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H.B. 313

             1     

CHARTER SCHOOL FUNDING AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Merlynn T. Newbold

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies funding provided to a charter school to replace local discretionary
             10      property taxes that are not available to charter schools.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies funding provided to a charter school to replace local property taxes that are
             14      not available to charter schools by, over a period of 13 years:
             15              .    increasing the portion of school district revenues that a school district allocates
             16      for a resident student enrolled in a charter school; and
             17              .    decreasing state revenues allocated to a charter school;
             18          .    provides an allocation of state funds for a charter school student in the amount of
             19      school districts' average per pupil revenues from the voted and board leeway
             20      guarantee programs, Capital Outlay Foundation Program, and Capital Outlay
             21      Enrollment Growth Program;
             22          .    eliminates a requirement that a charter school spend at least 10% of money received
             23      to replace local property tax revenue for capital facilities; and
             24          .    makes technical amendments.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          This bill takes effect on July 1, 2011.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          53A-1a-513, as last amended by Laws of Utah 2010, Chapters 3 and 399
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 53A-1a-513 is amended to read:
             35           53A-1a-513. Funding for charter schools.
             36          (1) As used in this section:
             37          (a) "Charter school students' average local revenues" means the amount determined as
             38      follows:
             39          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             40      district per pupil local revenues of the school district in which the student resides;
             41          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             42      school on the previous October 1; and
             43          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             44      enrolled in charter schools on the previous October 1.
             45          (b) "District per pupil local revenues" means the amount determined as follows, using
             46      data from the most recently published school district annual financial reports and state
             47      superintendent's annual report:
             48          (i) calculate the sum of a school district's revenue received from:
             49          (A) a voted levy imposed under Section 53A-17a-133 ;
             50          (B) a board levy imposed under Section 53A-17a-134 ;
             51          (C) 10% of the cost of the basic program levy imposed under Section 53A-17a-145 ;
             52          (D) a tort liability levy imposed under Section 63G-7-704 ;
             53          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             54          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; and
             55          (ii) divide the sum calculated under Subsection (1)(b)(i) by the sum of:
             56          (A) a school district's average daily membership; and
             57          (B) the average daily membership of a school district's resident students who attend
             58      charter schools.


             59          (c) "Resident student" means a student who is considered a resident of the school
             60      district under Title 53A, Chapter 2, Part 2, District of Residency.
             61          [(d) "Statewide average debt service revenues" means the amount determined as
             62      follows, using data from the most recently published state superintendent's annual report:]
             63          [(i) sum the revenues of each school district from the debt service levy imposed under
             64      Section 11-14-310 ; and]
             65          [(ii) divide the sum calculated under Subsection (1)(d)(i) by statewide school district
             66      average daily membership.]
             67          (2) (a) Charter schools shall receive funding as described in this section, except
             68      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             69          (b) Charter schools authorized by local school boards that are converted from district
             70      schools or operate in district facilities without paying reasonable rent shall receive funding as
             71      prescribed in Section 53A-1a-515 .
             72          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             73      funds, as applicable, on the same basis as a school district receives funds.
             74          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             75      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             76          (i) .55 for kindergarten pupils;
             77          (ii) .9 for pupils in grades 1-6;
             78          (iii) .99 for pupils in grades 7-8; and
             79          (iv) 1.2 for pupils in grades 9-12.
             80          (4) (a) [(i)] A school district shall allocate a portion of school district revenues for each
             81      resident student of the school district who is enrolled in a charter school on October 1 [equal to
             82      25% of the lesser of] as follows:
             83          [(A) district per pupil local revenues; or]
             84          [(B) charter school students' average local revenues.]
             85          [(ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             86      established under Chapter 28, Utah School Bond Guaranty Act.]
             87          (i) in fiscal year 2011-12:
             88          (A) for a resident student enrolled in kindergarten in a charter school, the allocation
             89      shall equal 100% of district per pupil local revenues; and


