Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0083.03 Julie Pelegrin x2700 HOUSE BILL 14-1139 HOUSE SPONSORSHIP Priola, Murray, Wilson, Holbert, Everett SENATE SPONSORSHIP (None), House Committees Senate Committees Education A BILL FOR AN ACT Concerning funding public schools based on the calculation of average daily membership. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under current law, funding for school districts and institute charter schools is based on the number of pupils enrolled on a specified count date each school year. Beginning with the 2017-18 budget year, the bill directs the department of education (department) to calculate funding for school districts and institute charter schools based on the district's or institute charter school's average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, ASCENT program average daily membership, and funded membership (collectively referred to as "membership") for the funding averaging period. The funding averaging period is the 4 quarters of the preceding budget year plus the first quarter of the current budget year. The district must create a data system in the 2014-15 budget year to calculate membership. Beginning in the 2015-16 budget year, each district and institute charter school must periodically report the data required to calculate membership. In the 2016-17 budget year, each district and institute charter school will continue to receive funding calculated based on pupil enrollment, but the department must also calculate funding based on membership for comparison purposes. Beginning in the 2017-18 budget years and for budget years thereafter, each district's and institute charter school's funding is based on calculations that use membership, rather than single-day pupil enrollment. Beginning in the 2017-18 budget year, if a school district's membership calculated for the first half of a budget year increases by a greater percentage than the increase in the statewide membership over the preceding funding averaging period, the department will recalculate the school district's total program for the remainder of the budget year using the school district's membership for the first half of the then-current budget year. Beginning in the 2017-18 budget year, a new institute charter school's funding will be based on the projected membership for the first school day. If the new institute charter school's membership for the first half of the budget year is different from the first-day projections, the department shall recalculate the institute charter school's funding based on the membership for the first half of the then-current budget year. In the second year or in a budget year in which an institute charter school increases its program by at least one grade level, if the membership for the first quarter of the school year is greater than the membership for the funding averaging period, the department will recalculate the institute charter school's funding based on the membership for the first quarter of the then-current budget year. In any other budget year, the department will recalculate an institute charter school's funding halfway through the budget year on the same basis that it would recalculate a school district's total program. Beginning in the 2017-18 budget year, a school district that authorizes a charter school shall calculate the charter school's funding based on the charter school's membership. A school district must calculate and recalculate the funding for a district charter school that is new, or in a budget year in which the charter school increases its program by at least one grade level, on the same basis that the department recalculates the funding for an institute charter school. The general assembly must appropriate moneys for the mid-year increases in funding for district charter schools and institute charter schools. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 22-54-112.5 as follows: 22-54-112.5. Average daily membership - data system - rules - implementation - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Adjusted average daily membership" means the kindergarten through twelfth-grade average daily membership plus the on-line average daily membership of a district. (b) "ASCENT program average daily membership" means the number of pupils who are enrolled each school day in a district and are participants in the ASCENT program, totaled for the averaging period and divided by the number of school days in the averaging period. The ASCENT program average daily membership of a district includes the ASCENT program participants enrolled in each district charter school of the district. An ASCENT program participant who is enrolled in at least twelve credit hours of postsecondary courses, including academic courses and career and technical education courses, is included in the ASCENT program average daily membership as a full-time pupil. An ASCENT program participant who is enrolled in fewer than twelve credit hours of postsecondary courses, including academic courses and career and technical education courses, is included in the ASCENT program average daily membership as a part-time pupil. (c) (I) "At-risk pupil average daily membership" means the greater of: (A) The number of at-risk pupils enrolled in a district each school day, totaled for the averaging period and divided by the number of school days in the averaging period; or (B) The district's at-risk pupil percentage multiplied by the district's adjusted average daily membership. (II) The at-risk pupil average daily membership of a district includes the at-risk pupils enrolled in each district charter school of the district. (III) Notwithstanding the provisions of subparagraph (III) of paragraph (j) of this subsection (5), the at-risk pupil average daily membership of a district includes the at-risk pupils enrolled in a multi-district on-line school of the district. (d) (I) "At-risk pupil percentage" means the number of at-risk pupils enrolled in grades one through eight in a district each school day, totaled for the averaging period and divided by the number of school days in the averaging period, then divided by the district's average daily membership for the same averaging period for grades one through eight. (II) The at-risk pupil percentage of a district includes the at-risk pupils enrolled in each district charter school of the district. (III) Notwithstanding the provisions of subparagraph (III) of paragraph (j) of this subsection (5), a district's at-risk pupil percentage includes the at-risk pupils enrolled in a multi-district on-line school of the district. (e) "Average daily membership" means the membership of a district or of an institute charter school for each school day, totaled for the averaging period and divided by the number of school days in the averaging period. The average daily membership of a district includes the pupils enrolled in each district charter school of the district. (f) "Averaging period" means a quarter of a school year, the full school year, or the full school year plus the first quarter of the next school year, whichever is applicable. (g) "Department" means the department of education created and existing pursuant to section 24-1-115, C.R.S. (h) "Funded membership" means: (I) The total of a district's preschool program average daily membership for the funding averaging period, supplemental kindergarten average daily membership for the funding averaging period, on-line average daily membership for the funding averaging period, and ASCENT program average daily membership for the funding averaging period, and the greater of: (A) The district's average daily membership for the funding averaging period; or (B) The average of the district's average daily membership for the funding averaging period and the average daily membership for the preceding funding averaging period; or (C) The average of the district's average daily membership for the funding averaging period and the average daily membership for the two preceding funding averaging periods; or (D) The average of the district's average daily membership for the funding averaging period and the average daily membership for the three preceding funding averaging periods; or (E) The average of the district's average daily membership for the funding averaging period and the average daily membership for the four preceding funding averaging periods. (II) Notwithstanding any provision of this article to the contrary, for purposes of calculating a district's funded membership pursuant to subparagraph (I) of this paragraph (h) only, pupils who are enrolled in the Colorado preschool program are included in the district's preschool program average daily membership and are not included in the district's average daily membership. (III) Notwithstanding any provision of law to the contrary, for purposes of subparagraph (I) of this paragraph (h), a district's funded membership does not include a pupil who is or was enrolled in a charter school that the district originally authorized and that was subsequently converted on or after July 1, 2010, to an institute charter school or to a charter school of a district that is contiguous to the original authorizing district. (i) "Funding averaging period" means the period that begins on the first day of the first quarter of the preceding