Act 73 ties tuition rules to a contingent foundation formula and allows limited additional fees for high-school students

St. James explained how Act 73 modifies tuition mechanics and ties some tuition statutes to a contingent foundation formula.

Under the contingency tied to the foundation formula (effective 07/01/2028 if conditions are met), funding will be distributed as a base amount with weights that follow the student. "Under the foundation formula... the base and weights follow the student," St. James said. Receiving schools, whether public or approved independent schools, would receive the base plus applicable weights for each tuitioned student rather than setting tuition unilaterally.

Act 73 also allows receiving schools to charge an additional flat fee equal to up to 5% of the base amount for students in grades 9–12, but only if the State Board approves the receiving school’s request and each affected electorate has approved supplemental district spending sufficient to cover the fee. St. James noted the statute requires an approval process, and the State Board must adopt rules on or before 07/01/2027 governing how a receiving school demonstrates that the fee is necessary to educate the students it is applied to and that the fee will not shift costs elsewhere in the school’s budget.

The act preserves a transitional protection: students enrolled or accepted for the 2024 school year at approved independent schools that were eligible for public tuition prior to Act 73 may continue to receive tuition until they graduate even if their school does not meet the new standards. St. James also noted that approved independent schools functioning as area CTE centers remain subject to current law requiring districts to pay full tuition charges.

Committee members asked about how the State Board or receiving schools will demonstrate the necessity of the fee and whether receiving schools currently charge different districts different tuition; St. James advised those procedural and definitional questions will be addressed in rulemaking and with field testimony; JFO cost estimates were requested.