2023 Delaware Code › Title 14 - Education › Chapter 5. CHARTER SCHOOLS › § 509. School financing.

§ 509. School financing.
(a) Charter schools shall be eligible for public funds under procedures established by this section. Notwithstanding that this Code may establish procedures for the funding of a public school choice program and that such program may include charter schools among those schools which students may choose, funding for charter schools shall be as provided in this section.
(b) A charter school shall receive a payment with respect to each of its students equal to:
(1) From the State on or before December 31, the funding equivalent to the Division I staffing, including fractional funding of partial units, excluding funding for a Superintendent, Division II — All Other Costs and Energy funding, minor capital improvements and school building maintenance funded generated by the annual student unit count conducted on September 30 of each year in accordance with Department of Education regulations. Minor capital improvements shall be funded in the same manner as the Vocational Technical School Districts. In the case of Division III — Equalization, a charter school shall receive from the State an amount that is determined by weighting the Division III per unit values that would have been generated by its students had they been counted in their district of residence. In addition, a charter school shall receive a prorated portion of any other funds appropriated to the Department of Education that are intended to be allocated on a student, employee or school state share. For the purposes of calculating such funding, each charter school student shall be counted in a separately reported unit count of the charter school, and not counted for any purposes in the student's district of residence. For any partially funded unit generated at a charter school, the charter school is free to negotiate the use of such unit with the chartering district, and other public school districts, in order to purchase central custodial, administrative, clerical, direct teaching or educationally related services. If such an agreement is not negotiated, a payment based on the average State cost per unit shall be payable to both the charter school and the district issuing the charter, provided that the sum of both fractions justifies an additional unit. The State shall advance 75% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year, and does not maintain the status of formal review or probation. The status of formal review or probation shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. A final roster shall be due September 30. Notwithstanding the above, a charter school in its first year of operation shall receive 50% of the anticipated funding pursuant to this subsection at the beginning of the fiscal year, provided that the charter school has provided the Department of Education with a preliminary roster of its students on or before May 1 of such year. The charter school shall receive an additional 25% of the funding due pursuant to this subsection on October 1 of its first year in operation and shall receive the remaining 25% on February 1 of its first year in operation, provided that the school has completed and posted the required standardized financial report forms and the Department has reviewed those forms and determined that the school's finances will not at that time lead the Department to submit the school for formal review pursuant to § 515 of this title. A determination that the school will be submitted for formal review shall prompt the Department of Education to advance a level of funding appropriate to pending administrative action. The percentage of funding to be provided to charter schools on July 1 and October 1 pursuant to the above may be increased in the Secretary's discretion.
(2) From the school districts in which its students reside on or before December 31 of each year, the local cost per student (regular or special education, as the case may be), net of transportation expenses provided for pursuant to § 508 of this title. The school districts in which its students reside shall advance at least 35% of the anticipated funding pursuant to this subsection at the beginning of each fiscal year provided that the charter school has provided the school districts of residence with a preliminary roster of its students on or before May 1 of such year. This advance may be paid from Division III — Equalization funds if the district's prior fiscal year current expense local funds balance was 20% or less pursuant to § 1507 of this title. A final roster shall be due September 30. In the event of the failure of a school district to make timely payments to a charter school as required in this paragraph, the Department of Education shall have the authority to direct transfer of such funds from future State funding allocations after the school district receives reasonable notice and an opportunity to be heard, as set forth in the rules and regulations established by the Department.
(c) If a parent or legal guardian of a student enrolled outside the district pursuant to this chapter moves during the school year to a district different from the district in which that parent's or legal guardian's child resided at the time of the annual unit count, the child's first district of residence shall continue to be responsible for payments to the charter school for the balance of the school year pursuant to paragraph (b)(2) of this section. The child's new district of residence shall be responsible for all such payments during succeeding years.
(d) The Department of Education shall annually calculate the local cost per student expended by each school district for each type of student for the year immediately preceding based on the formula set forth in subsection (e) of this section, adjusted by a factor necessary to fund the charter school on a basis reasonably equivalent to the current year local cost per student, which factor shall be established in the annual Appropriations Act. The Department shall annually certify each local district's local cost per student expenditure by September 1 of each year.
