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SECTION 2856
Financing of charter schools
Education (EDN) CHAPTER 16, TITLE 2, ARTICLE 56
§ 2856. Financing of charter schools. * 1. (a) The enrollment of
students attending charter schools shall be included in the enrollment,
attendance, membership and, if applicable, count of students with
disabilities of the school district in which the pupil resides. The
charter school shall report all such data to the school districts of
residence in a timely manner. Each school district shall report such
enrollment, attendance and count of students with disabilities to the
department. The school district of residence shall pay directly to the
charter school for each student enrolled in the charter school who
resides in the school district the charter school basic tuition, which
shall be:

(i) for school years prior to the two thousand nine--two thousand ten
school year, an amount equal to one hundred percent of the amount
calculated pursuant to paragraph f of subdivision one of section
thirty-six hundred two of this chapter for the school district for the
year prior to the base year increased by the percentage change in the
state total approved operating expense calculated pursuant to paragraph
t of subdivision one of section thirty-six hundred two of this chapter
from two years prior to the base year to the base year;

(ii) for the two thousand nine--two thousand ten school year, the
charter school basic tuition shall be the amount payable by such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;

(iii) for the two thousand ten--two thousand eleven through two
thousand thirteen--two thousand fourteen school years, the charter
school basic tuition shall be the basic tuition computed for the two
thousand ten--two thousand eleven school year pursuant to the provisions
of subparagraph (i) of this paragraph;

(iv) for the two thousand fourteen--two thousand fifteen, two thousand
fifteen--two thousand sixteen and two thousand sixteen--two thousand
seventeen school years, the charter school basic tuition shall be the
sum of the lesser of the charter school basic tuition computed for the
two thousand ten--two thousand eleven school year pursuant to the
provisions of subparagraph (i) of this paragraph or the charter school
basic tuition computed for the current year pursuant to the provisions
of subparagraph (i) of this paragraph plus the supplemental basic
tuition;

(v) for the two thousand seventeen--two thousand eighteen school year,
the charter school basic tuition shall be the sum of (A) the charter
school basic tuition for the two thousand sixteen--two thousand
seventeen school year plus (B) five hundred dollars;

(vi) for the two thousand eighteen--two thousand nineteen school year,
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year five years prior to the base year
and finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year, provided
that the highest and lowest annual quotients shall be excluded from the
calculation of such average or (B) the quotient of the total general
fund expenditures for the school district calculated pursuant to an
electronic data file created for the purpose of compliance with
paragraph b of subdivision twenty-one of section three hundred five of
this chapter published annually on May fifteenth for the year prior to
the base year divided by the total estimated public enrollment for the
school district pursuant to paragraph n of subdivision one of section
thirty-six hundred two of this chapter for the year prior to the base
year.

