1     
CHARTER SCHOOL FUNDING AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bradley G. Last

5     
Senate Sponsor: Howard A. Stephenson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to funding for charter students.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires a charter school to include in a charter agreement the maximum number of
14     students the charter school will serve;
15          ▸     repeals outdated language;
16          ▸     provides, if legislative appropriations are insufficient, for funding distribution to
17     charter schools for charter students enrolled in a charter school that are below or
18     exceed the charter school's maximum number of students; and
19          ▸     makes technical corrections.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          53A-1a-508, as last amended by Laws of Utah 2015, Chapter 258
27          53A-1a-513, as last amended by Laws of Utah 2016, Chapter 229
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 53A-1a-508 is amended to read:
31          53A-1a-508. Charter agreement -- Content -- Modification.
32          (1) As used in this section "satellite charter school" means a charter school affiliated
33     with an operating charter school, which has the same charter school governing board and a
34     similar program of instruction, but has a different school number than the affiliated charter
35     school.
36          [(1)] (2) A charter agreement:
37          (a) is a contract between the charter school applicant and the charter school authorizer;
38          (b) shall describe the rights and responsibilities of each party; and
39          (c) shall allow for the operation of the applicant's proposed charter school.
40          [(2)] (3) A charter agreement shall include:
41          (a) the name of:
42          (i) the charter school; and
43          (ii) the charter school applicant;
44          (b) the mission statement and purpose of the charter school;
45          (c) the charter school's opening date;
46          (d) the grade levels [and number of students] the charter school will serve;
47          (e) (i) the maximum number of students a charter school will serve; or
48          (ii) for an operating charter with satellite charter schools, the maximum number of
49     students of all satellite charter schools collectively served by the operating charter;
50          [(e)] (f) a description of the structure of the charter school's governing board,
51     including:
52          (i) the number of board members;
53          (ii) how members of the board are appointed; and
54          (iii) board members' terms of office;
55          [(f)] (g) assurances that:
56          (i) the governing board shall comply with:
57          (A) the charter school's bylaws;
58          (B) the charter school's articles of incorporation; and
59          (C) applicable federal law, state law, and State Board of Education rules;
60          (ii) the governing board will meet all reporting requirements described in Section
61     53A-1a-507; and
62          (iii) except as provided in Title 53A, Chapter 20b, Part 2, Charter School Credit
63     Enhancement Program, neither the authorizer nor the state, including an agency of the state, is
64     liable for the debts or financial obligations of the charter school or a person who operates the
65     charter school;
66          [(g)] (h) which administrative rules the State Board of Education will waive for the
67     charter school;
68          [(h)] (i) minimum financial standards for operating the charter school;
69          [(i)] (j) minimum standards for student achievement; and
70          [(j)] (k) signatures of the charter school authorizer and the charter school's governing
71     board members.
72          [(3)] (4) A charter agreement may not be modified except by mutual agreement
73     between the charter school authorizer and the governing board of the charter school.
74          Section 2. Section 53A-1a-513 is amended to read:
75          53A-1a-513. Funding for charter schools.
76          (1) As used in this section:
77          (a) "Basic program" means the same as that term is defined in Section 53A-17a-103.
78          (b) "Charter school students' average local revenues" means the amount determined as
79     follows:
80          (i) for each student enrolled in a charter school on the previous October 1, calculate the
81     district per pupil local revenues of the school district in which the student resides;
82          (ii) sum the district per pupil local revenues for each student enrolled in a charter
83     school on the previous October 1; and
84          (iii) divide the sum calculated under Subsection (1)(b)(ii) by the number of students
85     enrolled in charter schools on the previous October 1.
86          (c) "Charter school levy per pupil revenues" means the same as that term is defined in
87     Section 53A-1a-513.1.
88          (d) "District local property tax revenues" means the sum of a school district's revenue
89     received from the following:
90          (i) a voted local levy imposed under Section 53A-17a-133;
91          (ii) a board local levy imposed under Section 53A-17a-164, excluding revenues
92     expended for:
93          (A) pupil transportation, up to the amount of revenue generated by a .0003 per dollar of
94     taxable value of the school district's board local levy; and
95          (B) the K-3 Reading Improvement Program, up to the amount of revenue generated by
96     a .000121 per dollar of taxable value of the school district's board local levy;
97          (iii) a capital local levy imposed under Section 53A-16-113; and
98          (iv) a guarantee described in Section 53A-17a-133, 53A-17a-164, 53A-21-202, or
99     53A-21-302.
