Del. Code tit. 14 § 509

Current through 2024 Legislative Session Act Chapter 494

Section 509 - School financing

(a) Charter schools shall be eligible for public funds under procedures established by this section. Notwithstanding that this Code may establish procedures for the funding of a public school choice program and that such program may include charter schools among those schools which students may choose, funding for charter schools shall be as provided in this section.

(b) A charter school shall receive a payment with respect to each of its students equal to:

(1) From the State on or before December 31, the funding equivalent to the Division I staffing, including fractional funding of partial units, excluding funding for a Superintendent, Division II -- All Other Costs and Energy funding, minor capital improvements and school building maintenance funded generated by the annual student unit count conducted on September 30 of each year in accordance with Department of Education regulations. Minor capital improvements shall be funded in the same manner as the Vocational Technical School Districts. In the case of Division III -- Equalization, a charter school shall receive from the State an amount that is determined by weighting the Division III per unit values that would have been generated by its students had they been counted in their district of residence. In addition, a charter school shall receive a pro-rated portion of any other funds appropriated to the Department of Education that are intended to be allocated on a student, employee or school state share. For the purposes of calculating such funding, each charter school student shall be counted in a separately reported unit count of the charter school, and not counted for any purposes in the student's district of residence. For any partially funded unit generated at a charter school, the charter school is free to negotiate the use of such unit with the chartering district, and other public school districts, in order to purchase central custodial, administrative, clerical, direct teaching or educationally related services. If such an agreement is not negotiated, a payment based on the average State cost per unit shall be payable to both the charter school and the district issuing the charter, provided that the sum of both fractions justifies an additional unit. The State shall advance 75% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year, and does not maintain the status of formal review or probation. The status of formal review or probation shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. A final roster shall be due September 30. Notwithstanding the above, a charter school in its first year of operation shall receive 50% of the anticipated funding pursuant to this subsection at the beginning of the fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year. The charter school shall receive an additional 25% of the funding due pursuant to this subsection on October 1 of its first year in operation and shall receive the remaining 25% on February 1 of its first year in operation, provided that the school has completed and posted the required standardized financial report forms and the Department has reviewed those forms and determined that the school's finances will not at that time lead the Department to submit the school for formal review pursuant to § 515 of this title. A determination that the school will be submitted for formal review shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. The percentage of funding to be provided to charter schools on July 1 and October 1 pursuant to the above may be increased in the Secretary's discretion.

(2) From the school districts in which its students reside on or before December 31 of each year, the local cost per student (regular or special education, as the case may be), net of transportation expenses provided for pursuant to § 508 of this title. The school districts in which its students reside shall advance at least 35% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year provided that the charter school has provided the school districts of residence with a preliminary roster of its students on or before May 1 of such year. This advance may be paid from Division III -- Equalization funds if the district's prior fiscal year current expense local funds balance was 20% or less pursuant to § 1507 of this title. A final roster shall be due September 30. In the event of the failure of a school district to make timely payments to a charter school as required in this paragraph, the Department of Education shall have the authority to direct transfer of such funds from future State funding allocations after the school district receives reasonable notice and an opportunity to be heard, as set forth in the rules and regulations established by the Department.

(c) If a parent or legal guardian of a student enrolled outside the district pursuant to this chapter moves during the school year to a district different from the district in which that parent's or legal guardian's child resided at the time of the annual unit count, the child's first district of residence shall continue to be responsible for payments to the charter school for the balance of the school year pursuant to paragraph (b)(2) of this section. The child's new district of residence shall be responsible for all such payments during succeeding years.

(d) The Department of Education shall annually calculate the local cost per student expended by each school district for each type of student for the year immediately preceding based on the formula set forth in subsection (e) of this section, adjusted by a factor necessary to fund the charter school on a basis reasonably equivalent to the current year local cost per student, which factor shall be established in the annual Appropriations Act. The Department shall annually certify each local district's local cost per student expenditure by September 1st of each year.

