Otto-Eldred School District received $65,341. The state also provided a $544.4 million payment for School Employees’ Social Security and $856 million for School Employees’ Retirement fund called PSERS. In 2011-12, Otto-Eldred School District received $5,386,586in state Basic Education Funding. Additionally, the district will receive $65,341 in Accountability Block Grant funding. The enacted Pennsylvania state Education budget includes $5,354,629,000 for the 2011-2012 Basic Education Funding appropriation. This amount is a $233,290,000 increase (4.6%) over the enacted State appropriation for 2010-2011. The highest increase in state basic education funding was awarded to Duquesne City School District, which got a 49% increase in state funding for 2011-12. For the 2010-11 budget year the Otto-Eldred School District received a 3.17% increase in state basic education funding for a total of $5,746,653. The highest increase in state funding, among McKean County school districts, was awarded to Kane Area School District at 4.28% increase. One hundred fifty school districts in Pennsylvania received the 2% base increase for budget year 2010-11. The highest increase in the state was awarded to Kennett Consolidated School District of Chester County which was given a 23.65% increase in state basic education funding. The state's hold harmless policy regarding state basic education funding continued where each district received at least the same amount as it received the prior school year, even when enrollment had significantly declined. The amount of increase each school district received was set by Governor Edward Rendell and then Secretary of Education Gerald Zahorchak, as a part of the state budget proposal given each February. This was the second year of Governor Rendell's policy to fund some districts at a far greater rate than others. In 2010, Otto-Eldred School District reported that 343 pupils received a free or reduced-price lunch due to their family meeting the federal poverty level. In the 2009-2010 budget year, the Commonwealth of Pennsylvania provided a 3.41% increase in Basic Education Funding for a total of $5,570,240. For comparison, Governor Edward Rendell gave a 7.46% increase in funding to Bradford Area School District, a 13% increase to Hazleton Area School District and Kane Area School District received a 5.32% increase in state funding. Ninety Pennsylvania school district received a 2% increase in state basic education funding.