shall include a review and
make recommendations related to the efficacy of the structure
and operation of the board.
(e) Transmittal of strategic plan and annual reports.--The
board shall post the strategic plan and annual reports on its
publicly accessible Internet website and transmit them to the
following individuals:
(1) The Governor.
(2) The General Assembly.
(3) The president of each institution of higher
education.
(4) The president of each bargaining unit that
represents employees at public institutions of higher
education.
SUBARTICLE C
ACCOUNTABILITY
Section 2030-L. Performance-based funding formulas.
(a) Duty of department.--The department shall develop
performance-based funding formulas to distribute State funding
to public institutions of higher education. In developing
performance-based funding formulas, the department shall:
(1) Consult with and solicit meaningful feedback and
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guidance from presidents of public institutions of higher
education, faculty, staff and business leaders.
(2) Develop formulas based on methodology which allocate
State funding for public institutions of higher education in
a manner that provides the resources and incentives for
institutions of higher education to achieve desired outcomes.
(b) Goals of formulas.--The department shall consider the
following goals in the development of the formulas:
(1) Predictability to avoid dramatic changes over time
to the individual institutions of higher education or the
overall sector.
(2) Outcomes driven to align to the priorities of the
Commonwealth.
(3) Transparency to increase public trust.
(4) Differentiation by mission or sector to recognize
and reward institutions of higher education for outcomes
aligned with their unique missions.
(5) Resources and incentives to address systemic
inequities in student access and attainment.
(6) Flexibility to allow resources to be deployed to
address urgent or unpredictable priorities.
(7) The department may adjust the metrics in subsections
(c), (d) and (e) to accomplish the goals of this subsection.
(c) Metrics for community colleges.--The following metrics
shall be considered by the department in the development of the
formula for community colleges and included in the formula as
deemed appropriate by the department:
(1) A fixed amount per community college to support
basic operations. The fixed amount shall include a small
school adjustment to account for economies of scale.
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(2) No less than 50% of the formula shall be based on
each community college's share of the total full-time
equivalent enrollment and headcount for all community
colleges. Total enrollment shall include in-State and out-of-
State students, degree-seeking and non-degree-seeking
students and graduate and undergraduate students in credit-
bearing courses.
(3) No less than 20% but no more than 25% of the formula
shall be based on student success outcomes. The formula shall
include outcome metrics as follows:
(i) The number of students reaching 15, 30 and 45
credit hour thresholds.
(ii) The number of students transferring from a
community college to a four-year institution of higher
education with at least 24 credit hours completed. An
additional weight shall be given for students
transferring to a State-owned university.
(iii) The number of students completing credit-
bearing credentials weighted to differentiate between
degree type.
(iv) The number of students completing credit-
bearing credentials aligned to high-priority occupations.
(4) Weights for priority populations shall be applied to
enrollment and outcome metrics, including weights for low-
income, under-represented student groups and students from
high schools with low college matriculation rates.
(d) Metrics for State-owned universities.--The following
metrics shall be considered by the department in the development
of the formula for State-owned universities and included in the
formula as deemed appropriate by the department:
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(1) A fixed amount per State-owned university to support
basic operations. The fixed amount shall include:
(i) A small school adjustment to account for
economies of scale.
(ii) Set-asides for State-owned universities
consolidated under section 2002-A to account for multi-
campus costs.
(iii) An additional amount for a historically black
college and university.
(2) No less than 50% of the formula shall be based on
each State-owned university's share of the system's total
full-time equivalent enrollment and headcount. Total
enrollment shall include in-State and out-of-State students,
degree-seeking and non-degree-seeking students and graduate
and undergraduate students in credit-bearing courses.
(3) No less than 20% but no more than 25% of the formula
shall be based on student success outcomes. The formula shall
include outcome metrics as follows:
(i) The number of students reaching 30, 60 and 90
credit hour thresholds.
(ii) The number of students transferring from a
community college to a State-owned university with at
least 24 credit hours completed.
(iii) The number of students completing credit-
bearing credentials weighted to differentiate between
degree type.
(iv) The number of students completing credit-
bearing credentials aligned to high-priority occupations.
(4) Weights for priority populations shall be applied to
enrollment and outcome metrics, including weights for low-
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income, under-represented student groups and students from
high schools with low college matriculation rates.
(e) Metrics for State-related universities.--The following
metrics shall be considered by the department in the development
of the formula for State-related universities and included in
the formula as deemed appropriate by the department:
(1) A set-aside for a historically black college or
university.
