C.R.S. § 22-30.5-112: Charter schools - financing - guidelines - definitions - repeal.

(1) (a) (I) Repealed.

(II) For purposes of the "Public School Finance Act of 2025", article 54 of this title 22, pupils enrolled in a charter school are included in the pupil enrollment or the online pupil enrollment, whichever is applicable, of the school district that granted its charter. The school district that granted its charter shall report to the department the number of pupils included in the school district's pupil enrollment and the school district's online pupil enrollment that are actually enrolled in each charter school.

(b) The school district shall also identify each charter school that is a qualified charter school as defined in section 22-54-124 (1)(f.6), identify each qualified charter school that will be operating in a school district facility and that does not have ongoing financial obligations incurred to repay the outstanding costs of new construction undertaken for the charter school's benefit, and provide an estimate of the number of pupils expected to be enrolled in each qualified charter school during the budget year following the budget year in which the district makes a report.

(2) (a) (I) As part of the charter school contract, the charter school and the school district shall agree on funding and any services to be provided by the school district to the charter school.

(II) Repealed.

(III) The chartering school district may choose to retain the actual amount of the charter school's per pupil share of the central administrative overhead costs for services actually provided to the charter school, up to five percent of the district per pupil revenues for each pupil who is not an online pupil enrolled in the charter school, and up to five percent of the district per pupil online funding for each online pupil enrolled in the charter school.

(a.3) Repealed.

(a.4) (I) Within ninety days after the end of each fiscal year, each school district shall provide to each charter school within its district an itemized accounting of all its central administrative overhead costs. If the itemized accounting includes services provided to the charter school by school district personnel, the itemized accounting, at the charter school's request, must include a list of the personnel positions and services provided by persons in each position. The actual central administrative overhead costs are the amount charged to the charter school. Any difference, within the limitations of subsection (2)(a) of this section, between the amount initially charged to the charter school and the actual cost must be reconciled and paid to the owed party.

(II) Within ninety days after the end of each fiscal year, each school district shall provide to each charter school within its district an itemized accounting of all the actual costs of district services the charter school chose at its discretion to purchase from the district calculated in accordance with paragraph (b) of this subsection (2). If the itemized accounting includes services purchased by the charter school that were provided by school district personnel, the itemized accounting, at the charter school's request, must include a list of the personnel positions and services provided by persons in each position. Any difference between the amount initially charged to the charter school and the actual cost shall be reconciled and paid to the owed party.

(III) If either party disputes an itemized accounting provided pursuant to subparagraphs (I) and (II) of this paragraph (a.4), any charges included in an accounting, or charges to either party, that party is entitled to request a third-party review at the requesting party's expense. The review shall be conducted by the department, and the department's determination shall be final.

(a.5) As used in this subsection (2):

(I) "Central administrative overhead costs" means indirect costs incurred in providing:

(A) Services listed under the heading of support services - general administration in the school district chart of accounts as specified by rule of the state board; and

(B) Salaries and benefits for administrative job classifications listed under the headings of support services - business and support services - central in the school district chart of accounts as specified by rule of the state board.

(II) and (II.5) Repealed.

(III) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1913, § 38, effective June 10, 2010.)

(a.7) For the 2000-01 budget year through the 2008-09 budget year, each charter school shall annually allocate the minimum per pupil dollar amount specified in section 22-54-105 (2)(b), multiplied by the number of students enrolled in the charter school who are not students enrolled in an online program or an online school, as defined in sections 22-30.7-102 (9) and 22-30.7-102 (9.5), to a fund created by the charter school for capital reserve purposes, as set forth in section 22-45-103 (1)(c) and (1)(e), or solely for the management of risk-related activities, as identified in section 24-10-115, C.R.S., and article 13 of title 29, C.R.S., or among such allowable funds. Said moneys shall be used for the purposes set forth in section 22-45-103 (1)(c) and (1)(e) and may not be expended by the charter school for any other purpose. Any moneys remaining in the fund that have not been expended prior to the 2009-10 budget year shall be budgeted for the purposes set forth in section 22-45-103 (1)(c) and (1)(e) in the 2009-10 budget year or any budget year thereafter.

(a.8) (I) The school district shall provide federally required educational services to students enrolled in charter schools on the same basis as the services are provided to students enrolled in other public schools of the school district. Each charter school shall pay an amount equal to the per pupil cost incurred by the school district in providing federally required educational services, multiplied by the number of students enrolled in the charter school. At either party's request, however, the charter school and the school district may negotiate and include in the charter contract alternate arrangements for the provision of and payment for federally required educational services.

