DELAINE
EASTIN
State
Superintendent of Public Instruction
State
Superintendent of Public Instruction
Date: August 9, 2002
To: Charter School Administrators
County and District Superintendents
County and District Chief Business Officials
From: Janet Sterling, Director
School Fiscal Services
Division
Subject: Required Funding Determinations for
Nonclassroom-based Charter Schools (Implementation of Senate Bill 740), Fiscal
Year 2002-03
Enclosed with this letter are
forms and instructions for charter schools that offer nonclassroom-based
instruction, to meet the requirements of Senate Bill (SB) 740 (Chapter 892,
Statutes of 2001).
Senate Bill 740 amends Education Code
Section 47612.5 and adds Education Code Section 47634.2 to make
significant changes to the funding process, and to enact possible funding
reductions, for charter schools that offer nonclassroom-based instruction. Nonclassroom-based instruction occurs when a
school does not require attendance of its pupils be at the school site under
the direct supervision and control of a qualified teaching employee of the
school for at least 80 percent of the required instructional time.
Pursuant to this law, a
charter school is prohibited from receiving any funding for nonclassroom-based
instruction, unless the State Board of Education (SBE) determines its
eligibility for funding. The law
also provides the SBE with the authority to adjust the apportionment of charter
schools for average daily attendance (ADA) generated through nonclassroom-based
instruction in the current and subsequent fiscal years. For the 2002-03 school year, the law states
that funding reductions shall be 20 percent of qualifying charter schools’
nonclassroom-based ADA, unless the SBE determines that a greater or lesser
percentage is appropriate for a particular charter school. Beginning in 2002-03, the SBE may also make
multi-year funding determinations up to five years in length, such that many
charter schools may not have to participate in the funding determination
process every fiscal year. The SBE, upon
the recommendation of the Advisory Commission on Charter Schools, will
determine whether a charter school receives a multi-year funding determination
and for how long that determination is in effect.
The SBE adopted permanent
regulations at its June 2002 meeting that implement these provisions of SB 740
and delineate which charter schools are required to participate in the funding
determination process. The regulations
define classroom-based instruction as occurring when all of the
following four conditions are met:
1)
The
charter school’s pupils are engaged in education activities required of those
pupils, and the pupils are under the immediate supervision and control of an
employee of the charter school who is authorized to provide instruction to the
pupils within the meaning of Education Code Section 47605(l);
2)
At
least 80 percent of the instructional time offered at the charter school is at
the school site;
3)
The
charter’s school site is a facility that is used principally for classroom
instruction; and
4)
The
charter school requires its pupils to be in attendance at the school site at
least 80 percent of the minimum instructional time required pursuant to Education
Code Section 47612.5(a)(1).
Furthermore the regulations
define “at the school site” as satisfied if the facility in which the pupils
receive instruction meets any of the following conditions:
1)
The
facility is owned, rented, or leased by the charter school principally for
classroom instruction;
2)
The
facility is provided to the charter school by a school district pursuant to Education
Code Section 47614 principally for classroom instruction; or
3)
The
facility is provided to the charter school free-of-charge principally for
classroom instruction pursuant to a written agreement.
However, in no instance may
a school site be an individual’s personal residence.
Any charter school that does
not meet all of the requirements for classroom-based instruction and at least
one of the school site conditions is considered to offer nonclassroom-based
instruction and must submit a determination of funding request form. If a charter school offers nonclassroom-based instruction, as
defined, and does not submit this form, the school will automatically lose some
or all of its state funding for its nonclassroom-based ADA.
Attached is the “SB 740 Funding Determination Form” and instructions. Please read the instructions carefully, as they are intended to ensure that schools appropriately report all of their instruction and instruction-related expenditures. This form must be completed and returned to the CDE no later than February 1, 2003. However, the form may be submitted at any time prior to next February, and we strongly encourage schools to submit it as soon as possible to secure a funding determination. The SBE will be making funding determinations beginning at its October 2002 meeting. The funding determination form should be mailed to:
If mailed before September 20, 2002: If
mailed after September 20, 2002:
California Department of Education California Department of Education
School Fiscal Services Division School Fiscal Services Division
Sacramento, CA
95814 Sacramento,
CA 95814
Forms may also be faxed to
(916) 322-1465, with the original form to follow in the mail to the above
address.
Each charter school is
strongly encouraged to review these regulations and the new law to determine if
its provisions apply to the charter school. A copy of the regulations may be found on our web site at www.cde.ca.gov/charter/regs/. A complete copy of SB 740 may be found at www.assembly.ca.gov/acs/acsframeset2text.htm.
For assistance in providing
the financial data on the form, charter schools should contact their chartering
agencies, and refer to the California School Accounting Manual on our web site
at www.cde.ca.gov/fiscal/sacs/csam.
For questions regarding SB 740, the emergency regulations, or whether
your charter school should submit the attached funding determination form,
please contact the Charter Schools Office at (916) 322-6029.