budget year and continues through the last day of the first quarter of the then-current budget year. (j) (I) "Membership" means the pupils who are enrolled in a district or an institute charter school in preschool pursuant to article 28 of this title; the pupils who are enrolled in kindergarten, who are all counted as half-time pupils; and the pupils who are enrolled in grades one through twelve, who are counted as either full-time or part-time pupils. The state board, by rule, shall specify the point at which a pupil is enrolled in a district or an institute charter school, the circumstances under which a pupil ceases to be enrolled in a district or an institute charter school, and the required documentation for certifying pupil enrollment. (II) For purposes of this article, the membership of a district or an institute charter school includes: (A) A pupil who is enrolled in a preschool program pursuant to article 28 of this title, but only if the pupil is at least three years of age as of October 1 of the applicable averaging period. A pupil enrolled in a preschool program is counted as a half-time pupil. (B) A pupil who is enrolled in a kindergarten educational program but only if the pupil is five years of age as of October 1 of the applicable averaging period or four years of age as of October 1 of the applicable averaging period and the district or institute charter school or an administrative unit has identified the pupil as a highly advanced gifted child for whom early access to kindergarten is appropriate, as provided in section 22-20-204; (C) A pupil who is enrolled in first grade, but only if the pupil is at least six years of age on or before October 1 of the applicable averaging period, at least five years of age on or before October 1 of the applicable averaging period and the pupil attended at least one hundred twenty days of kindergarten in a state other than Colorado, or at least five years of age on or before October 1 of the applicable averaging period and the district or institute charter school or an administrative unit has identified the pupil as a highly advanced gifted child for whom early access to first grade is appropriate, as provided in section 22-20-204; (D) A pupil who is three years of age and receives educational services under the "Exceptional Children's Educational Act", article 20 of this title, which pupil is counted as a half-time pupil; (E) A pupil who resides within the boundaries of the district and is receiving educational services under the "Exceptional Children's Educational Act", article 20 of this title, outside of the district, for which services the district of residence pays tuition; (F) A pupil who is enrolled in an on-line program, as defined in section 22-30.7-102 (9), or an on-line school, as defined in section 22-30.7-102 (9.5), operated pursuant to article 30.7 of this title by a district or an institute charter school; (G) A pupil who is expelled within the applicable budget year and to whom the district or institute charter school provides educational services pursuant to section 22-33-203; and (H) A juvenile who is held in an adult jail and to whom the district provides educational services pursuant to section 22-32-141. (III) For purposes of this article, membership of a district or an institute charter school does not include: (A) A pupil who is placed in a facility, as defined in section 22-2-402 (3), and who is receiving services through an approved facility school, as defined in section 22-2-402 (1); (B) A pupil who is enrolled in a multi-district on-line school; or (C) A pupil who is participating in the ASCENT program. (k) "Multi-district on-line school" has the same meaning as provided in section 22-30.7-102 (6). (l) "On-line average daily membership" means the number of on-line pupils enrolled each school day in a multi-district on-line school operated by a district or an institute charter school, totaled for the averaging period and divided by the number of school days in the averaging period. The state board, by rule, shall specify the point at which a pupil is enrolled in a multi-district on-line school, the circumstances under which a pupil ceases to be enrolled in a multi-district on-line school, and the required documentation for certifying pupil enrollment. The rules concerning enrollment in a multi-district on-line school must be substantially the same as the rules concerning enrollment in a school district or institute charter school. The on-line average daily membership of a district includes the pupils enrolled in a district charter school of the district that is a multi-district on-line school. (m) "Preceding budget year" means the budget year that immediately precedes the budget year for which funding is calculated. (n) "Preschool program average daily membership" means the number of pupils, counted as half-day pupils, enrolled each school day pursuant to article 28 of this title in a district preschool program or an institute charter school preschool program, totaled for the averaging period and divided by the number of school days in the averaging period. (o) "School day" means: (I) For a district, a day on which at least one school of the district is providing educational services to pupils enrolled in the district, including pupils enrolled in a district charter school of the district; or (II) For an institute charter school, a day on which the institute charter school is providing educational services to pupils enrolled in the institute charter school. (p) "School year" means July 1 through the following June 30. (q) "Statewide average at-risk pupil percentage" means the total at-risk pupil average daily membership of all districts and all institute charter schools divided by the total adjusted average daily membership of all districts and all institute charter schools. (r) "Statewide average daily membership" means the total membership of all districts and all institute charter schools in the state each school day and the total number of pupils enrolled in the multi-district on-line schools of the state each school day, totaled for the averaging period and divided by the number of school days in the averaging period. (s) "Statewide average enrollment growth" means the percentage increase in the statewide average daily membership of a funding averaging period over the previous funding averaging period. (t) "Supplemental kindergarten average daily membership" means the number calculated by subtracting five-tenths from the full-day kindergarten factor for the applicable budget year and then multiplying that number by a district's average daily membership calculated solely for kindergarten for the applicable funding averaging period. For the purposes of this paragraph (r), the full-day kindergarten factor is fifty-eight hundredths of a full-day pupil. (2) (a) During the 2014-15 budget year, the department shall create a data system to calculate average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, ASCENT program average daily membership, funded membership, and total program funding for each district and to calculate average daily membership and on-line average daily membership for each institute charter school. The state board shall promulgate rules as necessary to implement the data system. (b) Beginning in the 2015-16 budget year and for budget years thereafter, each district and institute charter school shall certify to the department for each quarter of the school year the district's or institute charter school's membership for each school day during the quarter, including specifying the number of at-risk pupils and, for a district, the number of preschool pupils. The district and each institute charter school shall also certify to the department for each quarter of the school year the number of the district's or institute charter school's pupils who are enrolled each school day during the quarter in a multi-district on-line school, including specifying the number of at-risk pupils, and each district shall certify the number of the district's pupils enrolled each school day during the quarter in the ASCENT program. The state charter school institute may certify the institute charter schools' membership and enrollment for purposes of this section. (c) For the 2016-17 budget year, each district and each institute charter school shall continue to receive funding pursuant to this article based on the district's or institute charter school's pupil enrollment, but the department shall also use the membership data certified by the district or institute charter school to calculate each district's and institute charter school's total program funding for the 2016-17 budget year for comparison purposes. (d) (I) For the 2017-18 budget year and for budget years thereafter, the department shall calculate the total program funding for each district and each institute charter school as provided in this section. (II) the department shall calculate the total program funding for each district in each budget year using the district's average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, ASCENT program average daily membership, and funded membership for the applicable funding averaging period. The department shall calculate the total program funding for each institute charter school using the institute charter school's average daily