             90          (B) for a resident student enrolled in grades 1 through 12 in a charter school, the
             91      allocation shall equal 25% of district per pupil local revenues;
             92          (ii) in fiscal year 2012-13:
             93          (A) for a resident student enrolled in grades kindergarten through 1 in a charter school,
             94      the allocation shall equal 100% of district per pupil local revenues; and
             95          (B) for a resident student enrolled in grades 2 through 12 in a charter school, the
             96      allocation shall equal 25% of district per pupil local revenues;
             97          (iii) in fiscal year 2013-14:
             98          (A) for a resident student enrolled in grades kindergarten through 2 in a charter school,
             99      the allocation shall equal 100% of district per pupil local revenues; and
             100          (B) for a resident student enrolled in grades 3 through 12 in a charter school, the
             101      allocation shall equal 25% of district per pupil local revenues;
             102          (iv) in fiscal year 2014-15:
             103          (A) for a resident student enrolled in grades kindergarten through 3 in a charter school,
             104      the allocation shall equal 100% of district per pupil local revenues; and
             105          (B) for a resident student enrolled in grades 4 through 12 in a charter school, the
             106      allocation shall equal 25% of district per pupil local revenues;
             107          (v) in fiscal year 2015-16;
             108          (A) for a resident student enrolled in grades kindergarten through 4 in a charter school,
             109      the allocation shall equal 100% of district per pupil local revenues; and
             110          (B) for a resident student enrolled in grades 5 through 12 in a charter school, the
             111      allocation shall equal 25% of district per pupil local revenues;
             112          (vi) in fiscal year 2016-17:
             113          (A) for a resident student enrolled in grades kindergarten through 5 in a charter school,
             114      the allocation shall equal 100% of district per pupil local revenues; and
             115          (B) for a resident student enrolled in grades 6 through 12 in a charter school, the
             116      allocation shall equal 25% of district per pupil local revenues;
             117          (vii) in fiscal year 2017-18:
             118          (A) for a resident student enrolled in grades kindergarten through 6 in a charter school,
             119      the allocation shall equal 100% of district per pupil local revenues; and
             120          (B) for a resident student enrolled in grades 7 through 12 in a charter school, the


             121      allocation shall equal 25% of district per pupil local revenues;
             122          (viii) in fiscal year 2018-19:
             123          (A) for a resident student enrolled in grades kindergarten through 7 in a charter school,
             124      the allocation shall equal 100% of district per pupil local revenues; and
             125          (B) for a resident student enrolled in grades 8 through 12 in a charter school, the
             126      allocation shall equal 25% of district per pupil local revenues;
             127          (ix) in fiscal year 2019-20:
             128          (A) for a resident student enrolled in grades kindergarten through 8 in a charter school,
             129      the allocation shall equal 100% of district per pupil local revenues; and
             130          (B) for a resident student enrolled in grades 9 through 12 in a charter school, the
             131      allocation shall equal 25% of district per pupil local revenues;
             132          (x) in fiscal year 2020-21:
             133          (A) for a resident student enrolled in grades kindergarten through 9 in a charter school,
             134      the allocation shall equal 100% of district per pupil local revenues; and
             135          (B) for a resident student enrolled in grades 10 through 12 in a charter school, the
             136      allocation shall equal 25% of district per pupil local revenues;
             137          (xi) in fiscal year 2021-22:
             138          (A) for a resident student enrolled in grades kindergarten through 10 in a charter
             139      school, the allocation shall equal 100% of district per pupil local revenues; and
             140          (B) for a resident student enrolled in grades 11 through 12 in a charter school, the
             141      allocation shall equal 25% of district per pupil local revenues;
             142          (xii) in fiscal year 2022-23:
             143          (A) for a resident student enrolled in grades kindergarten through 11 in a charter
             144      school, the allocation shall equal 100% of district per pupil local revenues; and
             145          (B) for a resident student enrolled in grade 12 in a charter school, the allocation shall
             146      equal 25% of district per pupil local revenues; and
             147          (xiii) beginning in fiscal year 2023-24, the allocation for a resident student enrolled in
             148      a charter school shall equal 100% of district per pupil local revenues.
             149          (b) The State Board of Education shall:
             150          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             151      state funds the school district is authorized to receive under Title 53A, Chapter 17a, Minimum


