Tex.
Educ. Code Section 12.106
State Funding
(a)
A charter holder is entitled to receive for the open-enrollment charter school funding under Chapter 48 (Foundation School Program) equal to the amount of funding per student in weighted average daily attendance, excluding the adjustment under Section 48.052 (Sparsity Adjustment), the funding under Sections 48.101 (Small and Mid-sized District Allotment), 48.110 (College, Career, or Military Readiness Outcomes Bonus), 48.111 (Fast Growth Allotment), and 48.112 (Teacher Incentive Allotment), and enrichment funding under Section 48.202 (Tier Two Allotment)(a), to which the charter holder would be entitled for the school under Chapter 48 (Foundation School Program) if the school were a school district without a tier one local share for purposes of Section 48.266 (Distribution of Foundation School Fund).(a-1)
In determining funding for an open-enrollment charter school under Subsection (a), the amount of the allotment under Section 48.102 (Special Education) is based solely on the basic allotment to which the charter holder is entitled and does not include any amount based on the allotment under Section 48.101 (Small and Mid-sized District Allotment).(a-2)
In addition to the funding provided by Subsection (a), a charter holder is entitled to receive for the open-enrollment charter school an allotment per student in average daily attendance in an amount equal to the difference between:(1)
the product of:(A)
the quotient of:(i)
the total amount of funding provided to eligible school districts under Section 48.101 (Small and Mid-sized District Allotment)(b) or (c); and(ii)
the total number of students in average daily attendance in school districts that receive an allotment under Section 48.101 (Small and Mid-sized District Allotment)(b) or (c); and(B)
the sum of one and the quotient of:(i)
the total number of students in average daily attendance in school districts that receive an allotment under Section 48.101 (Small and Mid-sized District Allotment)(b) or (c); and(ii)
the total number of students in average daily attendance in school districts statewide; and(2)
$125.(a-3)
In addition to the funding provided by Subsections (a) and (a-2), a charter holder is entitled to receive for the open-enrollment charter school enrichment funding under Section 48.202 (Tier Two Allotment) based on the state average tax effort.(a-4)
In addition to the funding provided by Subsections (a), (a-2), and (a-3), a charter holder is entitled to receive funding for the open-enrollment charter school under Sections 48.110 (College, Career, or Military Readiness Outcomes Bonus) and 48.112 (Teacher Incentive Allotment) and Subchapter D (Transportation Allotment), Chapter 48 (Foundation School Program), if the charter holder would be entitled to the funding if the school were a school district.(a-5)
To ensure compliance with the requirements for the maintenance of state financial support for special education under 20 U.S.C. Section 1412(a)(18), in determining the funding for an open-enrollment charter school under Subsection (a) for the Section 48.102 (Special Education) allotment, the commissioner shall:(1)
if necessary, increase the amount of that allotment to an amount equal to the amount the charter holder was entitled to receive for the charter school under the allotment under former Section 42.151, Education Code, for the 2018-2019 school year; and(2)
reduce the amount of the allotment the charter holder is entitled to receive for the charter school under Subsection (a-2) by the amount of any increase provided for the charter school under Subdivision (1).(a-6)
Subsection (a-5) and this subsection expire September 1, 2025.(b)
An open-enrollment charter school is entitled to funds that are available to school districts from the agency or the commissioner in the form of grants or other discretionary funding unless the statute authorizing the funding explicitly provides that open-enrollment charter schools are not entitled to the funding.(c)
The commissioner may adopt rules to provide and account for state funding of open-enrollment charter schools under this section. A rule adopted under this section may be similar to a provision of this code that is not similar to Section 12.104 (Applicability of Title)(b) if the commissioner determines that the rule is related to financing of open-enrollment charter schools and is necessary or prudent to provide or account for state funds.(d)
Subject to Subsection (e), in addition to other amounts provided by this section, a charter holder is entitled to receive, for the open-enrollment charter school, funding per student in average daily attendance in an amount equal to the guaranteed level of state and local funds per student per cent of tax effort under Section 46.032 (Allotment)(a) multiplied by the lesser of:(1)
the state average interest and sinking fund tax rate imposed by school districts for the current year; or(2)
a rate that would result in a total amount to which charter schools are entitled under this subsection for the current year equal to $60 million.(e)
A charter holder is entitled to receive funding under Subsection (d) only if the most recent overall performance rating assigned to the open-enrollment charter school under Subchapter C (Accreditation Status), Chapter 39 (Public School System Accountability), reflects at least acceptable performance. This subsection does not apply to a charter holder that operates a school program located at a day treatment facility, residential treatment facility, psychiatric hospital, or medical hospital.(f)
Funds received by a charter holder under Subsection (d) may only be used:(1)
to lease an instructional facility;(2)
to pay property taxes imposed on an instructional facility;(3)
to pay debt service on bonds issued to finance an instructional facility; or(4)
for any other purpose related to the purchase, lease, sale, acquisition, or maintenance of an instructional facility.(g)
In this section, “instructional facility” has the meaning assigned by Section 46.001 (Definition).(h)
Except as provided by Subsection (i), all remaining funds of a charter holder for an open-enrollment charter school that ceases to operate must be returned to the agency and deposited in the charter school liquidation fund.(i)
The agency may approve a transfer of a charter holder’s remaining funds to another charter holder if the charter holder receiving the funds has not received notice of the expiration or revocation of the charter holder’s charter for an open-enrollment charter school or notice of a reconstitution of the governing body of the charter holder under Section 12.1141 (Renewal of Charter; Denial of Renewal; Expiration) or 12.115 (Basis for Charter Revocation or Modification of Governance).(j)
The commissioner may adopt rules specifying:(1)
the time during which a former charter holder must return remaining funds under Subsection (h); and(2)
the qualifications required for a charter holder to receive a transfer of remaining funds under Subsection (i).
Source:
Section 12.106 — State Funding, https://statutes.capitol.texas.gov/Docs/ED/htm/ED.12.htm#12.106 (accessed May 18, 2024).
