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Unformatted text preview: r school is required to have an annual independent financial audit, which are subject to accounting standards approved by the Michigan Department of
Responsibility for Debt: Charter schools can incur debt and use general school aid revenue to acquire buildings or pay debt.
Ownership and Disposition of Assets: Property purchased by a charter school remains the property of the charter school. No specific rules exist for disposing of property for
dissolved charter schools.
Teacher Retirement: Participation is required unless private contractors manage schools. Reflecting the high percentage of private management contracts in Michigan, only 50 of
141 charter schools participate. 152 Appendix Michigan Basic Elementary
FTE $/Member Michigan
Total FTE enrollment
1. Foundation allowance 100
a 3. At-risk @11.5% 100
$ 5,962 b d 4. LEP $ 0 c 0
0 2. State special education aid Middle Cost K-12
FTE $/Member Urban At-Risk
100 $ 5,962
- 11 $ - $ - $ 5,962 $ 155 22 $ 310 30 $ 206 60 $ 411 3 $ 2 6 $ 5 e $ - $ 24 $ 24 f 6. Student transportation
7. Federal funding
Other federal programs $ - $ - $ - $
$ 69 $
69 Total revenue $ 6,031 5. Other state categorical $ 6,659 $ 7,217 ASSUMPTIONS: Basic elementary charter school enrolls only students who are not at risk and have no
special needs. Middle cost K-12 charter school has the same student characteristics as the average Michigan
district. At-risk upper grade charter school, located in Detroit, has twice the concentration of special education
and at-risk students as the Michigan average. Host district foundation level is at least $5,962.
a Maximum foundation allowance (received by 70 percent of charter schools). Lowest possible foundation
allowance (received by two charter schools) in 1998-99 is $5,170.
The state allocates another $350 per member (not handicapped pupils served) to intermediate school
districts (ISDs) to provide special education. ISDs also benefit from a property tax levy. Charter schools are
eligible to use IDS special education services. School districts also expend part of the foundation allowance
for special education.
Each at-risk child generates $657. The entry is total school at-risk funding divided by 100 students.
Michigan appropriated $78 per child for limited-English proficiency.
Includes gifted and talented and vocational categoricals.
For both charter schools and school districts, transportation costs come from the foundation allowance. On
average, Michigan schools spend about $275 of the foundation allowance for transportation. Appendix 153 Venturesome Capital: State Charter School Finance Systems Minnesota
Base Funding: Based on state averages, charter schools receive the same base funding regardless of their location. The funding system resembles the one for school districts
except that charter schools have an option on transportation services. In 1998-99, schools
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- Spring '09