Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None.
Effective Date: Upon signature of the Governor.
Appropriation Summary for FY 1999-2000: None required.
Local Government Impact: The bill will increase expenditures paid by school districts to charter schools. Based on October 1998 enrollment data and current financing arrangements, annual funding for charter schools would be increased by $6,021,423.

The bill requires that for FY 1999-00 and subsequent budget years, charter schools shall receive not less than 95 percent of the school district per pupil revenues multiplied by the number of pupils enrolled in the charter school. School districts are allowed to retain up to 5 percent of district per pupil revenues in payment for the charter school's share of central administrative overhead costs. District per pupil revenues (PPR) are defined as the district's total program for any budget year, divided by the district's funded pupil count for that budget year. The bill allows charter schools to contract with the school district to purchase support services in addition to those included in central administrative overhead costs, and specifies the method for calculating these costs.

The bill will not affect state revenues or expenditures. Rather, it will increase the amount of expenditures school districts pay to charter schools within the boundaries of the school district.

Under current law, the financing guidelines for funding a charter school require the charter school and the school district to begin contract funding discussions using 80 percent of the district per pupil operating revenues (PPOR). The Department of Education indicates that charter schools are currently receiving between 80 percent and 120 percent of PPOR (which differs from the PPR, as defined in the bill). PPOR does not include insurance and capital reserves which total $223 per student; PPR does include insurance and capital reserves.

Charter schools funding for FY 1998-99 is $60,169,267. Because the bill requires that charter schools shall receive not less than 95 percent of the school district per pupil revenues multiplied by the number of pupils enrolled in the charter school, this fiscal note assumes that those charter schools currently receiving in excess of 95 percent will continue to receive their ongoing level of funding. Thus, the fiscal impact of HB 99-1113 reflects the cost school districts must pay to those charter schools below 95 percent — $6,021,423.

Although the bill allows charter schools to purchase support services from the school district, the net effect of this provision cannot be quantified at this time.

The bill will increase school district expenditures ($6,021,423 aggregate) for funding charter schools in their district, but no additional state moneys will be appropriated to school districts for this purpose.