             152      School Program Act; and
             153          [(ii) remit the money to the student's charter school.]
             154          (ii) use the money deducted under Subsection (4)(b)(i), together with supplemental
             155      state money appropriated as necessary, to provide funds to charter schools in the amount of
             156      average district per pupil local revenues for each student enrolled in a charter school on
             157      October 1.
             158          (c) Notwithstanding the method used to transfer school district revenues to charter
             159      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             160      schools under this section from:
             161          (i) unrestricted revenues available to the school district; or
             162          (ii) the revenue sources listed in Subsections (1)(b)(i)(A) through (F) based on the
             163      portion of the allocations to charter schools attributed to each of the revenue sources listed in
             164      Subsections (1)(b)(i)(A) through (F).
             165          (d) [(i)] Subject to future budget constraints and in addition to money distributed to
             166      charter schools under Subsection (4)(b), the Legislature shall provide an appropriation for
             167      charter schools for each student enrolled on October 1 [to supplement the allocation of school
             168      district revenues under Subsection (4)(a). (ii) Except as provided in Subsection (4)(d)(iii), the
             169      amount of money provided by the state for a charter school student shall be the sum of: (A)
             170      charter school students' average local revenues minus the allocation of school district revenues
             171      under Subsection (4)(a); and (B) statewide average debt service revenues.] in an amount equal
             172      to:
             173          (i) the sum of the following received by school districts statewide in the fiscal year two
             174      years prior to the fiscal year a charter school receives a per pupil allocation under this
             175      Subsection (4)(d):
             176          (A) money for the guarantee provided under the voted leeway program established in
             177      Section 53A-17a-133 ;
             178          (B) money for the guarantee provided under the board-authorized leeway program
             179      established in Section 53A-17a-134 ;
             180          (C) money provided under the Capital Outlay Foundation Program created in Section
             181      53A-21-201 ;
             182          (D) money provided under the Capital Outlay Enrollment Growth Program created in


             183      Section 53A-21-301 ; and
             184          (E) revenues received from a debt service levy imposed under Section 11-14-310 ;
             185      divided by
             186          (ii) the sum of the average daily membership of school districts statewide in the school
             187      year that is two years before the school year a charter school receives a per pupil allocation
             188      under this Subsection (4)(d).
             189          [(iii) If the total of a school district's allocation for a charter school student under
             190      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             191      $1427, the state shall provide an additional supplement so that a charter school receives at least
             192      $1427 per student under this Subsection (4).]
             193          [(iv) (A)] (e) (i) If the appropriation provided under this Subsection (4)[(d)](e) is [less
             194      than the amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii)] insufficient to provide the
             195      amounts required in Subsections (4)(b)(ii) and (4)(d), the appropriation shall be allocated
             196      among charter schools in proportion to each charter school's enrollment as a percentage of the
             197      total enrollment in charter schools.
             198          [(B)] (ii) If the State Board of Education makes adjustments to Minimum School
             199      Program allocations as provided under Section 53A-17a-105 , the allocation provided in
             200      Subsection [(4)(d)(iv)(A)] (4)(e)(i) shall be determined after adjustments are made under
             201      Section 53A-17a-105 .
             202          [(e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             203      expended for funding school facilities only.]
             204          (f) Nothing in this Subsection (4) affects the school bond guarantee program
             205      established under Chapter 28, Utah School Bond Guaranty Act.
             206          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             207      federal requirements and comply with relevant federal regulations.
             208          (6) The State Board of Education shall distribute funds for charter school students
             209      directly to the charter school.
             210          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             211      transportation funding.
             212          (b) The board shall also adopt rules relating to the transportation of students to and
             213      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .


             214          (c) The governing body of the charter school may provide transportation through an
             215      agreement or contract with the local school board, a private provider, or with parents.
             216          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             217      start-up and ongoing costs to eligible charter school applicants from money appropriated for
             218      the implementation of this part.
             219          (ii) Applications for the grants shall be filed on a form determined by the state
             220      superintendent and in conjunction with the application for a charter.
             221          (iii) The amount of a grant may vary based upon the size, scope, and special
             222      circumstances of the charter school.
             223          (iv) The governing board of the charter school shall use the grant to meet the expenses
             224      of the school as established in the school's charter.
             225          (b) The State Board of Education shall coordinate the distribution of federal money
             226      appropriated to help fund costs for establishing and maintaining charter schools within the
             227      state.
             228          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             229      endowment, gift, or donation of any property made to the school for any of the purposes of this
             230      part.
             231          (b) It is unlawful for any person affiliated with a charter school to demand or request
             232      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             233      with the charter school as a condition for employment or enrollment at the school or continued
             234      attendance at the school.
             235          Section 2. Effective date.
             236          This bill takes effect on July 1, 2011.




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    as of 2-11-11 11:27 AM


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