§ 21.51. Cost constraints.
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 Departments 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.
The provisions of this § 21.51 amended under sections 701.1, 731, 733 and 735 of the Public School Code of 1949 (24 P. S. § § 7-701.1, 7-731, 7-733 and 7-735); section 1319 of The Administrative Code of 1929 (71 P. S. § 369); and sections 2574.1 and 2576 of the Public School Code of 1949 (24 P. S. § § 25-2574.1 and 25-2576).
The provisions of this § 21.51 adopted October 2, 1970, effective October 3, 1970, 1 Pa.B. 324; amended October 6, 1972, effective October 7, 1972, 2 Pa.B. 1889; amended April 22, 1977, effective April 23, 1977, 7 Pa.B. 1084; amended February 5, 1988, effective July 1, 1988, 18 Pa.B. 553. Immediately preceding text appears at serial page (98932) to (98933).
This section cited in 22 Pa. Code § 21.21 (relating to Department approval); 22 Pa. Code § 21.82 (relating to bid specifications and bids); and 22 Pa. Code § 21.101 (relating to Construction Planning Manual).
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