S.B. 202

             1     

CHARTER SCHOOL FUNDING AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Howard A. Stephenson

             5     
House Sponsor: Bradley G. Last

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies funding for charter schools.
             10      Highlighted Provisions:
             11          This bill:
             12          .    increases the percentage of district per pupil local revenues that a school district is
             13      required to contribute for each resident student enrolled in a charter school.
             14      Money Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          This bill takes effect on July 1, 2014.
             18      Utah Code Sections Affected:
             19      AMENDS:
             20           53A-1a-513 , as last amended by Laws of Utah 2013, Chapter 470
             21     
             22      Be it enacted by the Legislature of the state of Utah:
             23          Section 1. Section 53A-1a-513 is amended to read:
             24           53A-1a-513. Funding for charter schools.
             25          (1) As used in this section:
             26          (a) "Charter school students' average local revenues" means the amount determined as
             27      follows:


             28          (i) for each student enrolled in a charter school on the previous October 1, calculate the
             29      district per pupil local revenues of the school district in which the student resides;
             30          (ii) sum the district per pupil local revenues for each student enrolled in a charter
             31      school on the previous October 1; and
             32          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
             33      enrolled in charter schools on the previous October 1.
             34          (b) "District local property tax revenues" means the sum of a school district's revenue
             35      received from the following levies:
             36          (i) (A) a voted levy imposed under Section 53A-17a-133 ;
             37          (B) a board levy imposed under Section 53A-17a-134 ;
             38          (C) a 10% of basic levy imposed under Section 53A-17a-145 ;
             39          (D) a tort liability levy imposed under Section 63G-7-704 ;
             40          (E) a capital outlay levy imposed under Section 53A-16-107 ; and
             41          (F) a voted capital outlay levy imposed under Section 53A-16-110 ; or
             42          (ii) (A) a voted local levy imposed under Section 53A-17a-133 ;
             43          (B) a board local levy imposed under Section 53A-17a-164 , excluding revenues
             44      expended for:
             45          (I) recreational facilities and activities authorized under Title 11, Chapter 2,
             46      Playgrounds;
             47          (II) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
             48      taxable value of the school district's board local levy; and
             49          (III) the K-3 Reading Improvement Program, up to the amount of revenue generated by
             50      a .000121 per dollar of taxable value of the school district's board local levy; and
             51          (C) a capital local levy imposed under Section 53A-16-113 .
             52          (c) "District per pupil local revenues" means an amount equal to the following, using
             53      data from the most recently published school district annual financial reports and state
             54      superintendent's annual report:
             55          (i) district local property tax revenues; divided by
             56          (ii) the sum of:
             57          (A) a school district's average daily membership; and
             58          (B) the average daily membership of a school district's resident students who attend


             59      charter schools.
             60          (d) "Resident student" means a student who is considered a resident of the school
             61      district under Title 53A, Chapter 2, Part 2, District of Residency.
             62          (e) "Statewide average debt service revenues" means the amount determined as
             63      follows, using data from the most recently published state superintendent's annual report:
             64          (i) sum the revenues of each school district from the debt service levy imposed under
             65      Section 11-14-310 ; and
             66          (ii) divide the sum calculated under Subsection (1)(e)(i) by statewide school district
             67      average daily membership.
             68          (2) (a) Charter schools shall receive funding as described in this section, except
             69      Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
             70          (b) Charter schools authorized by local school boards that are converted from district
             71      schools or operate in district facilities without paying reasonable rent shall receive funding as
             72      prescribed in Section 53A-1a-515 .
             73          (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school shall
             74      receive state funds, as applicable, on the same basis as a school district receives funds.
             75          (b) For the 2013-14 and 2014-15 school years, the number of weighted pupil units
             76      assigned to a charter school for the kindergarten and grades 1 through 12 programs of the Basic
             77      School Program shall be:
             78          (i) based on the higher of:
             79          (A) October 1 enrollment in the current school year; or
             80          (B) average daily membership in the prior school year plus growth as determined under
             81      Section 53A-17a-106 ; and
             82          (ii) weighted as provided in Subsection (3)(c).
             83          (c) In distributing funds under Chapter 17a, Minimum School Program Act, to charter
             84      schools, charter school pupils shall be weighted, where applicable, as follows:
             85          (i) .55 for kindergarten pupils;
             86          (ii) .9 for pupils in grades 1 through 6;
             87          (iii) .99 for pupils in grades 7 through 8; and
             88          (iv) 1.2 for pupils in grades 9 through 12.
             89          (4) (a) (i) [A] In the 2014-15 fiscal year, a school district shall allocate a portion of


