§ 49-13-112 — Allocation of state and local funds and federal funds

(a) (1) A local board of education shall allocate to the charter school an amount equal to: (A) The total of the state and local student-generated funds for member students in the charter school for the prior year in alignment with the TISA pursuant to chapter 3, part 1 of this title; (B) The average per pupil local funds received by the district in the current school year above those required by the TISA for each member student in the charter school in the prior year; (C) The per student state and local funds received by the LEA for member students in the charter school in the current school year beyond the prior year's membership; and (D) All appropriate allocations under federal law or regulation, including, but not limited to, IDEA and ESEA funds. (2) Federal funds received by the LEA must be disbursed to charter schools authorized by the LEA by either joint agreement on shared services by individual charters or sub-grants to charters for the charter's equitable share of the federal grant based on eligible students. The allocation must be made in accordance with the policies and procedures developed by the department of education. (3) Each LEA shall include as part of its budget submitted pursuant to § 49-2-203 , the per pupil amount of local money it will pass through to charter schools during the upcoming school year, including all calculations listed in this section. Allocations to the charter schools during that year must be based on the calculated amounts. The LEA shall distribute the portion of local funds it expects to receive in no fewer than nine (9) equal installments to the charter schools in the same manner as state funds are distributed pursuant to chapter 3 of this title. An LEA shall adjust payments to charter schools, at a minimum, in October, February, and June, based on changes in revenue, student membership, or student services. All funds received by a charter school must be spent according to the budget submitted or as otherwise revised by the public charter school governing body, subject to the requirements of state and federal law. (b) The commission shall receive from the department or from the LEA in which the public charter school is located, as appropriate, the total of the state and local student-generated funds for member students in the charter school for the prior year in alignment with the TISA, the average per pupil local funds received by the LEA in the current school year above those required by the TISA for each member student in the charter school in the prior year, the per student state and local funds received by the LEA for all additional member students in the charter school in the current year above the prior year's membership, and the per student state and local funds received by the LEA for member students in the charter school in the current school year beyond the prior year's membership for the students enrolled in a public charter school authorized by the commission. The commission shall receive, for the public charter schools the commission authorizes, all appropriate allocations of federal funds as received by other LEAs under federal law or regulation, including, but not limited to, Title I, IDEA, and ESEA funds. All funding allocations and disbursements must be made in accordance with procedures developed by the department. (c) The state board of education shall promulgate rules and regulations that provide for the determination of the allocation of state and local funds as provided in subsection (a) and this subsection (c). Notwithstanding § 4-5-208 , any rules promulgated under this subsection (c) may be promulgated as emergency rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. At a minimum, the rules must provide that: (1) Allocations are based on one hundred percent (100%) of state and local funds received by the LEA, including current funds allocated for capital outlay purposes and funds generated under the fast-growth stipends detailed in § 49-3-107 , excluding the proceeds of debt obligations and associated debt service; and (2) (A) With the exception of the annual authorizer fees provided under this chapter, a public charter school shall not be required to pay a fee or purchase any services from the authorizer. Public charter schools shall not be required to pay any fee as a condition for approval of a public charter school application by the authorizer or for recommendation for approval by authorizer staff or a committee established by the authorizer for the purposes of making recommendations for public charter school application decisions; (B) A public charter school may choose to purchase services from an LEA, such as transportation or food services. In such event, the public charter school and the LEA shall execute a service contract, separate from the charter agreement, setting forth the mutual agreement of the parties concerning any service fees to be charged to the public charter school; (C) A public charter school shall not pay any administrative fee to the authorizer for charter authorizing functions, except as provided through the annual authorizer fees mandated or permitted by this chapter; and (D) If the charter agreement includes a provision whereby the authorizer will provide services for employee benefits or retirement, then the authorizer may withhold funds to cover the costs of the employee benefits or retirement services. If a services contract is executed with the authorizer, then the authorizer may withhold funds to cover the costs of the services. (d) [Deleted by 2022 amendment.] (e) Each authorizer is responsible for reporting and submitting funds to the appropriate retirement system, as required under § 8-35-242 . (f) A public charter school may also be funded by: (1) (A) Federal grants; (B) Grants, gifts, devises or donations from any private sources; (C) State funds appropriated for the support of the public charter school, if any; and (D) Any other funds that may be received by the local school district. (2) Receipt of any such funds shall be reported to the authorizer. Public charter schools, the local board of education and the state department of education are encouraged to apply for federal funds appropriated specifically for the support of public charter schools.

Legislative History

Amended by 2022 Tenn. Acts, ch. 966, Secs.s 70, s 71, s 72eff. 7/1/2023. Amended by 2022 Tenn. Acts, ch. 966, s 69, eff. 7/1/2023. Amended by 2019 Tenn. Acts, ch. 219, Secs.s 42, s 43, s 44, s 45, s 46eff. 4/26/2019. Amended by 2017 Tenn. Acts, ch. 307, Secs.s 11, s 12, s 13eff. 7/1/2017. Amended by 2017 Tenn. Acts, ch. 307, s 10, eff. 7/1/2017. Amended by 2014 Tenn. Acts, ch. 850, s 11, eff. 4/30/2014. Amended by 2013 Tenn. Acts, ch. 326, s 4, eff. 7/1/2013. Acts 2002, ch. 850, §12; 2009 , ch. 555, § 8; 2011 , ch. 507, §§ 7, 8; 2012 , ch. 1021, § 9; 2012, ch. 1097, § 8.