Citations Affected:
IC 20-5.5-7-3
;
IC 21-3-1.7.
Synopsis: Charter school funding. Provides that the department of
education (department) shall distribute tuition support and other state
funding to a charter school at the same time and in the same manner as
it distributes funding to school corporations. Provides that the
governing body of a school corporation shall distribute to a charter
school a proportionate share of local support upon receipt by the school
corporation of the semiannual distributions of property tax revenue.
Provides that the department shall distribute tuition support and other
state funding for the first six months of operation of a charter school
that increases in enrollment by 10% or that adds a grade level to its
academic program. Provides that a school corporation whose students
attend a charter school is eligible for a reimbursement grant for the first
calendar year after the year in which the charter school begins its initial
operation. Includes the reimbursement grant amount in the tuition
support cap.
Effective: Upon passage; January 1, 2002 (retroactive).
January 23, 2003, read first time and referred to Committee on Education and Career
Development.
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
SECTION 1.
IC 20-5.5-7-3
, AS ADDED BY P.L.100-2001,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) As used in this section, "enrollment"
means the number of students enrolled in a charter school and
reported to the department under subsection (c).
(b) As used in this section, "proportionate share" means the
amount determined under STEP THREE of the following formula:
STEP ONE: Determine the number of students enrolled in a
charter school who have legal settlement in a particular
school corporation.
STEP TWO: Determine the total number of students who are
enrolled in the school corporation, including students enrolled
in any charter school.
STEP THREE: Divide the STEP ONE amount by the STEP
TWO amount.
(c) Upon request of the department or not later than the date
established by the department for determining average daily
membership under
IC 21-3-1.6-1.1
(d) and after May 31, the organizer
shall submit to the department the following information on a form
prescribed by the department:
(1) The number of students enrolled in the charter school.
(2) The name and address of each student. and
(3) The name of the school corporation in which the student
resides.
(b) After verifying the accuracy of the information reported under
subsection (a),
(4) The name of the school corporation, if any, that the
student attended during the immediately preceding school
year.
(5) The grade level in which the student will enroll in the
charter school.
The department shall verify the accuracy of the information
reported.
(d) This subsection applies to the second six (6) months of the
calendar year in which a charter school begins its initial operation.
Beginning not more than sixty (60) days after the department
receives the information reported under subsection (c), the
department shall distribute a proportionate share of the following to
the organizer:
(1) Tuition support and other state funding for any purpose for
students in the charter school.
(2) A proportionate share of State and federal funds received for
students with disabilities or staff services for students with
disabilities for the students with disabilities enrolled in the charter
school.
(3) A proportionate share of Funds received under federal or state
categorical aid programs for students who are eligible for the
federal or state aid enrolled in the charter school.
(c) The department shall make a distribution under this subsection
at the same time and in the same manner as the department makes
a distribution to the school corporation in which a student enrolled
in the charter school resides. A distribution under this subsection
is in addition to a distribution to a school corporation under
IC 21-3-1.7
for a student who has legal settlement in the school
corporation and is enrolled in the charter school.
(e) Not later than the date established by the department for
determining average daily membership under
IC 21-3-1.6-1.1
(d) and
after May 31, the organizer shall submit to each governing body a
report of the total number and names of students from the governing
body's school corporation enrolled in the charter school. Upon
verifying on a form prescribed by the department the information
reported under subsection (c). The governing body shall verify the
accuracy of the information reported.
(f) This subsection applies beginning with the first property tax
distribution described in
IC 6-1.1-27-1
to a governing body after
the governing body receives the information reported under
subsection (e). Not more than ten (10) days after the date on which
the governing body receives a property tax distribution described
in
IC 6-1.1-27-1
, the governing body shall distribute to the organizer
a proportionate share of local support the following revenues for the
students enrolled in the charter school: in an amount determined under
STEP THREE of the following formula:
STEP ONE: Add the
(1) Revenues obtained by the school corporation's:
(A) general fund property tax levy; and
(B) general fund auto excise and financial institutions tax.
STEP TWO: Divide the sum determined under STEP ONE by the
total number of students enrolled in the school corporation.
STEP THREE: Multiply the quotient determined under STEP
TWO by the number of students enrolled in the charter school.
(d) The distribution under subsection (b) shall be made on the same
schedule as the schedule on which the school corporation receives the
funds.
(B) excise tax revenue (as defined in
IC 21-3-1.7-2
).
(2) The school corporation's certified distribution of county
adjusted gross income tax revenue under
IC 6-3.5-1.1
that is
to be used as property tax replacement credits.
(g) This subsection applies after December 31 of the calendar
year in which a charter school begins its initial operation. Based on
the information reported under subsection (c), and except as
provided in subsection (i), the department shall distribute to the
organizer a proportionate share of the following:
(1) Tuition support and other state funding for any purpose
for all students enrolled in the charter school.
