NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Education (SDE)

SUMMARY

Synopsis of Bill

House Bill 914 amends Sections of the Public School Code, repeals the 1999 Charter Schools Act and the 1999 Charter District Act and enacts a new Charter School Act. This bill establishes three chartering entities with oversight responsibilities for charter schools: the local school boards, the State Board of Education and a State Chartering Board.

Significant Issues

House Bill 914 addresses the following:

Establishes three chartering authorities; local school board, state board and state chartering board with oversight responsibilities.

Establishes a separate state charter school board.

Changes the application process for charter schools by requiring less specificity in the application.

The bill removes the appeal process for charter schools, but allows charter schools to reapply if denied.

Removes the cap on the number of charter school allowed, and allows the state board and state chartering board to approve up to 25 charter schools per year.

Charter school shall be exempt from all provisions of Public School Code pertaining to class size, staffing patterns, length of school day, subject areas, graduation requirements, and essential competencies.

Upon termination of a charter all assets of the charter shall revert to the chartering entity;

None of the chartering entities are liable for debts or financial obligations of any charter school.

The local school board is not liable for acts or omissions of the charter school with regard to the application, the operation or the educational program.

All charter schools have to follow the current enrollment procedures.

A chartering entity shall have neither legal authority nor responsibility for a charter school that was granted charter school status by another chartering entity.

Charter status is granted for fifteen years with review occurring every five years.

The provisions of the School Personnel Act apply to the employees of a charter school.

The department of education shall annually publish a list of vacant and unused buildings owned by the state or local school district suitable for the operation of a charter school;

The charter school shall receive 98% of the school generated program cost.

Charter schools approved under the 1999 Charter Schools Act can continue to function under their current charter or request a charter under the 2110 Charter School Act for the unexpired term.

A school district whose membership decreases as a result of a charter school opening within the district is eligible for additional program units;

The bill repeals the Charter District Act.

FISCAL IMPLICATIONS

According to SDE, removing the CAP on charter schools would add additional fiscal and programmatic responsibilities to the State Department and the State Board of Education as a chartering entity requiring additional FTE's to provide adequate oversight.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Relates to and conflicts with HB-667, Hb 753, SB 127, SB 433, HB 706, SB 373, and SB 720.

OTHER SUBSTANTIVE ISSUES

The State Department of Education has provided a list of issues that may conflict with existing policy or programs. ( Attached)

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