2022 -- H 7634

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LC004700

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO EDUCATION -- FUNDING OF CHARTER PUBLIC SCHOOLS

     Introduced By: Representatives O'Brien, Barros, Amore, Williams, C Lima, Serpa,
Alzate, McNamara, Bennett, and Solomon

     Date Introduced: March 02, 2022

     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.

     (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 § 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 § 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 § 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 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

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 § 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

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

     (i) In the event a student enrolled in a charter school is disenrolled and/or returned back to

a sending school prior to the end of an academic year, then the charter school shall remit payment

equal to all public funds received by the charter school for that academic year for the education of

the disenrolled and/or returned student. The payment shall be sent to the public school and/or school

district responsible for receiving the student from the charter school. The funds remitted to the

public school or district responsible for receiving the student shall not be reduced and no pro rata

allocation shall be applied for any period of educational services provided by the charter school to

the student.

     SECTION 2. Section 16-77.2-5 of the General Laws in Chapter 16-77.2 entitled "District

Charter School [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

amended to read as follows:

     16-77.2-5. Budgets and funding.

     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

neither a financial incentive nor a financial disincentive to the establishment of a district charter

school. Funding for each district charter school shall consist of state revenue and municipal or

district revenue in the same proportions that funding is provided for other schools within the

sending school district(s).

     (b) Funding additional to that authorized from the sending school district(s) may be

allocated to the district charter school from the sending school district(s) to the extent that the

combined percentage of students eligible for free or reduced-cost lunch, students with limited

English proficiency, and students requiring special education exceed the combined percentage of

those students in the sending school district(s) as a whole. The commissioner shall promulgate rules

and regulations consistent with this section regarding the allocation of funds from sending school

districts to district charter schools.

     (c) All services, centrally or otherwise provided by the school district in which the district

charter school is located, that the district charter school decides to utilize including, but not limited

to, transportation, food services, custodial services, maintenance, curriculum, media services,

libraries, nursing, and warehousing, shall be subject to negotiation between a district charter school

and the school district in which the district charter school is located and paid for out of the revenues

of the district charter school. Disputes with regard to cost of services requested from the school

district in which the district charter school is located will be adjudicated by the commissioner.

     (d) A district charter school shall be eligible to receive other aids, grants, Medicaid revenue,

and other revenue according to Rhode Island law, as though it were a school district. Federal aid

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received by the state shall be used to benefit students in the charter public school, if the school

qualifies for the aid, as though it were a school district.

     (e) A district charter school may negotiate and contract directly with third parties for the

purchase of books, instructional materials, and any other goods and services that are not being

provided by the sending school district(s) pursuant to the charter.

     (f) If a charter school subject to the provisions of this chapter shall disenroll or return a

student to the original sending school then the charter school shall remit payment pursuant to the

provisions of § 16-77.1-2(i).

     SECTION 3. Section 16-77.3-5 of the General Laws in Chapter 16-77.3 entitled

"Independent Charter Schools [See Title 16 Chapter 97 - The Rhode Island Board of Education

Act]" is hereby amended to read as follows:

     16-77.3-5. Budgets and funding.

     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

neither a financial incentive nor a financial disincentive to the establishment of an independent

charter school. Funding for each independent charter school shall consist of state revenue and

municipal or district revenue in the same proportions that funding is provided for other schools

within the sending school district(s).

     (b) Funding additional to that authorized from the sending school district(s) by subsection

(b) may be allocated to the independent charter school from the sending school district(s) to the

extent that the combined percentage of students eligible for free or reduced-cost lunch, students

with limited English proficiency, and students requiring special education exceed the combined

percentage of those students in the sending school district(s) as a whole. The commissioner shall

promulgate rules and regulations consistent with this section regarding the allocation of funds from

sending school districts to independent charter schools.

     (c) An independent charter school shall be eligible to receive other aids, grants, Medicaid

revenue, and other revenue according to Rhode Island law, as though it were a school district.

Federal aid received by the state shall be used to benefit students in the independent charter school,

if the school qualifies for the aid, as though it were a school district.

     (d) An independent charter school may negotiate and contract directly with third parties

for the purchase of books, instructional materials, and any other goods and services that are not

being provided by the sending school district(s) pursuant to the charter.

     (e) If a charter school subject to the provisions of this chapter shall disenroll or return a

student to the original sending school then the charter school shall remit payment pursuant to the

provisions of § 16-77.1-2(i).

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     SECTION 4. Section 16-77.4-5 of the General Laws in Chapter 16-77.4 entitled "Mayoral

Academies [See Title 16 Chapter 97 - The Rhode Island Board of Education Act]" is hereby

amended to read as follows:

     16-77.4-5. Budgets and funding.

     (a) It is the intent of the general assembly that funding pursuant to this chapter shall be

neither a financial incentive nor a financial disincentive to the establishment of a mayoral academy.

Funding for each mayoral academy shall consist of state revenue and municipal or district revenue

in the same proportions that funding is provided for other schools within the sending school

district(s).

     (b) Funding additional to that authorized from the sending school district(s) may be

allocated to the mayoral academy from the sending school district(s) to the extent that the combined

percentage of students eligible for free or reduced-cost lunch, students with limited English

proficiency, and students requiring special education exceed the combined percentage of those

students in the sending school district(s) as a whole. The commissioner shall promulgate rules and

regulations consistent with this section regarding the allocation of funds from sending school

districts to mayoral academies.

     (c) A mayoral academy shall be eligible to receive other aids, grants, Medicaid revenue,

and other revenue according to Rhode Island law, as though it were a school district. Federal aid

received by the state shall be used to benefit students in a mayoral academy, if the school qualifies

for the aid, as though it were a school district.

     (d) A mayoral academy may negotiate and contract directly with third parties for the

purchase of books, instructional materials, and any other goods and services that are not being

provided by the sending school district(s) pursuant to the charter.

     (e) If a charter school subject to the provisions of this chapter shall disenroll or return a

student to the original sending school then the charter school shall remit payment pursuant to the

provisions of § 16-77.1-2(i).

     SECTION 5. 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 CHARTER PUBLIC SCHOOLS

***

     This act would require charter schools that disenroll or return a student to the original

sending school prior to the end of an academic year, to return all public funds received by the

charter school to educate that student for that academic year.

     This act would take effect upon passage.

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