Report Title:

Charter Schools; Autonomy from DOE; Appropriation

Description:

Establishes the charter school education agency to be administratively attached to the BOE; provides for an executive director and staff for the office; requires BOE to submit a budget that provides equal per pupil funding as that of DOE schools; requires moneys for charter schools to be appropriated through EDN 110 -- charter schools.

HOUSE OF REPRESENTATIVES

H.B. NO.

1687

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

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-B New century charter schools, new century conversion charter schools; funding. (a) Beginning with the 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 to the charter schools education agency designated under the program identification code, EDN 110, and which shall be assigned to the board of education.

(b) Beginning with the fiscal biennium 2003-2005, the allocations from the charter school education agency to new century charter schools and new century conversion charter schools shall be based upon legislative appropriations to EDN 110, which shall not be less than the per pupil amounts allocated to department of education schools, as follows:

(1) $         per pupil for elementary schools;

(2) $         per pupil for middle and intermediate schools;

(3) $         per pupil for high schools;

(4) $         per pupil for multi-level schools comprised of elementary, and middle or intermediate school grades;

(5) $         per pupil for multi-level schools comprised of middle or intermediate, and high school grades; and

(6) $         per pupil for multi-level schools comprised of elementary, middle or intermediate, and high school grades."

SECTION 2. Section 302A-1187, Hawaii Revised Statutes, is amended to read as follows:

"302A-1187 New century charter schools; [administrative supervision. Whenever any new century charter school is established under section 302A-1182, the following provisions shall apply except as otherwise specifically provided by this chapter:] administration; charter school education agency. (a) There is established a charter school education agency, to be administratively attached to the board of education, for the purposes of providing administrative oversight of the new century charter schools and the new century conversion charter schools. The agency shall be administered by an executive director, who shall be appointed without regard to chapters 76 and 89 by the board of education in consultation with the Hawaii association of charter schools. The executive director may hire necessary staff without regard to chapters 76 and 89 to assist in the administration of the agency.

(b) The executive director shall report to the board of education, and shall assist the board with administration of the charter schools as follows:

(1) Following consultation with the new century charter school, the board or executive director shall represent the new century charter school in communications with the governor and with the legislature;

(2) The [financial requirements for state funds of] state budget request for the new century charter [school] schools shall be submitted to the governor and to the legislature through the board [and included in the budget for the department];

(3) The approval of all policies and rules adopted by the new century charter school shall be preceded by an open public meeting and shall not be subject to chapter 91;

(4) The employment, appointment, promotion, transfer, demotion, discharge, and job descriptions of all officers and employees of or under the jurisdiction of the new century charter school shall be determined by the new century charter school and applicable personnel laws and collective bargaining agreements;

(5) Except as set forth in this [section,] subpart the board or the superintendent of education shall not have the power to supervise or control the new century charter school in the exercise of its functions, duties, and powers; and

(6) Local school boards may enter into an annual business contract for centralized services to be provided by the department of education prior to the beginning of each school year."

SECTION 3. 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] charter school education agency 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-B, directly to the new century charter school or new century conversion charter school."

SECTION 4. Section 302A-1185, Hawaii Revised Statutes, is repealed.

["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) 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) 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 August 1 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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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