Pocono Mountain School District v. Pennsylvania Department of Education
2016 Pa. LEXIS 2921
| Pa. | 2016Background
- Pocono Mountain School District chartered Pocono Mountain Charter School; after extended revocation proceedings the charter was revoked effective June 21, 2014 and the charter school dissolved.
- The charter school failed to make required employer/member contributions to PSERS for the 2013–2014 school year; PSERS certified an $87,700.32 deficiency.
- Under 24 Pa.C.S. § 8327(b)(2), the Department of Education (DOE) may deduct unpaid charter-school PSERS contributions from funds appropriated for basic education to the chartering school district and credit PSERS.
- DOE deducted the deficiency from the School District’s basic education subsidy on August 28, 2014 (after the charter’s revocation); the School District challenged the deduction.
- The Commonwealth Court upheld the DOE deduction as ministerial because the School District had been the chartering district when the deficiency arose; the Pennsylvania Supreme Court granted review.
Issues
| Issue | Plaintiff's Argument (School District) | Defendant's Argument (DOE/PSERS) | Held |
|---|---|---|---|
| Whether § 8327(b)(2) permits DOE to deduct a closed charter school's unpaid PSERS contributions from the chartering district after the charter is revoked | § 8327(b)(2) is a pass‑through that only operates if the charter school is still operating when the deduction is made; Charter School Law bars holding a district liable for debts of a closed charter | § 8327(b)(2) is a PSERS payment mechanism that applies when the deficiency arose; the DOE acted ministerially and the district was the chartering district when the delinquency occurred | Held: A district is not financially responsible after the charter school is dissolved; § 1729‑A(i) precludes deductions from a district’s subsidy where the charter is closed, so § 8327(b)(2) is inapplicable post‑dissolution. |
| Whether unpaid PSERS contributions qualify as an "outstanding liability or obligation" of a charter school | District: such unpaid contributions are liabilities but Charter School Law forbids passing liabilities of a closed charter to the district | DOE: unpaid contributions are PSERS obligations subject to § 8327(b)(2) and § 1714‑A(c) is inapplicable | Held: unpaid PSERS contributions are charter‑school liabilities; § 17‑1729‑A(i) prevents imposing those liabilities on a district after dissolution. |
| Proper statutory construction when § 8327(b)(2) and § 17‑1729‑A(i) conflict | Read statutes in pari materia; later, specific statute (§ 1729‑A(i)) controls and exempts districts from liabilities of closed charters | DOE: § 8327(b)(2) is the specific payment remedy for PSERS and should control; otherwise PSERS credit/benefits are jeopardized | Held: statutes are in pari materia; the later/specific § 17‑1729‑A(i) operates as an exception to § 8327(b)(2) for closed charters. |
| Whether DOE’s deduction was a ministerial act denying the district a hearing | District: deduction required adjudicative process because it effectively imposed liability | DOE: the deduction was a mandatory, ministerial act under § 8327(b)(2) so no hearing required | Court did not decide this due to resolution on statutory conflict; lower‑court ministerial finding left unaddressed. |
Key Cases Cited
- Cent. Westmoreland Career & Tech. Ctr. Educ. Ass’n v. Penn‑Trafford Sch. Dist., 131 A.3d 971 (Pa. 2016) (standard of statutory review and de novo review statement)
- Pocono Mountain Charter Sch., Inc. v. Pocono Mountain Sch. Dist., 88 A.3d 275 (Pa. Commw. 2014) (administrative and revocation background; prior Commonwealth Court decision)
- Council of Philadelphia v. Street, 856 A.2d 893 (Pa. Commw. 2004) (definition and examples of ministerial acts)
- Flinn v. Fittenger, 338 A.2d 735 (Pa. Commw. 1975) (ministerial act jurisprudence)
- West Chester Area Sch. Dist. v. Collegium Charter Sch., 812 A.2d 1172 (Pa. 2002) (discussion of who is a chartering school district)