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

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

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

(A)  Include all regular education costcategories, including comprehensive school support services, but excludingspecial education services; provided that special education services areprovided and funded by the department;

(B)  Include all means of financing exceptfederal funds, as reported in the most recently-approved executive budgetrecommendations for the department; provided that in preparing the budget theexecutive director shall include an analysis of the proposed budget inrelationship to the most recently published department consolidated annualfinancial report; and

(C)  Exclude fringe benefit costs and debtservice.

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

The legislature shall make an appropriationbased upon the budget request; provided that the legislature may makeadditional appropriations for fringe, workers' compensation, and other employeebenefits and facility costs.  The legislature may make additionalappropriations for other requested amounts that benefit charter schools.

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

(c)  Charter schools shall be eligible for allfederal financial support to the same extent as all other public schools.  Thedepartment shall provide the office with all state-level federal grantproposals submitted by the department that include charter schools as potentialrecipients and timely reports on state-level federal grants received for whichcharter schools may apply or are entitled to receive.  Federal funds receivedby the department for charter schools shall be transferred to the office fordistribution to charter schools in accordance with the federal requirements. If administrative services related to federal grants and subsidies are providedto the charter school by the department, the charter school shall reimburse thedepartment for the actual costs of the administrative services in an amountthat shall not exceed six and one-half per cent of the charter school's federalgrants and subsidies.

Any charter school shall be eligible to receiveany supplemental federal grant or award for which any other public school maysubmit a proposal, or any supplemental federal grants limited to charterschools; provided that if department administrative services, including fundsmanagement, budgetary, fiscal accounting, or other related services, areprovided with respect to these supplemental grants, the charter school shallreimburse the department for the actual costs of the administrative services inan amount that shall not exceed six and one-half per cent of the supplementalgrant for which the services are used.

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

(d)  To enable charter schools to access statefunding 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'sper-pupil allocation based on the charter school's projected student enrollmentno later than July 20 of each fiscal year; provided that the charter schoolshall have submitted to the office a projected student enrollment no later thanMay 15 of each year;

(2)  Provide an additional forty per cent of a charterschool'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 October15 of each year; provided that the student enrollment shall be verified on thelast business day immediately prior to October 15 should that date fall on aweekend; and

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

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

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

(e)  The department shall provide appropriatetransitional resources to a conversion charter school for its first year ofoperation as a charter school based upon the department's allocation to theschool for the year prior to the conversion.

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