Funding and finance
HRS §302D-28
in effect302D-28. Funding and finance
(a) Beginning with fiscal year 2012-2013, and each fiscal year thereafter, the non-facility general fund per-pupil funding request for charter school students shall be the same as the general fund per-pupil amount to the department in the most recently approved executive budget recommendation for the department and shall be based upon reasonable projected enrollment figures for all charter schools. The general fund per-pupil request for each regular education and special education student shall:
(1) Include all general fund regular education cost
categories, including comprehensive school support services, but excluding
special education services, adult education, and the after-school plus program;
provided that these services are provided and funded by the department; and
(2) Exclude fringe benefit costs and debt service.
(b) Fringe benefit costs for charter school
employees, regardless of the payroll system utilized by a charter school, shall
be included in the department of budget and finance's annual budget request.
No fringe benefit costs shall be charged directly to or deducted from the
charter school per-pupil allocations.
The legislature shall make an appropriation
based upon the budget request; provided that the legislature may make
additional appropriations for facility and other costs.
The governor, pursuant to chapter 37, may
impose restrictions or reductions on charter school appropriations similar to
those imposed on department schools.
(c) Notwithstanding any law to the contrary,
to ensure non-facility per-pupil general fund amounts allocated for the
department and charter school students are equal on an annualized fiscal year
basis, each year the director of finance shall:
(1) Determine the sum of general fund appropriations
made for department and charter school student non-facility costs described in
subsections (a) and (b);
(2) Determine the sum of department and charter
school student enrollment based on reviewed and verified student enrollment
counts as of October 15;
(3) Determine a per-pupil amount by dividing the sum
of general fund appropriations determined under paragraph (1) by the sum of
student enrollment determined under paragraph (2);
(4) Transfer a general fund amount between the
department and charter schools that will provide each with a per-pupil
allocation equal to the amount determined on an annualized fiscal year basis
under paragraph (3); and
(5) Annually account for all calculations and
transfers made pursuant to this subsection in a report to the legislature,
governor, department, and charter schools.
This subsection shall not limit the ability of the
director of finance to modify or amend any allotment pursuant to chapter 37.
(d) Charter schools shall be eligible for all
federal financial support to the same extent as department schools. The
department shall provide all authorizers with all state-level federal grant
proposals submitted by the department that include charter schools as potential
recipients and timely reports on state-level federal grants received for which
charter schools may apply or are entitled to receive. Federal funds received
by the department for charter schools shall be transferred to authorizers for distribution
to the charter schools they authorize in accordance with the federal
requirements. If administrative services related to federal grants are
provided to the charter school by the department, the charter school shall
reimburse the department for the actual costs of the administrative services in
an amount that shall not exceed six per cent of the charter school's federal
grants.
Any charter school shall be eligible to receive
any supplemental federal grant or award for which any department school may
submit a proposal, or any supplemental federal grants limited to charter
schools; provided that if department administrative services, including funds
management, budgetary, fiscal accounting, or other related services, are
provided with respect to these supplemental grants, the charter school shall
reimburse the department for the actual costs of the administrative services in
an amount that shall not exceed six per cent of the supplemental grant for
which the services are used.
All additional funds generated by the governing
boards, that are not from a supplemental grant, shall be held separate from
allotted funds and may be expended at the discretion of the governing boards.
(e) Authorizers shall calculate a general fund
per-pupil amount based upon the amount of general funds appropriated by the
legislature and released by the governor and the projected enrollment amount
used to calculate the general funds appropriated pursuant to subsection (a).
Authorizers shall submit a report to the
legislature no later than twenty days prior to the convening of each regular
session that contains each charter school's current school year projection that
is used to submit the budget request, the updated May 15 enrollment projection,
the actual October 15 enrollment count, the authorizer's reviewed and verified
enrollment count, and the November 15 enrollment count.
(f) To enable charter schools to access state
funding prior to the start of each school year, foster their fiscal planning,
enhance their accountability, and avoid over-allocating general funds to
charter schools based on self-reported enrollment projections, authorizers
shall:
(1) Provide sixty per cent of a charter school's
per-pupil allocation based on the charter school's projected student enrollment
no later than July 20 of each fiscal year; provided that the charter school
shall have submitted to its authorizer a projected student enrollment no later
than May 15 of each year;
(2) Provide an additional thirty per cent of a
charter school's per-pupil allocation no later than December 1 of each
year, based on the October 15 student enrollment, as reviewed and verified by
the authorizer; provided that the school is in compliance with all financial
reporting requirements; and
(3) Retain no more than the balance of the remaining
ten per cent of a charter school's per-pupil allocation, as a contingency
balance to ensure fiscal accountability and compliance, no later than June 30
of each year;
provided that authorizers may make adjustments in
allocations based on noncompliance with charter contracts and the board may
make adjustments in allocations based on noncompliance with board policies made
in the board's capacity as the state education agency, department directives
made in the department's capacity as the state education agency, the board's
administrative procedures, and board-approved accountability requirements.
(g) The department shall provide appropriate transitional
resources to a conversion charter school for its first year of operation as a
charter school based upon the department's allocation to the school for the
year prior to the conversion.
(h) No charter school may assess tuition;
provided that a charter school may assess and collect special fees and charges
from students for co-curricular activities. Any special fees and charges
collected pursuant to this subsection shall be deposited into insured checking
or savings accounts and expended by each individual charter school.
[L 2012, c 130,
pt of §2; am L 2014, c 96, §17 and c 99, §18; am L 2016, c 113, §5; am L 2019,
c 269, §3]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0302D/HRS_0302D-0028.htmFetched: 11/10/2026