Senate Bill 2300

(COMMITTEE SUBSTITUTE)

AN ACT TO AMEND SECTION 37-28-55, MISSISSIPPI CODE OF 1972, RELATING TO THE PAYMENT OF FUNDS TO MISSISSIPPI CHARTER SCHOOLS TO PROVIDE THAT STATE FUND PAYMENTS ARE BASED ON ACCURATE ENROLLMENT PROJECTIONS, TO CLARIFY THE CALCULATION AND DISTRIBUTION OF THE LOCAL AD VALOREM TAX PORTION OF THE CHARTER SCHOOL PER PUPIL FUNDING AND TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCATION MAY WITHHOLD THAT AMOUNT FROM THE ADEQUATE EDUCATION PROGRAM PAYMENTS TO THE SCHOOL DISTRICT IN WHICH THE STUDENT RESIDES AND PAY THE AMOUNT DIRECTLY TO THE CHARTER SCHOOL; TO AMEND SECTION 37-28-59, MISSISSIPPI CODE OF 1972, TO CLARIFY THE USE OF MONIES REMAINING IN THE ACCOUNTS OF A LEGAL ENTITY OPERATING A CHARTER SCHOOL; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 37-28-55, Mississippi Code of 1972, is amended as follows:

37-28-55. (1) (a) The State Department of Education shall make payments to charter schools for each student in average daily attendance at the charter school equal to the state share of the adequate education program payments for each student in average daily attendance at the school district in which the charter school is located. In calculating the local contribution for purposes of determining the state share of the adequate education program payments, the department shall deduct the pro rata local contribution of the school district in which the student resides, to be determined as provided in Section 37-151-7(2)(a).

(b) Payments made pursuant to this subsection by the State Department of Education must be made at the same time and in the same manner as adequate education program payments are made to school districts under Sections 37-151-101 and 37-151-103. Amounts payable to a charter school must be determined by the State Department of Education. Amounts payable to a charter school * * * ~~in its first year of operation~~ over its charter term must be based on the enrollment projections * * * set forth * * * in over the term of the charter contract. Such projections must be reconciled with the average daily attendance at the end of * * * ~~the school's first~~ each year of operation, and any necessary adjustments must be made to payments during the school's * * * ~~second~~ following year of operation.

(2) The school district in which a charter school is located shall pay directly to the charter school an amount for each student enrolled in the charter school equal to the ad valorem tax receipts and in-lieu payments received per pupil for the support of the local school district in which the student resides. The pro rata ad valorem receipts and in-lieu receipts to be transferred to the charter school shall include all levies for the support of the local school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy) and may not include any taxes levied for the retirement of the local school district's bonded indebtedness or short-term notes or any taxes levied for the support of vocational-technical education programs. * * * The amount of funds payable to the charter school shall be based on the previous year's enrollment data and ad valorem receipts and in-lieu receipts of the local school district in which the student resides. The pro rata amount shall be calculated by dividing the local school district's months one (1) through nine (9) average daily membership by the total amount of ad valorem receipts and in-lieu receipts as reported to the Department of Education by the local school district. The local school district shall pay an amount equal to this pro rata amount times the number of students enrolled in the charter school based on the charter schools end of first month enrollment for the current year. The amount shall be paid to the charter school by January 15 of the current fiscal year. In the event that the local school district does not pay the required amount to the charter school by January 15 of the current year, the Department of Education shall reduce the local school districts January transfer of Mississippi Adequate Education Program funds by the amount owed and redirect that amount to the charter school. Any such payments made under this subsection (2) by * * * ~~a school district~~ the State Department of Education to a charter school must be made * * * at the same time and in the same manner as adequate education program payments are made to school districts under Section 37-151-101 and 37-151-103.

(3) (a) The State Department of Education shall direct the proportionate share of monies generated under federal and state categorical aid programs, including special education, vocational, gifted and alternative school programs, to charter schools serving students eligible for such aid. The department shall ensure that charter schools with rapidly expanding enrollments are treated equitably in the calculation and disbursement of all federal and state categorical aid program dollars. Each charter school that serves students who may be eligible to receive services provided through such programs shall comply with all reporting requirements to receive the aid.

(b) A charter school shall pay to a local school district any federal or state aid attributable to a student with a disability attending the charter school in proportion to the level of services for that student which the local school district provides directly or indirectly.

(c) Subject to the approval of the authorizer, a charter school and a local school district may negotiate and enter into a contract for the provision of and payment for special education services, including, but not necessarily limited to, a reasonable reserve not to exceed five percent (5%) of the local school district's total budget for providing special education services. The reserve may be used by the local school district only to offset excess costs of providing services to students with disabilities enrolled in the charter school.

(4) (a) The State Department of Education shall disburse state transportation funding to a charter school on the same basis and in the same manner as it is paid to school districts under the adequate education program.

(b) A charter school may enter into a contract with a school district or private provider to provide transportation to the school's students.

SECTION 2. Section 37-28-59, Mississippi Code of 1972, is amended as follows:

37-28-59. (1) Any monies received by a charter school from any source remaining in the charter school's accounts at the end of a budget year must remain in the * * *~~charter school's~~ accounts of the legal entity operating the charter school for use by the legal entity in the operation of charter schools under its management authority during subsequent budget years, and may be expended for the support and maintenance of such charter schools located in Mississippi as approved by the Mississippi Charter School Authorizer Board.

(2) Nothing in this chapter may be construed to prohibit any person or organization from providing funding or other assistance to the establishment or operation of a charter school. The governing board of a charter school may accept gifts, donations and grants of any kind made to the charter school and may expend or use such gifts, donations and grants in accordance with the conditions prescribed by the donor; however, a gift, donation or grant may not be accepted if it is subject to a condition that is contrary to any provision of law or term of the charter contract.

(3) A charter school must disclose publicly all sources of private funding and all funds received from foreign sources, including gifts from foreign governments, foreign legal entities and domestic entities affiliated with either foreign governments or foreign legal entities. For the purposes of this subsection, the term "foreign" means a country or jurisdiction outside of any state or territory of the United States.

SECTION 3. This act shall take effect and be in force from and after its passage.