(e) Local cost per student as used in this section shall be calculated as follows:
Total Local Operating Expenditure in Preceding Fiscal Year
________________
________________ Total Division I Units minus Spec School Units
________________
________________ Number of Pupils per Unit
Where:
Total local OperatingExpenditure inPreceding FY
=
Sum of all expendituresfrom local sources minuslocal expenditures fortuition minus local expend-itures for debt service minuslocal expenditures for MinorCapital Improvement minuslocal cafeteria expendituresminus any other local expen-ditures deemed by the Secret-ary of Education to be inap-propriate for inclusion for thepurpose of this chapter.
Division I UnitsFor each Districtor Special School
=
Division I Units certifiedby the Department of Educationas of September 30 of eachyear
Pupils per Unit
=
Number of Pupils required forone particular unit of funding asspecified in § 1703 of thistitle.
________________
(f) For any student, who because of educational need requires services that are appropriately financed pursuant to the provisions of Chapter 6 of this title, either at the outset or subsequent to a decision to enroll in a charter school, the student's district of residence shall remain financially responsible for such student and the charter school shall receive from such district a payment determined in accordance with the provisions of Chapter 6 of this title.
(g) Any payment received by a charter school pursuant to this section may be used for current operations, minor capital improvements, debt service payments or tuition payments.
(h) The Department of Education, in consultation with the Office of Management and Budget, shall annually publish a list of vacant and unused buildings and vacant and unused portions of buildings that are owned by this State or by school districts in this State and that may be suitable for the operation of a charter school. The Department of Education, in consultation with the Office of Management and Budget, shall make the list available to applicants for charter schools and to existing charter schools. The list shall include the address of each building, a short description of the building and the name of the owner of the building.
(i) In return for the receipt by a charter school of state funds allocated directly to the school for extra time, professional development, driver education or disciplinary programs, the school shall provide such programs.
(j) If after September 30, a pupil ceases to be enrolled in a charter school and is thereafter enrolled in a reorganized school district for the balance of the fiscal year, nothing contained in this section shall prevent a charter school which has received any funding for the student and the school district in which the student is subsequently enrolled from entering into an agreement providing for the proration of student funding between or among the charter school and the school district in which the student is subsequently enrolled. Funding in any subsequent fiscal year shall be as otherwise provided in this Code.
(k) A charter school shall display on its website all financial reporting documents as specified in § 513 of this title.
(l) Charter schools shall have the same access to conduit bond financing as any other nonprofit organization, and no state or local government unit may impose any condition or restriction on a charter school's approval solely because the applicant is a public charter school. It is the further intent that a charter school shall apply for conduit funding to issuers within the State unless more favorable terms may be found elsewhere.
(m) The Department of Education shall administer a performance fund for charter schools, to be known as the “Charter School Performance Fund.” The Department of Education shall establish threshold eligibility requirements for applicants desiring to apply for funding, which shall include but not be limited to a proven track record of success, as measured by a performance framework established by the charter school's authorizer or comparable measures as defined by the Department. The Department of Education shall also establish criteria to evaluate applications for funding, which shall include but not be limited to the availability of supplemental funding from nonstate sources at a ratio to be determined by the Department. The Department of Education shall prioritize those applications from applicants that have:
(1) Developed high-quality plans for start-up or expansion; or
(2) Serve high-need students, as defined by the Department.
The Fund shall be subject to appropriation and shall not exceed $5 million annually.
70 Del. Laws, c. 179, §  2;  70 Del. Laws, c. 186, §  1;  71 Del. Laws, c. 132, §§  360, 361;  71 Del. Laws, c. 180, §  26;  71 Del. Laws, c. 354, §  383;  72 Del. Laws, c. 395, §  351;  73 Del. Laws, c. 164, §§  9, 10;  75 Del. Laws, c. 88, §  16(2);  75 Del. Laws, c. 89, §  425;  78 Del. Laws, c. 77, §  33(b);  78 Del. Laws, c. 187, §§  2, 3;  79 Del. Laws, c. 51, §§  3, 4;  79 Del. Laws, c. 321, §  1;