membership and on-line average daily membership. The department shall also calculate the statewide average at-risk pupil percentage for purposes of calculating total program funding. (e) Notwithstanding the provisions of section 22-54-104 to the contrary, the department shall substitute average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, ASCENT program average daily membership, and funded membership for pupil enrollment as appropriate to calculate total program funding as required in this section. (3) The department shall calculate each district's average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, and ASCENT program average daily membership and each institute charter school's average daily membership and on-line average daily membership for: (a) Each quarter of the school year by totaling the daily, preschool program, or at-risk pupil membership or the daily multi-district on-line school or ASCENT program enrollment for the quarter and dividing each respective sum by the number of school days in the respective district's or institute charter school's quarter of the school year; (b) Each half of a school year by totaling the daily, preschool program, or at-risk pupil membership or the daily multi-district on-line school or ASCENT program enrollment for half of the school year and dividing each respective sum by the total number of school days in the respective district's or institute charter school's half of a school year; (c) Each school year by totaling the daily, preschool program, or at-risk pupil membership or the daily multi-district on-line school or ASCENT program enrollment for the school year and dividing each respective sum by the total number of school days in the respective district's or institute charter school's school year; and (d) Each funding averaging period by totaling the daily, preschool program, or at-risk pupil membership or the daily multi-district on-line school or ASCENT program enrollment for the funding averaging period and dividing each respective sum by the total number of school days in the respective district's or institute charter school's funding averaging period. (4) If a district's average daily membership for the first half of a school year exceeds the district's average daily membership for the applicable funding averaging period by a percentage that is greater than the statewide average enrollment growth for the applicable funding averaging period, the department shall recalculate the district's total program for the then-current budget year using the average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, and ASCENT program average daily membership for the first half of the then-current school year. The department shall adjust the district's monthly payments accordingly for the remainder of the applicable budget year. (5) (a) (I) Notwithstanding any provision of this section to the contrary, for the first school year in which an institute charter school enrolls pupils, the department shall calculate the institute charter school's total program using the institute charter school's projected membership for the first school day of the school year or, if the institute charter school is a multi-district on-line school, the institute charter school's projected number of pupils that will be enrolled on the first school day of the school year. (II) The department shall calculate the institute charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first half of the institute charter school's first school year. If the calculated average daily membership or on-line average daily membership is different from the projected first-day membership or enrollment, the department shall recalculate the institute charter school's total program using the average daily membership or on-line average daily membership for the first half of the then-current school year and adjust the institute charter school's funding by reducing the funding or paying supplemental funding to the institute charter school for the remainder of the first school year. If the recalculation results in supplemental funding for the institute charter school, the department shall pay the increased amount from moneys appropriated to the state public school fund pursuant to section 22-54-114 (2.1). (b) (I) Except as otherwise provided in subparagraph (II) of this paragraph (b), if an institute charter school's average daily membership for the first half of a school year exceeds the institute charter school's average daily membership for the applicable funding averaging period by a percentage that is greater than the statewide average enrollment growth for the applicable funding averaging period, the department shall recalculate the institute charter school's total program for the then-current budget year using the average daily membership or on-line average daily membership, whichever is applicable, for the first half of the then-current school year. The department shall adjust the institute charter school's monthly payments accordingly for the remainder of the applicable budget year by paying supplemental funding to the state charter school institute for the institute charter school from moneys appropriated to the state public school fund pursuant to section 22-54-114 (2.1). (II) In a budget year in which an institute charter school is in the second year of operation or increases its program availability by at least one grade level, the department shall recalculate the institute charter school's total program if the institute charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current school year exceeds the institute charter school's average daily membership or on-line average daily membership for the applicable funding averaging period. The department shall recalculate the institute charter school's total program using the average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current budget year. The department shall adjust the institute charter school's monthly payments accordingly for the remainder of the applicable budget year by paying supplemental funding to the state charter school institute for the institute charter school from moneys appropriated to the state public school fund pursuant to section 22-54-114 (2.1). (6) Notwithstanding any provision of this article to the contrary, the department, in calculating average daily membership, preschool program average daily membership, at-risk pupil average daily membership, on-line average daily membership, and ASCENT program average daily membership as provided in this section, shall adjust the calculation as necessary to ensure that a single student is not counted as more than a full-time pupil. (7) A pupil who is identified as an at-risk pupil, as provided in section 22-54-112 (4), once during a school year is presumed to qualify as an at-risk pupil throughout the remainder of the school year. SECTION 2. In Colorado Revised Statutes, 22-54-114, amend (1) and (2); and add (2.1) as follows: 22-54-114. State public school fund. (1) There is hereby created in the office of the state treasurer a fund, separate from the general fund, to be known as the state public school fund. There shall be credited to said fund the net balance of the public school income fund existing as of December 31, 1973, and all distributions from the state public school income fund thereafter made, the state's share of all moneys received from the federal government pursuant to the provisions of section 34-63-102, C.R.S., and such additional moneys as shall be appropriated by the general assembly which are necessary to meet the state's share of the total program of all districts, including any supplemental funding for district charter schools as provided in sections 22-30.5-112 (2) (f) and 22-30.5-112.1 (3.7); funding for institute charter schools, including any supplemental funding as provided in section 22-54-112.5 (5); and, for fiscal years prior to the 2007-08 fiscal year, the contingency reserve during the budget year. Moneys annually appropriated by the general assembly shall be transferred from the state general fund and credited to the state public school fund in four quarterly installments on July 1, September 30, December 31, and March 31 to assure the availability of funds for the required distribution of state moneys to school districts and institute charter schools. Such quarterly installments shall be determined in accordance with estimates prepared by the department of education with respect to the required distribution of state moneys to school districts and institute charter schools. (2) No later than thirty days prior to the beginning of the budget year, the department of education shall determine the estimated requirements in order to provide each district and each institute charter school the amount it is eligible to receive from the state during the next ensuing fiscal year of the state. The estimates must include any amount that may be necessary to provide supplemental funding for district charter schools as provided in sections 22-30.5-112 (2) (f) and 22-30.5-112.1 (3.7) and institute charter schools as provided in section 22-54-112.5 (5). The general assembly shall base the appropriation by the general assembly shall be based amount on the requirements necessary to provide all districts and institute charter schools with the amounts they