Venturesome Capital- State Charter School Finance Systems

The timing of charter school payments varies across

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Unformatted text preview: hool payments varies across states. States such as Massachusetts and Rhode Island pay quarterly. Pennsylvania pays monthly. Minnesota uses biweekly 61 Venturesome Capital: State Charter School Finance Systems installments. In New Jersey, separate aid payments from the state and school district arrive at charter schools at different times. TABLE 16 Provisions for Speeding Up Payments to Charter Schools Yes No Arizona, Connecticut, Alaska, California, Florida, Milwaukee Delaware, District of 1 Columbia, Illinois, Louisiana,2 Massachusetts,3 Minnesota, New Jersey, North Carolina,4 Rhode Island, South Carolina, Texas 1 In practice. 3 In first year only. 4 Colorado, Georgia, Hawaii, Kansas, New Mexico, Wisconsin New schools can get loans secured by first payment in October. 2 Discretion of District or in Charter Agreement Contingent on a facility being secured. In several states, charter school dollars arrive before the school year begins. In Texas, two of the 13 installments arrive in the first month children attend school. North Carolina schools receive funding beginning July 1. Minnesota and New Jersey provide funds beginning July 15. When a school is in its first year of operation in Minnesota, the payment formula is skewed to deliver more funding in that first payment. Similarly, in Massachusetts, payments are made at the end of each quarter except for the first year of charter school operation, when the first payment arrives 45 days after the beginning of the first quarter. Some states advance considerable funding to charter schools. Connecticut provides 25 percent of funding in July and another 25 percent in September. In Illinois, school districts forward funds to charter schools in four equal quarterly payments beginning no later than July 1. By Oct. 1, charter schools have received half of their base funding. Delaware mandates the payment of 75 percent of the anticipated state per-pupil funding at the beginning of each fiscal year. The District of Columbia advances 75 percent of funding in October, with the remainder paid the next spring. Other states expect charter schools to have good credit or capitalization as a precondition to receiving a charter. In Florida, for example, school districts are not allowed to advance funds to charter schools. Some school districts in Florida require charter schools to secure a line of credit for start-up purposes before a charter is granted. In addition to these timing issues, some states also have provisions to recapture excess pupil funding. In Minnesota, for example, the final payment for a year is given in October of the subsequent year. Payments later in the school year are adjusted to reconcile charter school funding with the school’s actual enrollment or attendance. Similarly, the District of Columbia reconciles enrollment-driven funding changes in its spring payment. 62 Charter School Financial Structure and Accountability Uniform Financial Reporting Uniform financial reporting is important for fiscal accountability and for data-based analysis of charter schools as instruments of policy innovation. Collecting data over time in a consisten...
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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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