Charter School Funding in Georgia

2010 Georgia Charter Schools Association ConferenceMarch 11-12, Marietta, Georgia

Andrew W. BroyAssociate State Superintendent

Georgia Department of Education404.651.8734

What do charter school founders think about?

OverviewSchool Funding in GeorgiaCharter School Funding

Statutory requirementsUnderstanding a school’s fundingCommission school funding

Example

Public School FundingFormula-Driven“Foundation Formula”

Guarantee base level of funding for every student in State

Base amount is guaranteed without regard to local property wealth: Assessed valuation per pupil does not affect base amount

Public School Funding (con’t)Foundation amount theoretically set at the

minimum threshold to provide a “basic” education

Foundation amount is only starting pointMost districts have substantial local revenue to

supplement this amountActual funding each district receives is a

function of funding formula, local property valuation, and millage rate, among other things

Public School Funding (con’t)Relative state and local contributions can

vary dramaticallyAs a general rule, districts with high relative

property wealth rely more heavily on local revenue

Conversely, districts with low relative property wealth rely more heavily on state revenue

Public School Funding (con’t)Beware per pupil expenditure figuresAny number of factors can affect this

calculation and figures vary greatly Among districts Among schools within districtsFacilities fundingFederal title funding

Public School Funding (con’t)Funding itself is driven by:

Number of students (FTE count)Characteristics of students (Special education

populations; ESOL populations, Early Intervention Programs)

Additional categorical weights (federal funding and otherwise)

Public School Funding (con’t)Base Funding weight is typically a general

education high school student (1.0 FTE)Other weights (Georgia as example)

Primary grades (1.28) SPED Cat I (2.37) – SPED Cat IV (5.73) Alternative education (1.59) ESOL (2.49) Kindergarten Early Intervention Program (2.02)

Public School Funding (con’t)

Why not just apportion revenues equally by pupil throughout State?Theory that certain categories of students are

more expensive to educateCreates wrong local incentives concerning

millage rates and local tax policyPolitical difficulties (local control of local

revenue)Cost of living differences

Charter School fundingWhat type of charter school?

Locally approved? Start-up or conversion? Career academy?

State chartered special?Commission charter school?

Charter School fundingCharter School funding requirement:

“The local board and the state board shall treat a start-up charter school no less favorably than other local schools within the applicable local system with respect to the provision of funds for instruction, school administration, transportation, food services and, where feasible, building programs.”

O.C.G.A. Sec. 20-2-2068.1(a)

Charter School fundingHow is charter funding determined?How much flexibility does a school have?How are funds currently allotted?

Salaries, 70-75%Facilities costs, 10-15%Vendor contracts and supplies, 10-12%

Charter School Funding

Charter School Grants

Planning Grant

Implementation Grant

Facilities Grant

Pupil CountsFTE Count serves as basis for funding2 FTE counts

Fall count - First Tuesday in OctoberSpring count - First Thursday in March

Pupil count factors in previous 3 FTE Counts (note: weighted to prioritize most recent count)Floating averageImplication: Schools – not just charter schools

– are “behind”

Pupil Counts Case study

Charter school in second year of operation School has 100 students in year one, 200

students in current year FTE count will take into account 3 FTE

counts (Fall 2007; Spring 2008; Fall 2008) 100 + 100 + 200 Particular issue with charter schools that add a

grade

Determining funding Allotment sheet Type of school

Start-up, conversion: federal, state, local State chartered special: federal, state Commission: federal, state, local

approximation (less 3% withhold on all funds except federal)

Determining funding – general case Allotment sheet1. Calculate state share

Earned by pupil Add categorical programs (central admin,

media center, etc.) If state chartered special school, stop

2. Determine what local share should be Compare district’s state allotment to school’s

state allotment Create ratio

Determining funding – general case Allotment sheet3. Use that ratio to determine local share4. Example:

$1,000,000 in state funding $100,000,000 in district state funding Ratio: 1:100 Total local property tax digest equals

$75,000,000 How much local funding due charter?

Determining funding – specific case Allotment sheet1. Calculate state share

Set aside by pupil Add categorical programs (central admin,

media center, etc.)2. Determine what local approximation should

be Take average per pupil in local district and

provide that to the school based on a pro rata share

System No System Name

FY 2009 Budgeted

Local Revenue

# of Enrolled

Students - District

# of Ivy Prep

Students Enrolled by

District

# of Enrolled

Students - District and Commission

Charter School

Amount of Budgeted

Local Revenue per

Enrolled Student

# of Ivy Prep

Students enrolled by

DistrictLocal Share by

District

631Clayton County Public Schools 155,270,000 49,508 3 49,511 3,136.07 3 9,408.00

633Cobb County Public Schools 497,551,332 106,747 3 106,750 4,660.90 3 13,983.00

644DeKalb County Public Schools 506,193,920 99,775 59 99,834 5,070.36 59 299,151.00

656Fayette County Public Schools 101,233,994 22,118 1 22,119 4,576.79 1 4,577.00

658Forsyth County Public Schools 143,427,450 32,374 3 32,377 4,429.92 3 13,290.00

660Fulton County Public Schools 549,807,162 88,299 10 88,309 6,225.95 10 62,259.00

667Gwinnett County Public Schools 619,495,103 157,219 216 157,435 3,934.93 216 849,944.00

710Paulding County Public Schools 79,676,028 27,908 1 27,909 2,854.85 1 2,855.00

722Rockdale County Public Schools 61,685,728 15,705 2 15,707 3,927.28 2 7,855.00

761 Atlanta Public Schools 521,902,687 49,032 1 49,033 10,643.91 1 10,644.00                  

 Total Annual Payment to Ivy Prep           299 1,273,966.00

                   3% Admin Fee 3%          38,219.00                  

 Net Annual Payment to Ivy Prep             1,235,747.00

Ivy Prep bottom line2009 as State Chartered Special School

Total students: 138Total funding: $435,694$3,157 per pupil

2010 as Commission SchoolTotal students: 306Total funding: $2,224,871$7,270 per pupil.

Gwinnet average: $7,997

Questions?