are each eligible to receive from the state, pursuant to the provisions of this part 1 article, during the next ensuing fiscal year of the state, including any amount of supplemental funding that a district charter school may be eligible to receive as provided in sections 22-30.5-112 (2) (f) and 22-30.5-112.1 (3.7) or an institute charter school may be eligible to receive as provided in section 22-54-112.5 (5). (2.1) (a) The general assembly shall make annual appropriations, in addition to the amount required in section 22-54-106 (4), to fund the supplemental funding for district charter schools calculated as provided in sections 22-30.5-112 (2) (f) and 22-30.5-112.1 (3.7) and for institute charter schools calculated as provided in section 22-54-112.5 (5). If the appropriation, as established in the general appropriation act, for the supplemental funding for district charter schools and institute charter schools for a budget year is not sufficient to fully fund the supplemental funding for district charter schools and institute charter schools, the department shall submit a request for a supplemental appropriation in an amount that will fully fund the supplemental funding for district charter schools and institute charter schools. The department shall submit the request to the general assembly during the fiscal year in which the funding deficit occurs. (b) If the general assembly does not make a supplemental appropriation to fully fund the supplemental funding for district charter schools and institute charter schools, or the general assembly enacts a supplemental appropriation to reduce the supplemental funding for district charter schools and institute charter schools, the department shall reduce the amount of supplemental funding for each qualifying district charter school and each qualifying institute charter school by the percentage of the deficit in the amount required to fully fund the supplemental funding for each qualifying district charter school and qualifying institute charter school. The department shall ensure that it accomplishes the reduction in supplemental funding for district charter schools and institute charter schools before the end of the budget year. SECTION 3. In Colorado Revised Statutes, 22-54-115, amend (1) (b) and (1.3) (b); and add (1) (d) and (1) (e) as follows: 22-54-115. Distribution from state public school fund. (1) No later than June 30 of each year, the state board shall determine the amount of the state's share of the district's total program for the budget year beginning on July 1, and the total thereof for all districts, which amount shall be payable in twelve approximately equal monthly payments during such budget year; except that: (b) Such payments shall be adjusted in accordance with any district's instructions given pursuant to subsection (1.5) of this section; and (d) Such payments shall be adjusted if required pursuant to section 22-54-112.5 (4); and (e) Such payments shall be adjusted in accordance with a district's instructions to include supplemental funding for a district charter school as provided in sections 22-30.5-112 (2) (f) and 22-30.5-112.1 (3.7). (1.3) (b) The amount withheld shall be payable to the state charter school institute, in twelve approximately equal monthly payments during the budget year for payment to the institute charter school pursuant to section 22-30.5-513 (4). In addition to the amount withheld, the department shall pay to the state charter school institute for payment to an institute charter school any supplemental funding for the institute charter school required as a result of a recalculation pursuant to section 22-54-112.5 (5). SECTION 4. In Colorado Revised Statutes, 22-30.5-112, amend (2) (a) (III) (A), (2) (a.3), (2) (a.5), (2) (c) (II), and (2) (c) (III); and add (1) (a.5), (2) (a) (I.3), (2) (a) (I.5), (2) (a.1), (2) (c) (II.5), and (2) (f) as follows: 22-30.5-112. Charter schools - financing - definitions - guidelines. (1) (a.5) (I) Beginning in the 2015-16 budget year and for budget years thereafter, for purposes of implementing section 22-54-112.5, each authorizing school district shall include the pupils enrolled in a charter school in the school district's daily membership for purposes of calculating average daily membership, preschool program average daily membership, and at-risk pupil average daily membership, as applicable, for each budget year. The authorizing school district shall also include the pupils enrolled in the charter school in the district's daily multi-district on-line school and ASCENT program enrollment, as applicable, for purposes of calculating the district's on-line average daily membership and ASCENT program average daily membership for each budget year. In reporting membership and multi-district on-line school and ASCENT program enrollment to the department pursuant to section 22-54-112.5, the authorizing school district shall specify the number of pupils included in the school district's membership and multi-district on-line school and ASCENT program enrollment who are actually included in the membership and multi-district on-line school and ASCENT program enrollment of each charter school. (II) Beginning in the 2015-16 budget year and for budget years thereafter, the school district shall report to the department the projected membership, including specifying the projected number of preschool pupils and at-risk pupils for the first school day of the first school year in which a new charter school of the district enrolls pupils. If the new charter school is a multi-district on-line school, the district shall report to the department the projected on-line pupil enrollment, including specifying the projected number of at-risk pupils, for the first school day of the first school year in which the new charter school of the district enrolls pupils. (2) (a) (I.3) Each authorizing school district shall pay to each charter school of the school district the amounts that are due to each charter school as provided in this section. The school district shall pay the amounts in twelve monthly installments as soon as practicable after the school district receives distributions of moneys from the department pursuant to section 22-54-115. (I.5) If an authorizing school district's total program funding is adjusted mid-year pursuant to section 22-54-112.5 (4), the school district shall adjust the distribution to the charter schools of the school district accordingly. (III) (A) For budget year 2000-01 and budget years thereafter through budget year 2016-17, except as otherwise provided in subparagraph (I) of paragraph (a.3) of this subsection (2), each charter school and the chartering school district shall negotiate funding under the contract. The charter school shall receive one hundred percent of the district per pupil revenues for each pupil enrolled in the charter school who is not an on-line pupil and one hundred percent of the district per pupil on-line funding for each on-line pupil enrolled in the charter school; except that the chartering school district may choose to retain the actual amount of the charter school's per pupil share of the central administrative overhead costs for services actually provided to the charter school, up to five percent of the district per pupil revenues for each pupil who is not an on-line pupil enrolled in the charter school and up to five percent of the district per pupil on-line funding for each on-line pupil enrolled in the charter school. (a.1) (I) For the 2017-18 budget year and budget years thereafter, except as otherwise provided in subparagraph (II) of paragraph (a.3) of this subsection (2), each charter school and the chartering school district shall negotiate funding under the contract. A charter school that is not a multi-district on-line school shall receive an amount equal to one hundred percent of the district per pupil revenues for the applicable budget year multiplied by the charter school's average daily membership for the applicable funding averaging period. A charter school that is a multi-district on-line school shall receive an amount equal to one hundred percent of the district per pupil on-line funding multiplied by the charter school's on-line average daily membership for the applicable funding averaging period. (II) Notwithstanding any provision of subparagraph (I) of this paragraph (a.1) to the contrary, a chartering school district may choose to retain the actual amount of a charter school's per pupil share of the central administrative overhead costs for services actually provided to the charter school, up to five percent of the total amount of district per pupil revenues payable to a charter school that is not a multi-district on-line school or up to five percent of the total amount of district per pupil on-line funding payable to a charter school that is a multi-district on-line school. (a.3) (I) For budget years commencing before July 1, 2017, if the authorizing school district enrolls five hundred or fewer students, the charter school shall receive funding in the amount of the greater of one hundred percent of the district per pupil on-line funding for each on-line pupil enrolled in the charter school plus one hundred percent of the district per pupil revenues for each pupil who is not an on-line pupil enrolled in the charter school, minus the