NOTICES

DEPARTMENT
OF EDUCATION

Annual Certification Under Section 7201-B(e) of the Tax Reform Code

[46 Pa.B. 8195]
[Saturday, December 31, 2016]

December 19, 2016

William R. Hite, Jr., Ed.D.
Superintendent
School District of Philadelphia
440 North Broad Street, Suite 301
Philadelphia, PA 19130

 I am writing pursuant to Section 7201-B(e) of the Tax Reform Code, Act 52 of 2013, 72 P.S. § 7201-B(e), which provides that a city of the first class may impose a one percent sales and use tax that may be used by a school district of the first class in an amount up to $120,000,000. Effective July 1, 2014, the City of Philadelphia has imposed this additional sales and use tax. However, the use of these funds by the School District of Philadelphia (''District'') must be authorized by the Secretary of Education.

 Pursuant to Section 7201-B(e)(1), as Secretary of Education, I must consider whether ''the school dis- trict. . .began implementation of reforms that provide for [the District's] fiscal stability, educational improvement and operational control.'' In my judgment, the District has begun implementation of such reforms in all three areas described in the statute.

 According to the District, it is implementing new programs and initiatives to increase the range and quality of educational options available to students, including:

 • Releasing the School District of Philadelphia Action Plan 3.0, a strategic plan to transform schools and improve student achievement;

 • Launching the Turnaround Network by announcing a revised model focused on school leadership and teacher development, committing $15 million of new and redirected resources aimed at creating academic improvement and adding five schools to the existing network;

 • Continuing the School Redesign Initiative—an open call to teachers, school leaders, families, community groups, and others to work together to redesign schools to meet the needs of 21st century learning;

 • Designating eleven schools for rapid academic improvement through the District's System of Great Schools initiative which considers schools for intensive interventions, including the District's turnaround network, partnering with a contract provider and/or merging with a high quality program;

 • Implementing the Authorizer Quality Initiative, a set of new charter school authorizing policies, performance standards, and procedures;

 • Placing early literacy specialists in elementary schools and providing intensive literacy training for 93 principals and 1,100 teachers, in addition to spearheading an early literacy campaign to meet the District's Anchor Goal of all 8-year-olds reading at grade level;

 • Investing in new Math, ELA, ELL, and AP/IB instructional resources, inclusive of training/professional development, for all District schools;

 • Offering summer programs for students attending state-designated priority schools and District-designated turnaround schools.

 The District has also reported that additional steps have been taken to improve operational controls and to create fiscal stability, including:

 • Managing resources to end the 2015 and 2016 fiscal years with a modest fund balance;

 • Refinancing approximately $1.5 billion of existing debt, saving approximately $140 million over the next 17 years;

 • Earning an improved credit outlook from two rating agencies, Fitch and Moody's, for the first time since 2010, resulting in lower borrowing costs for the District;

 • Negotiating a new four-year contract with the District's SEIU-32BJ union;

 • Approving a two-year extension to the existing contract with the District's local 634 union;

 • Completing a School and Partner Census for all District schools detailing current partners, impact areas, and expressed needs areas.

 As a result of the foregoing reforms documented by the District, I hereby certify that the requisites of Section 7201-B(e) of the Tax Reform Code have been satisfied. I authorize the Pennsylvania Department of Revenue to disburse to the District, on or before the tenth day of every month, the total amount of money contained in the Local Sales and Use Tax Fund as of the last day of the previous month up to a maximum of $120,000,000 pursuant to section 7201-B(e)(2) of the Tax Reform Code.

PEDRO A. RIVERA, 
Secretary

[Pa.B. Doc. No. 16-2308. Filed for public inspection December 30, 2016, 9:00 a.m.]

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