House of Representatives State of Utah




         UTAH STATE CAPITOL COMPLEX . 350 STATE CAPITOL

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         P.O. BOX 145030 . SALT LAKE CITY, UTAH 84114-5030 . (801) 538-1029         February 28, 2012

Madam Speaker:

    The Education Committee reports a favorable recommendation on H.B. 392, CHARTER SCHOOL FUNDING REVISIONS, by Representative S. Sandstrom, with the following amendments:

1.    Page 1, Lines 12 through 13 :    

             12          

{   .    modifies a school district's contribution of school district revenues for charter

             13      school students; and  
}


2.    Page 1, Line 26 through Page 6, Line 155 :    

             26          
{   Section 1. Section 53A-1a-513 is amended to read:

             27          53A-1a-513. Funding for charter schools.
             28          (1) As used in this section:
             29          (a) "Charter school students' average local revenues" means the amount determined as
             30      follows:
             31          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             32      district per pupil local revenues of the school district in which the student resides;
             33          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             34      school on the previous October 1; and
             35          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             36      enrolled in charter schools on the previous October 1.
             37          (b) "District local property tax revenues" means the sum of a school district's revenue
             38      received from the following levies:
             39          (i) (A) a voted levy imposed under Section 53A-17a-133 ;
             40          (B) a board levy imposed under Section 53A-17a-134 ;
             41          (C) a 10% of basic levy imposed under Section 53A-17a-145 ;


             42          (D) a tort liability levy imposed under Section 63G-7-704 ;
             43          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             44          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; or
             45          (ii) (A) a voted local levy imposed under Section 53A-17a-133 ;
             46          (B) a board local levy imposed under Section 53A-17a-164 , excluding revenues
             47      expended for:
             48          (I) recreational facilities and activities authorized under Title 11, Chapter 2,
             49      Playgrounds;
             50          (II) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
             51      taxable value of the school district's board local levy; and
             52          (III) the K-3 Reading Improvement Program, up to the amount of revenue generated by
             53      a .000121 per dollar of taxable value of the school district's board local levy; and
             54          (C) a capital local levy imposed under Section 53A-16-113 .
             55          (c) "District per pupil local revenues" means an amount equal to the following, using
             56      data from the most recently published school district annual financial reports and state
             57      superintendent's annual report:
             58          (i) district local property tax revenues; divided by
             59          (ii) the sum of:
             60          (A) a school district's average daily membership; and
             61          (B) the average daily membership of a school district's resident students who attend
             62      charter schools.
             63          (d) "Resident student" means a student who is considered a resident of the school
             64      district under Title 53A, Chapter 2, Part 2, District of Residency.
             65          (e) "Statewide average debt service revenues" means the amount determined as
             66      follows, using data from the most recently published state superintendent's annual report:
             67          (i) sum the revenues of each school district from the debt service levy imposed

under
             68      Section 11-14-310 ; and
             69          (ii) divide the sum calculated under Subsection (1)(e)(i) by statewide school district
             70      average daily membership.
             71          (2) (a) Charter schools shall receive funding as described in this section, except
             72      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             73          (b) Charter schools authorized by local school boards that are converted from district
             74      schools or operate in district facilities without paying reasonable rent shall receive funding as
             75      prescribed in Section 53A-1a-515 .
             76          (3) (a) Except as provided in Subsection (3)(b), a charter school shall receive state
             77      funds, as applicable, on the same basis as a school district receives funds.
             78          (b) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
             79      schools, charter school pupils shall be weighted, where applicable, as follows:
             80          (i) .55 for kindergarten pupils;
             81          (ii) .9 for pupils in grades 1 through 6;
             82          (iii) .99 for pupils in grades 7 through 8; and
             83          (iv) 1.2 for pupils in grades 9 through 12.
             84          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
             85      resident student of the school district who is enrolled in a charter school on October 1 equal to
             86      [25%] 20.6% of [the lesser of: (A)] district per pupil local revenues[; or].
             87          [(B) charter school students' average local revenues.]
             88          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             89      established under Chapter 28, Utah School Bond Guaranty Act.
             90          (b) The State Board of Education shall:
             91          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from


             92      state funds the school district is authorized to receive under Chapter 17a, Minimum School
             93      Program Act; and
             94          [(ii) remit the money to the student's charter school.]
             95          (ii) use the money deducted under Subsection (4)(b)(i), together with money
             96      appropriated under Subsection (4)(d), to provide funds to charter schools in the amount of
             97      charter school students' average local revenues for each student enrolled in a charter school on
             98      October 1.
             99          (c) Notwithstanding the method used to transfer school district revenues to charter
             100      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             101      schools under this section from:
             102          (i) unrestricted revenues available to the school district; or
             103          (ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
             104      allocations to charter schools attributed to each of the revenue sources listed in Subsection
             105      (1)(b).
             106          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             107      appropriation for charter schools for each student enrolled on October 1 to supplement the
             108      allocation of school district revenues under Subsection (4)(a).
             109          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             110      state for a charter school student shall be the sum of:
             111          (A) charter school students' average local revenues minus the allocation of school
             112      district revenues under Subsection (4)(a); and
             113          (B) statewide average debt service revenues.
             114          (iii) If the total of a school district's allocation for a charter school student under
             115      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is

less than
             116      $1427, the state shall provide an additional supplement so that a charter school receives at least
             117      $1427 per student under this Subsection (4).
             118          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             119      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             120      among charter schools in proportion to each charter school's enrollment as a percentage of the
             121      total enrollment in charter schools.
             122          (B) If the State Board of Education makes adjustments to Minimum School Program
             123      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             124      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             125          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             126      expended for funding school facilities only.
             127          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             128      federal requirements and comply with relevant federal regulations.
             129          (6) The State Board of Education shall distribute funds for charter school students
             130      directly to the charter school.
             131          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             132      transportation funding.
             133          (b) The board shall also adopt rules relating to the transportation of students to and
             134      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             135          (c) The governing body of the charter school may provide transportation through an


136      agreement or contract with the local school board, a private provider, or with parents.
             137          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             138      start-up and ongoing costs to eligible charter school applicants from money appropriated for
             139      the implementation of this part.
             140          (ii) Applications for the grants shall be filed on a form determined by the state
             141      superintendent and in conjunction with the application for a charter.
             142          (iii) The amount of a grant may vary based upon the size, scope, and special
             143      circumstances of the charter school.
             144          (iv) The governing board of the charter school shall use the grant to meet the expenses
             145      of the school as established in the school's charter.
             146          (b) The State Board of Education shall coordinate the distribution of federal money
             147      appropriated to help fund costs for establishing and maintaining charter schools within the
             148      state.
             149          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             150      endowment, gift, or donation of any property made to the school for any of the purposes of this
             151      part.
             152          (b) It is unlawful for any person affiliated with a charter school to demand or request
             153      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             154      with the charter school as a condition for employment or enrollment at the school or continued
             155      attendance at the school.

3.    Page 7, Lines 199 through 200 :    

             199          This bill takes effect on
{   July 1, 2012, except the amendments in this bill to

Section


             200      59-2-1317 take effect on  
}
January 1, 2013.

    Respectfully,

    Francis D. Gibson
    Committee Chair
Voting: 12-0-3
3 HB0392.HC1.wpd 2/28/12 9:35 am csteffen/CCS AOS/CCS


Bill Number
Action Class
Action Code

*HB0392*
*H*
*HCRAMD*

HB0392
H
HCRAMD