Committee advances charter school bill with amendment tying state aid to statewide average

A legislative committee voted to advance Senate Bill 22-41 after approving an amendment that would set the state’s payment to public charter schools at the statewide average amount distributed per student on the state side of the formula.

Representative Richter requested the amendment, which replaces language that would have directed per-pupil state aid payments tied to specific statutory subsections with language that directs the state to pay an amount equal to the statewide average distributed per student under the referenced finance calculation for the prior year. Representative Schreiber Beck moved the amendment; Representative Hager seconded. The committee adopted the amendment on a 12-2 roll-call vote and later approved a "do pass" recommendation for the amended bill by an 8-6 vote.

During the hearing, Amy Kopas, executive director of the Council of Educational Leaders, explained the rationale: public charter schools lack authority to levy local property taxes, and the finance formula has both a state share and a local share. Kopas said the amendment confines the payment to the state share because charter schools cannot generate the local share through property taxes; any additional funding would require other sources, such as general fund appropriations or private donations.

Adam Tesher, school finance officer at the Department of Public Instruction (DPI), told the committee he interpreted the amendment as using the statewide average of the state-side calculation. He estimated that the statewide average for the state portion of the per-pupil payment is about $8,200 for the current year (amount varies year to year with legislative action and changes in taxable valuations). Tesher cautioned that local districts vary widely: some districts receive higher state aid, and some receive little or none because local revenue covers their funding needs. He explained that using a local district’s share instead of a statewide average could produce large swings in the year-to-year state match for a charter school if local taxable valuation changes.

Committee members asked whether federal program dollars (for example, free and reduced-price lunch-related aid) would flow to charter schools; the committee was told charter schools would be eligible for federal allocations tied to eligible students if reporting requirements were met.

Opponents at the hearing raised concerns about local control, the potential for charter schools to drain resources from existing public schools, and impacts on rural districts with limited staffing. Supporters noted that innovation waivers already exist under earlier law (the committee discussion referenced programs such as the Harvesting Innovation initiative and Northern Cass examples) and that charter schools would still be subject to most education statutes except where this chapter provides otherwise.

The committee recorded a roll-call vote of 8 in favor and 6 opposed on the final motion to give Senate Bill 22-41 a "do pass" recommendation. Representative Halk was listed as the bill carrier.