2014 -- H 8023

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LC005350

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO EDUCATION - FUNDING OF PUBLIC CHARTER SCHOOLS

     Introduced By: Representatives Serpa, Kennedy, O'Brien, Tomasso, and Guthrie

     Date Introduced: April 03, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 16-77.1-2 of the General Laws in Chapter 16-77.1 entitled

"Funding of Charter Public Schools [ See Title 16 Chapter 97 - The Rhode Island Board of

Education Act]" is hereby amended to read as follows:

     16-77.1-2. Operating costs. -- (a) Operating costs of a charter public school shall be the

total of the per pupil payments for each student attending the charter public school. The per pupil

payment for each student shall be determined based on the per pupil cost for the district of

residence of each student. The state's share of the per pupil amount for each student attending the

charter public school shall be paid by the state directly to the charter public school and shall be

the percent, or share ratio, previously calculated under chapter 7 of this title; provided, that in no

case shall the ratio be less than thirty percent (30%), minus the five percent (5%) of per pupil cost

designated for indirect cost support to the student's school district as defined in subsection (b).

The five percent (5%) indirect cost amount shall be deducted from the district per pupil cost

before the state share is derived by applying the share ratio to the district per pupil cost. The local

share of the per pupil amount for each student attending the charter public school shall be paid to

the charter public school by the district of residence of the student and shall be the per pupil cost

for the district of residence of the student minus the state share of that per pupil cost as designated

in this section and minus allocations not borne by the charter school based on the uniform chart of

accounts (UCOA) data such as out of district special education and district costs required by the

basic education plan (BEP).

      (b) In addition to all state aid to education paid to a local district pursuant to chapter 7.1

of this title, the state will pay an additional amount to the district for each student from this

district who is attending a charter public school. The additional amount of state aid per pupil shall

be five percent (5%) of the districts per pupil cost. The additional state aid shall be for the

purpose of assisting local school districts to undertake the indirect costs borne by a district when

its student attends a charter public school.

      (c) The state department of elementary and secondary education shall annually determine

both the state and local share of each charter public school's operating costs by deriving the

respective shares associated with each student reported as a member of the charter public school

as of June 30 of the reference year as defined in section 16-7-16(11) (or the enrollment as of

October 1 of the current school year in the first year of operation of a charter school). All other

data used in this determination shall be based upon the reference year as defined in section 16-7-

16(11).

      (d) The state shall make payments of its share of operating costs to each charter public

school on a quarterly basis in July, October, January, and April. The July and October payments

will be based upon the reported student membership of the charter public school as of June 30 of

the reference year as defined in section 16-7-16(11) (or the enrollment as of October 1 of the

current school year in the first year of operation of a charter school). Charter public schools will

report current student enrollment, including district of residence for school purposes of each

student enrolled, and each district will report current total district operating expenses and total

district enrollments (including district students enrolled in charter public schools) annually by

October 1. If the October 1 data on a charter public school's student enrollment show a ten

percent (10%) or greater increase or decrease in students from the June membership count, the

third and fourth quarter payments to the charter public school will be adjusted to reflect actual

student enrollment in the charter public school.

      (e) Local district payments to charter public schools for each district's students enrolled

in the charter public school shall also be made quarterly at the end of the district's school quarter

for those students actually enrolled in the charter school during the quarter as designated in

subsection (d); the first local district payment shall be made by August 15 instead of July. Any

local school district more than thirty (30) days in arrears on a quarterly payment for its student(s)

enrolled in a charter public school shall have the amount of the arrearage deducted from state aid

to that district and the withheld arrearage shall be paid by the state directly to the charter public

school.

      (f) Local school districts with student(s) enrolled in a charter public school shall continue

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to report these students in the total census of district public school students and will receive state

aid for all these students pursuant to the provisions of chapter 7.1 of this title.

      (g) All entitlements except those provided for in section 16-24-6.2 shall be ratably

reduced if less than one hundred percent (100%) of the expenditures is appropriated.

      (h) For fiscal year 2007, the indirect aid paid to districts pursuant to this section shall

equal the amount received in the fiscal year 2006 enacted budget by the 2005 general assembly.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION - FUNDING OF PUBLIC CHARTER SCHOOLS

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     This act would change the method of determining the local share of the per pupil cost for

each student attending a charter school by subtracting from the local share, allocations not borne

by the charter school, based on the Uniform Chart of Accounts (UCOA). It would also provide

that local district payments to charter public schools are to be made by the end of the district's

school quarter.

     This act would take effect upon passage.

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