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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	April 1, 2014 01:29 PM
From:	Representative Jim Christiana
To:	All House members
Subject:	Commonwealth Payment of Cyber Charter Schools

Pennsylvania’s current charter funding system, by which cyber charter schools receive payment from a student’s local school district, has fueled unnecessary tensions between school districts and cyber charter schools. Because cyber charters are approved at the state level, accept students from all 67 counties and are basically statewide school districts, I believe they should be paid directly by the Commonwealth through an appropriation specifically for this purpose. For this reason, I am preparing to introduce legislation that will provide for Commonwealth payment of per-student expenditures by cyber charter schools. Our current Charter School Law sets forth a formula under which school districts must pay all charter schools an amount equal to the district’s budgeted per-student expenditure for the prior school year, minus certain deductions, for each student residing in the district who attends a charter school, regional charter school or cyber charter school. This formula was originally designed for charter schools and regional charter schools, which are approved and overseen by local school districts, and are located within the region of the student’s home school district. However, cyber charter schools receive their approval and oversight from the Department of Education (PDE); therefore, their funding should come from the Commonwealth’s General Fund -- not from local property taxpayers. Under my proposal, PDE will make per-student payments directly to cyber charter schools, from an appropriation to PDE for this purpose. If the appropriation is insufficient, per-student payments will be reduced on a pro rata basis. The per-student cyber charter school payment for non-special education students will be equal to each cyber charter school’s per-student expenditure for the prior school year, as certified by the cyber charter school and subject to audit by PDE. In the case of newly operating cyber charter schools, the per-student payment will be equal to the blended average per-student expenditure for all cyber charter schools for the prior school year. My bill will require the cyber charter school payment for special education students to be made by PDE as well. However, my bill also calls upon the State Board of Education to promulgate final-omitted regulations that will set forth a new formula for reimbursing cyber charter schools for their actual costs of providing special education services. The formula will be developed in cooperation with PDE and with organizations representing special education students and cyber charter schools. Once the new formula is in effect, cyber charter schools will be reimbursed for special education costs based on that formula. Finally, my bill removes cyber charter school students from the average daily membership for their school districts of residence, because school districts will not be required to make cyber charter school payments out of their own funds. My legislation makes no changes to the current funding method for brick-and-mortar charter schools. As the number of innovative education options increase in Pennsylvania, we must correct funding inequities and alleviate tensions. Doing so will allow all of our educational institutions to focus more on preparing our students for a productive future and less time quarreling over the checkbook. If you have any questions or concerns about this legislation, please contact Joshua Konecheck at 84240 or at jkonecheck@pahousegop.com. Thank you for your consideration.

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