(vii) for the two thousand nineteen--two thousand twenty school year
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year three years prior to the base year
and finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year provided
that the highest annual quotient calculated pursuant to this
subparagraph shall be replaced by the average quotient calculated
pursuant to subparagraph (vi) of this paragraph or (B) the quotient of
the total general fund expenditures for the school district calculated
pursuant to an electronic data file created for the purpose of
compliance with paragraph b of subdivision twenty-one of section three
hundred five of this chapter published annually on May fifteenth for the
year prior to the base year divided by the total estimated public
enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(viii) for the two thousand twenty--two thousand twenty-one and two
thousand twenty-one--two thousand twenty-two school years, the charter
school basic tuition shall be the lesser of (A) the product of (i) the
charter school basic tuition calculated for the base year multiplied by
(ii) the average of the quotients for each school year in the period
commencing with the year three years prior to the base year and
finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year multiplied
by, for the two thousand twenty--two thousand twenty-one school year
only, (iii) nine hundred forty-five one-thousandths (0.945) or (B) the
quotient of the total general fund expenditures for the school district
calculated pursuant to an electronic data file created for the purpose
of compliance with paragraph b of subdivision twenty-one of section
three hundred five of this chapter published annually on May fifteenth
for the year prior to the base year divided by the total estimated
public enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(ix) for the two thousand twenty-two--two thousand twenty-three
through two thousand twenty-four--two thousand twenty-five school years
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year four years prior to the base year
and finishing with the year prior to the base year, excluding the two
thousand twenty--two thousand twenty-one school year, of the total
approved operating expense for such school district calculated pursuant
to paragraph t of subdivision one of section thirty-six hundred two of
this chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year or (B) the
quotient of the total general fund expenditures for the school district
calculated pursuant to an electronic data file created for the purpose
of compliance with paragraph b of subdivision twenty-one of section
three hundred five of this chapter published annually on May fifteenth
for the year prior to the base year divided by the total estimated
public enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(x) for the two thousand twenty-five--two thousand twenty-six school
year and thereafter the charter school basic tuition shall be the lesser
of (A) the product of (i) the charter school basic tuition calculated
for the base year multiplied by (ii) the average of the quotients for
each school year in the period commencing with the year three years
prior to the base year and finishing with the year prior to the base
year of the total approved operating expense for such school district
calculated pursuant to paragraph t of subdivision one of section
thirty-six hundred two of this chapter for each such year divided by the
total approved operating expense for such district for the immediately
preceding year or (B) the quotient of the total general fund
expenditures for the school district calculated pursuant to an
electronic data file created for the purpose of compliance with
paragraph b of subdivision twenty-one of section three hundred five of
this chapter published annually on May fifteenth for the year prior to
the base year divided by the total estimated public enrollment for the
school district pursuant to paragraph n of subdivision one of section
thirty-six hundred two of this chapter for the year prior to the base
year.

For the purposes of this subdivision, the "supplemental basic tuition"
shall be (A) for a school district for which the charter school basic
tuition computed for the current year is greater than or equal to the
charter school basic tuition for the two thousand ten--two thousand
eleven school year pursuant to the provisions of subparagraph (i) of
this paragraph, (1) for the two thousand fourteen--two thousand fifteen
school year two hundred and fifty dollars, and (2) for the two thousand
fifteen--two thousand sixteen school year three hundred and fifty
dollars, and (3) for the two thousand sixteen--two thousand seventeen
school year five hundred dollars, and (4) for the two thousand
seventeen--two thousand eighteen school year and thereafter, the sum of
(i) the supplemental basic tuition calculated for the two thousand
sixteen--two thousand seventeen school year plus (ii) five hundred
dollars, and (B) for school years prior to the two thousand
seventeen--two thousand eighteen school year, for a school district for
which the charter school basic tuition for the two thousand ten--two
thousand eleven school year is greater than the charter school basic
tuition for the current year pursuant to the provisions of subparagraph
(i) of this paragraph, the positive difference of the charter school
basic tuition for the two thousand ten--two thousand eleven school year
minus the charter school basic tuition for the current year pursuant to
the provisions of subparagraph (i) of this paragraph and (C) for school
years following the two thousand sixteen--two thousand seventeen school
years, for a school district for which the charter school basic tuition
for the two thousand ten--two thousand eleven school year is greater
than the charter school basic tuition for the current year pursuant to
the provisions of subparagraph (i) of this paragraph, the sum of (i) the
supplemental basic tuition calculated for the two thousand sixteen--two
thousand seventeen school year plus (ii) five hundred dollars.

(b) The school district shall also pay directly to the charter school
any federal or state aid attributable to a student with a disability
attending charter school in proportion to the level of services for such
student with a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section to the contrary,
amounts payable pursuant to this subdivision from state or local funds
may be reduced pursuant to an agreement between the school and the
charter entity set forth in the charter. Payments made pursuant to this
subdivision shall be made by the school district in six substantially
equal installments each year beginning on the first business day of July
and every two months thereafter. Amounts payable under this subdivision
shall be determined by the commissioner. Amounts payable to a charter
school in its first year of operation shall be based on the projections
of initial-year enrollment set forth in the charter until actual
enrollment data is reported to the school district by the charter
school. Such projections shall be reconciled with the actual enrollment
as actual enrollment data is so reported and at the end of the school's
first year of operation and each subsequent year based on a final report
of actual enrollment by the charter school, and any necessary
adjustments resulting from such final report shall be made to payments
during the school's following year of operation.

