House Bill 1041

AN ACT TO AMEND SECTION 37-28-55, MISSISSIPPI CODE OF 1972, TO REQUIRE A SCHOOL DISTRICT IN WHICH A CHARTER SCHOOL IS LOCATED TO PAY ANNUAL AMOUNTS OF LOCAL FUNDS DUE TO THE CHARTER SCHOOL IN NINE MONTHLY INSTALLMENTS BASED ON THE CHARTER SCHOOL'S STUDENT ENROLLMENT AS DETERMINED ON THE FIFTEENTH OF EACH MONTH; TO PROVIDE THAT PAYMENTS TO CHARTER SCHOOLS FOR MONTHS TEN, ELEVEN AND TWELVE OF THE CALENDAR YEAR SHALL BE IN AN AMOUNT EQUIVALENT TO THE PAYMENT RECEIVED BY THE CHARTER SCHOOL FOR MONTH NINE OF THE MONTHLY INSTALLMENTS; TO REQUIRE THE LOCAL SCHOOL DISTRICT TO PAY THE ENTITLED CHARTER SCHOOL FOUR BUSINESS DAYS PRIOR TO THE LAST WORKING DAY OF EACH MONTH; TO PROVIDE FOR THAT THE DECEMBER PAYMENT SHALL BE MADE ON DECEMBER 16TH OR THE NEXT BUSINESS DAY AFTER THAT DATE; 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 over its charter term must be based on the enrollment projections set forth over the term of the charter contract. Such projections must be reconciled with the average daily attendance using months two (2) and three (3) ADA for the current year for which adequate education program funds are being appropriated and any necessary adjustments must be made to payments during the school's following year of operation.

(2) For students attending a charter school located in the school district in which the student resides, 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 by the school district must 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 must be calculated by dividing the local school district's months one (1) through nine (9) average daily membership into the total amount of ad valorem receipts and in-lieu receipts, as reported to the State Department of Education by the local school district. The local school district shall pay an annual amount equal to this pro rata amount multiplied by the number of students enrolled in the charter school, based on the charter school's * * *~~end of first month~~ monthly enrollment as determined on the fifteenth day of each month for the current school year. The annual amount must be paid by the school district to the charter school * * * on a monthly basis, in nine (9) monthly installments to which the charter school is entitled being payable four (4) business days prior to the last working day of each month. However, in December those payments shall be made on December 16th or the next business day after that date. Payments made by the local school district to the charter school in the tenth, eleventh and twelfth months of the calendar year shall be in an amount equivalent to the payment received by the charter school for month nine of the monthly installments, as determined by the student enrollment reported in the last month of the scholastic year. In addition, the local school district may pay the charter school on a date earlier than provided for by this section if it is determined that it is in the best interest of the school district and charter school to do so. If the local school district does not pay the required * * *~~amount~~ monthly payment to the charter school before * * *~~January 16~~ the date on which it is due, the State Department of Education shall reduce the local school district's * * *~~January~~ monthly transfer of Mississippi Adequate Education Program funds for the corresponding month by the amount owed to the charter school and shall redirect that amount to the charter school. Any such payments made under this subsection (2) by 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 Sections 37-151-101 and 37-151-103.

(3) For students attending a charter school located in a school district in which the student does not reside, the State Department of Education shall pay to the charter school in which the student is enrolled an amount as follows: the pro rata ad valorem receipts and in-lieu payments per pupil for the support of the local school district in which the student resides under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy), * * *~~however,~~ not including 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 by the school district must 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 must be calculated by dividing the local school district's months one (1) through nine (9) average daily membership into the total amount of ad valorem receipts and in-lieu receipts, as reported to the State Department of Education by the transferor local school district. The payable amount shall be equal to this pro rata amount multiplied by the number of students enrolled in the charter school, based on the charter school's end of first month enrollment for the current school year. The State Department of Education shall reduce the school district's January transfer of Mississippi Adequate Education Program funds by the amount owed to the charter school and shall redirect that amount to the charter school. Any such payments made under this subsection (3) by 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 Sections 37-151-101 and 37-151-103.

(4) (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.

(5) (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. This act shall take effect and be in force from and after July 1, 2020.