§ 18.4. Issuance of declaration under section 621-A(a)(1) of the School Code.
(a) As provided by section 621-A(a)(1) of the School Code (24 P.S. § 6-621-A(a)(1)), the Secretary will issue a declaration that a school district is in financial recovery status when either of the following applies:
(1) The school district has an average daily membership over 7,500 and receives an advance of its basic education subsidy at any time.
(2) The school district receives an advance of its basic education subsidy at any time and either of the following applies:
(i) The school district is subject to a declaration of financial distress under section 691 of the School Code (24 P.S. § 6-691).
(ii) The school district is engaged in litigation against the Commonwealth in which the school district seeks financial assistance from the Commonwealth to allow the school district to continue in operation.
(b) As provided by section 621-A(a)(1)(ii)(B) of the School Code, the Secretary may decline to issue a declaration that a school district is in financial recovery status when the Secretary determines that the school district, within the previous 5 years, has faced an emergency that caused the occurrence of a circumstance in subsection (a).
(c) As provided by section 621-A(b) of the School Code, a school district will not be declared in financial recovery status if the circumstances in subsection (a) have been caused by the failure of the Commonwealth to make a payment of money due to the school district at the time the payment is due, including payment of Federal funding that is distributed through the Commonwealth.
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