(II) Notwithstanding subsection (2)(a.8)(I) of this section to the contrary, the school district shall calculate the per pupil cost of providing federally required educational services after subtracting the amount received in federal and state money for providing the services.

(III) As used in this subsection (2)(a.8), "federally required educational services" means services that a local educational agency is required to provide to certain students by federal law and that the school district makes available to students in the charter school if and when needed. "Federally required educational services" does not include services not made available to the charter school.

(a.9) In accordance with section 22-30.5-406, the funding provided by a chartering school district to a charter school pursuant to this subsection (2) is reduced by the amount of direct payments of principal and interest due on bonds issued on behalf of a charter school by a governmental entity other than a school district for the purpose of financing charter school capital construction that were made by the state treasurer or the chartering school district on behalf of the charter school.

(b) The charter school, at its discretion, may contract with the school district for the direct purchase of district services in addition to those included in central administrative overhead costs, including but not limited to food services, custodial services, maintenance, curriculum, media services, and libraries. The amount to be paid by a charter school in purchasing any district service pursuant to this paragraph (b) shall be determined by dividing the cost of providing the service for the entire school district, as specified in the school district's budget, by the number of students enrolled in the school district and multiplying said amount by the number of students enrolled in the charter school.

(b.5) (I) The charter school and the school district shall negotiate prior to the beginning of each fiscal year for the payment to the school district of any direct costs incurred by the school district. If the charter school and the school district do not reach agreement regarding the payment of direct costs, the school district shall be barred from withholding from the charter school any moneys as reimbursement for direct costs. The school district shall provide an itemized accounting to each charter school for the direct costs incurred by the school district with the itemized accounting provided pursuant to paragraph (a.4) of this subsection (2).

(II) For purposes of this paragraph (b.5), "direct costs" means the direct costs incurred by a school district solely for the purpose of reviewing charter applications, negotiating the charter contract, and providing direct oversight to charter schools. "Direct costs" shall not include the school district's legal or other costs attributable to litigation or the resolution of a dispute with a charter school.

(c) (I) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1913, § 38, effective June 10, 2010.)

(II) Repealed.

(III) For purposes of calculating a charter school's funding pursuant to this subsection (2):

(A) If the charter school operates a full-day kindergarten educational program, the pupils enrolled in the program are counted as full-day pupils; except that a student enrolled as less than a full-time pupil is counted in accordance with rules promulgated by the state board; and

(B) If the charter school operates a half-day kindergarten educational program, the pupils enrolled in the program are counted as half-day pupils and the number of pupils enrolled in the charter school must include the supplemental kindergarten enrollment as defined in section 22-54-103 (15).

(c.3) For purposes of subsections (2)(c.5) and (2)(c.7) of this section, unless the context otherwise requires:

(I) "Charter school's at-risk pupils" means the number of pupils enrolled in the charter school who are at-risk pupils, as defined in section 22-54-103 (1.5).

(II) "Charter school's English language learner pupils" means the number of pupils enrolled in the charter school who are English language learner pupils, as defined in section 22-54-103 (6.5).

(III) "Charter school's percentage of at-risk pupils" means the number of at-risk pupils enrolled in the charter school, divided by the charter school's pupil enrollment.

(IV) "Charter school's pupil enrollment" means the number of pupils enrolled in the charter school who are part of pupil enrollment, as defined in section 22-54-103 (10).

(V) "Charter school's special education pupil enrollment" means the number of pupils enrolled in the charter school who are special education pupils, as defined in section 22-54-103 (10.8).

(c.5) (I) For the 2026-27 budget year, a school district shall determine each of its charter schools' phase-in amounts of district total program. Each charter school's phase-in amount of district total program is the amount calculated by the school district using the calculation described in section 22-54-103.3 (3)(b); except that, when making the calculations, the school district shall:

(A) Use the charter school's pupil enrollment for the 2026-27 budget year instead of funded pupil count as determined pursuant to sections 22-54-103.5 (4) and 22-54-104 (7);

(B) Use the charter school's at-risk pupil enrollment for the 2026-27 budget year instead of district at-risk pupil enrollment and use the charter school's percentage of at-risk pupils instead of district percentage of at-risk pupils as used pursuant to sections 22-54-103.5 (6)(a) and 22-54-104 (4); except that the school district shall use the charter school's at-risk pupil enrollment for the 2026-27 budget year instead of district at-risk pupil enrollment as used in the formula in section 22-54-103.5 (6)(b) if: The district's funded pupil count is less than seven thousand, the district percentage of at-risk pupils is seventy percent or greater, and the charter school's at-risk pupil enrollment for the 2026-27 budget year is seventy percent or greater;

(C) Use the charter school's English language learner pupil enrollment for the 2026-27 budget year instead of district English language learner pupil enrollment as used funding pursuant to sections 22-54-103.5 (7) and 22-54-104 (4.3); and

(D) Use the charter school's special education pupil enrollment for the 2026-27 budget year instead of district special education pupil enrollment as used pursuant to section 22-54-103.5 (10).

