Committee backs change to cap state lease payments for oversized K‑12 charter facilities

The Senate Education Committee voted 4–0 (one excused) to recommend House Bill 20, a measure that changes how the state calculates payments for leased K‑12 facilities, most often used by charter schools.

The bill, sponsored by the Select Committee on School Facilities, directs the Department of Education to make lease payments equal to the lesser of the total lease cost or a payment based on the average market cost per square foot for comparable school facilities multiplied by an "allowable square footage" tied to student enrollment (ADM). Committee members said the change is intended to prevent a district or charter from receiving full lease reimbursement for an oversized facility that does not match the student population.

“[The bill] goes into an allowable square footage approach, which is what we do for schools,” a sponsor explained, saying the method creates parity with how the state funds school buildings and reduces the incentive to lease disproportionately large space for small student counts.

Senators asked whether charter operators could still lease a building that is larger than needed; sponsors confirmed they could, but the state reimbursement would be capped and excess costs would need to be covered by the charter or district. Committee members also confirmed that leased square footage does not generate additional major maintenance funding and that districts retain the right to request a state review of payment calculations.

No members of the public appeared to testify in opposition; no agency objections were recorded in committee. The measure passed the committee by roll call (4 ayes, 1 excused) and was recommended to the floor.