(2) No more than 50% of the formula shall be based on
each State-related university's share of the total full-time
equivalent enrollment for all State-related universities. The
following apply:
(i) Total enrollment shall include in-State and out-
of-State students, degree-seeking and non-degree-seeking
students and graduate and undergraduate students in
credit-bearing courses.
(ii) Out-of-State students shall be weighted less
than in-State students.
(3) No less than 30% of the formula shall be based on
student success outcomes. The formula shall include outcome
metrics as follows:
(i) The number of students reaching 30, 60 and 90
credit hour thresholds.
(ii) The number of students completing credit-
bearing credentials.
(iii) The number of students completing credit-
bearing credentials aligned to high-priority occupations.
(4) Weights for priority populations shall be applied to
enrollment and outcome metrics, including weights for low-
income, under-represented student groups and students from
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high schools with low college matriculation rates.
(f) Transmittal.--The department shall transmit a copy of
the performance-based funding formulas created under this
section to the following no later than March 1, 2025, and
include a timeline for implementation:
(1) The Governor.
(2) The President pro tempore of the Senate.
(3) The Speaker of the House of Representatives.
(4) The Majority Leader and the Minority Leader of the
Senate.
(5) The Majority Leader and the Minority Leader of the
House of Representatives.
(6) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(7) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(8) The chairperson and minority chairperson of the
Education Committee of the Senate.
(9) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(g) Publication and effective date.--The department shall
submit a notice containing the performance-based funding
formulas to the Legislative Reference Bureau for publication in
the next available issue of the Pennsylvania Bulletin. The
performance-based funding formulas shall become effective on the
date specified in the notice in the Pennsylvania Bulletin.
(h) Periodic review.--The board shall review and revise, if
necessary, the performance-based funding formulas every five
years. The review process shall include consultation and input
from public institutions of higher education. If the board
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adopts changes to the performance-based funding formulas, the
board shall transmit a notice containing the updated
performance-based funding formulas to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin. The changes to the performance-based
funding formulas shall become effective on the date specified in
the notice in the Pennsylvania Bulletin.
(i) Annual distribution.--
(1) Beginning in the fiscal year in which a performance-
based funding formula for State-owned universities or
community colleges becomes effective under subsection (g),
the department shall annually distribute performance-based
funding to each State-owned university or community college
which shall consist of the following:
(i) An amount equal to the State-owned university or
community college's allocation for the 2024-2025 fiscal
year under section 2031-L.
(ii) An additional amount to be calculated pursuant
to the performance-based funding formula under subsection
(c) or (d).
(2) For the 2024-2025 fiscal year, funding to the State
System of Higher Education and its institutions and community
colleges shall be distributed under section 2031-L(b) and
(c).
(3) Beginning in the fiscal year in which a performance-
based funding formula for State-related universities becomes
effective under subsection (g), the department shall annually
distribute performance-based funding to each State-related
university under section 2032-L which shall consist of the
following:
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(i) An amount equal to the State-related
university's allocation for the 2024-2025 fiscal year
under section 2031-L.
(ii) An additional amount to be calculated pursuant
to the performance-based funding formula under subsection
(e).
(4) For the 2024-2025 fiscal year, the department shall
distribute performance-based funding to State-related
universities under section 2031-L(d).
(j) Exemption.--The performance-based funding formulas
developed under this section shall not be subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(k) Data.--The data used to calculate the formulas in this
section shall be based on the most recent years for which data
is available as determined by the department and be fixed as of
the first day of June preceding the fiscal year in which the
allocation occurs. Data fixed on the first day of June shall be
revised by the department if it is subsequently found to be
incorrect.
Section 2031-L. Interim funding for public institutions of
higher education.
(a) General rule.--For the 2024-2025 fiscal year, public
institutions of higher education shall receive funding in
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accordance with this section.
(b) State System of Higher Education funding.--From the
appropriation for public college and university funding under
the act of (P.L. , No. ), known as the General
Appropriation Act of 2024, $673,461,000 shall be appropriated to
the State System of Higher Education.
(c) Community college funding.--From the appropriation for
public college and university funding under the General
Appropriation Act of 2024, each community college shall receive
an amount equal to the following:
(1) An amount equal to the reimbursement for operating
costs received in fiscal year 2023-2024 under section 1913-
A(b)(1.6)(xviii)(A) and (C).
(2) An amount equal to the economic development stipend
received in fiscal year 2023-2024 under section 1913-A(b)
(1.6)(xviii)(B).
