H.B. 278

1

CHARTER SCHOOL FUNDING AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Ron Bigelow
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the funding of charter schools.
10 Highlighted Provisions:
11 This bill:
12 . annually increases the maximum student capacity of charter schools;
13 . requires a school district:
14 . beginning in fiscal year 2010-11, to provide an allocation equal to the school
15 district's per pupil local revenues for each resident student who attends a charter
16 school; and
17 . in fiscal years 2008-09 and 2009-10, to provide a partial allocation;
18 . specifies how the school district's per pupil local revenues are calculated;
19 . requires the State Board of Education to:
20 . deduct from a school district's state funds an amount equal to the allocation of
21 per pupil local revenues; and
22 . remit the money to the student's charter school;
23 . directs the Legislature to provide an appropriation for charter schools:
24 . annually, to replace property tax revenues for debt service that are not available
25 to charter schools; and
26 . in fiscal years 2008-09 and 2009-10, to supplement revenues received from
27 school districts; and

28 . modifies charter school administrative cost provisions.
29 Monies Appropriated in this Bill:
30 None
31 Other Special Clauses:
32 This bill takes effect on July 1, 2008.
33 Utah Code Sections Affected:
34 AMENDS:
35 53A-1a-502.5, as last amended by Laws of Utah 2007, Chapter 344
36 53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9 and 291
37 53A-17a-108, as last amended by Laws of Utah 2007, Chapter 344
38
39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 53A-1a-502.5 is amended to read:
41 53A-1a-502.5. Charter schools -- Maximum authorized students.
42 (1) The State Charter School Board and local school boards may only authorize a
43 combined maximum student capacity of:
44 [(a) 27,921 students for the charter schools in the 2007-08 school year; and]
45 [(b)] (a) 32,921 students for the charter schools in the 2008-09 school year[.]; and
46 (b) an annual increase of 5,000 students for the charter schools beginning in the
47 2009-10 school year.
48 (2) The State Board of Education, in consultation with the State Charter School Board,
49 shall allocate the students under Subsection (1) between the State Charter School Board and
50 local school boards.
51 Section 2. Section 53A-1a-513 is amended to read:
52 53A-1a-513. Funding for charter schools.
53 (1) As used in this section:
54 (a) "Per pupil local revenues" means the amount determined as follows:
55 (i) calculate the sum of a school district's revenue received from:
56 (A) a voted levy imposed under Section 53A-17a-133 ;
57 (B) a board levy imposed under Section 53A-17a-134 ;
58 (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;

59 (D) a tort liability levy imposed under Section 63-30d-704 ;
60 (E) a capital outlay levy imposed under Section 53A-16-107 ;
61 (F) a voted capital outlay levy imposed under Section 53A-16-110 ;
62 (G) state support for a voted levy program provided under Section 53A-17a-133 ;
63 (H) state support for a board levy program provided under Section 53A-17a-134 ; and
64 (I) state ongoing appropriations to the Capital Outlay Foundation and Enrollment
65 Growth Programs created in Section 53A-21-102 ; and
66 (ii) divide the sum calculated under Subsection (1)(a)(i) by the sum of:
67 (A) a school district's average daily membership; and
68 (B) the average daily membership of a school district's resident students who attend
69 charter schools.
70 (b) "Resident student" means a student who is considered a resident of the school
71 district under Title 53A, Chapter 2, Part 2, District of Residency.
72 [(1)] (2) (a) Charter schools shall receive funding as described in this section, except
73 Subsections [(2)] (3) through [(7)] (8) do not apply to charter schools described in Subsection
74 [(1)] (2)(b).
75 (b) Charter schools authorized by local school boards that are converted from district
76 schools or operate in district facilities without paying reasonable rent shall receive funding as
77 prescribed in Section 53A-1a-515 .
78 [(2)] (3) (a) Except as provided in Subsection [(2)] (3)(b), a charter school shall receive
79 state funds, as applicable, on the same basis as a school district receives funds.
80 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
81 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
82 (i) .55 for kindergarten pupils;
83 (ii) .9 for pupils in grades 1-6;
84 (iii) .99 for pupils in grades 7-8; and
85 (iv) 1.2 for pupils in grades 9-12.
86 [(c) The State Board of Education shall make rules in accordance with Title 63,
87 Chapter 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including
88 hold harmless provisions to maintain a charter elementary school's funding level for a period of
89 two years after the effective date of the distribution formula.]