(e) Local cost per student as used in this section shall be calculated as follows:

Total Local Operating Expenditure in Preceding Fiscal Year

________ Total Division I Units minus Spec School Units

________ Number of Pupils per Unit

Where:

Total Local Operating = Sum of all expenditures

Expenditure in from local sources minus

Preceding FY local expenditures for

tuition minus local expendi-

tures for debt service minus

local expenditures for

Minor Capital Improvement

minus local cafeteria expendi-

tures minus any other local

expenditures deemed by the

Secretary of Education to be

inappropriate for inclusion

for the purpose of this chapter.

Division I Units = Division I Units certified by

For each District the Department of Education

or Special School as of September 30th of each

year

Pupils per Unit = Number of Pupils required for

particular unit of funding as

specified in § 1703 of this

title.

(f) For any student, who because of educational need requires services that are appropriately financed pursuant to the provisions of Chapter 6 of this title, either at the outset or subsequent to a decision to enroll in a charter school, the student's district of residence shall remain financially responsible for such student and the charter school shall receive from such district a payment determined in accordance with the provisions of Chapter 6 of this title.

(g) Any payment received by a charter school pursuant to this section may be used for current operations, minor capital improvements, debt service payments or tuition payments. Charter Schools shall submit a centralized Annual Report to include a staff salary section that details pay, increases, and benefits provided for each Fiscal Year. Reported pay increases must demonstrate how the charter school used all additional appropriated funds from the Legislature. The report shall be submitted to the Chief Clerk of the House of Representatives, the Secretary of the Senate, the Office of the Controller General, and the Office of Management and Budget. The report shall be due no later than December 31^st of each year.

(h) The Department of Education, in consultation with the Office of Management and Budget, shall annually publish a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The Department of Education, in consultation with the Office of Management and Budget, shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building and the name of the owner of the building.

(i) In return for the receipt by a charter school of state funds allocated directly to the school for extra time, professional development, driver education or disciplinary programs, the school shall provide such programs.

(j) If after September 30, a pupil ceases to be enrolled in a charter school and is thereafter enrolled in a reorganized school district for the balance of the fiscal year, nothing contained in this section shall prevent a charter school which has received any funding for the student and the school district in which the student is subsequently enrolled from entering into an agreement providing for the proration of student funding between or among the charter school and the school district in which the student is subsequently enrolled. Funding in any subsequent fiscal year shall be as otherwise provided in this Code.

(k) A charter school shall display on its website all financial reporting documents as specified in § 513 of this title.

(l) Charter schools shall have the same access to conduit bond financing as any other non-profit organization, and no State or local government unit may impose any condition or restriction on a charter school's approval solely because the applicant is a public charter school. It is the further intent that a charter school shall apply for conduit funding to issuers within the State of Delaware unless more favorable terms may be found elsewhere.

(m) The Department of Education shall administer a performance fund for charter schools, to be known as the Charter School Performance Fund. The Department of Education shall establish threshold eligibility requirements for applicants desiring to apply for funding, which shall include but not be limited to a proven track record of success, as measured by a Performance Framework established by the charter school's authorizer or comparable measures as defined by the Department. The Department of Education shall also establish criteria to evaluate applications for funding, which shall include but not be limited to the availability of supplemental funding from non-State sources at a ratio to be determined by the Department. The Department of Education shall prioritize those applications from applicants that have (a) developed high-quality plans for start-up or expansion or (b) serve high-need students, as defined by the Department. The fund shall be subject to appropriation and shall not exceed $5 million annually.

14 Del. C. § 509

Amended by Laws 2023, ch. 295,s 382, eff. 6/30/2024.

Amended by Laws 2013 , ch. 321, s 1, eff. 7/15/2014.

Amended by Laws 2013 , ch. 51, ss.s 3, s 4 eff. 7/1/2013.

70 Del. Laws, c. 179, § 2; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 132, §§ 360, 361; 71 Del. Laws, c. 180, § 26; 71 Del. Laws, c. 354, § 383; 72 Del. Laws, c. 395, § 351; 73 Del. Laws, c. 164, §§ 9, 10; 75 Del. Laws, c. 88, § 16 (2); 75 Del. Laws, c. 89, § 425; 78 Del. Laws, c. 77, § 33 (b); 78 Del. Laws, c. 187, §§ 2, 3.;