100          (e) "District per pupil local revenues" means, using data from the most recently
101     published school district annual financial reports and state superintendent's annual report, an
102     amount equal to district local property tax revenues divided by the sum of:
103          (i) a school district's average daily membership; and
104          (ii) the average daily membership of a school district's resident students who attend
105     charter schools.
106          (f) "Resident student" means a student who is considered a resident of the school
107     district under Title 53A, Chapter 2, Part 2, District of Residency.
108          (g) "Statewide average debt service revenues" means the amount determined as
109     follows, using data from the most recently published state superintendent's annual report:
110          (i) sum the revenues of each school district from the debt service levy imposed under
111     Section 11-14-310; and
112          (ii) divide the sum calculated under Subsection (1)(g)(i) by statewide school district
113     average daily membership.
114          (2) (a) Charter schools shall receive funding as described in this section, except
115     Subsections (3) through (8) do not apply to charter schools described in Subsection (2)(b).
116          (b) Charter schools authorized by local school boards that are converted from district
117     schools or operate in district facilities without paying reasonable rent shall receive funding as
118     prescribed in Section 53A-1a-515.
119          (3) (a) Except as provided in [Subsections] Subsection (3)(b) [and (3)(c)], a charter
120     school shall receive state funds, as applicable, on the same basis as a school district receives
121     funds.
122          [(b) For the 2015-16 school year, the number of weighted pupil units assigned to a
123     charter school for the kindergarten and grades 1 through 12 programs of the Basic School
124     Program shall be:]
125          [(i) based on the higher of:]
126          [(A) October 1 enrollment in the current school year; or]
127          [(B) average daily membership in the prior school year plus growth as determined
128     under Section 53A-17a-106; and]
129          [(ii) weighted as provided in Subsection (3)(c).]
130          [(c)] (b) In distributing funds under Chapter 17a, Minimum School Program Act, to
131     charter schools, charter school pupils shall be weighted, where applicable, as follows:
132          (i) .55 for kindergarten pupils;
133          (ii) .9 for pupils in grades 1 through 6;
134          (iii) .99 for pupils in grades 7 through 8; and
135          (iv) 1.2 for pupils in grades 9 through 12.
136          (4) (a) (i) A school district shall allocate a portion of school district revenues for each
137     resident student of the school district who is enrolled in a charter school on the previous
138     October 1 equal to 25% of the district per pupil local revenues excluding the amount of
139     revenues:
140          (A) described in Subsection (1)(d)(iv) collected by the district; and
141          (B) expended by the school district for recreational facilities and activities authorized
142     under Title 11, Chapter 2, Playgrounds.
143          (ii) Nothing in this Subsection (4)(a) affects the school bond guarantee program
144     established under Chapter 28, Utah School Bond Guaranty Act.
145          (b) The State Board of Education shall:
146          (i) deduct an amount equal to the allocation provided under Subsection (4)(a) from
147     state funds the school district is authorized to receive under Chapter 17a, Minimum School
148     Program Act; and
149          (ii) remit the money to the student's charter school.
150          (c) Notwithstanding the method used to transfer school district revenues to charter
151     schools as provided in Subsection (4)(b), a school district may deduct the allocations to charter
152     schools under this section from:
153          (i) unrestricted revenues available to the school district; or
154          (ii) the revenue sources listed in Subsection (1)(d) based on the portion of the
155     allocations to charter schools attributed to each of the revenue sources listed in Subsection
156     (1)(d).
157          (d) (i) Subject to future budget constraints, the Legislature shall provide an
158     appropriation for charter schools for each student enrolled on October 1 to supplement the
159     allocation of school district revenues under Subsection (4)(a).
160          (ii) Except as provided in Subsection (4)(d)(iii), the amount of money provided by the
161     state for a charter school student shall be the sum of:
162          (A) charter school students' average local revenues minus the allocation of school
163     district revenues under Subsection (4)(a); and
164          (B) statewide average debt service revenues.
165          (iii) If the total of a school district's allocation for a charter school student under
166     Subsection (4)(a) and the amount provided by the state under Subsection (4)(d)(ii) is less than
167     $1427, the state shall provide an additional supplement so that a charter school receives at least
168     $1427 per student under this Subsection (4).
169          (iv) (A) If the appropriation provided under this Subsection (4)(d) is less than the
170     amount prescribed by Subsection (4)(d)(ii) or (4)(d)(iii), the appropriation shall be allocated
171     among charter schools in proportion to each charter school's enrollment as a percentage of the
172     total enrollment in charter schools.
173          (B) If the State Board of Education makes adjustments to Minimum School Program
174     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
175     (4)(d)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.