(II) (A) In addition to the distribution described in subsection (2)(c.5)(III) of this section, a charter school in a district described in section 22-54-103.5 (12)(c) must receive a per pupil amount of the amount described in section 22-54-103.5 (12)(c) for each student in the charter school's pupil enrollment for the 2026-27 budget year.

(B) In addition to the distribution described in subsection (2)(c.5)(III) of this section, a charter school in a district described in section 22-54-104 (4.9) must receive a per pupil amount of the amount described in section 22-54-104 (4.9) for each student in the charter school's pupil enrollment for the 2026-27 budget year.

(III) For the 2026-27 budget year, a school district shall distribute to each of its charter schools an amount equal to the greater of:

(A) The amount of district total program received by the charter school for the 2025-26 budget year plus one percent of the amount of district total program received by the charter school for the 2025-26 budget year; or

(B) The charter school's phase-in amount of district total program for the 2026-27 budget year determined pursuant to subsection (2)(c.5)(I) of this section.

(IV) This subsection (2)(c.5) is repealed, effective July 1, 2028.

(c.7) (I) For each budget year beginning with the 2027-28 budget year through the 2030-31 budget year, a school district shall determine each of its charter schools' phase-in amounts of district total program. Each charter school's phase-in amount of district total program is the amount calculated by the school district using the calculation described in section 22-54-103.3 (3)(c) for the applicable budget year; except that, when making the calculations, the school district shall:

(A) Use the charter school's pupil enrollment for the applicable budget year instead of funded pupil count as determined pursuant to sections 22-54-103.5 (4) and 22-54-104 (7);

(B) Use the charter school's at-risk pupil enrollment for the applicable budget year instead of district at-risk pupil enrollment and use the charter school's percentage of at-risk pupils instead of district percentage of at-risk pupils as used pursuant to sections 22-54-103.5 (6)(a) and 22-54-104 (4); except that the school district shall use the charter school's at-risk pupil enrollment for the applicable budget year instead of district at-risk pupil enrollment as used in the formula in section 22-54-103.5 (6)(b) if: The district's funded pupil count is less than seven thousand, the district percentage of at-risk pupils is seventy percent or greater, and the charter school's at-risk pupil enrollment for the applicable budget year is seventy percent or greater;

(C) Use the charter school's English language learner pupil enrollment for the applicable budget year instead of district English language learner pupil enrollment as used pursuant to sections 22-54-103.5 (7) and 22-54-104 (4.3); and

(D) Use the charter school's special education pupil enrollment for the applicable budget year instead of district special education pupil enrollment as used pursuant to section 22-54-103.5 (10).

(II) For each budget year beginning with the 2027-28 budget year through the 2030-31 budget year, a school district shall determine each of its charter schools' old formula amounts of district total program. Each charter school's old formula amount of district total program is the amount calculated by the school district using the calculation described in section 22-54-104 for the applicable budget year for each of its charter schools; except that, when making the calculations, the school district shall:

(A) Use the charter school's pupil enrollment for the applicable budget year instead of funded pupil count as determined pursuant to section 22-54-104 (7);

(B) Use the charter school's at-risk pupil enrollment for the applicable budget year instead of district at-risk pupil enrollment as used pursuant to section 22-54-104 (4); and

(C) Use the charter school's English language learner pupil enrollment for the applicable budget year instead of district English language learner pupil enrollment as used pursuant to section 22-54-104 (4.3).

(III) (A) In addition to the distribution described in subsection (2)(c.7)(IV) of this section, a charter school in a district described in section 22-54-103.5 (12)(c) must receive a per pupil amount of the amount described in section 22-54-103.5 (12)(c) for each student in the charter school's pupil enrollment for the applicable budget year.