(3) For each community college that receives funding
under paragraph (1) or (2), an additional amount for
operating costs determined for each community college as
follows:
(i) For a community college established after July
1, 2020, $436,671.
(ii) For a community college established before July
1, 2020:
(A) Multiply the audited full-time equivalent
enrollment as verified under section 1913-A(k.1) for
the most recent year available for the community
college by $38,809,329.
(B) Divide the product in clause (A) by the sum
of the audited full-time equivalent enrollment as
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verified under section 1913-A(k.1) for the most
recent year available for community colleges that
receive funding under paragraphs (1) and (2)
excluding the enrollment of a community college
subject to subparagraph (i).
(d) State-related university funding.--For the 2024-2025
fiscal year, each State-related university shall be eligible to
receive a grant under section 2032-L in an amount based on the
sum of the following:
(1) the amount appropriated to the State-related
university for the 2023-2024 fiscal year; and
(2) an additional amount determined for each State-
related university based on the following:
(i) divide the amount appropriated to the State-
related university for the 2023-2024 fiscal year by the
total amount appropriated to State-related universities
for the 2023-2024 fiscal year; and
(ii) multiply the amount calculated under
subparagraph (i) for each State-related university by the
difference in the amount appropriated for grants to
State-related universities for the 2024-2025 fiscal year
and the total amount appropriated to State-related
universities for the 2023-2024 fiscal year.
Section 2032-L. State-Related University Grant Program.
(a) Establishment.--The State-Related University Grant
Program is established in the department. Beginning in the 2024-
2025 fiscal year and each fiscal year thereafter, the program
shall provide funding to State-related universities from the
appropriation for grants to State-related universities.
(b) Approval process.--The department shall prescribe the
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form and manner in which a State-related university may apply
for funding under this section.
(c) Eligible uses.--Funding received by a State-related
university shall be used for costs directly related to the
provision of instruction for graduate or undergraduate students
and costs incurred in providing student-related services and
community outreach services consistent with the laws of this
Commonwealth.
(d) Form of application.--To be eligible to receive funding
under this section, a State-related university must submit a
plan for the use of the funding to the department.
(e) Monthly payment.--Payments shall be made to a State-
related university under this section on a monthly basis during
the fiscal year.
(f) Reporting requirements.--
(1) A State-related university that receives funding
under this section from the department shall ensure its
financial statements are in accordance with:
(i) The generally accepted accounting principles as
prescribed by the National Association of College and
University Business Officers, the American Institute of
Certified Public Accountants or their successors or by
any other recognized authoritative body.
(ii) The "Commonwealth of Pennsylvania Budget
Instructions for the State System of Higher Education,
State-related Universities and Non-State-related Colleges
and Universities."
(iii) The financial reporting policies and standards
promulgated by the Federal Government and by the
Commonwealth that apply to the State-related university.
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(2) The department shall require that a State-related
university provide information necessary to develop and
implement the performance-based funding formula for State-
related universities under section 2033-L.
(3) A State-related university shall maintain proper
records showing the application of the money received under
this section. The State-related university shall provide
full, complete and accurate information as may be requested
by the department.
(4) Upon request, the department shall provide
information required under this subsection to the chairperson
or minority chairperson of the Appropriations Committee of
the Senate or the chairperson or minority chairperson of the
Appropriations Committee of the House of Representatives.
Section 2033-L. Performance-based funding formula reporting.
(a) Requirements.--Notwithstanding any other provision of
law, for the purposes of developing and implementing a
performance-based funding formula, the following information
shall be reported to the department by public institutions of
higher education:
(1) Student enrollment, including in-State and out-of-
State students, disaggregated by demographics, enrollment
status and degree type and level.
(2) Students reaching credit hour thresholds under
section 2030-L.
(3) Students completing credentials, including
credentials aligned to high-priority occupations.
(4) Students included in priority populations, including
low-income students, underrepresented minority students and
academically unprepared students.
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(5) Any other data required by the department to
develop, implement, revise or measure the effectiveness of
the funding formulas under section 2030-L.
(b) Transmittal.--A public institution of higher education
shall report information required under this section to the
department in a manner and form prescribed by the department.
(c) Submission.--The State System of Higher Education may
submit the information required under this section on behalf of
the State-owned universities.
(d) Exclusion.--The provisions of section 118 shall not
apply to any data required under this section.
(e) Data sharing.--The department may share data collected
under this section with the board.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Student." An individual who attends an institution of
higher education, whether enrolled on a full-time, part-time,
degree-seeking, non-degree-seeking, credit or noncredit basis.
Section 2034-L. Original jurisdiction.