(c) Notwithstanding any other provision of this subdivision to the
contrary, payment of the federal aid attributable to a student with a
disability attending a charter school shall be made in accordance with
the requirements of section 8065-a of title twenty of the United States
code and sections 76.785-76.799 and 300.209 of title thirty-four of the
code of federal regulations.

(d) School districts shall be eligible for an annual apportionment
equal to the amount of the supplemental basic tuition for the charter
school in the base year for the expenses incurred in the two thousand
fourteen--two thousand fifteen, two thousand fifteen--two thousand
sixteen, two thousand sixteen--two thousand seventeen school years and
thereafter. Provided that for expenses incurred in the two thousand
twenty--two thousand twenty-one school year, for a city school district
in a city having a population of one million or more, the annual
apportionment shall be reduced by thirty-five million dollars
($35,000,000) upon certification by the director of the budget of the
availability of a grant in the same amount from the elementary and
secondary school emergency relief funds provided through the American
rescue plan act of 2021 (P.L. 117-2). Provided further that for expenses
incurred in the two thousand twenty-three--two thousand twenty-four
school year, for a city school district in a city having a population of
one million or more, the annual apportionment shall be reduced by
thirty-five million dollars ($35,000,000) upon certification by the
director of the budget of the availability of a grant in the same amount
from the elementary and secondary school emergency relief funds provided
through the American rescue plan act of 2021 (P.L. 117-2).

* NB Effective until June 30, 2027

* 1. (a) The enrollment of students attending charter schools shall be
included in the enrollment, attendance and, if applicable, count of
students with disabilities of the school district in which the pupil
resides. The charter school shall report all such data to the school
districts of residence in a timely manner. Each school district shall
report such enrollment, attendance and count of students with
disabilities to the department. The school district of residence shall
pay directly to the charter school for each student enrolled in the
charter school who resides in the school district the charter school
basic tuition which shall be:

(i) for school years prior to the two thousand nine--two thousand ten
school year, an amount equal to one hundred percent of the amount
calculated pursuant to paragraph f of subdivision one of section
thirty-six hundred two of this chapter for the school district for the
year prior to the base year increased by the percentage change in the
state total approved operating expense calculated pursuant to paragraph
t of subdivision one of section thirty-six hundred two of this chapter
from two years prior to the base year to the base year;

(ii) for the two thousand nine--two thousand ten school year, the
charter school basic tuition shall be the amount payable by such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;

(iii) for the two thousand ten--two thousand eleven through two
thousand thirteen--two thousand fourteen school years, the charter
school basic tuition shall be the basic tuition computed for the two
thousand ten--two thousand eleven school year pursuant to the provisions
of subparagraph (i) of this paragraph;

(iv) for the two thousand fourteen--two thousand fifteen, two thousand
fifteen--two thousand sixteen and two thousand sixteen--two thousand
seventeen school years, the charter school basic tuition shall be the
sum of the lesser of the charter school basic tuition computed for the
two thousand ten--two thousand eleven school year pursuant to the
provisions of subparagraph (i) of this paragraph or the charter school
basic tuition computed for the current year pursuant to the provisions
of subparagraph (i) of this paragraph plus the supplemental basic
tuition;

(v) for the two thousand seventeen--two thousand eighteen school year,
the charter school basic tuition shall be the sum of (A) the charter
school basic tuition for the two thousand sixteen--two thousand
seventeen school year plus (B) five hundred dollars;

(vi) for the two thousand eighteen--two thousand nineteen school year,
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year five years prior to the base year
and finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year, provided
that the highest and lowest annual quotients shall be excluded from the
calculation of such average or (B) the quotient of the total general
fund expenditures for the school district calculated pursuant to an
electronic data file created for the purpose of compliance with
paragraph b of subdivision twenty-one of section three hundred five of
this chapter published annually on May fifteenth for the year prior to
the base year divided by the total estimated public enrollment for the
school district pursuant to paragraph n of subdivision one of section
thirty-six hundred two of this chapter for the year prior to the base
year.