(2) State and federal funds received for students with
disabilities or for staff services for students with disabilities
for students with disabilities enrolled in the charter school.
(3) Funds received under federal or state categorical aid
programs for students who are eligible for the federal or state
aid and enrolled in the charter school.
The department shall make a distribution under this subsection at
the same time and in the same manner as the department makes a
distribution to a school corporation in which students enrolled in
the charter school reside. A distribution under this subsection is in
place of a distribution to a school corporation under
IC 21-3-1.7
for a student who has legal settlement in the school corporation
and is enrolled in the charter school.
(h) Subsection (i) does not apply to the second six (6) months of
the calendar year in which a charter school begins its initial
operation. However, subsection (i) applies during the second six (6)
months of a calendar year in which:
(1) a charter school's most recent enrollment divided by the
charter school's enrollment for the immediately preceding
school year is at least one and one-tenth (1.1); or
(2) a charter school adds one (1) or more grade levels to the
charter school's academic program.
(i) Beginning not more than sixty (60) days after the department
receives the information reported under subsection (c), the
department shall distribute to the organizer:
(1) a proportionate share of:
(A) tuition support and other state funding for any purpose
for all students enrolled in the charter school;
(B) state and federal funds received for students with
disabilities or for staff services for students with
disabilities for students with disabilities enrolled in the
charter school; and
(C) funds received under federal or state categorical aid
programs for students who are eligible for the federal or
state aid and enrolled in the charter school; multiplied by
(2) the result of the last of the following STEPS:
STEP ONE: Determine the result of:
(A) the charter school's most recent enrollment; minus
(B) the charter school's enrollment for the immediately
preceding school year.
STEP TWO: Determine the quotient of:
(A) the STEP ONE amount; divided by
(B) the charter school's enrollment for the immediately
preceding school year.
STEP THREE: Determine the sum of:
(A) one (1); plus
(B) the STEP TWO result.
The department shall make a distribution under this subsection at
the same time and in the same manner as the department makes a
distribution to a school corporation in which students enrolled in
the charter school reside.
SECTION 2.
IC 21-3-1.7-9
, AS AMENDED BY P.L.178-2002,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 9. (a) Subject to the
amount appropriated by the general assembly for tuition support, the
amount that a school corporation is entitled to receive in tuition support
for a year is the amount determined in section 8 of this chapter.
(b) If the total amount to be distributed as tuition support under this
chapter, for enrollment adjustment grants under section 9.5 of this
chapter, for at-risk programs under section 9.7 of this chapter, for
academic honors diploma awards under section 9.8 of this chapter, for
reimbursement grants under section 9.9 of this chapter, for
primetime distributions under
IC 21-1-30
, for special education grants
under
IC 21-3-2.1
, and for vocational education grants under
IC 21-3-12
for a particular year, exceeds:
(1) three billion three hundred sixty-three million four hundred
thousand dollars ($3,363,400,000) in 2001;
(2) three billion four hundred thirty-seven million one hundred
thousand dollars ($3,437,100,000) in 2002; and
(3) three billion five hundred thirty-six million five hundred
thousand dollars ($3,536,500,000) in 2003;
the amount to be distributed for tuition support under this chapter to
each school corporation during each of the last six (6) months of the
year shall be reduced by the same dollar amount per ADM (as adjusted
by
IC 21-3-1.6-1.1
) so that the total reductions equal the amount of the
excess.
SECTION 3.
IC 21-3-1.7-9.5
, AS AMENDED BY P.L.93-2000,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 9.5. (a) In addition to the
distribution under sections 8, 9.7, and 9.8, and 9.9 of this chapter, a
school corporation is eligible for an enrollment adjustment grant if the
school corporation's:
(1) current ADM minus the school corporation's previous year
ADM is at least two hundred fifty (250); or
(2) current ADM divided by the school corporation's previous
year ADM is at least one and five-hundredths (1.05).
(b) The amount of the enrollment adjustment grant is the amount
determined in STEP THREE of the following formula:
STEP ONE: Determine the school corporation's target revenue per
ADM divided by three (3).
STEP TWO: Determine the result of the school corporation's
current ADM minus the school corporation's previous year ADM.
STEP THREE: Multiply the STEP ONE result by the STEP TWO
result.
(c) Notwithstanding any other provision, for purposes of computing
the amount of a grant under this section, "ADM" does not include an
eligible pupil who:
(1) is described in
IC 21-3-1.6-1.2
(a); or
(2) attends a charter school and is counted in the charter
school's enrollment (as defined in
IC 20-5.5-7-3
(a)) for
purposes of calculating a distribution under
IC 20-5.5-7-3
(i).
SECTION 4.
