Venturesome Capital- State Charter School Finance Systems

School districts must spend the money on capital

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Unformatted text preview: e small school districts, charter schools get better funding than the larger surrounding school districts in which they are located. Additionally, charter schools are granted flexibility with facilities funding and may spend the money on any legitimate purpose. School districts must spend the money on capital outlay and construction. Charter School Stimulus Fund: Under the original state legislation, Arizona created a “stimulus fund” earmarked for start-up and facility costs. The upper limit for state start-up grants was up to $100,000, but the average grant size was $21,000. Arizona terminated the state stimulus funds in the 1997-98 school year in response to a court case brought by the Arizona Department of Education against former Bureau of Indian Affairs (BIA) schools Appendix 103 Venturesome Capital: State Charter School Finance Systems that had converted to charter schools. The state argued that former BIA schools should not continue to receive both state stimulus and BIA-federal funds. Thus, it argued Arizona should be exempt from its responsibility to fund BIA’s charter schools through the state stimulus fund, or the state should be able to deduct the amount of state start-up funding from the federal start-up grants. The state won the case and Arizona has decided not to apply for federal start-up monies. Instead, state-authorized charter schools may apply directly for federal start-up funds. Timing of Payments: For state-authorized charter schools, new charter schools are paid one- third of the total apportionment on July 1 and then one-twelfth of the total amount in eight monthly payments from Oct. 15 through June 15. In subsequent years, charter schools are paid in 12 monthly installments. Uniform Financial Reporting: All state-authorized charter schools take part in the state’s uniform financial reporting system. Charter schools may seek exemption from this requirement. District chartered schools are exempted from uniform financial reporting as individual schools. Auditing Practice: Independent financial audits are required of state-authorized charter schools. District charter schools are included in the district’s budget where the charter school is located and audited as a part of that district. Ownership and Disposition of Assets: All property accumulated by charter schools, including property purchased with public schools, remains property of the charter school. Teacher Retirement: A charter school is eligible to participate in the Arizona state retirement system, but most choose not to participate. 104 Appendix Arizona Basic Elementary Middle Cost K-12 Charter School Charter School Weight FTE WFTE Weight FTE WFTE Arizona Grade/school size weights Basic K-8 Basic 9-12 Urban At-Risk Upper Grade WFTE Weight FTE a 1.28 500.0 1.40 0.0 639.00 0.00 1.39 132.0 1.56 68.0 183.22 106.01 3.34 0.04 0.06 2.00 5.02 6.03 1.74 5.64 0.00 2.63 2.81 4.83 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 500.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0...
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This note was uploaded on 02/11/2013 for the course ECON 101 taught by Professor Smith during the Spring '09 term at Harvard.

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