Report Title:

Charter Schools; Funding; Autonomy; Appropriation

Description:

Establishes a separate funding category, EDN 700, for new century charter schools. (SB1700 HD1)

THE SENATE

S.B. NO.

1700

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

H.D. 1


 

A BILL FOR AN ACT

 

relating to charter schools.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part IV, subpart D, to be appropriately designated and to read as follows:

"§302A- New century charter schools, new century conversion charter schools; funding. (a) Beginning with fiscal biennium 2003-2005, and every fiscal biennium thereafter, all funds for new century charter schools and new century conversion charter schools shall be appropriated by the legislature under the program identification code, EDN 700.

(b) The legislature shall appropriate for each charter school an amount based upon the projected enrollment of the school and the average per pupil cost reported in the department of education's most recent consolidated annual financial report; provided that:

(1) The average per pupil cost shall be based upon the total enrollment of the public school system, excluding amounts provided for the benefit of particular schools through budget provisos or separate appropriations; and

(2) New century charter schools shall be responsible for providing all services included in the annual financial report used to determine the per pupil amount.

(c) Beginning with fiscal biennium 2003-2005, the allocations of general funds to new century charter schools shall be based upon legislative appropriations to EDN 700 and the projected enrollment figures reported by each school; provided that if the governor imposes restrictions or reductions on charter school funding pursuant to chapter 47, such restrictions or reductions shall be equivalent to those imposed on other public schools."

SECTION 2. Section 302A-1302, Hawaii Revised Statutes, is amended to read as follows:

"§302A-1302 School-based budget flexibility. (a) Beginning with the 1995-1997 fiscal biennium, the department shall implement school-based budget flexibility for schools, complexes, and learning support centers. The flexibility shall be limited to the school-based budgeting program EDN 100 of the department for all schools except new century charter schools defined in section 302A-101 and new century conversion charter schools defined in section 302A-1191[; provided that beginning].

(b) Beginning in fiscal year [1998-1999,] 2003-2004, and every year thereafter, the department shall distribute the [full appropriation] allocations due to a new century charter school or new century conversion charter school pursuant to [sections 302A-1185 and 302A-1191,] section 302A- directly to the new century charter school or new century conversion charter school."

SECTION 3. Section 302A-1188, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1188[]] New century charter schools; [mandate to support] responsibilities of department of education. (a) The department[, together with key representatives of the major divisions in the department, representatives from the unions, [as well as individuals] and representatives from the new century charter schools shall collaborate [together on a system of technical assistance that will provide a baseline for success of each new century charter school . In addition, the department, through the board and its superintendent, shall provide any other information and technical assistance upon request necessary] to support the establishment and expansion of new century charter schools[.], including the development of a system of technical assistance to be offered by the department of education during the first two years of operation of a new century charter school. The department and representatives of the new century charter schools shall collaborate to develop a list of central services that the department of education may offer for purchase by a new century charter school at an annual cost to be negotiated between an individual charter school and the department. The department shall enter into a contract with a new century charter school to provide these services, which shall be renegotiated on an annual basis.

(c) Any new century charter school that admits special education students or identifies one of their students as eligible for special education shall be responsible for developing and providing the educational and related services within a student's individual education plan; provided that if the charter school lacks the necessary resources to provide such services, then placement of the student shall be determined by the department of education.

(d) If, at any time, a new century charter school dissolves or is denied continuation, the State of Hawaii shall have first right, at no cost to the State, to all the assets and facilities of the new century charter school, except as otherwise provided by law."

