FISCAL NOTE

Senate Bill 302 as introduced provides: (1) that public charter schools, which includes start-up public charter schools and conversion public charter schools, shall be funded, during start-up and planned structured growth years, in the same manner as a newly formed non-charter public school and (2) that Foundation Program funding for a start-up charter school shall be based on anticipated enrollment as provided in the approved charter application, with the resulting Foundation Program allocation being adjusted to reconcile the variance between anticipated and actual funded enrollment, which is current practice by the State Department of Education (SDE).

Further, this bill will increase the obligations of the Education Trust Fund and the Public School Fund by an undetermined amount by allowing public charter schools to participate in other Education Trust Fund and Public School Fund appropriations in the same manner as other non-charter public schools, which would increase receipts to public charter schools also by an undetermined amount.

Further, this bill provides that: (1) a start-up public charter school, located in the county where a student resides, shall receive a pro-rata share of the county-wide taxes; and (2) a start-up public charter school located in a county with a population of less than 40,000 shall receive four-tenths of the pro-rata share of the county-wide taxes. These provisions could increase local tax receipts to start-up public charter schools by an undetermined amount dependent upon the difference in the amount of local tax revenues currently received by a start-up public charter school and the local tax revenues received pursuant to this bill. 

Further, this bill specifies that a conversion public charter school shall continue to receive all local funding that the non-charter public school would have received before conversion. In addition, this bill provides that nothing shall be construed to: (1) reduce the state allocation of funds due to the 10-mill match calculation for local school systems; and (2) alternatively compute or otherwise establish the tax receipt equivalent to 10 mills for a start-up public charter school.  

Further, this bill requires the SDE and county revenue commissioners to forward state and local funds, respectively, to public charter schools on a monthly basis, rather than quarterly as provided by current law. In addition, this bill requires the Department, annually, to: (1) determine the budgeted local revenue allocations for each public charter school before the deadline to submit applications to the commission or registered local authorizer; and (2) calculate per-student allocations and ensure that the allocations are distributed directly to public charter schools on a per-student basis, which could increase the administrative obligations of the Department. 

Finally, this bill provides that the amendatory language of the bill shall not be interpreted to prevent a local school board from willingly sharing non-county revenue with a public charter school.