The Pennsylvania Supreme Court shall have exclusive and
original jurisdiction to hear a challenge or to render a
declaratory judgment concerning this subarticle. The
Pennsylvania Supreme Court may take action as the court deems
appropriate, consistent with the Pennsylvania Supreme Court's
retaining jurisdiction over the matter, to find facts or to
expedite a final judgment in connection with a challenge or
request for declaratory relief.
SUBARTICLE D
AFFORDABILITY
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Section 2040-L. Pennsylvania Tuition Assistance Grant Program.
(a) Establishment.--The Pennsylvania Tuition Assistance
Grant Program is established within the agency.
(b) Duties.--The agency, in consultation with the
department, shall administer the grant program and award grants
to eligible students beginning in the 2025-2026 school year and
each year thereafter.
(c) Application.--No later than 90 days after the effective
date of this section, the agency shall develop guidelines,
including instructions for how an eligible student may apply for
a grant.
(d) Administrative fee.--The agency may take no more than 3%
of the funding appropriated for the grant program as an
administrative fee for direct costs associated with the
implementation, administration and servicing of the grant
program.
Section 2041-L. Eligible grant recipients.
(a) Eligibility requirements.--To receive a grant under
section 2040-L, an eligible student must:
(1) Meet the following requirements of the State Grant
Program under the Higher Education Scholarship Law:
(i) The domicile requirements.
(ii) The high school graduation requirements.
(iii) Not have received the maximum number of
Pennsylvania State grant awards permitted.
(2) Make satisfactory academic progress for Federal
student aid purposes.
(3) Have an adjusted gross income at or below the median
household income for the State as determined by the most
recent five-year estimate of the United States Census
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Bureau's American Community Survey.
(4) Be enrolled or will be enrolled in a community
college or State-owned university.
(b) Additional money.--If the Secretary of the Budget makes
a determination that additional money is available for
Pennsylvania Tuition Assistance grants that exceeds the needs of
the students eligible under subsection (a), the agency shall
increase the total annual household income requirement under
subsection (a)(3).
Section 2042-L. Grant awards.
(a) Grant amount.--The agency shall calculate the grant
amount for each eligible full-time student so that the eligible
full-time student's remaining tuition and fees are no more than
$1,000 per semester after other financial aid is awarded. The
agency shall prorate the amount of the award if a student is not
a full-time student.
(b) Grant calculation.--The grant amount under subsection
(a) shall be calculated after Pell Grant, Pennsylvania State
grant, institutional aid and private scholarships are applied.
(c) Prohibition.--A State-owned university or community
college may not reduce a student's institutional financial aid
as a result of receiving a grant under this subarticle.
Section 2043-L. Annual report.
(a) Report.--The agency, in consultation with the
department, shall prepare and submit a report to the Governor,
the General Assembly, the board and the Secretary of Education
no later than December 31 of each year that funding is awarded
under the program.
(b) Contents.--The report shall include the number of grant
recipients, programs of study pursued and graduate rates and
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award type, disaggregated by institution and student group.
Section 2044-L. Pennsylvania State grant supplement.
(a) Grant supplement.--Beginning in the 2025-2026 fiscal
year and each year thereafter, the agency shall use money
appropriated for the purpose of this section to provide a
Pennsylvania State grant supplement to eligible students.
(b) Eligible students.--In order to receive a Pennsylvania
State grant supplement, an individual must meet all of the
following requirements:
(1) Be a recipient of a Pennsylvania State grant.
(2) Be enrolled in a State-grant-approved institution of
higher education that is also a State-related university,
independent institution of higher education or Thaddeus
Stevens College of Technology.
(3) Have an adjusted gross income at or below the median
household income for the State as determined by the most
recent five-year estimate of the United States Census
Bureau's American Community Survey.
(c) Amount.--The Pennsylvania State grant supplement shall
be in an amount up to $1,000. The agency shall prorate the
amount of the award if a student is not a full-time student.
(d) Limit.--A Pennsylvania State grant supplement may not
exceed the student's tuition or fees after all other financial
aid has been applied to a student's account.
(e) Annual report.--
(1) The agency, in consultation with the department,
shall prepare and submit a report to the Governor, the
General Assembly, the board and the Secretary of Education no
later than December 31 of each year that Pennsylvania State
grant supplements are awarded.
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(2) The report shall include the number of Pennsylvania
State grant supplement recipients, programs of study pursued
and graduation rates and award type, disaggregated by
institution and student group.
Section 2. This act shall take effect immediately.
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