90 [(d) Subsection (2)(b) does not apply to funds appropriated to charter schools to
91 replace local property tax revenues.]
92 [(3) The State Board of Education shall adopt rules to provide for the distribution of
93 monies to charter schools under this section.]
94 [(4) (a) The Legislature shall provide an appropriation for charter schools for each of
95 their students to replace some of the local property tax revenues that are not available to charter
96 schools. The amount of money provided for each charter school student shall be determined
97 by:]
98 [(i) calculating the sum of:]
99 [(A) school districts' operations and maintenance revenues derived from local property
100 taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
101 53A-17a-135 ;]
102 [(B) school districts' capital projects revenues derived from local property taxes; and]
103 [(C) school districts' expenditures for interest on debt; and]
104 [(ii) dividing the sum by the total average daily membership of the districts' schools.]
105 (4) (a) (i) Except as provided in Subsection (4)(a)(ii), a school district shall allocate a
106 portion of school district revenues for each resident student of the school district who is
107 enrolled in a charter school on October 1 as follows:
108 (A) in fiscal year 2008-09, the allocation shall equal 35% of per pupil local revenues;
109 (B) in fiscal year 2009-10, the allocation shall equal 70% of per pupil local revenues;
110 and
111 (C) beginning in fiscal year 2010-11, the allocation shall equal 100% of per pupil local
112 revenues.
113 (ii) For the purpose of allocating school district revenues under Subsection (4)(a)(i), a
114 kindergarten student who is enrolled in less than a full-day kindergarten program is weighted as
115 .55 of a student.
116 (iii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
117 established under Chapter 28, Utah School Bond Guaranty Act.
118 (b) The State Board of Education shall:
119 (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
120 state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum

121 School Program Act; and
122 (ii) remit the money to the student's charter school.
123 (c) Notwithstanding the method used to transfer school district revenues to charter
124 schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
125 schools under this section from:
126 (i) unrestricted revenues available to the school district; or
127 (ii) the revenue sources listed in Subsections (1)(a)(i)(A) through (I) based on the
128 portion of the allocations to charter schools attributed to each of the revenue sources listed in
129 Subsections (1)(a)(i)(A) through (I).
130 (d) (i) In fiscal years 2008-09 and 2009-10, the Legislature shall provide an
131 appropriation for charter schools for each student enrolled on October 1 to supplement
132 revenues received under Subsection (4)(b).
133 (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided for a
134 charter school student shall be:
135 (A) in fiscal year 2008-09, the greater of:
136 (I) 65% of the per pupil local revenues of the school district in which the charter school
137 student resides; or
138 (II) 65% of $1,069; and
139 (B) in fiscal year 2009-10, the greater of:
140 (I) 30% of the per pupil local revenues of the school district in which the charter school
141 student resides; or
142 (II) 30% of $1,069.
143 (iii) For the purpose of providing state monies for charter school students under this
144 Subsection (4)(d), a kindergarten student who is enrolled in less than a full-day kindergarten
145 program is weighted as .55 of a student.
146 (e) (i) Subject to future budget constraints, the Legislature shall annually provide an
147 appropriation for charter schools for each student enrolled on October 1 to replace property tax
148 revenues for debt service that are not available to charter schools.
149 (ii) Except as provided in Subsection (4)(e)(iii), the amount of money provided for a
150 charter school student shall be equal to statewide school district revenues from debt service
151 levies imposed under Section 11-14-310 divided by statewide school district average daily

