HR 377 — A Resolution directing the Legislative Budget and Finance Committee to conduct an effectiveness and results audit and issue a report on all existing incentives for public school district consolidation and sharing of services, and to make recommendations related to incentivizing the reorganization, consolidation and shared services of school districts of a specific enrollment size.

PRINTER'S NO.   2668

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



           HOUSE RESOLUTION
              No. 377
                                                Session of
                                                  2025

     INTRODUCED BY SCOTT, HARKINS, DONAHUE, HILL-EVANS, SANCHEZ,
        CEPEDA-FREYTIZ AND ZIMMERMAN, DECEMBER 3, 2025

     REFERRED TO COMMITTEE ON EDUCATION, DECEMBER 3, 2025


                                 A RESOLUTION
 1   Directing the Legislative Budget and Finance Committee to
 2      conduct an effectiveness and results audit and issue a report
 3      on all existing incentives for public school district
 4      consolidation and sharing of services, and to make
 5      recommendations related to incentivizing the reorganization,
 6      consolidation and shared services of school districts of a
 7      specific enrollment size.
 8      WHEREAS, The Commonwealth has seen a significant reduction in
 9   the number of its school districts since the early twentieth
10   century, with the number of districts at its highest point being
11   2,599; and
12      WHEREAS, The most significant reduction, from 2,277 to 669,
13   in school districts resulted from the consolidation laws of 1961
14   and 1963; and
15      WHEREAS, The Legislative Budget and Finance Committee
16   performed a study on the cost-effectiveness of consolidating
17   Pennsylvania school districts in 2007 and found that there
18   should be a focus on the potential benefits of consolidating
19   relatively high-spending, smaller districts into lower-spending,
20   larger districts; and
 1      WHEREAS, Former Governor Ed Rendell's 2009 Budget Proposal
 2   sought to expand shared services and consolidation incentives by
 3   proposing an additional $1.5 million for a total funding of
 4   nearly $2.5 million; and
 5      WHEREAS, The 2009 Budget Proposal also provided a Proposed
 6   Education Initiative, which proposed a legislative commission
 7   conduct a study and produce a report on consolidation; and
 8      WHEREAS, The 2009 proposal had the goal of consolidating the
 9   Commonwealth's 501 public school districts into 100; and
10      WHEREAS, The Legislative Budget and Finance Committee
11   conducted a 2015 study on the feasibility and cost-effectiveness
12   of merging Pennsylvania public school district health care plans
13   and found modest savings opportunities of approximately 5% to 6%
14   of costs in the near-term; and
15      WHEREAS, The Joint State Government Commission performed a
16   staff study with the Independent Fiscal Office on school
17   district consolidations in 2017; and
18      WHEREAS, Today, there are approximately 500 school districts
19   currently operating within this Commonwealth; and
20      WHEREAS, Costs to support school districts and property taxes
21   are increasing; and
22      WHEREAS, Enrollments in school districts, especially rural
23   school districts, are declining, making it challenging to offer
24   more than basic educational programs; and
25      WHEREAS, School district consolidation and shared service
26   initiatives have the potential to save money and improve student
27   educational achievement, however no school districts have
28   voluntarily consolidated since 2009 and many school districts do
29   not share services with other districts; and
30      WHEREAS, The act of August 4, 1959 (P.L.587, No.195),

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 1   provides the Legislative Budget and Finance Committee the power
 2   to request, receive, review, examine, study, ascertain and
 3   compare fiscal information concerning the budget, revenues and
 4   expenditures of the Commonwealth and to make recommendations to
 5   the General Assembly, when found advisable, directed to the
 6   elimination of unnecessary expenditures and to the promotion of
 7   economy in the government of the Commonwealth; and
 8      WHEREAS, The Legislative Budget and Finance Committee has the
 9   power to examine and, when pertinent, make reports concerning
10   the current condition of all State funds, appropriations and
11   other moneys, whether or not such appropriations are being
12   currently expended for the purposes and within the statutory
13   restrictions provided by the General Assembly, and concerning
14   the current availability of revenue to meet expenditures under
15   appropriations; therefore be it
16      RESOLVED, That the House of Representatives direct the
17   Legislative Budget and Finance Committee to conduct an
18   effectiveness and results audit to determine what incentives
19   exist for school district consolidation and shared services and
20   why they are not utilized; and be it further
21      RESOLVED, That the audit include an examination and review of
22   all current programs designed to incentivize school district
23   consolidation and shared services; and be it further
24      RESOLVED, That the audit determine why these programs are not
25   producing the intended results and make recommendations related
26   to incentivizing school districts to reorganize and consolidate
27   or share services; and be it further
28      RESOLVED, That the audit provide a review of other states'
29   programs for incentivizing school district consolidation and the
30   sharing of services among districts; and be it further

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1      RESOLVED, That the Legislative Budget and Finance Committee
2   prepare a report of its findings and recommendations in the
3   audit and submit the report to the General Assembly no later
4   than one year after the adoption of this resolution.




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