South Carolina Public Charter School District

1. South Carolina Public Charter School District Pre-Application Workshop part iv Finance, employees, Transportation, insurance and education management contracts

2. Employees • The application must provide an explanation of the relationship that will exist between the charter school and its employees. This must include evidence that the terms and conditions of employment are addressed with affected employees and their recognized representative, if any. In addition, proposed employment policies should be included. If the charter will contract with an Education Management Organization (EMO) the relationships between the school and the employees must be clearly stated in the application. • This statement is asking will the employees be on contract, at-will or an employee of a private third party company (EMO).

3. Contract vs. at-will VS. an employee or a private third party company • Traditional Districts must follow S.C. Code Ann. § 59-25-410 which states “On or before April fifteenth of each year, the boards of trustees of the several school districts shall decide and notify, in writing, the teachers, as defined in Section 59-1-130, in their employ concerning their employment for the ensuing year.” Notices of intent not to renew an employment contract shall be given in writing no later than April fifteenth of each year. • Charter Schools are not required to follow S.C. Code Ann. § 59-25-410. The school can hire its employees as at-will which means an employee can be fired for reason or no reason. Traditional schools do not have this option.

4. Contract vs. at-will VS. an employee or a private third party company cont… • Under the 2012 Charter School Law a school may: hire or contract for, in its discretion, administrative staff to oversee the daily operation of the school. • A charter School must : employ and contract with teachers and nonteaching employees, contract for services, and develop pay scales, performance criteria, and discharge policies for its employees. • What this means is that if the school has a contract with an EMO then the Head of School, administrative staff and teachers can be employees of the EMO and not the school. The school would contract with the EMO for these services. A word of caution here; if the employees are not employed by the school they would be private employees and would not be eligible for state benefits, not state retirement and the school would not have covered under the tort liability cap.

5. Certified Vs. Noncertified • A Charter School may • in its discretion hire noncertified teachers in a ratio of up to 25% of its entire teacher staff; however, a teacher teaching in the core academic areas as defined by the federal No Child Left Behind law must be certified in those areas or possess a baccalaureate or graduate degree in the subject he or she is hired to teach. • Teachers of English/language arts, mathematics, science, music, art or social studies must be certified in that area or must hold a baccalaureate or graduate degree in that subject and meet the Highly Qualified requirements of ESEA. A noncertified teacher must be appropriately qualified for the subject matter taught, must have completed at least one year of study at an accredited college or university, and must meet the qualifications outlined in S.C. Code Ann. § 59-25-115. Elementary certified teachers may teach in any academic area and in any grades allowable by the status of their certification.

6. Highly Qualified under NCLB • When used with respect to any teacher teaching in a public charter school, the term means that the teacher meets the requirements set forth in the State’s public charter school law. • http://www.sccharter.org/Download.asp?L=2&LMID=536054&PN=DocumentUploads&DivisionID=12565&DepartmentID=12945&SubDepartmentID=&SubP=&Act=Download&T=1&I=319297

7. Teacher evaluation system • Charter schools must adopt an evaluation program for teachers and principals that meets the requirements of the SCDE’s ESEA Waiver. • Currently the State supports ADEPT/SAFE-T and TAP • If the school wants to create its own or follow another established process it must get SCDE’s approval first.

8. Teacher Employment and Dismissal Procedures • 1) If the school will adopt the procedures for the employment and dismissal of teachers outlined in S.C. Code Ann. § 59-25-410 et seq. (2004), include a letter of agreement from the sponsor. • 2) If the school does not adopt the procedures outlined in S.C. Code Ann. § 59-25-410 et seq. (2004), explain the school’s employment and termination procedures that will provide for notice and a right to a hearing before the governing board. • A school CANNOT do both 1 and 2. Option 1 means the school is entering into contracts with its employees. Options 2 means the employees are at-will.

9. Grievance under Charter School Law • The charter school application must give a description of a reasonable grievance and termination procedure, including notice and a hearing before the governing body of the charter school. The application must state whether or not the provisions of Article 5, Chapter 25, Title 59 (contracts) apply to the employment and dismissal of teachers at the charter school. • DO NOT use a traditional district’s policies in the appendices if the employees of the school will be at-will.

10. Insurance • This section is fairly simple. For a list of companies currently working with charter school contact the Alliance. Although the committee is free to contact an entity of their choice. • Insurance quotes must also shows the coverage caps.

11. transportation • The Charter School Law clearly says that charter schools are exempt from the requirement of providing transportation. If the school will not be providing transportation, the only statement required in the application is “The (name of school) will not provide transportation. If at some time later you will provide transportation an amendment must be made to the charter. • If the school plans to provide transportation then comply with state regulations for driver training and safety for school buses. A description of the plan to do this is required in the charter application. • The school may contract with the local school district for transportation. A copy of the contract is required in the appendices.

12. facilities • A school is not required to have a facility identified at the time of the application submittal. • If the charter committee is 100% sure of the location then the questions in the application should be completed. • If the charter committee is not then simply describe the facility needs.

13. Contracting with emo/cmo’s • Charter committees who are contracting with Educational Management Organizations or Charter Management Organizations should make surethe EMO/CMO • is licensed to do business in SC • has successfully managed other schools and has had academic success • A very clear description of the relationship between the school and the EMO/CMO including the financial obligation should be included in the application.

14. BUDGET Tasha Robinson Director of Finance

15. Define Budget An estimation of the revenue and expenditures over a specified future period of time.

16. Importance of a Budget A budget aids planning, coordination and decision making of activities in an organization.

17. Items in a Budget • Projected enrollment • Projected revenue • Projected expenditures • Realistic assumptions and the basis for these assumptions • Cash flow projections

18. Projected Enrollment and Revenue • When projecting enrollment, some items that you may want to consider are: • School location • School capacity • At a minimum, a new charter school will receive funding in the following categories: • Education Finance Act (FY14 $2,101) • South Carolina Public Charter School Act (FY14 $3,250 – brick and mortar, $1,700 – virtual) • Fringe Benefits (45-day) • Include documentation for items such as grant money or donations received or likely to receive

19. Weightings

20. Weightings (cont.) (1) Includes Profoundly Mentally Handicapped (PMD) (2) Includes Developmentally Delayed (DD) and Other Health Impaired (OHI) (3) Includes Traumatic Brain Injury (TBI)

21. Projected Expenditures • Some items that need to be considered are: • School/student needs (such as curriculum, programs, technology, special education, supplies, insurance, etc.) • Personnel needs (such as professional development, staffing, salaries, benefits, supplies, etc.) • Board needs (such as training, legal fees, supplies, etc.) • Operational and maintenance needs (such as repairs & maintenance, facilities, custodial, phones, utilities, transportation, supplies, etc.) • Include Memorandums of Agreement for Negotiated Services

22. Realistic Assumptions and the Basis for these Assumptions EXPLAIN YOUR PROJECTIONS

23. Cash Flow Projections Estimation of the timing and amounts of cash inflows and outflows over a specific period of time. Inflows = revenue Outflows = expenditures

24. Manuals/Handbooks • Financial Accounting Handbook http://ed.sc.gov/agency/as/ManualsHandbooksandGuidelines.cfm • Funding Manual http://ed.sc.gov/agency/cfo/finance/Financial-Services/ManualsandGuidelines.cfm • Links are also available on the District’s website www.sccharter.org– Departments – Finance - Links