(B) In addition to the distributions described in subsection (2)(c.7)(IV) of this section, a charter school in a district described in section 22-54-104 (4.9) must receive a per pupil amount of the amount described in section 22-54-104 (4.9) for each student in the charter school's pupil enrollment for the applicable budget year.

(IV) For each budget year beginning with the 2027-28 budget year through the 2030-31 budget year, a school district shall distribute to each of its charter schools an amount equal to the greater of:

(A) The charter school's phase-in amount of district total program for the applicable budget year determined pursuant to subsection (2)(c.7)(I) of this section; or

(B) The charter school's old formula amount of district total program for the applicable budget year determined pursuant to subsection (2)(c.7)(II) of this section, plus one percent of the charter school's old formula amount of district total program for the applicable budget year.

(d) (Deleted by amendment, L. 2004, p. 1583, § 10, effective June 3, 2004.)

(e) (I) Fees collected from students enrolled at a charter school shall be retained by such charter school.

(II) (A) A charter school shall not charge the parent of a child enrolled in a kindergarten educational program tuition to attend any portion of the program and shall not charge the parent fees for the child to attend the program other than fees that are routinely charged to the parents of students enrolled in other grades and are applicable to the kindergarten educational program.

(B) Notwithstanding the provisions of subsection (2)(e)(II)(A) of this section, if the general assembly amends the "Public School Finance Act of 2025", article 54 of this title 22, to count a student enrolled in kindergarten only as a half-day pupil, with or without the addition of supplemental kindergarten enrollment as defined in section 22-54-103 (15) for purposes of calculating the funded pupil count as determined by section 22-54-104, a charter school may charge the student's parents tuition or a fee for the portion of the school day for which it does not receive funding for the student pursuant to the "Public School Finance Act of 2025"; except that the amount of tuition or fee charged must not exceed the amount of tuition or fee that the charter school charged to attend a full-day kindergarten educational program for the 2018-19 budget year, adjusted for inflation and prorated by the percentage of the school day for which the student is no longer funded by the "Public School Finance Act of 2025". As used in this subsection (2)(e)(II)(B), "inflation" means the annual percentage change in the United States department of labor bureau of labor statistics consumer price index for Denver-Aurora-Lakewood for all items paid by all urban consumers, or its applicable successor index.

(3) (a) (I) Repealed.

(II) If the charter school and the school district have negotiated to allow the charter school to provide federally required educational services pursuant to subsection (2)(a.8) of this section, the proportionate share of state and federal resources generated by students receiving the federally required educational services or staff serving them is directed by the school district or administrative unit to the charter school enrolling the students.

(III) (A) The proportionate share of money generated under federal or state categorical aid programs, other than federally required educational services, is directed to charter schools serving students eligible for such aid; except for district special education pupil funding calculated pursuant to section 22-54-103.5 (10).

(B) Notwithstanding subsection (3)(a)(III)(A) of this section, a school district that receives small attendance center aid pursuant to section 22-54-122 for a small attendance center that is a charter school shall forward the entire amount of such aid to the charter school for which it was received.

(IV) The school district shall distribute to each charter school on a per-pupil basis any state or federal money that is not otherwise addressed in subsection (2) of this section or in this subsection (3) and that the school district receives based on a per pupil calculation if the calculation includes pupils enrolled in the charter school.

(a.5) Each charter school that serves students who may be eligible to receive services provided through federal aid programs shall comply with all federal reporting requirements to receive the federal aid.

(b) If a student with a disability attends a charter school, the school district of residence shall be responsible for paying any tuition charge for the excess costs incurred in educating the child in accordance with the provisions of section 22-20-109 (5).

(c) Within ninety days after the end of each budget year, each school district shall provide to each charter school of the school district an itemized accounting of all the actual special education costs that the school district incurred for the applicable budget year and the basis of any per pupil charges for special education that the school district imposed against the charter school for the applicable budget year. If the itemized accounting includes services provided to the charter school by school district personnel, the itemized accounting, at the charter school's request, must include a list of the personnel positions and services provided by persons in each position.

(4) The governing body 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 said gifts, donations, or grants in accordance with the conditions prescribed by the donor; however, no gift, donation, or grant shall be accepted by the governing body if subject to any condition contrary to law or contrary to the terms of the contract between the charter school and the local board of education.

(4.5) Except as provided in section 22-30.5-112.3 (2)(b), any moneys received by a charter school from any source and remaining in the charter school's accounts at the end of any budget year shall remain in the charter school's accounts for use by the charter school during subsequent budget years and shall not revert to the school district or to the state.