actual amount of the charter school's per pupil share of the central administrative overhead costs incurred by the school district, based on audited figures, or eighty-five percent of the district per pupil revenues for each pupil enrolled in the charter school who is not an on-line pupil plus eighty-five percent of the district per pupil on-line funding for each on-line pupil enrolled in the charter school. (II) For the 2017-18 budget year and budget years thereafter, if an authorizing school district has an average daily membership of five hundred or fewer students for the most recent funding averaging period: (A) A charter school that is not a multi-district on-line school receives funding in an amount equal to the greater of: One hundred percent of the district per pupil revenues for the applicable budget year multiplied by the charter school's average daily membership for the applicable funding averaging period minus the actual amount of the charter school's per pupil share of the central administrative overhead costs incurred by the school district, based on audited figures; or eighty-five percent of district per pupil revenues for the applicable budget year multiplied by the charter school's average daily membership for the applicable funding averaging period; and (B) A charter school that is a multi-district on-line school receives funding in an amount equal to the greater of: One hundred percent of the district per pupil on-line funding for the applicable budget year multiplied by the charter school's on-line average daily membership for the applicable funding averaging period minus the actual amount of the charter school's per pupil share of the central administrative overhead costs incurred by the school district, based on audited figures; or eighty-five percent of district per pupil on-line funding for the applicable budget year multiplied by the charter school's on-line average daily membership for the applicable funding averaging period. (a.5) As used in this subsection (2): (I) "Average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (e). (II) "Averaging period" has the same meaning as provided in section 22-54-112.5 (1) (f). (I) (III) "Central administrative overhead costs" means indirect costs incurred in providing: (A) Services listed under the heading of support services - general administration in the school district chart of accounts as specified by rule of the state board; and (B) Salaries and benefits for administrative job classifications listed under the headings of support services - business and support services - central in the school district chart of accounts as specified by rule of the state board. (II) "District per pupil revenues" means the district's total program as defined in section 22-54-103 (6) for any budget year divided by the district's funded pupil count as defined in section 22-54-103 (7) for said budget year; (II.5) "District per pupil on-line funding" means a school district's on-line funding, as specified in section 22-54-104 (4.5), divided by the district's on-line pupil enrollment for any budget year; (III) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1913,  38, effective June 10, 2010.) (IV) "District per pupil on-line funding" means a school district's on-line funding, as specified in section 22-54-104 (4.5), divided by the district's on-line pupil enrollment for any budget year; except that, for the 2017-18 budget year and budget years thereafter, "district per pupil on-line funding" means a school district's on-line funding for any budget year divided by the district's on-line average daily membership for that budget year. (V) "District per pupil revenues" means the district's total program as defined in section 22-54-103 (6) for any budget year divided by the district's funded pupil count as defined in section 22-54-103 (7) for said budget year; except that, for the 2017-18 budget year and budget years thereafter, "district per pupil revenues" means the district's total program for any budget year divided by the district's funded membership, as defined in section 22-54-112.5 (1) (h), for that budget year. (VI) "Funding averaging period" has the same meaning as provided in section 22-54-112.5 (1) (i). (VII) "Membership" has the same meaning as provided in section 22-54-112.5 (1) (j). (VIII) "On-line average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (l). (IX) "Statewide average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (r). (X) "Statewide average enrollment growth" has the same meaning as provided in section 22-54-112.5 (1) (s). (c) (II) For budget year 2000-01 and budget years thereafter through the 2016-17 budget year, the amount of funding received by a charter school pursuant to this subsection (2) shall not be less than one hundred percent of the chartering school district's district per pupil revenues, minus up to five percent as provided in subparagraph (III) of paragraph (a) of this subsection (2), multiplied by the number of pupils enrolled in the charter school or as otherwise provided in paragraph (a.3) of this subsection (2) for any charter school chartered by a school district that enrolls five hundred or fewer students. (II.5) For budget year 2017-18 and budget years thereafter, the amount of funding received by a charter school pursuant to this subsection (2) shall not be less than one hundred percent of the chartering school district's district per pupil revenues, minus up to five percent as provided in subparagraph (II) of paragraph (a.1) of this subsection (2), multiplied by the charter school average daily enrollment or as otherwise provided in paragraph (a.3) of this subsection (2) for a charter school chartered by a school district that enrolls five hundred or fewer students. (III) (A) For budget years commencing before July 1, 2017, if a charter school operates a full-day kindergarten program, for purposes of calculating the charter school's funding pursuant to this subsection (2), the number of pupils enrolled in the charter school shall include the supplemental kindergarten enrollment as defined in section 22-54-103 (15). (B) For the 2017-18 budget year and budget years thereafter, if a charter school operates a full-day kindergarten program, for purposes of calculating the charter school's funding pursuant to this subsection (2), the number of pupils enrolled in the charter school includes the supplemental kindergarten average daily membership as defined in section 22-54-112.5 (1) (t). (f) Notwithstanding any provision of this section to the contrary: (I) (A) In the first year that a charter school enrolls pupils, the school district shall calculate the charter school's funding based on the charter school's projected membership on the first day of the school year. If the new charter school is a multi-district on-line school, the school district shall calculate the charter school's funding based on the number of on-line pupils expected to be enrolled on the first day of the school year. (B) The school district shall calculate the charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the charter school's first school year. If the calculated average daily membership or on-line average daily membership is different from the projected membership, the school district shall recalculate the charter school's funding using the average daily membership or on-line average daily membership, whichever is applicable, of the first quarter of the then-current school year and adjust the charter school's funding accordingly for the remainder of the first school year. (II) In the second year that a charter school enrolls pupils and in any year in which a charter school increases its program availability by at least one additional grade level, if the charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current budget year exceeds the charter school's average daily membership or on-line average daily membership for the applicable funding averaging period, the school district shall recalculate the charter school's funding for the then-current budget year using the average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current budget year and adjust the charter school's funding accordingly for the remainder of the first school year. (III) If a charter school's funding increases because of the recalculations described in this paragraph (f), the school district shall report to the department the supplemental funding due to the charter school based on the recalculations. The department shall pay the supplemental funding to the school district in monthly installments for the remainder of the budget year, and the school district shall increase the monthly payments due to the charter school by the full amount received from the department for the remainder of the budget year. Notwithstanding any provision of this paragraph (f) to the contrary, the amount of supplemental funding that a charter school receives pursuant to this paragraph (f) may be reduced as provided in section 22-54-114 (2.1) (b). SECTION 5. In Colorado Revised Statutes, 22-30.5-112.1, amend (1) (c), (1) (i), (1) (j), (1) (k) (II), (1) (m), (3), and (6); and add (1) (d.3), (1) (d.5), (1) (f.5), (1) (j.3), (1) (j.5), (1) (j.7), (1) (j.9), (1) (n), (1) (o), (3.5), and (3.7) as follows: 22-30.5-112.1. Charter schools - definitions - exclusive jurisdiction