Pennsylvania SB 1171: An Act amending the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act, in municipal financial distress, providing for emergency plan extension.

Bill Text

PRINTER'S NO. 1452
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1171
Session of
2026
INTRODUCED BY HUGHES, FEBRUARY 24, 2026
REFERRED TO APPROPRIATIONS, FEBRUARY 24, 2026
AN ACT
Providing for funding for State-related universities for the
fiscal year beginning July 1, 2026, and ending June 30, 2027,
for costs basis, for frequency of payments and for
recordkeeping requirements; imposing a duty on the Auditor
General; providing for financial statements, for the
Agricultural College Land Scrip Fund and for restrictions;
and making appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the State-related
University Nonpreferred Appropriation Act of 2026.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Auditor General." The Auditor General of the Commonwealth.
"Current fiscal year." The fiscal year beginning July 1,
2026, and ending June 30, 2027.
"Department." The Department of Education of the
Commonwealth.
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"Secretary." The Secretary of Education of the Commonwealth.
"State-related university." The term includes:
(1) The Pennsylvania State University.
(2) The University of Pittsburgh.
(3) Temple University.
(4) Lincoln University.
Section 3. Cost basis during current fiscal year.
Payments made to a State-related university on account of an
appropriation under this act shall be made on the basis of costs
during the current fiscal year.
Section 4. Frequency and basis of payments.
(a) Monthly payments.--Payments made to a State-related
university from an appropriation provided in this act shall be
made monthly during the current fiscal year.
(b) Estimated costs.--The monthly payments shall be made to
a State-related university under section 3 on the basis of
estimated costs. The estimate of costs shall be submitted by the
State-related university to the secretary, the General Assembly
and the State Treasurer not later than 30 days prior to the date
on which the payment is to be made.
Section 5. Purposes of expenditures and statement of
expenditures and costs.
(a) Duties of State-related universities.--
(1) A State-related university shall apply the money
appropriated by this act only for such purposes as are
permitted in this act and shall at all times maintain proper
records showing the application of the money.
(2) Not later than 120 days after the close of the
current fiscal year, the State-related university shall file,
with the secretary, the General Assembly and the Auditor
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General, a statement that specifies the amounts and purposes
of all expenditures made from money appropriated by this act
and other university accounts during the current fiscal year,
as provided in section 3, used as a basis for receipt of an
appropriation during the current fiscal year.
(b) Duties of Auditor General.--The statement of
expenditures and costs shall be reviewed by the Auditor General.
The Auditor General may, with respect to the money appropriated
by this act, audit and disallow expenditures made for purposes
not permitted by this act, recover the sums from the State-
related university and transmit the recovered sums to the State
Treasurer. In respect to expenditures made by the State-related
university from money other than that appropriated by this act,
the Auditor General may review only, and shall file annually
with the General Assembly, information concerning those
expenditures as the General Assembly or any of its committees
may require.
Section 6. Duty to provide information.
A State-related university shall provide full, complete and
accurate information as may be required by the department or the
chairperson or minority chairperson of the Appropriations
Committee of the Senate or the chairperson or minority
chairperson of the Appropriations Committee of the House of
Representatives.
Section 7. Financial statements.
A State-related university shall present and report its
financial statements required under this act in accordance with:
(1) the generally accepted accounting principles as
prescribed by the National Association of College and
University Business Officers, the American Institute of
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Certified Public Accountants, or their successors, or by any
other recognized authoritative body;
(2) the "Commonwealth of Pennsylvania Budget
Instructions for the State System of Higher Education, State-
Related Universities and Non-State-Related Colleges and
Universities"; and
(3) the financial reporting policies and standards
promulgated by the Federal Government and by the Commonwealth
that apply to the State-r