(5) Repealed. / (Deleted by amendment, L. 2004, p. 1583, § 10, effective June 3, 2004.)

(6) (Deleted by amendment, L. 2004, p. 1583, § 10, effective June 3, 2004.)

(7) A charter school shall comply with all of the state financial and budget rules, regulations, and financial reporting requirements with which the chartering school district is required to comply, including but not limited to annual completion of a governmental audit that complies with the requirements of the department.

(8) (a) Notwithstanding any provision of this section to the contrary, a chartering school district, under the circumstances specified in the contract between the school district and the charter school pursuant to section 22-30.5-105 (2)(c)(IV), may withhold a portion of a charter school's monthly payment due pursuant to this section.

(b) The chartering school district may withhold a portion of the payment due to the charter school only until such time as the charter school complies with the financial reporting requirements.

(9) (a) If a charter school determines that its chartering school district has not forwarded to the charter school the amount due to the charter school in accordance with the terms of the charter contract and the provisions of this section, the charter school may seek a determination from the state board regarding whether the chartering school district improperly withheld any portion of the amount due to the charter school. A charter school that chooses to request a determination pursuant to this subsection (9) of issues arising on or after July 1, 2004, shall submit the request within the next fiscal year following the fiscal year in which the chartering school district may have improperly withheld funding; except that, if the charter contract requires the charter school to complete any requirements prior to seeking a determination from the department pursuant to this subsection (9), the charter school shall submit the request no later than the end of the next fiscal year following the fiscal year in which the charter school completes said requirements.

(b) Upon receipt from a charter school of a request for a determination of whether the chartering school district has improperly withheld any portion of the amount due to the charter school, the state board shall direct the department to review the terms of the charter contract and the financial information of the charter school and the chartering school district and make a recommendation to the state board regarding whether the chartering school district improperly withheld any portion of the amount due to the charter school. The department shall request from the chartering school district and the charter school all information necessary to make the recommendation, including but not limited to audited financial data. The chartering school district and the charter school shall provide the requested information as soon as possible following the request, but in no event later than thirty days after completion of the annual financial audit. The department shall forward its recommendation to the state board within sixty days after receiving all of the requested information from the chartering school district and the charter school.

(c) At the next state board meeting following receipt of the recommendation of the department pursuant to paragraph (b) of this subsection (9), the state board shall issue its decision regarding whether the chartering school district improperly withheld any portion of the amount due to the charter school. If the state board finds that the chartering school district improperly withheld any portion of the amount due to the charter school, the chartering school district shall pay to the charter school, within thirty days after issuance of the decision, the amount improperly withheld. In addition, the chartering school district shall pay the costs incurred by the department in reviewing the necessary information to make its recommendation. If the state board finds that the chartering school district did not improperly withhold any portion of the amount due to the charter school, the charter school shall pay the costs incurred by the department in reviewing the necessary information to make its recommendation.

(d) If the chartering school district fails within the thirty-day period to pay the full amount that was improperly withheld, the charter school may notify the department, and the department shall withhold from the chartering school district's state equalization payment the unpaid portion of the amount improperly withheld by the chartering school district from the charter school and pay the unpaid portion directly to the charter school.

(10) (a) If a charter school determines that a school district has not paid the tuition charge for the excess costs incurred in educating a child with a disability as required in section 22-20-109 (5), the charter school may seek a determination from the state board in accordance with the provisions of subsection (9) of this section.

(b) If the state board determines that the school district has improperly withheld moneys due to the charter school, the school district, within thirty days after the state board's determination, shall pay to the charter school the amount improperly withheld. In addition, the school district shall pay the costs incurred by the department in reviewing the necessary information to make its recommendation. If the school district fails, within the thirty-day period, to pay the full amount that was improperly withheld, the charter school shall notify the department, and the department shall withhold from the school district's state equalization payment the unpaid portion of the amount improperly withheld by the district and pay the unpaid portion directly to the charter school.

(c) If the state board finds that the school district did not improperly withhold any portion of the amount due to the charter school, the charter school shall pay the costs incurred by the department in reviewing the necessary information to make its recommendation.

(11) Repealed.

(12) The general assembly finds and declares that for purposes of section 17 of article IX of the state constitution, provisions intended to hold districts harmless as a result of changing total program distribution from the school district to the charter school pursuant to subsections (2)(c.5) and (2)(c.7) of this section are a program for accountable education reform and therefore may receive funding from the state education fund created in section 17 (4) of article IX of the state constitution.