§302B-12  Funding and finance.  (a) 
Beginning with fiscal year 2009-2010, and each fiscal year thereafter, the
non-facility per-pupil funding request for charter school students shall not be
less than the per-pupil amount to the department in the most recently approved
executive budget recommendation for the department, as set forth in paragraph
(2); provided that:



(1)  The per-pupil funding request shall include
funding for projected enrollment figures for each charter school; and



(2)  The per-pupil request for each regular education
and special education student shall:



(A)  Include all regular education cost
categories, including comprehensive school support services, but excluding
special education services; provided that special education services are
provided and funded by the department;



(B)  Include all means of financing except
federal funds, as reported in the most recently-approved executive budget
recommendations for the department; provided that in preparing the budget the
executive director shall include an analysis of the proposed budget in
relationship to the most recently published department consolidated annual
financial report; and



(C)  Exclude fringe benefit costs and debt
service.



(b)  Fringe benefit costs for charter school
employees, regardless of the payroll system utilized by a charter school, shall
be included in the department of budget and finance's annual budget request. 
No fringe benefit costs shall be charged directly to or deducted from the
charter school per-pupil allocations.



The legislature shall make an appropriation
based upon the budget request; provided that the legislature may make
additional appropriations for fringe, workers' compensation, and other employee
benefits and facility costs.  The legislature may make additional
appropriations for other requested amounts that benefit charter schools.



The governor, pursuant to chapter 37, may
impose restrictions or reductions on charter school appropriations similar to
those imposed on other public schools.



(c)  Charter schools shall be eligible for all
federal financial support to the same extent as all other public schools.  The
department shall provide the office with all state-level federal grant
proposals submitted by the department that include charter schools as potential
recipients and timely reports on state-level federal grants received for which
charter schools may apply or are entitled to receive.  Federal funds received
by the department for charter schools shall be transferred to the office for
distribution to charter schools in accordance with the federal requirements. 
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 shall not exceed six and one-half per cent of the charter school's federal
grants and subsidies.



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



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



(d)  To enable charter schools to access state
funding prior to the start of each school year, foster their fiscal planning,
and enhance their accountability, the office shall:



(1)  Provide fifty per cent of a charter school's
per-pupil allocation based on the charter school's projected student enrollment
no later than July 20 of each fiscal year; provided that the charter school
shall have submitted to the office a projected student enrollment no later than
May 15 of each year;



(2)  Provide an additional forty per cent of a charter
school's per-pupil allocation no later than November 15 of each year;
provided that the charter school shall have submitted to the office:



(A)  Student enrollment as verified on October
15 of each year; provided that the student enrollment shall be verified on the
last business day immediately prior to October 15 should that date fall on a
weekend; and



(B)  An accounting of the percentage of student
enrollment that transferred from public schools established and maintained by
the department; provided that these accountings shall also be submitted by the
office to the legislature no later than twenty days prior to the start of each
regular session; and



(3)  Retain no more than ten per cent of a charter
school's per-pupil allocation no later than June 30 of each year as a contingency
balance to ensure fiscal accountability and compliance;



provided that the panel may make adjustments in
allocations based on noncompliance with board policies made in the board's
capacity as the state education agency, department directives made in the
department's capacity as the state education agency, the office's administrative
procedures, and board-approved accountability requirements.



(e)  The department shall provide appropriate
transitional resources to a conversion charter school for its first year of
operation as a charter school based upon the department's allocation to the
school for the year prior to the conversion.



(f)  No start-up charter school or conversion
charter school may assess tuition. [L 2006, c 298, pt of §2; am L 2007, c 115,
§12; am L 2009, c 86, §5]