             90      school district revenues for each resident student of the school district who is enrolled in a
             91      charter school on October 1 equal to [25% of the lesser of: (A)] 26% of district per pupil local
             92      revenues[; or].
             93          [(B) charter school students' average local revenues.]
             94          (ii) Beginning in the 2015-16 fiscal year, the percentage of district per pupil local
             95      revenues that a school district is required to contribute for each resident student who is enrolled
             96      in a charter school on October 1 increases by two percentage points each fiscal year up to a
             97      maximum contribution of 50% of district per pupil local revenues for each resident student
             98      who is enrolled in a charter school on October 1.
             99          [(ii)] (iii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
             100      established under Chapter 28, Utah School Bond Guaranty Act.
             101          (b) The State Board of Education shall:
             102          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
             103      state funds the school district is authorized to receive under Chapter 17a, Minimum School
             104      Program Act; and
             105          (ii) remit the money to the student's charter school.
             106          (c) Notwithstanding the method used to transfer school district revenues to charter
             107      schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
             108      schools under this section from:
             109          (i) unrestricted revenues available to the school district; or
             110          (ii) the revenue sources listed in Subsection (1)(b) based on the portion of the
             111      allocations to charter schools attributed to each of the revenue sources listed in Subsection
             112      (1)(b).
             113          (d) (i) Subject to future budget constraints, the Legislature shall provide an
             114      appropriation for charter schools for each student enrolled on October 1 to supplement the
             115      allocation of school district revenues under Subsection (4)(a).
             116          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
             117      state for a charter school student shall be the sum of:
             118          (A) charter school students' average local revenues minus the allocation of school
             119      district revenues under Subsection (4)(a); and
             120          (B) statewide average debt service revenues.


             121          (iii) If the total of a school district's allocation for a charter school student under
             122      Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
             123      $1427, the state shall provide an additional supplement so that a charter school receives at least
             124      $1427 per student under this Subsection (4).
             125          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
             126      amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
             127      among charter schools in proportion to each charter school's enrollment as a percentage of the
             128      total enrollment in charter schools.
             129          (B) If the State Board of Education makes adjustments to Minimum School Program
             130      allocations as provided under Section 53A-17a-105 , the allocation provided in Subsection
             131      (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105 .
             132          (e) Of the money provided to a charter school under this Subsection (4), 10% shall be
             133      expended for funding school facilities only.
             134          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             135      federal requirements and comply with relevant federal regulations.
             136          (6) The State Board of Education shall distribute funds for charter school students
             137      directly to the charter school.
             138          (7) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
             139      transportation funding.
             140          (b) The board shall also adopt rules relating to the transportation of students to and
             141      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .
             142          (c) The governing body of the charter school may provide transportation through an
             143      agreement or contract with the local school board, a private provider, or with parents.
             144          (8) (a) (i) In accordance with Section 53A-1a-513.5 , the State Charter School Board
             145      may allocate grants for start-up costs to charter schools from money appropriated for charter
             146      school start-up costs.
             147          (ii) The governing board of a charter school that receives money from a grant under
             148      Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
             149      charter school.
             150          (b) The State Board of Education shall coordinate the distribution of federal money
             151      appropriated to help fund costs for establishing and maintaining charter schools within the


             152      state.
             153          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             154      endowment, gift, or donation of any property made to the school for any of the purposes of this
             155      part.
             156          (b) It is unlawful for any person affiliated with a charter school to demand or request
             157      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             158      with the charter school as a condition for employment or enrollment at the school or continued
             159      attendance at the school.
             160          Section 2. Effective date.
             161          This bill takes effect on July 1, 2014.




Legislative Review Note
    as of 2-18-14 9:27 AM


Office of Legislative Research and General Counsel


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