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    ​​​Basic Education Circulars (BECs)

    Cost Constraints

    22 Pa. Code § 21.51

    Date of Issue: March 31, 2020
    Previous reviews:  July 1,2018, July 1, 2006, July 1, 2004, and July 1, 2002

    Purpose

    The purpose of this Basic Education Circular is to provide information concerning Commonwealth approval of PlanCon reimbursable projects.

    If exceptions are not properly requested, justified and approved, the Department will take the following actions:

    1. The Department will not approve a reimbursable building project when the local share of the total commitment of the district to capital debt and interest thereon, including that for the proposed project, is greater than 25% of the total of its revenue from local sources. The calculations shall be from data projected for the fiscal year in which the proposed facilities are to be occupied.
    2. The Department will not approve a reimbursable building project when the sum of the projected local share of the annual cost of amortization of the project and the current local effort, as measured in mills on market value, is greater than the product of the Statewide average for local effort, measured in mills on market value, and 2.0000 minus the current aid ratio of the district. Calculations under this section will be made on forms provided in the Department's Construction Planning Manual.
    3. The Department will not approve a project if the most recent financial report submitted by the applicant district shows evidence of possible fiscal distress as determined by the Department.

    References

    Purdon's Statutes

    71 P.S. § 369

    State Board of Education Regulations

    22 Pa. Code § 21.51

    Bureau/Office Contact

    Bureau of Budget and Fiscal Management
    Division of School Facilities
    Pennsylvania Department of Education
    Forum Building
    607 South Drive
    Harrisburg, PA  17120​
    Phone:  (717) 787-5993
    E-mail:  RA-SchoolFacilities@pa.gov