Governor Charles D. Baker's Budget Recommendation - House 2 Fiscal Year 2017

Outside Section 42



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Charter School Funding Formula

SECTION 42.   Notwithstanding subsections (ff) and (gg) of section 89 of chapter 71 of the General Laws, or any other general or special law to the contrary, the per-pupil capital needs component of the commonwealth charter school tuition rate for fiscal year 2017 shall be $893. Further, any district whose total charter school tuition amount in fiscal year 2017 is greater than its total charter school tuition amount for fiscal year 2016 shall be reimbursed by the commonwealth for an amount equal to 100 per cent of the increase in fiscal year 2017; provided that, notwithstanding subsection (gg) of said section 89 of said chapter 71, or any other general or special law to the contrary, any district whose total charter school tuition payments exceed 9 percent of net school spending in fiscal year 2017 as permitted in subsection (i)(3) of said section 89 of said chapter 71, shall also be reimbursed in fiscal year 2017 for 50 percent of the increase in its charter school tuition amount in fiscal year 2016, as compared to its charter school tuition amount in fiscal year 2015; provided further that such districts are also eligible for a reimbursement in fiscal year 2017 of up to 25 percent of the increase in its charter school tuition amount in fiscal year 2015, as compared to its charter school tuition amount in fiscal year 2014. If the amount appropriated in item 7061-9010 is insufficient to fully fund all reimbursements and payments specified herein and in such item, the department of elementary and secondary education shall fund the reimbursements and payments in the following order: (1) reimbursement of the per-pupil capital needs component; (2) the tuition payments for which the commonwealth is responsible under subsection (i)(2) and the fifth paragraph of subsection (ff) of said section 89 of said chapter 71; (3) the 100 per cent year-one reimbursement; (4) the 50 per cent year-two reimbursement to districts with charter payments exceeding 9 percent of net school spending as described above; (5) the 25 percent year-three reimbursement to districts with charter payments exceeding 9 percent of net school spending as described above; and (6) all other reimbursements authorized under subsections (ff) and (gg) of said section 89 of said chapter 71. Any district qualifying for the 50 per cent year-two reimbursement as described above shall submit to the commissioner of elementary and secondary education, by October 1, 2016, a plan for using its reimbursements to ensure that the district maintains and improves the level and quality of educational services it provides to its students, notwithstanding reductions in enrollment and increases in charter school tuition, and shall also submit a year-end report to the commissioner by September 1, 2017 on the implementation of said plan.
 
 

Summary:
This section changes the formula for providing reimbursements in fiscal year 2017 to school districts experiencing increases in charter school tuition amounts as follows: (i) 100% of the increase in tuition amounts from fiscal year 2016 to fiscal year 2017; (ii) for any district with charter school payments exceeding 9% of net school spending in fiscal year 2017, an additional 50% of any increase in tuition amounts from fiscal year 2015 to fiscal year 2016; and (iii) for any such district, an additional 25% of any increase in tuition amounts from fiscal year 2014 to fiscal year 2015.



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