(vii) for the two thousand nineteen--two thousand twenty school year
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year three years prior to the base year
and finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year provided
that the highest annual quotient calculated pursuant to this
subparagraph shall be replaced by the average quotient calculated
pursuant to subparagraph (vi) of this paragraph or (B) the quotient of
the total general fund expenditures for the school district calculated
pursuant to an electronic data file created for the purpose of
compliance with paragraph b of subdivision twenty-one of section three
hundred five of this chapter published annually on May fifteenth for the
year prior to the base year divided by the total estimated public
enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(viii) for the two thousand twenty--two thousand twenty-one and two
thousand twenty-one--two thousand twenty-two school years, the charter
school basic tuition shall be the lesser of (A) the product of (i) the
charter school basic tuition calculated for the base year multiplied by
(ii) the average of the quotients for each school year in the period
commencing with the year three years prior to the base year and
finishing with the year prior to the base year of the total approved
operating expense for such school district calculated pursuant to
paragraph t of subdivision one of section thirty-six hundred two of this
chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year multiplied
by, for the two thousand twenty--two thousand twenty-one school year
only, (iii) nine hundred forty-five one-thousandths (0.945) or (B) the
quotient of the total general fund expenditures for the school district
calculated pursuant to an electronic data file created for the purpose
of compliance with paragraph b of subdivision twenty-one of section
three hundred five of this chapter published annually on May fifteenth
for the year prior to the base year divided by the total estimated
public enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(ix) for the two thousand twenty-two--two thousand twenty-three
through two thousand twenty-four--two thousand twenty-five school years
the charter school basic tuition shall be the lesser of (A) the product
of (i) the charter school basic tuition calculated for the base year
multiplied by (ii) the average of the quotients for each school year in
the period commencing with the year four years prior to the base year
and finishing with the year prior to the base year, excluding the two
thousand twenty--two thousand twenty-one school year, of the total
approved operating expense for such school district calculated pursuant
to paragraph t of subdivision one of section thirty-six hundred two of
this chapter for each such year divided by the total approved operating
expense for such district for the immediately preceding year or (B) the
quotient of the total general fund expenditures for the school district
calculated pursuant to an electronic data file created for the purpose
of compliance with paragraph b of subdivision twenty-one of section
three hundred five of this chapter published annually on May fifteenth
for the year prior to the base year divided by the total estimated
public enrollment for the school district pursuant to paragraph n of
subdivision one of section thirty-six hundred two of this chapter for
the year prior to the base year.

(x) for the two thousand twenty-five--two thousand twenty-six school
year and thereafter the charter school basic tuition shall be the lesser
of (A) the product of (i) the charter school basic tuition calculated
for the base year multiplied by (ii) the average of the quotients for
each school year in the period commencing with the year three years
prior to the base year and finishing with the year prior to the base
year of the total approved operating expense for such school district
calculated pursuant to paragraph t of subdivision one of section
thirty-six hundred two of this chapter for each such year divided by the
total approved operating expense for such district for the immediately
preceding year or (B) the quotient of the total general fund
expenditures for the school district calculated pursuant to an
electronic data file created for the purpose of compliance with
paragraph b of subdivision twenty-one of section three hundred five of
this chapter published annually on May fifteenth for the year prior to
the base year divided by the total estimated public enrollment for the
school district pursuant to paragraph n of subdivision one of section
thirty-six hundred two of this chapter for the year prior to the base
year.

