Public School Funding in Georgia's Charter Schools

2010 Georgia Charter Schools Association Conference March 11-12, Marietta, Georgia Andrew W. Broy Associate State Superintendent Georgia Department of Education 404.651.8734

What do charter school founders think about?

Overview School Funding in Georgia Charter School Funding Statutory requirements Understanding a school s funding Commission school funding Example

Public School Funding Formula-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 (cont) Foundation amount theoretically set at the minimum threshold to provide a basic education Foundation amount is only starting point Most districts have substantial local revenue to supplement this amount Actual funding each district receives is a function of funding formula, local property valuation, and millage rate, among other things

Public School Funding (cont) Relative state and local contributions can vary dramatically As 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 (cont) Beware per pupil expenditure figures Any number of factors can affect this calculation and figures vary greatly Among districts Among schools within districts Facilities funding Federal title funding

Public School Funding (cont) 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 (cont) 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 (cont) Why not just apportion revenues equally by pupil throughout State? Theory that certain categories of students are more expensive to educate Creates wrong local incentives concerning millage rates and local tax policy Political difficulties (local control of local revenue) Cost of living differences

Charter School funding What type of charter school? Locally approved? Start-up or conversion? Career academy? State chartered special? Commission charter school?

Charter School funding Charter 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 funding How 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 Operating Funds Planning Grant State QBE funds Implementation Grant Local funds Federal program funds Facilities Grant

Pupil Counts FTE Count serves as basis for funding 2 FTE counts Fall count - First Tuesday in October Spring count - First Thursday in March Pupil count factors in previous 3 FTE Counts (note: weighted to prioritize most recent count) Floating average Implication: 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 sheet Calculate state share Earned by pupil Add categorical programs (central admin, media center, etc.) If state chartered special school, stop Determine what local share should be Compare district s state allotment to school s state allotment Create ratio 1. 2.

Determining funding general case Allotment sheet Use that ratio to determine local share 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? 3. 4.

Determining funding specific case Allotment sheet Calculate state share Set aside by pupil Add categorical programs (central admin, media center, etc.) 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 1. 2.

# of Enrolled Students - District and Commission Charter School Amount of Budgeted Local Revenue per Enrolled Student # of Ivy Prep Students Enrolled by District # of Ivy Prep Students enrolled by District # of FY 2009 Budgeted Local Revenue Enrolled Students - District System No Local Share by District System Name Clayton County Public Schools Cobb County Public Schools DeKalb County Public Schools Fayette County Public Schools Forsyth County Public Schools Fulton County Public Schools Gwinnett County Public Schools Paulding County Public Schools Rockdale County Public Schools Atlanta Public Schools 631 155,270,000 49,508 3 49,511 3,136.07 3 9,408.00 633 497,551,332 106,747 3 106,750 4,660.90 3 13,983.00 644 506,193,920 99,775 59 99,834 5,070.36 59 299,151.00 656 101,233,994 22,118 1 22,119 4,576.79 1 4,577.00 658 143,427,450 32,374 3 32,377 4,429.92 3 13,290.00 660 549,807,162 88,299 10 88,309 6,225.95 10 62,259.00 667 619,495,103 157,219 216 157,435 3,934.93 216 849,944.00 710 79,676,028 27,908 1 27,909 2,854.85 1 2,855.00 722 761 61,685,728 521,902,687 15,705 49,032 2 1 15,707 49,033 3,927.28 10,643.91 2 1 7,855.00 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 line 2009 as State Chartered Special School Total students: 138 Total funding: $435,694 $3,157 per pupil 2010 as Commission School Total students: 306 Total funding: $2,224,871 $7,270 per pupil. Gwinnet average: $7,997

Questions?