2018 Tennessee Code
Title 49 - Education
Chapter 13 - Tennessee Public Charter Schools Act of 2002
§ 49-13-112. Allocation of state and local funds.
(a) A local board of education shall allocate to the charter school an amount equal to the per student state and local funds received by the LEA and all appropriate allocations under federal law or regulation, including, but not limited to, Title I and ESEA funds. The allocation shall be made in accordance with the policies and procedures developed by the department of education. Each LEA shall include as part of its budget submitted pursuant to § 49-2-203, the per pupil amount of local money it will pass through to charter schools during the upcoming school year. Allocations to the charter schools during that year shall be based on the per pupil amount. The LEA shall distribute the portion of local funds it expects to receive in no fewer than nine (9) equal installments to the charter schools in the same manner as state funds are distributed pursuant to chapter 3 of this title. An LEA shall adjust payments to the charter schools, at a minimum, in October, February, and June, based on changes in revenue, student enrollment, or student services. All funds received by a charter school shall be spent according to the budget submitted or as otherwise revised by the public charter school governing body, subject to the requirements of state and federal law.
(b) The department of education shall promulgate rules and regulations that provide for the determination of the allocation of state and local funds as provided in subsection (a). The department shall promulgate the rules and regulations effective for the 2010-2011 school years. Notwithstanding § 4-5-209, any rules promulgated under this subsection (b) may be promulgated as emergency rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 2. At a minimum, the rules shall provide that:
(1) Allocations shall be based on one hundred percent (100%) of state and local funds received by the LEA, including current funds allocated for capital outlay purposes, excluding the proceeds of debt obligations and associated debt service;
(2) [Deleted by 2017 amendment.]
(3)
(A) With the exception of the annual authorizer fees provided under this chapter, a public charter school shall not be required to pay a fee or purchase any services from the authorizer. Charter schools shall not be required to pay any fee as a condition for charter approval by the local board of education or for recommendation for approval by LEA staff or a committee established by the LEA for the purposes of making recommendations for charter school application decisions.
(B) A public charter school may choose to purchase services from the LEA in which the school is located, such as transportation or food services. In such event, the public charter school and LEA shall execute an annual service contract, separate from the charter contract, setting forth the mutual agreement of the parties concerning any service fees to be charged to the public charter school.
(C) A public charter school shall not pay any administrative fee to the LEA for charter authorizing functions except as provided through the annual authorizer fees mandated or permitted by this chapter.
(D) If the charter agreement includes a provision whereby the chartering authority will provide services for employee benefits or retirement, then the chartering authority may withhold funds to cover the costs of those services. If a services contract is executed with the chartering authority, then the chartering authority may withhold funds to cover the costs of those services.
(c)
(1) Notwithstanding any provisions of chapter 3, part 3 of this title or this section to the contrary, the department of education shall calculate the amount of state funding required under the BEP for capital outlay as a nonclassroom component to be received in a fiscal year by an LEA in which one (1) or more charter schools operate. The department shall reserve from the sum for such LEA the funds that constitute the amount due to charter schools operating in the LEA and shall not distribute such reserved amount to the LEA. The department shall distribute from the reserved amount directly to each charter school its total per pupil share as determined by its average daily membership (ADM).
(2) Notwithstanding subdivision (c)(1), the LEA shall include in the local share of funds paid to a charter school the required LEA match for the state funds generated under the BEP for capital outlay as a nonclassroom component that are paid under this subsection (c) directly to a charter school as per pupil facilities aid.
(d) In order to comply with the requirements for allocating funds to the public charter school, the local board of education may provide liability or other forms of insurance pursuant to the charter agreement.
(e) A public charter school may also be funded by:
(1)
(A) Federal grants;
(B) Grants, gifts, devises or donations from any private sources;
(C) State funds appropriated for the support of the public charter school, if any; and
(D) Any other funds that may be received by the local school district.
(2) Receipt of any such funds shall be reported to the chartering authority. Public charter schools, the local board of education and the state department of education are encouraged to apply for federal funds appropriated specifically for the support of public charter schools.
