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Commonwealth Charter School F U N D I N G

Commonwealth Charter School F U N D I N G . September 26, 2013. This session will focus exclusively on Commonwealth Charter School Funding. Finance: The school maintains a sound and stable financial condition and operates in a financially sound and publicly accountable manner.

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Commonwealth Charter School F U N D I N G

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  1. CommonwealthCharterSchoolF U N D I N G September 26, 2013

  2. This session will focus exclusively on Commonwealth Charter School Funding

  3. Finance: The school maintains a sound and stable financial condition and operates in a financially sound and publicly accountable manner. Massachusetts Department of Elementary and Secondary Education

  4. How are they funded? The majority of Commonwealth charter schools funding comes from district tuition. 1

  5. How is district tuition derived? FTE x TUITION

  6. What is FTE? Full Time Equivalency; a computational unit used to assign appropriate portions of a student’s schedule.

  7. FTE is the number of days a pupil is enrolled divided by the total number of days of the educational program. School program is 180 days, pupil enrolled 180 days, FTE = 1 180 ÷ 180 = 1.0 School program is 180 days, pupil enrolled 90 days, FTE = .5 90 ÷ 180 = .5

  8. How is tuition determined? The goal of the Commonwealth charter school tuition rate formula is to establish a tuition that is comparable to what would have been spent on a student had he or she stayed in their home district.

  9. There are three components to the charter school tuition rate formula: • a foundation base rate, based on the Chapter 70 foundation budget construct of per pupil costs; • an above foundation spending rate, derived from projected spending reported annually in each school district’s End of Year Pupil and Financial Report; and • a facilities rate, an amount set annually in the state budget.

  10. Foundation Base Rate:

  11. Goal of the Foundation Budget: to develop a “model school budget” which quantifies “for the average school district what constitutes an adequate—but not excessive— level of funding.” 2

  12. What is a model school budget? How much is adequate funding?

  13. Foundation Budget Construct The foundation budget construct has four core assumptions: • there are universal costs inherent to all educational systems; • different pupils effect different costs; • costs may vary by geographic region; and • inflation may change these costs from year to year.

  14. Universal costs, AKA Functional expenditures represent different, proportionate costs3:

  15. Above Foundation Spending Rate Ninety-five percent of the operating school districts in Massachusetts spend more than their foundation budget. The above foundation spending rate seeks to capture this spending in the charter tuition rate.

  16. Net School Spending (NSS) is adjusted and then used to determine the above foundation spending percentage: 1) Adjusted NSS $10,950,000 2) Foundation Budget $10,000,000 3) Adjusted NSS as a percentage of foundation (1/2) = 109.5%

  17. The above foundation spending rateis derived by multiplying the above foundation spending percentage by the Foundation Budget rate: 1) Foundation budget rate $9,000 2) Above foundation % 109.5% 3) Above foundation spending rate ($9,000x109.5%)-$9,000 $855

  18. Facilities Tuition Rate Foundation budget and net school spending do not contain capital facilities costs. This rate is calculated separately to assist charter schools with their building costs. Initially based upon statewide average capital spending at school districts, since FY06 the rate has been set annually in the state budget. It is currently set at $893

  19. Charter Tuition Formula Summary

  20. Flow of Charter School Funding, FY14

  21. Flow of Charter School Funding, FY14

  22. Tuition and Reimbursements • Traditionally tuition paid in quarterly increments starting in September. New schools receive first payment in August. • New law will have tuition distributed monthly-this transition is slated to occur in the next 12 months

  23. Tuition Reimbursement There are two tuition reimbursement programs for school districts sending pupils to charter schools: • Chapter 46 Aid: 6 reimbursement tiers. http://www.doe.mass.edu/charter/finance/tuition/Reimbursements.html 2) Facilities Aid: whatever a district is charged in facilities it receives in aid.

  24. Government Reimbursement Programs Nutrition Reimbursements: provide reimbursement to schools for providing meals to low-income students, administered by the ESE’s Nutrition Unit: National School Lunch Breakfast Snack Programs http://www.doe.mass.edu/cnp/

  25. Government Reimbursement Programs Transportation Reimbursements: Local district reimbursements for charter schools that provide their own transportation for local students State-funded reimbursements for regional charter schools providing transportation for students within their stated charter region but outside the district in which the charter is located. State funded reimbursement for transporting homeless students.

  26. Government Reimbursement Programs • MassHealth Municipal Medicaid Reimbursement Program: • Reimbursement for medically-related special education services for qualified low-income students, MassHealth, eligible students. • In a charter school, these are usually students who receive medical services as part of an IEP. • http://www.mass.gov/eohhs/docs/masshealth/muni-med/userguide-school-based-medicaid-program.pdf

  27. Government Reimbursement Programs • State-funded reimbursements for high cost special education students administered by the ESE’s School Business Services Unit. • Instructional costs including only those costs directly attributable to providing the special education services on the student's individual education plan. • For more information, please contact Elena DeMelin • edemelin@doe.mass.edu • http://www.doe.mass.edu/finance/circuitbreaker/ Circuit Breaker Reimbursement:

  28. MassDevelopment Recently received an additional $5 Million grant for the MA Charter School Loan Guarantee Fund from the USED Used to issue guarantees on a portion of a loan or bond made to improve its facility. Contact: Rebecca Sullivan at 617-330-2068 rsullivan@massdevelopment.com

  29. Footnotes • Massachusetts Department of Secondary and Elementary Education. 2011. “FY2009 Charter School End of Year Financial Report Summary.” Accessed June 1. http://www.doe.mass.edu/charter/finance/revexp/. • Edward Moscovitch. 1992. “Model School Budget.” Cape Ann Economics, Rockport, Massachusetts. Page 1. • Massachusetts Department of Elementary and Secondary Education. 2012. "How the foundation budget is calculated." Accessed January 9, 2013. http://finance1.doe.mass.edu/chapter70/.

  30. For more information: Please feel free to contact me at: Joanna Laghetto Accountability and Grant Specialist 781-338-3221 (Tel) jlaghetto@doe.mass.edu Hadley Cabral School Finance 781-338-6586 (Tel) hcabral@doe.mass.edu

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