districts - authorized on or after July 1, 2004 - financing. (1) As used in this section, unless the context otherwise requires: (c) (I) "At-risk per pupil funding", for budget years commencing before July 1, 2017, means the amount of funding determined in accordance with the following formula: (The qualifying school district's at-risk funding divided by the qualifying school district's funded pupil count) x (the district charter school's percentage of at-risk pupils divided by the qualifying school district's percentage of at-risk pupils) (II) "At-risk per pupil funding", for the 2017-18 budget year and budget years thereafter, means the amount of funding determined in accordance with the following formula: (The qualifying school district's at-risk funding divided by the qualifying school district's funded membership) x (the district charter school's percentage of at-risk pupils divided by the qualifying school district's percentage of at-risk pupils) (d.3) "Average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (e). (d.5) "Averaging period" has the same meaning as provided in section 22-54-112.5 (1) (f). (f.5) "District funded membership" means a qualifying school district's funded membership, as defined in section 22-54-112.5 (1) (h). (i) "District per pupil on-line funding" means a school district's on-line funding, as specified in section 22-54-104 (4.5), divided by the district's on-line pupil enrollment for any budget year; except that, for the 2017-18 budget year and budget years thereafter, "district per pupil on-line funding" means a school district's on-line funding for any budget year divided by the district's on-line average daily membership for that budget year. (j) "District per pupil revenues" means the qualifying school district's total program, as defined in section 22-54-103 (6), for any budget year divided by the qualifying school district's funded pupil count for said budget year; except that, for the 2017-18 budget year and budget years thereafter, "district per pupil revenues" means the qualifying district's total program for any budget year divided by the qualifying district's funded membership, as defined in section 22-54-112.5 (1) (h), for that budget year. (j.3) "Funding averaging period" has the same meaning as provided in section 22-54-112.5 (1) (i). (j.5) "Membership" has the same meaning as provided in section 22-54-112.5 (1) (j). (j.7) "Multi-district on-line school" has the same meaning as provided in section 22-30.7-102 (6). (j.9) "On-line average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (l). (k) "On-line pupil enrollment" means: (II) For the 2008-09 budget year, and for budget years thereafter through the 2016-17 budget year, the number of pupils, on the pupil enrollment count day within the applicable budget year, enrolled in, attending, and actively participating in a multi-district on-line school, as defined in section 22-30.7-102 (6), created pursuant to article 30.7 of this title, by the district charter school. (m) "Qualifying school district" means a school district: (I) That has retained exclusive authority to authorize charter schools pursuant to the provisions of section 22-30.5-504; and (II) In which more than forty percent of the pupil enrollment or membership consists of at-risk pupils. (n) "Statewide average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (r). (o) "Statewide average enrollment growth" has the same meaning as provided in section 22-54-112.5 (1) (s). (3) (a) For budget year 2004-05 and budget years thereafter through the 2016-17 budget year, each district charter school and the qualifying school district that approved the charter shall negotiate funding under the charter contract. The district charter school shall receive one hundred percent of the adjusted district per pupil revenues for each pupil enrolled in the district charter school who is not an on-line pupil and one hundred percent of the district per pupil on-line funding for each on-line pupil enrolled in the district charter school; except that the qualifying school district may choose to retain the sum of the actual amount of the district charter school's per pupil share of the central administrative overhead costs for services actually provided to the district charter school, up to five percent of the adjusted district per pupil revenues for each pupil who is not an on-line pupil enrolled in the district charter school and up to five percent of the district per pupil on-line funding for each on-line pupil enrolled in the district charter school. (b) Notwithstanding any provision of this subsection (3) to the contrary, for budget years commencing before July 1, 2017, if a qualifying school district enrolls five hundred or fewer students, the district charter school shall receive funding in the amount of the greater of one hundred percent of the district per pupil on-line funding for each on-line pupil enrolled in the district charter school plus one hundred percent of the district per pupil revenues for each pupil who is not an on-line pupil enrolled in the district charter school, minus the actual amount of the district charter school's per pupil share of the central administrative overhead costs incurred by the qualifying school district, based on audited figures, or eighty-five percent of the district per pupil revenues for each pupil enrolled in the district charter school who is not an on-line pupil plus eighty-five percent of the district per pupil on-line funding for each on-line pupil enrolled in the district charter school. (c) If a charter school operates a full-day kindergarten program, for purposes of calculating the charter school's funding pursuant to this subsection (3), the number of pupils enrolled in the charter school shall include the supplemental kindergarten enrollment as defined in section 22-54-103 (15). (3.5) (a) (I) For the 2017-18 budget year and budget years thereafter, except as otherwise provided in paragraph (b) of this subsection (3.5), each district charter school and the qualifying school district that approved the charter shall negotiate funding under the contract. A district charter school that is not a multi-district on-line school shall receive an amount equal to one hundred percent of the adjusted district per pupil revenues for the applicable budget year multiplied by the district charter school's average daily membership for the applicable funding averaging period. A district charter school that is a multi-district on-line school shall receive an amount equal to one hundred percent of the district per pupil on-line funding multiplied by the district charter school's on-line average daily membership for the applicable funding averaging period. (II) Notwithstanding any provision of subparagraph (I) of this paragraph (a) to the contrary, a qualifying school district may choose to retain the actual amount of a district charter school's per pupil share of the central administrative overhead costs for services actually provided to the district charter school, up to five percent of the total amount of adjusted district per pupil revenues payable to a district charter school that is not a multi-district on-line school or up to five percent of the total amount of district per pupil on-line funding payable to a district charter school that is a multi-district on-line school. (b) For the 2017-18 budget year and budget years thereafter, if a qualifying school district has an average daily membership of five hundred or fewer students for the most recent funding averaging period: (I) A district charter school that is not a multi-district on-line school receives funding in an amount equal to the greater of: (A) One hundred percent of the adjusted district per pupil revenues for the applicable budget year multiplied by the district charter school's average daily membership for the applicable funding averaging period minus the actual amount of the district charter school's per pupil share of the central administrative overhead costs incurred by the qualifying school district, based on audited figures; or (B) Eighty-five percent of adjusted district per pupil revenues for the applicable budget year multiplied by the district charter school's average daily membership for the applicable funding averaging period; and (II) A district charter school that is a multi-district on-line school receives funding in an amount equal to the greater of: (A) One hundred percent of the district per pupil on-line funding for the applicable budget year multiplied by the district charter school's on-line average daily membership for the applicable funding averaging period minus the actual amount of the district charter school's per pupil share of the central administrative overhead costs incurred by the qualifying school district, based on audited figures; or (B) Eighty-five percent of district per pupil on-line funding for the applicable budget year multiplied by the district charter school's on-line average daily membership for the applicable funding averaging period. (c) If a district charter school operates a full-day kindergarten program, for purposes of calculating the district charter school's funding pursuant to this subsection (3.5), the number of pupils enrolled in the district charter school shall include the supplemental kindergarten average daily membership