SALT LAKE CITY — Utah lawmakers may be changing the way charter schools are funded in the hope of improving equity between charters and district schools.
The Charter School Funding Task Force on Wednesday made several recommendations to the Education Interim Committee, one of which is to require charter and district schools to follow the same process in determining enrollment.
Currently, most charters choose to receive per-pupil funding based on an annual Oct. 1 student census, which then sets funding for the rest of the year, even if students leave the school or new students enroll. Districts, on the other hand, are given funding based on average daily membership, an ongoing measurement that allows funding to be adjusted.
Since the one-time head-count system used by charters is scheduled to sunset next year, those schools could move toward the same system used by district schools.
"It's good policy for both of them to be on the same playing field," said Rep. Steve Eliason, R-Sandy, House chairman of the task force.
But the change would come with a price. If charters switch over to the same enrollment model used by districts, charters could collectively lose about $6 million in annual student funding. Having districts adopt the one-time Oct. 1 headcount as their per-pupil funding model, however, would cost the state an extra $65 million each year.
Eliason said the Legislature may consider provisions to help charters mitigate the cost, such as adjusting enrollment caps to help the schools keep their enrollment numbers steady.
Lawmakers might also build on legislation passed this year that looked at equity in capital funding.
Because charters don't have taxing authority, they rely on a portion of funds gathered from property taxes levied by school districts to pay for brick and mortar needs. A bill passed early this year as an equalization measure now requires all districts to pay 25 percent of per-pupil local revenues to the statewide capital fund.
This required some districts to contribute a greater portion of their earnings to the capital fund. The Canyons and Salt Lake school districts, for example, were required to increase the annual amount they pay by more than $500,000.
"This is an area of much concern," said Rep. Marie Poulson, D-Cottonwood Heights, who represents several districts that have raised property taxes as a result of the change. "They're not happy campers."
Poulson said those districts have expressed concerns that they can't account for where the extra money goes while holding truth in taxation meetings with residents.
But the Legislature is expected to consider a bill next year that will require property tax notices to specify the revenue that ends up being distributed to charter schools.
Draper Republican Howard Stephenson, Senate chairman of the task force, praised charter schools for using capital funds on classroom instruction as well as buildings. It's a practice that district schools should consider, he said.
"Charter schools do get equivalent funding of capital outlay and debt service that district schools have on average. However, they choose not to spend it on buildings to the degree the districts do," Stephenson said. "Their buildings are not as lavish as the district schools tend to be. But it's not because they have less money. They choose to spend it on education of children instead."
The task force, which includes legislators, State School Board members and other education leaders, was formed out of this year's legislative session and charged with exploring funding alternatives for Utah's charter school system. The task force will hold its seventh and final meeting Monday.
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