Utah Charter Network presses for larger ongoing base funding for small charter LEAs

The Utah Charter Network and representatives from the State Charter School Board asked the Education Committee to increase ongoing base funding for small charter local education agencies (LEAs) to help cover administrative, compliance and accountability costs.

Cynthia Phillips, representing the State Charter School Board, and Kim Frank, executive director of the Utah Charter Network, told the committee that charter LEAs must meet hundreds of reporting and accountability obligations and that smaller charter LEAs lack economies of scale. "Because they must meet the same extensive accountability and reporting requirements as public school districts, small charter schools need similar funding," Phillips said.

Nut graf: Network leaders and board representatives proposed a phased approach to increase base funding for charter LEAs so small charters can hire one-to-two administrative FTEs and reduce the unfunded administrative burden. Their request listed two phase-in options: a three-year phase that would add several million in ongoing funding per year (presenters cited a $13 million ongoing target and an initial annual ongoing step of approximately $5.1 million in the proposal) or a five-year phase-in. The presenters recommended funding the phase-in from the Education Stabilization Fund (one-time funds) to achieve a sustained ongoing base.

Panelists said a legislative audit had previously cataloged more than 300 separate reports and compliance requirements for LEAs and that audits and reporting obligations have not materially declined despite task-force efforts. Kim Frank and Cynthia Phillips said portions of prior administrative funding were one-time or not tied to WPUs and that smaller charter LEAs spend significant operational dollars on compliance that reduces classroom resources.

Committee members asked whether recent increases in charter revenue via the local replacement formula reduce the need for additional base funding. Charter network representatives said the local replacement formula addresses property-tax replacement and does not cover transportation or the full set of administrative obligations; they asked the committee to treat the charter base funding request as complementary to other funding streams.

Ending: The network asked for a legislative phase-in to move toward near parity with small-district base funding while noting they were not seeking dollar-for-dollar equality and acknowledged the budget constraints in the current fiscal year.