For the purposes of this subdivision, the "supplemental basic tuition"
shall be (A) for a school district for which the charter school basic
tuition computed for the current year is greater than or equal to the
charter school basic tuition for the two thousand ten--two thousand
eleven school year pursuant to the provisions of subparagraph (i) of
this paragraph, (1) for the two thousand fourteen--two thousand fifteen
school year two hundred and fifty dollars, and (2) for the two thousand
fifteen--two thousand sixteen school year three hundred and fifty
dollars, and (3) for the two thousand sixteen--two thousand seventeen
school year five hundred dollars, and (4) for the two thousand
seventeen--two thousand eighteen school year and thereafter, the sum of
(i) the supplemental basic tuition calculated for the two thousand
sixteen--two thousand seventeen school year plus (ii) five hundred
dollars, and (B) for school years prior to the two thousand
seventeen--two thousand eighteen school year, for a school district for
which the charter school basic tuition for the two thousand ten--two
thousand eleven school year is greater than the charter school basic
tuition for the current year pursuant to the provisions of subparagraph
(i) of this paragraph, the positive difference of the charter school
basic tuition for the two thousand ten--two thousand eleven school year
minus the charter school basic tuition for the current year pursuant to
the provisions of subparagraph (i) of this paragraph and (C) for school
years following the two thousand sixteen--two thousand seventeen school
years, for a school district for which the charter school basic tuition
for the two thousand ten--two thousand eleven school year is greater
than the charter school basic tuition for the current year pursuant to
the provisions of subparagraph (i) of this paragraph, the sum of (i) the
supplemental basic tuition calculated for the two thousand sixteen--two
thousand seventeen school year plus (ii) five hundred dollars.

(b) The school district shall also pay directly to the charter school
any federal or state aid attributable to a student with a disability
attending charter school in proportion to the level of services for such
student with a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section to the contrary,
amounts payable pursuant to this subdivision may be reduced pursuant to
an agreement between the school and the charter entity set forth in the
charter. Payments made pursuant to this subdivision shall be made by the
school district in six substantially equal installments each year
beginning on the first business day of July and every two months
thereafter. Amounts payable under this subdivision shall be determined
by the commissioner. Amounts payable to a charter school in its first
year of operation shall be based on the projections of initial-year
enrollment set forth in the charter. Such projections shall be
reconciled with the actual enrollment at the end of the school's first
year of operation, and any necessary adjustments shall be made to
payments during the school's second year of operation.

(c) School districts shall be eligible for an annual apportionment
equal to the amount of the supplemental basic tuition for the charter
school in the base year for the expenses incurred in the two thousand
fourteen--two thousand fifteen, two thousand fifteen--two thousand
sixteen, two thousand sixteen--two thousand seventeen school years and
thereafter. Provided that for expenses incurred in the two thousand
twenty--two thousand twenty-one school year, for a city school district
in a city having a population of one million or more, the annual
apportionment shall be reduced by thirty-five million dollars
($35,000,000) upon certification by the director of the budget of the
availability of a grant in the same amount from the elementary and
secondary school emergency relief funds provided through the American
rescue plan act of 2021 (P.L. 117-2). Provided further that for expenses
incurred in the two thousand twenty-three--two thousand twenty-four
school year, for a city school district in a city having a population of
one million or more, the annual apportionment shall be reduced by
thirty-five million dollars ($35,000,000) upon certification by the
director of the budget of the availability of a grant in the same amount
from the elementary and secondary school emergency relief funds provided
through the American rescue plan act of 2021 (P.L. 117-2).

* NB Effective June 30, 2027

2. In the event of the failure of the school district to make payments
required by this section, the state comptroller shall deduct from any
state funds which become due to such school district an amount equal to
the unpaid obligation. The comptroller shall pay over such sum to the
charter school upon certification of the commissioner. The commissioner
shall promulgate regulations to implement the provisions of this
subdivision.

3. Nothing in this article shall be construed to prohibit any person
or organization from providing funding or other assistance to the
establishment or operation of a charter school. The board of trustees of
a charter school is authorized to accept gifts, donations or grants of
any kind made to the charter school and to expend or use such gifts,
donations or grants in accordance with the conditions prescribed by the
donor; provided, however, that no gift, donation or grant may be
accepted if subject to a condition that is contrary to any provision of
law or term of the charter.