SECTION 4. Section 302A-1185, Hawaii Revised Statutes, is amended to read as follows:

"[§302A-1185 New century charter schools; funding. (a) New century charter schools shall receive an allocation of state funds based upon the operational and educational funding requirements of the schools; provided that:

(1) Beginning in fiscal year 2001-2002, and every year thereafter, the auditor shall determine the appropriate allocation based on the total department general fund allocation for EDN 100, 200, 300, and 400 and projected per pupil allocation for the current fiscal year;

(2) Small schools with fewer than one hundred twenty students may be given a state subsidy or small school allotment, as determined by the department, to augment the per pupil allocation given; provided that if additional federal grant moneys are received, the auditor shall determine the appropriate portion of the federal grant moneys to be used to offset the small school allotment; provided further that the federal grant moneys shall not include federal impact aid;

(3) The department may provide a limited start-up and planning grant formulated by the auditor to a charter school upon the issuance of its charter; provided further that the department shall provide appropriate transitional resources to a conversion charter school for its first year of operation as a charter school based on the department's allocation to the school for the year prior to conversion;

(4) The auditor shall take into consideration any changes to the department's budget made by the legislature, the governor, department-imposed restrictions, or any applicable collective bargaining negotiated amounts; provided that the auditor shall exclude from the per pupil allocation funds for:

(A) Services that must be provided at the state level;

(B) Specific programs or projects that target individual schools, complexes, or districts;

(C) Grants in aid; and

(D) Resources of new facilities that target specific, new construction projects.

(5) Any new century charter school may enter into an annual memorandum of agreement for centralized services to be provided by the department prior to the beginning of each school year, provided that:

(A) The allocation of the new century charter school shall be reduced in an amount based upon the per pupil amount expended by the department for such services; and

(B) The department may not retain new century charter school funds in excess of the actual cost of the service.

(6) The department shall determine and provide the appropriate level of special education staff and services necessary to ensure that the student's educational needs as indicated in the individualized educational plans are met; and

(7) The auditor shall develop a methodology for allocating funds that can be applied to alternative forms of public schools, including but not limited to new century charter schools; and

(8) The auditor shall develop a methodology for allocating funds for conversion charter schools, by basing the allocation for each newly converted school on the EDN 100 and 200 program budgets, and upon written agreement between the conversion charter school's local school board and the department, specified sections of the EDN 300 and 400 program budgets the school received in the year prior to conversion; provided that the allocation may be adjusted to account for any changes that may be made by the legislature, the governor, department-imposed restrictions, or applicable collective bargaining negotiated amounts.]

[(b)] (a) All federal financial support for new century charter schools shall be no less than all other public schools; provided that if administrative services related to federal grants and subsidies are provided to the charter school by the department, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the charter school's federal grants and subsidies.

Any new century charter school shall be eligible to receive any supplementary financial grant or award for which any other public school may submit a proposal, or any supplemental federal grants limited to new century charter schools; provided that if department administrative services, including funds management, budgetary, fiscal accounting, or other related services, are provided with respect to these supplementary grants, the charter school shall reimburse the department for the actual costs of the administrative services in an amount that does not exceed six and one-half per cent of the supplementary grant for which the services are used.

All additional funds that are generated by the local school boards, not from a supplementary grant, shall be separate and apart from allotted funds and may be expended at the discretion of the local school boards.

[(c)] (b) To enable new century charter schools to access state funding prior to the start of each school year, foster their fiscal planning, and enhance their accountability, the department shall:

(1) Provide fifty per cent of a new century charter school's per pupil allocation based on the new century charter school's projected student enrollment no later than July 15 of each year; provided that the new century charter school shall submit to the department a projected student enrollment no later than May 15 of each year; and

(2) Provide the remaining per pupil allocation of a new century charter school based on the new century charter school's verified student enrollment no later than October 15 of each year; provided that the new century charter school shall submit to the department a verified student enrollment no later than September 15 of each year.

[(d) If, at any time, the new century charter school dissolves or is denied continuation, the State of Hawaii shall have first right, at no cost to the State, to all the assets and facilities of the new century charter school, except as otherwise provided in the detailed implementation plan.]"

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $          or so much thereof as may be necessary for fiscal year 2003-2004 for new century charter schools and new century conversion charter schools.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on May 17, 2054.