as defined in section 22-54-112.5 (1) (t). (3.7) Notwithstanding any provision of this section to the contrary: (a) (I) In the first year that a district charter school enrolls pupils, the qualifying school district shall calculate the district charter school's funding based on the charter school's projected membership on the first day of the school year. If the new district charter school is a multi-district on-line school, the qualifying school district shall calculate the district charter school's funding based on the number of on-line pupils expected to be enrolled on the first day of the school year. (II) The qualifying school district shall calculate the district charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the district charter school's first school year. If the calculated average daily membership or on-line average daily membership is different from the projected membership, the qualifying school district shall recalculate the district charter school's funding using the average daily membership or on-line average daily membership, whichever is applicable, of the first quarter of the then-current school year and adjust the district charter school's funding accordingly for the remainder of the first school year. (b) In the second year that a district charter school enrolls pupils and in any year in which a district charter school increases its program availability by at least one additional grade level, if the district charter school's average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current budget year exceeds the district charter school's average daily membership or on-line average daily membership for the applicable funding averaging period, the qualifying school district shall recalculate the district charter school's funding for the then-current budget year using the average daily membership or on-line average daily membership, whichever is applicable, for the first quarter of the then-current budget year and adjust the district charter school's funding accordingly for the remainder of the first school year. (c) If a district charter school's funding increases because of the recalculations described in this subsection (3.7), the qualifying school district shall report to the department the supplemental funding due to the district charter school based on the recalculations. The department shall pay the supplemental funding to the qualifying school district in monthly installments for the remainder of the budget year, and the qualifying school district shall increase the monthly payments due to the district charter school by the full amount received from the department for the remainder of the budget year. Notwithstanding any provision of this subsection (3.7) to the contrary, the amount of supplemental funding that a district charter school receives pursuant to this subsection (3.7) may be reduced as provided in section 22-54-114 (2.1) (b). (6) Notwithstanding any other provision of this section to the contrary and for the purposes of this section only, a school district in which more than forty percent of the pupil enrollment or membership consists of at-risk pupils at the time a charter school's application is first approved shall be deemed to have the same percentage of at-risk pupil enrollment or membership for the term of the charter contract. For purposes of renewal of the charter contract, the percentage of at-risk pupils in the school district at the time the renewal application is submitted shall be the percentage used for purposes of determining whether the school district is a qualifying school district and subject to the provisions of this section. SECTION 6. In Colorado Revised Statutes, 22-30.5-513, amend (1), (2) (b), (2) (b.5), (3), (4) (a) (I), (4) (a) (I.5) introductory portion, and (4) (a) (I.5) (A); and add (2) (b.3) as follows: 22-30.5-513. Institute charter schools - definitions - funding - at-risk supplemental aid - legislative declaration. (1) As used in this section, unless the context otherwise requires: (a) "Accounting district" means the school district within whose geographic boundaries an institute charter school is physically located. (b) "Accounting district's adjusted per pupil revenues" means the accounting district's per pupil funding plus the accounting district's at-risk per pupil funding. (c) "Accounting district's at-risk funding" means the amount of funding for at-risk pupils in the accounting district determined in accordance with the formulas described in section 22-54-104 (4). (d) (I) "Accounting district's at-risk per pupil funding" for budget years commencing before July 1, 2017, means the amount of funding determined in accordance with the following formula: (The accounting district's at-risk funding divided by the accounting district's funded pupil count) x (the institute charter school's percentage of at-risk pupils divided by the accounting district's percentage of at-risk pupils). (II) "Accounting district's at-risk per pupil funding", for the 2017-18 budget year and budget years thereafter, means the amount of funding determined in accordance with the following formula: (The accounting district's at-risk funding divided by the accounting district's funded membership) x (the institute charter school's percentage of at-risk pupils divided by the accounting district's percentage of at-risk pupils) (e) "Accounting district's funded membership" means an accounting school district's funded membership, as defined in section 22-54-112.5 (1) (h). (e) (f) "Accounting district's funded pupil count" shall have the same meaning as the term "district funded pupil count" defined in section 22-54-103 (7). (f) (g) "Accounting district's per pupil funding" means the per pupil funding calculated for the accounting district pursuant to the formula described in section 22-54-104 (3). (g) (h) "Accounting district's per pupil on-line funding" means on-line funding, as specified in section 22-54-104 (4.5), for any budget year divided by the on-line pupil enrollment; except that, for the 2017-18 budget year and budget years thereafter, "accounting district's per pupil on-line funding" means an accounting district's on-line funding for any budget year divided by the accounting district's on-line average daily membership for that budget year. (h) (i) "Administrative overhead costs" means all actual and reasonable costs incurred by the institute as a result of its performance of its obligations pursuant to this part 5. "Administrative overhead costs" shall not include any costs incurred in order to deliver services that an institute charter school may purchase at its discretion. (i) (j) "At-risk pupils" shall have the same meaning as provided in section 22-54-103 (1.5). (k) "Average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (e). (l) "Funding averaging period" has the same meaning as provided in section 22-54-112.5 (1) (i). (m) "Membership" has the same meaning as provided in section 22-54-112.5 (1) (j). (n) "Multi-district on-line school" has the same meaning as provided in section 22-30.7-102 (6). (o) "On-line average daily membership" has the same meaning as provided in section 22-54-112.5 (1) (l). (j) (p) "On-line pupil enrollment" means: (I) Repealed. (II) For the 2008-09 budget year, and for budget years thereafter through the 2016-17 budget year, the number of pupils, on the pupil enrollment count day within the applicable budget year, enrolled in, attending, and actively participating in a multi-district on-line school, as defined in section 22-30.7-102 (6), created pursuant to article 30.7 of this title by the institute charter school. (k) (q) "Pupil enrollment" shall have the same meaning as provided in section 22-54-103 (10). (l) (r) "Qualified charter school" shall have the same meaning as provided in section 22-54-124 (1) (f.6). (2) (b) For budget year 2004-05 and budget years thereafter through the 2016-17 budget year, each institute charter school and the institute shall negotiate funding under the charter contract at a minimum of ninety-five percent of the institute charter school's accounting district's adjusted per pupil revenues for each pupil enrolled in the institute charter school who is not an on-line pupil and ninety-five percent of the institute charter school's accounting district's per pupil on-line funding for each on-line pupil enrolled in the institute charter school. The institute may retain three percent of the accounting district's adjusted per pupil revenues for each pupil, who is not an on-line pupil, enrolled in the institute charter school and three percent of the accounting district's per pupil on-line funding for each on-line pupil enrolled in the institute charter school. (b.3) (I) For the 2017-18 budget year and budget years thereafter, each institute charter school and the institute shall negotiate funding under the contract. An institute charter school that is not a multi-district on-line school shall receive an amount equal to one hundred percent of the institute charter school's accounting district's adjusted district per pupil revenues for the applicable budget year multiplied by the institute charter school's average daily membership for the applicable funding averaging period. An institute charter school that is a multi-district on-line school shall receive an amount equal to one hundred percent