176          (e) (i) Except as provided in Subsection (4)(e)(ii), of the money provided to a charter
177     school under this Subsection (4), 10% shall be expended for funding school facilities only.
178          (ii) Subsection (4)(e)(i) does not apply to an online charter school.
179          (f) This Subsection (4) is repealed July 1, 2017.
180          (5) (a) As described in Section 53A-1a-513.1, the State Board of Education shall
181     distribute charter school levy per pupil revenues to charter schools.
182          (b) (i) Subject to future budget constraints, the Legislature shall provide an
183     appropriation for charter schools for each charter school student enrolled on October 1 to
184     supplement the allocation of charter school levy per pupil revenues described in Subsection
185     (5)(a).
186          (ii) Except as provided in Subsection (5)(b)(iii), the amount of money provided by the
187     state for a charter school student shall be the sum of:
188          (A) charter school students' average local revenues minus the charter school levy per
189     pupil revenues; and
190          (B) statewide average debt service revenues.
191          (iii) If the total of charter school levy per pupil revenues and the amount provided by
192     the state under Subsection (5)(b)(ii) is less than $1,427, the state shall provide an additional
193     supplement so that a charter school receives at least $1,427 per student under this Subsection
194     (5).
195          [(iv) (A) If the appropriation provided under this Subsection (5)(b) is less than the
196     amount prescribed by Subsection (5)(b)(ii) or (5)(b)(iii), the appropriation shall be allocated
197     among charter schools in proportion to each charter school's enrollment as a percentage of the
198     total enrollment in charter schools.]
199          [(B) If the State Board of Education makes adjustments to Minimum School Program
200     allocations as provided under Section 53A-17a-105, the allocation provided in Subsection
201     (5)(b)(iv)(A) shall be determined after adjustments are made under Section 53A-17a-105.]
202          (c) (i) If the legislative appropriation described in Subsection (5)(b) is insufficient to
203     provide an amount described in Subsection (5)(b)(ii) for each charter school student, the State
204     Board of Education shall make an adjustment to Minimum School Program allocations as
205     described in Section 53A-17a-105.
206          (ii) Following an adjustment described in Subsection (5)(c)(i), if legislative
207     appropriations remain insufficient to provide an amount described in Subsection (5)(b)(ii) for
208     each student enrolled in a charter school, the State Board of Education shall:
209          (A) distribute to a charter school an amount described in Subsection (5)(b)(ii) for each
210     student enrolled in the charter school under or equal to the maximum number of students the
211     charter school serves, as described in the charter school's charter school agreement described in
212     Section 53A-1a-508; and
213          (B) distribute money remaining after the distributions described in Subsection
214     (5)(c)(ii)(A) to a charter school based on the charter school's share of all students enrolled in
215     charter schools who exceed the number of maximum students served by charter schools, as
216     described in charter school agreements entered into under Section 53A-1a-508.
217          [(c)] (d) (i) Of the money provided to a charter school under this Subsection (5), 10%
218     shall be expended for funding school facilities only.
219          (ii) Subsection (5)[(c)](d)(i) does not apply to an online charter school.
220          (d) This Subsection (5) is effective July 1, 2017.
221          (6) Charter schools are eligible to receive federal funds if they meet all applicable
222     federal requirements and comply with relevant federal regulations.
223          (7) The State Board of Education shall distribute funds for charter school students
224     directly to the charter school.
225          (8) (a) Notwithstanding Subsection (3), a charter school is not eligible to receive state
226     transportation funding.
227          (b) The board shall also adopt rules relating to the transportation of students to and
228     from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127.
229          (c) The governing board of the charter school may provide transportation through an
230     agreement or contract with the local school board, a private provider, or parents.
231          (9) (a) (i) In accordance with Section 53A-1a-513.5, the State Charter School Board
232     may allocate grants for start-up costs to charter schools from money appropriated for charter
233     school start-up costs.
234          (ii) The governing board of a charter school that receives money from a grant under
235     Section 53A-1a-513.5 shall use the grant for expenses for planning and implementation of the
236     charter school.
237          (b) The State Board of Education shall coordinate the distribution of federal money
238     appropriated to help fund costs for establishing and maintaining charter schools within the
239     state.
240          (10) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
241     endowment, gift, or donation of any property made to the school for any of the purposes of this
242     part.
243          (b) It is unlawful for any person affiliated with a charter school to demand or request
244     any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
245     with the charter school as a condition for employment or enrollment at the school or continued
246     attendance at the school.




Legislative Review Note
Office of Legislative Research and General Counsel