IC 21-3-1.7-9.7
, AS AMENDED BY P.L.291-2001,
SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 9.7. In addition to the
distributions under sections 8, 9.5, and 9.8, and 9.9 of this chapter for
1997 and thereafter, a school corporation is eligible for an amount for
at-risk programs in the amount determined in STEP SIX of the
following formula:
STEP ONE: Determine the greater of the following:
(A) The result determined under item (ii) of the following
formula:
(i) Determine the result of the school corporation's at-risk
index minus two-tenths (0.2).
(ii) Multiply the item (i) result by seven-hundredths (0.07).
(B) Zero (0).
STEP TWO: Determine the greater of the following:
(A) The result determined under item (ii) of the following
formula:
(i) Determine the result of the school corporation's at-risk
index minus fifteen-hundredths (0.15).
(ii) Multiply the item (i) result by eighteen-hundredths
(0.18).
(B) Zero (0).
STEP THREE: Determine the result under clause (B) of the
following formula:
(A) Determine the lesser of:
(i) the school corporation's at-risk index; or
(ii) fifteen-hundredths (0.15).
(B) Multiply the clause (A) result by one hundredth (0.01).
STEP FOUR: Add the STEP ONE result, the STEP TWO result,
and the STEP THREE result.
STEP FIVE: Multiply the STEP FOUR sum by the school
corporation's current ADM. Round the result to the nearest
one-hundredth (0.01).
STEP SIX: Multiply the STEP FIVE product by three thousand
five hundred ninety-two dollars ($3,592) in 2002 and three
thousand six hundred sixty-four dollars ($3,664) in 2003.
SECTION 5.
IC 21-3-1.7-9.8
, AS AMENDED BY P.L.291-2001,
SECTION 98, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 9.8. (a) In addition to the
distributions under sections 8, 9.5, and 9.7, and 9.9 of this chapter, a
school corporation is eligible for an honors diploma award in the
amount determined under STEP TWO of the following formula:
STEP ONE: Determine the number of the school corporation's
eligible pupils who successfully completed an academic honors
diploma program in the school year ending in the previous
calendar year.
STEP TWO: Multiply the STEP ONE amount by:
(1) nine hundred forty-four dollars ($944) in 2002; and
(2) nine hundred sixty-three dollars ($963) in 2003.
(b) Each year the governing body of a school corporation may use
the money that the school corporation receives for an honors diploma
award under this section to give nine hundred forty-four dollars ($944)
in 2002 and nine hundred sixty-three dollars ($963) in 2003 to each
eligible pupil in the school corporation who successfully completes an
academic honors diploma program in the school year ending in the
previous calendar year.
SECTION 6.
IC 21-3-1.7-9.9
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 9.9. (a) In
addition to the distributions under sections 8, 9.5, 9.7, and 9.8 of
this chapter, a school corporation whose students attend a charter
school is eligible for a reimbursement grant in the calendar year
immediately following the calendar year in which the charter
school begins its initial operation.
(b) Not earlier than January 1 of the calendar year immediately
following the calendar year in which the charter school begins its
initial operation, and not more than sixty (60) days after the
governing body makes a distribution under
IC 20-5.5-7-3
(f), the
department shall distribute in three (3) equal installments to the
school corporation the sum of the amounts that are paid by the
school corporation under
IC 20-5.5-7-3
(f) during the second six (6)
months of the calendar year in which the charter school begins its
initial operation to each charter school attended by the school
corporation's students. The department shall distribute the third
installment under this subsection not later than June 30 of the
calendar year immediately following the calendar year in which
the charter school begins its initial operation.
(c) This subsection applies to a school corporation for which the
amount determined under
IC 21-3-1.7-6.7
(b) STEP FIVE equals
the amount determined under
IC 21-3-1.7-6.7
(b) STEP FIVE (B).
In addition to the amount described in subsection (b), and at the
same time and in the same manner the department distributes
tuition support, the department shall distribute in equal
installments to the school corporation the amount determined in
STEP THREE of the following formula:
STEP ONE: Determine the amount of:
(A) tuition support (as defined in
IC 21-3-1.7-4
);
(B) property tax revenue;
(C) county adjusted gross income tax revenue in the form
of property tax replacement credits; and
(D) excise tax revenue (as defined in
IC 21-3-1.7-2
);
to which each charter school attended by the school
corporation's students is entitled under
IC 20-5.5-7-3
(d) and
IC 20-5.5-7-3
(f) for the calendar year immediately following
the calendar year in which the charter school begins its initial
operations.
STEP TWO: Determine the sum of the amounts determined
under STEP ONE.
STEP THREE: Divide the STEP TWO amount by two (2).
The department shall distribute the final installment under this
subsection not later than December 31 of the calendar year
immediately following the calendar year in which the charter
school begins its initial operation.
SECTION 7. An emergency is declared for this act.