Senate Bill 315 and Senate Bill 160 Save School Districts $178 Million Statewide While Increasing Accountability

Pennsylvania lawmakers have approved sweeping reforms to cyber charter school funding and accountability measures as part of the 2025-26 state budget, bringing significant changes that will directly impact families and school districts across the Poconos region.

The reforms, enacted through Senate Bill 315 (PN 0249) and Senate Bill 160 (PN 1309) and signed into law as part of a $50.1 billion state budget, will save Pennsylvania school districts a collective $178 million annually by adjusting how much they pay to cyber charter schools. Senate Bill 315, known as the School Code bill, contains the specific cyber charter accountability and funding reforms, while Senate Bill 160 provides the budget appropriations.

For Monroe County alone, where cyber charter schools have been draining approximately $40 million annually from local taxpayers, the changes could provide meaningful financial relief to public school districts that have struggled under the weight of escalating cyber charter tuition costs.

Understanding the New Funding Formula

Pennsylvania’s cyber charter schools have operated under the Pennsylvania Charter School Law (24 P.S. § 17-1701-A et seq.), which was last significantly updated in 1997—long before the explosion of online education. For years, this outdated statute required school districts to pay cyber charter schools the same per-pupil rate as brick-and-mortar schools, despite cyber schools’ significantly lower overhead costs—no buildings to maintain, no transportation systems to operate, and no cafeterias to staff. This system has resulted in districts vastly overpaying for online education while cyber charter schools accumulated massive surpluses.

Senate Bill 315 directly amends the Pennsylvania Charter School Law to address these funding inequities. Under the new reforms, the tuition calculation method has been revised to better reflect the actual costs of providing online education. The changes specifically address special education tuition rates, which previously required districts to pay inflated amounts regardless of the actual services provided to students with disabilities. A state audit earlier this year revealed that five major cyber charter schools held $619 million in reserves while spending taxpayer money on questionable expenses like staff bonuses, gift cards, vehicle payments, and even purchasing 21 physical properties—expenses that seemed unnecessary for schools operating entirely online.

What This Means for Pocono-Area School Districts

Local school districts in Monroe, Pike, and surrounding counties have been among those hardest hit by rising cyber charter costs. The reforms come as welcome news to districts like Wilkes-Barre Area, Pocono Mountain, Pleasant Valley, and Stroudsburg, which have watched their cyber charter expenses balloon in recent years, particularly since the COVID-19 pandemic accelerated online learning enrollment.

State Representative Tarah Probst, who represents portions of Monroe County, emphasized the local impact at a recent press conference in East Stroudsburg: “In just Monroe County alone, cyber charter schools take $40 million away from our taxpayers. When you see a cyber charter commercial on TV—just know your tax dollars are paying for that.”

The $178 million in statewide savings means more resources can remain in local school districts to fund classroom teachers, educational programs, facility improvements, and student support services. For families whose children attend traditional public schools, this could translate to enhanced educational opportunities rather than watching millions flow out of their districts to fund online schools that consistently underperform academically.

New Accountability Measures Protect Students

Beyond financial reforms, Senate Bill 315 introduces critical accountability measures by amending multiple sections of the Pennsylvania Charter School Law, designed to ensure cyber charter students receive quality education and remain safe:

Mandatory Wellness Checks (24 P.S. § 17-1749-A): Cyber charter schools must now conduct weekly wellness checks where teachers or administrators can visibly see students. This reform was sparked by tragic cases, including the death of a 12-year-old cyber charter student. The new law establishes clear penalties for cyber operators who refuse to comply. Schools that previously refused to conduct these checks—including Pennsylvania’s largest cyber charter—will now be legally required to do so.

Attendance Policies (24 P.S. § 17-1748-A): New requirements mandate that cyber schools create attendance policies for both synchronous (live, interactive) and asynchronous (self-paced) instruction. For synchronous learning, students must be present and visible on camera. For asynchronous work, students must complete coursework and meet weekly benchmarks. This addresses concerns that some cyber charter students were essentially invisible to their schools.

Residency Verification: School districts will now receive proof of residency for students for whom they pay tuition, preventing potential fraud and ensuring accurate payment.

Performance Transparency: Cyber charters must post annual performance assessments online and inform students if the school is found to be low-performing. Low-performing cyber schools will face enrollment caps.

The Academic Performance Context

These reforms arrive amid growing concerns about cyber charter school performance. According to state data, Pennsylvania’s 14 cyber charter schools consistently rank among the lowest-performing schools in the state, with graduation rates far below traditional public schools and standardized test scores that trail state averages significantly.

In Northeast Pennsylvania, data shows that cyber charter schools underperform compared to their brick-and-mortar counterparts across nearly every academic measure. For Pocono-area families considering cyber school options, the new transparency requirements will make it easier to evaluate whether these schools are delivering quality education worth the taxpayer investment.

Impact on Pocono Families Using Cyber Schools

For the approximately 65,000 Pennsylvania students currently enrolled in cyber charter schools—including hundreds from the Poconos region—these reforms don’t eliminate the cyber school option. Cyber charter schools remain free for families and will continue operating, though some smaller cyber charters have warned they may face financial challenges or potential closures under the new funding structure.

Parents who have enrolled their children in cyber schools like Commonwealth Charter Academy, PA Cyber, PA Virtual, Agora Cyber, or other online options will still have access to these programs. However, the reforms aim to ensure that taxpayer dollars are spent more efficiently and that students receive appropriate oversight and support.

Families considering cyber school enrollment should now have better information about school performance and can expect increased accountability measures to protect their children’s educational experience and wellbeing.

What Happens Next

The reforms take effect immediately as part of the signed state budget. School districts across the Poconos will begin seeing reduced cyber charter payments in the current fiscal year, potentially freeing up millions for local educational priorities.

For Pocono residents, this represents a significant shift in how education dollars are allocated. Rather than watching ever-increasing amounts flow to cyber schools with questionable spending habits and poor academic outcomes, local districts will retain more resources to invest in the students learning in their classrooms every day.

The Pennsylvania Department of Education will oversee implementation of the new accountability measures, and cyber charter schools will be required to comply with wellness checks, attendance tracking, and transparency requirements immediately.

As state lawmakers continue to monitor the reforms’ effectiveness, advocates say this represents an important first step toward creating a more equitable and accountable charter school system—one that provides real choices for families while protecting taxpayers and ensuring students receive quality education regardless of where they learn.

Accessing the Legislation

The full text of the cyber charter reform legislation is available through the Pennsylvania General Assembly:

• Senate Bill 315 (PN 0249) – School Code amendments containing cyber charter accountability and funding reforms
• Senate Bill 160 (PN 1309) – State budget bill with appropriations

Both bills were passed by the Pennsylvania House and Senate in November 2025 and signed into law by Governor Josh Shapiro. Residents can view the complete legislation, voting records, and fiscal notes at www.legis.state.pa.us.