of the institute charter school's accounting district's per pupil on-line funding multiplied by the institute charter school's on-line average daily membership for the applicable funding averaging period. (II) Notwithstanding any provision of subparagraph (I) of this paragraph (b.3) to the contrary, the institute may retain three percent of the total amount of the accounting district's adjusted per pupil revenues payable to an institute charter school that is not a multi-district on-line school or three percent of the total amount of the accounting district's per pupil on-line funding payable to an institute charter school that is a multi-district on-line school. (b.5) If an institute charter school operates a full-day kindergarten program, for purposes of calculating the institute charter school's funding pursuant to this subsection (2), the number of pupils enrolled in the institute's institute charter school shall include: (I) The supplemental kindergarten enrollment as defined in section 22-54-103 (15) for budget years beginning before July 1, 2017; and (II) The supplemental kindergarten average daily membership as defined in section 22-54-112.5 (1) (t) for the 2017-18 budget year and budget years thereafter. (3) (a) On or before November 10 of each budget year commencing before July 1, 2017, the institute shall certify to the state board each institute charter school's pupil enrollment and on-line pupil enrollment for that year. In certifying the pupil enrollment of each institute charter school to the state board, the institute shall specify the number of pupils enrolled in half-day kindergarten; the number of pupils enrolled in full-day kindergarten; the number of pupils enrolled in first grade through twelfth grade, specifying those who are enrolled as full-time students and those who are enrolled as less than full-time students; the number of expelled pupils receiving educational services pursuant to section 22-33-203; the number of pupils receiving educational programs under the "Exceptional Children's Educational Act", article 20 of this title; and the number of at-risk pupils. The institute shall also notify the department as to whether each institute charter school is a qualified charter school. (a.5) For the 2015-16 budget year and budget years thereafter, the institute shall certify to the department for each quarter of the school year each institute charter school's membership for each school day during the quarter, including specifying the number of at-risk pupils. The institute shall also certify to the department for each institute charter school for each quarter of the school year the number of the institute charter school's pupils who are enrolled each school day during the quarter in a multi-district on-line school, including specifying the number of at-risk pupils. (b) For purposes of the "Public School Finance Act of 1994", article 54 of this title, for budget years commencing before July 1, 2017, the department shall add the pupils enrolled in an institute charter school to the funded pupil count and the on-line pupil enrollment of the institute charter school's accounting district. (b.5) For purposes of the "Public School Finance Act of 1994", article 54 of this title, for the 2017-18 budget year and budget years thereafter, the department shall add the membership of each institute charter school that is not a multi-district on-line school to the funded membership of the institute charter school's accounting district. For each institute charter school that is a multi-district on-line school, the department shall add the institute charter school's on-line average daily membership to the on-line average daily membership of the institute charter school's accounting district. (4) (a) (I) (A) For budget years commencing before July 1, 2017, for each institute charter school, the department shall withhold from the state equalization payments of the institute charter school's accounting district an amount equal to one hundred percent of the accounting district's adjusted per pupil revenues multiplied by the number of pupils enrolled in the institute charter school who are not on-line pupils plus an amount equal to one hundred percent of the accounting district's per pupil on-line funding multiplied by the number of on-line pupils enrolled in the institute charter school. (B) For the 2017-18 budget year and budget years thereafter, the department shall withhold from the state equalization payments of the institute charter school's accounting district an amount equal to one hundred percent of the accounting district's adjusted per pupil revenues multiplied by the institute charter school's average daily membership, if the institute charter school is not a multi-district on-line school, or one hundred percent of the accounting district's per pupil on-line funding multiplied by the institute charter school's on-line average daily membership, if the institute charter school is a multi-district on-line school. (C) The department shall forward to the institute the amount withheld minus an amount not to exceed one percent of the amount withheld that the department may retain as reimbursement for the reasonable and necessary costs to the department to implement the provisions of this part 5. (D) For the 2017-18 budget year and budget years thereafter, if the department recalculates the funding for an institute charter school pursuant to section 22-54-112.5 (5), the department shall reduce the amount withheld pursuant to this subparagraph (I) or forward to the institute supplemental funding for the institute charter school from moneys appropriated pursuant to section 22-54-114 (2.1). Notwithstanding any provision of this sub-subparagraph (D) to the contrary, the amount of supplemental funding that an institute charter school receives pursuant to this sub-subparagraph (D) may be reduced as provided in section 22-54-114 (2.1) (b). (I.5) The institute shall forward to each institute charter school an amount equal to the institute charter school's pupil enrollment multiplied by the accounting district's adjusted per pupil revenues of the institute charter school's accounting district amount calculated for the institute charter school pursuant to subparagraph (I) of this paragraph (a), minus: (A) The amount withheld not to exceed one percent retained by the department pursuant to subparagraph (I) of this paragraph (a); SECTION 7. In Colorado Revised Statutes, 22-30.5-112.1, amend (1) (e) as follows: 22-30.5-112.1. Charter schools - definitions - exclusive jurisdiction districts - authorized on or after July 1, 2004 - financing. (1) As used in this section, unless the context otherwise requires: (e) "Central administrative overhead costs" shall have the same meaning as provided in section 22-30.5-112 (2) (a.5) (I) (III). SECTION 8. In Colorado Revised Statutes, 22-30.5-112.2, amend (1) (d) as follows: 22-30.5-112.2. Charter schools - at-risk supplemental aid - definitions - legislative declaration. (1) As used in this section, unless the context otherwise requires: (d) "District per pupil revenues" has the same meaning as defined in section 22-30.5-112 (2) (a.5) (II) (V). SECTION 9. In Colorado Revised Statutes, 22-30.5-506, amend (4) (a) as follows: 22-30.5-506. State charter school institute fund - created. (4) (a) The state charter school institute shall create in the fund an account for payment of the institute's administrative overhead costs, as defined in section 22-30.5-513 (1) (h) (i), which account consists solely of moneys retained by the institute from the institute charter schools' adjusted per pupil revenues and per-pupil on-line funding pursuant to section 22-30.5-513 (4) (a) (I.5) (E). Except as otherwise provided in paragraph (b) of this subsection (4), at the end of a budget year, if the amount of unexpended and unencumbered moneys remaining in the account exceeds twenty percent of the amount retained by the institution pursuant to section 22-30.5-513 (4) (a) (I.5) (E) for the applicable budget year, the institute shall transfer the amount of the excess to the institute charter school assistance fund created in section 22-30.5-515.5. SECTION 10. In Colorado Revised Statutes, 22-33-203, amend (2) (d) as follows: 22-33-203. Educational alternatives for expelled students. (2) (d) If an expelled student is receiving educational services delivered by a school district other than the expelling school district, by a charter school in a school district other than the expelling school district, by a board of cooperative services, by a nonpublic, nonparochial school, or by a pilot school pursuant to an agreement entered into pursuant to subparagraph (I) of paragraph (c) of this subsection (2), the expelling school district shall transfer ninety-five percent of the district per pupil revenues, as defined in section 22-30.5-112 (2) (a.5) (II) (V) to the school district, charter school, nonpublic, nonparochial school, board of cooperative services, or pilot school that is providing educational services, reduced in proportion to the amount of time remaining in the school year at the time the student begins receiving educational services. SECTION 11. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 6, 2014, if adjournment sine die is on May 7, 2014); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.