Venturesome Capital- State Charter School Finance Systems

Charter schools serving a predominantly low income

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Unformatted text preview: state funds of approximately $800 per student is allocated to new charter schools. In addition, the state sends $800 per additional student to established charter schools that have increased their enrollment. The goal is to limit the incentive for schools to pack in students in the first year to maximize start-up funding, thereby allowing them to grow more naturally. Timing of Payments: The district pays in 12 equal monthly payments. For start-up funds, 70 percent of the payments are made upon completion of forms; and the remainder upon receipt of the Oct.1 enrollment report. Capital Outlay and Facilities Financing: None. Uniform Financial Reporting: Charter schools provide an annual financial report and complete a budget form. School districts face the same reporting requirements. Auditing Practice: Charter schools must have an annual audit completed by a licensed or certified public accountant in conformance with generally accepted accounting standards. The Pennsylvania auditor general may also conduct audits. The charter application must Appendix 169 Venturesome Capital: State Charter School Finance Systems contain provisions made for auditing the school under section 437 of the Pennsylvania code. Responsibility for Debt: Charter schools are responsible for their own debt. Ownership and Disposition of Assets: Charter schools own their assets. If a charter dissolves, the assets are first used to satisfy creditors. Any remaining assets revert back to the school district. Teacher Retirement: All charter employees must be enrolled in the state retirement system unless the sponsoring organization has an alternative retirement program. Participation in the state system is very high with 28 of 31 charter schools participating in 1998-99. Total FTE enrollment 1. Base funding Basic Elementary Charter School FTE $/Member 100 Middle Cost K-12 Charter School FTE $/Member 100 Urban At-Risk Upper Grade FTE $/Member 100 $ 5,939 Pennsylvania $ 5,939 $ 5,488 a 2. Special education c b 0 $ - $ 966 $ 232 $ 232 $ 232 50 $ $ $ 175 46 51 $ $ $ 350 92 51 3. Transportation 4. Federal funding Title I Special education Other federal programs $ Total revenue $ 6,221 12 $ 7409 24 $ 1,076 $ 7,289 ASSUMPTIONS: Basic elementary charter school has no special needs students. Middle cost K-12 charter school has the same student population as the average Pennsylvania school district. At-risk upper grade charter school has twice the concentration of low income and special education students as the Pennsylvania average and is located in Philadelphia. a Revenue based on average operating expenditures after subtracting special education costs. Basic and middle cost school expenditures use estimates for William Penn school district. At-risk school is based on Philadelphia’s spending. About 80 percent of school districts spend between $5,310 (Penncrest) and $7,682 (Gateway). b Average special education costs in middle cost school are $1,743, and $4,485 at the upper grade school. c Estimate of the value of di...
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