152 membership.
153 (iii) For the purpose of providing state monies for charter school students under this
154 Subsection (4)(e), a kindergarten student who is enrolled in less than a full-day kindergarten
155 program is weighted as .55 of a student.
156 [(b)] (f) Of the monies provided to a charter school under this Subsection (4)[(a)], 10%
157 shall be expended for funding school facilities only.
158 [(c) To qualify for money under Subsection (4)(a), a new charter school shall, by
159 September 30 of the school year prior to the school year it intends to begin operations:]
160 [(i) obtain approval of its application for a charter from:]
161 [(A) the State Board of Education, pursuant to Section 53A-1a-505 ; or]
162 [(B) a local school board, pursuant to Section 53A-1a-515 ; and]
163 [(ii) submit to the chartering entity an estimate of the charter school's first year
164 enrollment.]
165 [(d) Subsection (4)(c) does not apply to charter schools beginning operations in the
166 2005-06 school year.]
167 [(e) By December 1, the State Charter School Board shall submit to the Governor's
168 Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
169 total charter school enrollment in the state for the following school year.]
170 (5) Charter schools are eligible to receive federal funds if they meet all applicable
171 federal requirements and comply with relevant federal regulations.
172 (6) The State Board of Education shall distribute funds for charter school students
173 directly to the charter school.
174 (7) (a) Notwithstanding Subsection [(2)] (3), a charter school is not eligible to receive
175 state transportation funding.
176 (b) The board shall also adopt rules relating to the transportation of students to and
177 from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
178 (c) The governing body of the charter school may provide transportation through an
179 agreement or contract with the local school board, a private provider, or with parents.
180 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
181 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
182 the implementation of this part.

183 (ii) Applications for the grants shall be filed on a form determined by the state
184 superintendent and in conjunction with the application for a charter.
185 (iii) The amount of a grant may vary based upon the size, scope, and special
186 circumstances of the charter school.
187 (iv) The governing board of the charter school shall use the grant to meet the expenses
188 of the school as established in the school's charter.
189 (b) The State Board of Education shall coordinate the distribution of federal monies
190 appropriated to help fund costs for establishing and maintaining charter schools within the
191 state.
192 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
193 endowment, gift, or donation of any property made to the school for any of the purposes of this
194 part.
195 (b) It is unlawful for any person affiliated with a charter school to demand or request
196 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
197 with the charter school as a condition for employment or enrollment at the school or continued
198 attendance at the school.
199 [(10) The State Office of Education shall use up to $1,044,000 of funding provided for
200 new growth to fund additional growth needs in charter schools in fiscal year 2005.]
201 Section 3. Section 53A-17a-108 is amended to read:
202 53A-17a-108. Weighted pupil units for school district administrative costs --
203 Appropriation for charter school administrative costs.
204 (1) Administrative costs weighted pupil units are computed and distributed to districts
205 in accordance with the following schedule:
206 Administrative Costs Schedule
207 School District Enrollment as of October 1 Weighted Pupil Units
208 1 - 2,000 students 53
209 2,001 - 10,000 students 48
210 10,001 - 20,000 students 25
211 20,001 and above 16
212 (2) (a) Money appropriated to the State Board of Education for charter school
213 administrative costs, including an appropriation in Section 53A-17a-104 , shall be distributed to

214 charter schools in the amount of [$62] $70 for each charter school student in enrollment.
215 (b) Charter schools are encouraged to identify and use cost-effective methods of
216 performing administrative functions, including contracting for administrative services with the
217 State Charter School Board as provided in Section 53A-1a-501.6 .
218 (3) Charter schools are not eligible for funds for administrative costs under Subsection
219 (1).
220 Section 4. Effective date.
221 This bill takes effect on July 1, 2008.




Legislative Review Note
as of 1-2-08 1:19 PM

Office of Legislative Research and General Counsel