1     
CHARTER SCHOOL FUNDING AMENDMENTS

2     
2018 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          ▸     provides, if legislative appropriations are insufficient, for funding distribution to
16     charter schools for charter students enrolled in a charter school that are below or
17     exceed the charter school's maximum number of students; and
18          ▸     makes technical corrections.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          53F-2-704, as enacted by Laws of Utah 2018, Chapter 2
26          53G-5-303, as renumbered and amended by Laws of Utah 2018, Chapter 3
27     

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 53F-2-704 is amended to read:
30          53F-2-704. Charter school levy state guarantee.
31          (1) As used in this section:
32          (a) "Charter school levy per pupil revenues" means the same as that term is defined in
33     Section 53F-2-703.
34          (b) "Charter school students' average local revenues" means the amount determined as
35     follows:
36          (i) for each student enrolled in a charter school on the previous October 1, calculate the
37     district per pupil local revenues of the school district in which the student resides;
38          (ii) sum the district per pupil local revenues for each student enrolled in a charter
39     school on the previous October 1; and
40          (iii) divide the sum calculated under Subsection (1)(a)(ii) by the number of students
41     enrolled in charter schools on the previous October 1.
42          (c) "District local property tax revenues" means the sum of a school district's revenue
43     received from the following:
44          (i) a voted local levy imposed under Section 53F-8-301;
45          (ii) a board local levy imposed under Section 53F-8-302, excluding revenues expended
46     for:
47          (A) 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          (B) 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;
51          (iii) a capital local levy imposed under Section 53F-8-303; and
52          (iv) a guarantee described in Section 53F-2-601, 53F-2-602, 53F-3-202, or 53F-3-203.
53          (d) "District per pupil local revenues" means, using data from the most recently
54     published school district annual financial reports and state superintendent's annual report, an
55     amount equal to district local property tax revenues divided by the sum of:
56          (i) a school district's average daily membership; and
57          (ii) the average daily membership of a school district's resident students who attend
58     charter schools.
59          (e) "Resident student" means a student who is considered a resident of the school
60     district under Title 53G, Chapter 6, Part 3, School District Residency.
61          (f) "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)(f)(i) by statewide school district
66     average daily membership.
67          (2) (a) Subject to future budget constraints, the Legislature shall provide an
68     appropriation for charter schools for each charter school student enrolled on October 1 to
69     supplement the allocation of charter school levy per pupil revenues described in Subsection
70     53F-2-702(3)(a).
71          (b) Except as provided in Subsection (2)(c), the amount of money provided by the state
72     for a charter school student shall be the sum of:
73          (i) charter school students' average local revenues minus the charter school levy per
74     pupil revenues; and
75          (ii) statewide average debt service revenues.
76          (c) If the total of charter school levy per pupil revenues distributed by the State Board
77     of Education and the amount provided by the state under Subsection (2)(b) is less than $1,427,
78     the state shall provide an additional supplement so that a charter school receives at least $1,427
79     per student under Subsection 53F-2-702(3).
80          [(d) (i) If the appropriation provided under this Subsection (2) is less than the amount
81     prescribed by Subsection (2)(b) or (c), the appropriation shall be allocated among charter
82     schools in proportion to each charter school's enrollment as a percentage of the total enrollment
83     in charter schools.]
84          [(ii) If the State Board of Education makes adjustments to Minimum School Program
85     allocations as provided under Section 53F-2-205, the allocation provided in Subsection
86     (2)(d)(i) shall be determined after adjustments are made under Section 53F-2-205.]
87          (d) (i) If the legislative appropriation described in Subsection (2)(a) is insufficient to
88     provide an amount described in Subsection (2)(b) for each charter school student, the State
89     Board of Education shall make an adjustment to Minimum School Program allocations as
90     described in Section 53F-2-205.
91          (ii) Following an adjustment described in Subsection (2)(d)(i), if legislative
92     appropriations remain insufficient to provide an amount described in Subsection (2)(b) for each
93     student enrolled in a charter school, the State Board of Education shall:
94          (A) distribute to a charter school an amount described in Subsection (2)(b) for each
95     student enrolled in the charter school under or equal to the maximum number of students the
96     charter school serves, as described in the charter school's charter school agreement described in
97     Section 53G-5-303; and
98          (B) distribute money remaining after the distributions described in Subsection
99     (2)(d)(ii)(A) to a charter school based on the charter school's share of all students enrolled in
100     charter schools who exceed the number of maximum students served by charter schools, as
101     described in charter school agreements entered into under Section 53G-5-303.
102          (3) (a) Except as provided in Subsection (3)(b), of the money provided to a charter
103     school under Subsection 53F-2-702(3), 10% shall be expended for funding school facilities
104     only.
105          (b) Subsection (3)(a) does not apply to an online charter school.
106          Section 2. Section 53G-5-303 is amended to read:
107          53G-5-303. Charter agreement -- Content -- Modification.
108          (1) As used in this section, "satellite charter school" means a charter school affiliated
109     with an operating charter school, which has the same charter school governing board and a
110     similar program of instruction, but has a different school number than the affiliated charter.
111          [(1)] (2) A charter agreement:
112          (a) is a contract between the charter school applicant and the charter school authorizer;
113          (b) shall describe the rights and responsibilities of each party; and
114          (c) shall allow for the operation of the applicant's proposed charter school.
115          [(2)] (3) A charter agreement shall include:
116          (a) the name of:
117          (i) the charter school; and
118          (ii) the charter school applicant;
119          (b) the mission statement and purpose of the charter school;
120          (c) the charter school's opening date;
121          (d) the grade levels [and number of students] the charter school will serve;
122          (e) (i) the maximum number of students a charter school will serve; or
123          (ii) for an operating charter school with satellite charter schools, the maximum number
124     of students of all satellite charter schools collectively served by the operating charter school;
125          [(e)] (f) a description of the structure of the charter school governing board, including:
126          (i) the number of board members;
127          (ii) how members of the board are appointed; and
128          (iii) board members' terms of office;
129          [(f)] (g) assurances that:
130          (i) the charter school governing board will comply with:
131          (A) the charter school's bylaws;
132          (B) the charter school's articles of incorporation; and
133          (C) applicable federal law, state law, and State Board of Education rules;
134          (ii) the charter school governing board will meet all reporting requirements described
135     in Section 53G-5-404; and
136          (iii) except as provided in Part 6, Charter School Credit Enhancement Program, neither
137     the authorizer nor the state, including an agency of the state, is liable for the debts or financial
138     obligations of the charter school or a person who operates the charter school;
139          [(g)] (h) which administrative rules the State Board of Education will waive for the
140     charter school;
141          [(h)] (i) minimum financial standards for operating the charter school;
142          [(i)] (j) minimum standards for student achievement; and
143          [(j)] (k) signatures of the charter school authorizer and the charter school governing
144     board members.
145          [(3)] (4) (a) Except as provided in Subsection [(3)] (4)(b), a charter agreement may not
146     be modified except by mutual agreement between the charter school authorizer and the charter
147     school governing board.
148          (b) A charter school governing board may modify the charter school's charter
149     agreement without the mutual agreement described in Subsection [(3)] (4)(a) to include an
150     enrollment preference described in Subsection 53G-6-502(4)(g).




Legislative Review Note
Office of Legislative Research and General Counsel