State board allocates one-time charter funds; $200,560 set for large charters, targeted increases for smallest schools

The Utah State Board of Education voted unanimously to allocate one-time legislative funds for charter schools, awarding $200,560 to each charter with more than 2,000 students and directing the remainder to raise base funding for schools with fewer than 2,000 students, including an amendment that guarantees up to $85,000 for schools with fewer than 500 students.

Board members and staff described the vote at the board’s meeting during the discussion of agenda item 6, an unfinished business item carried forward from the previous agenda. Dale Frost, minimum school program administrator, explained the legislative estimates and the statutory formula that determine charter school allocations and presented three distribution options that the board could choose from.

The board’s action follows the fiscal-year methodology debate and a short staff presentation explaining that the Legislature appropriated $3,600,000 for this one-time mitigation pot in the current estimates. Frost said the staff’s legislative estimate favored increasing the base amount for smaller charters rather than augmenting the per-student amount, which, staff advised, would disproportionately benefit larger charter schools. "We saw the verbiage that it should be used to increase the base amount, not the per-student amount, and that the fund should not be used to benefit larger charter schools," Frost said.

Member Davis moved that charters with more than 2,000 students receive $200,560 each and that remaining one-time funds be allocated to charter schools with fewer than 2,000 students; Member Earl then proposed an amendment to direct up to $85,000 to schools with fewer than 500 students and allocate the rest among the remaining schools with fewer than 2,000 students. The amendment passed unanimously and the amended motion passed unanimously.

Board members discussed three staff-provided distribution scenarios: (1) allocate all one-time funds to smaller charters (no funding to charters over 2,000 students), which would have produced roughly $98,000 for small charters under current projections; (2) repeat the fiscal 2025 methodology that used the largest eligible charter as the funding benchmark (which would have put the largest-charter base near $217,120 and smaller-charter bases near $79,000 under current projections); or (3) a compromise that assigns an equal base (about $90,000) to all charters. Staff noted that enrollments fluctuate and that final amounts will be adjusted when actual fall enrollment data are trued up.

Several board members voiced the rationale for the compromise approach. Member Davis said the pot originally was intended to support small charters’ administrative capacity and advocated for protecting that intent while recognizing the mitigating-language change in statute. Member Brinton asked whether the compromise would repeat last year’s effects on large charters; staff responded that larger charters had seen reductions from the old formula but the compromise preserves some mitigation rather than a full cut. Member Earl proposed the amendment to ensure the very smallest schools would receive a guaranteed minimum that is at least comparable to last year’s levels.

Staff emphasized the board’s broad discretion for this one-time appropriation and noted that final allocations will be adjusted after year-end close and when actual enrollment figures are available. Frost said the estimates are preliminary: "These are estimates, and the board has authority to allocate that $3,600,000 as you see fit. It doesn't have to be for the charters fewer than 2,000 students," he said.

The board approved the amended motion by a unanimous voice vote. The item will be reflected in final fiscal materials after year-end close and fall enrollment true-up.