C.R.S. § 22-30.5-513: Institute charter schools - funding - at-risk supplemental aid - legislative declaration - definitions - repeal.

(1) As used in this section, unless the context otherwise requires:

(a) "Accounting district" means the school district within whose geographic boundaries an institute charter school is physically located.

(b) (I) "Accounting district's adjusted per pupil revenues" means the greater of:

(A) The accounting district's per pupil funding plus the accounting district's at-risk per pupil funding plus the accounting district's English language learner per pupil funding; or

(B) Minimum per pupil funding as calculated pursuant to section 22-54-104 (3.5)(d).

(II) Notwithstanding any provision of subparagraph (I) of this paragraph (b) to the contrary, in a budget year in which an accounting district receives minimum per pupil funding as calculated pursuant to section 22-54-104 (3.5)(d), "accounting district's adjusted per pupil revenues" means minimum per pupil funding as calculated pursuant to section 22-54-104 (3.5)(d).

(c) "Accounting district's at-risk funding" means the amount of funding for at-risk pupils in the accounting district determined in accordance with the applicable at-risk funding formula described pursuant to article 54 of this title 22.

(d) "Accounting district's at-risk per pupil funding" means the amount of funding determined in accordance with the following formula:

(The accounting district's at-risk funding divided by the accounting district's funded pupil count) x (the institute charter school's percentage of at-risk pupils divided by the accounting district's percentage of at-risk pupils).

(d.2) "Accounting district's English language learner funding" means the amount of funding for English language learner pupils in the accounting district determined in accordance with the applicable English language learner funding formula described pursuant to article 54 of this title 22.

(d.4) "Accounting district's English language learner per pupil funding" means the amount of funding determined in accordance with the following formula:

(The accounting district's English language learner funding divided by the accounting district's funded pupil count) x (the institute charter school's percentage of English language learner pupils divided by the accounting district's percentage of English language learner pupils).

(e) "Accounting district's funded pupil count" means the funded pupil count determined pursuant to section 22-54-104.

(f) "Accounting district's per pupil funding" means the per pupil funding calculated for the accounting district pursuant to the formula described in section 22-54-104 (3).

(g) "Accounting district's per pupil online funding" means the online funding formula described pursuant to article 54 of this title 22 for any budget year divided by the online pupil enrollment.

(h) "Administrative overhead costs" means all actual and reasonable costs incurred by the institute as a result of its performance of its obligations pursuant to this part 5. "Administrative overhead costs" shall not include any costs incurred in order to deliver services that an institute charter school may purchase at its discretion.

(i) "At-risk pupils" shall have the same meaning as provided in section 22-54-103 (1.5).

(i.5) "English language learner pupils" has the same meaning as provided in section 22-54-103 (6.5).

(j) "Online pupil enrollment" means:

(I) Repealed.

(II) The number of pupils, on the pupil enrollment count day within the applicable budget year, enrolled in, attending, and actively participating in a multi-district online school, as defined in section 22-30.7-102 (6), created pursuant to article 30.7 of this title 22 by the institute charter school.

(k) "Pupil enrollment" shall have the same meaning as provided in section 22-54-103 (10).

(l) "Qualified charter school" shall have the same meaning as provided in section 22-54-124 (1)(f.6).

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

(b) The institute may retain three percent of the accounting district's adjusted per pupil revenues for each pupil, who is not an online pupil, enrolled in the institute charter school and three percent of the accounting district's per pupil online funding for each online pupil enrolled in the institute charter school.

(b.5) For purposes of calculating an institute charter school's funding pursuant to this subsection (2):

(I) If the institute 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

(II) If the institute 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 institute charter school must include the supplemental kindergarten enrollment as defined in section 22-54-103 (15).

(c) Each institute charter school shall pay an amount equal to the per pupil cost incurred by the institute in providing federally required educational services, multiplied by the number of students enrolled in the institute charter school. At either party's request, the institute charter school and the institute may negotiate and include in the charter contract alternate arrangements for the provision of and payment for federally required educational services, including, but not necessarily limited to, a reasonable reserve not to exceed five percent of the institute's total budget for providing federally required educational services. The reserve shall only be used by the institute to offset excess costs of providing services to students with disabilities enrolled in any institute charter school.

(d) (I) Within ninety days after the end of each fiscal year, the institute shall provide to each institute charter school an itemized accounting of all the institute's administrative overhead costs.

(II) Within ninety days after the end of each fiscal year, the institute shall provide to each institute charter school an itemized accounting of all the actual costs of any additional services the institute charter school chose at its discretion to purchase as provided in paragraph (b) of subsection (4) of this section. Any difference between the amount initially charged to the institute charter school and the actual cost shall be reconciled and paid to the owed party.

(e) (I) An institute 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.

(II) Notwithstanding the provisions of subsection (2)(e)(I) of this section to the contrary, 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 pursuant to section 22-54-104, an institute 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 institute 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), "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.

(f) For purposes of subsections (2)(g) and (2)(h) 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).

(g) (I) For the 2026-27 budget year, the institute shall determine each of its charter schools' phase-in amounts of total program. Each charter school's phase-in amount of total program is the amount calculated by the institute using the calculation described in section 22-54-103.3 (3)(b) for each of its charter schools; except that, when making the calculations, the institute 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 the accounting district's at-risk pupil enrollment and use the charter school's percentage of at-risk pupils instead of the accounting district's percentage of at-risk pupils as used pursuant to sections 22-54-103.5 (6)(a) and 22-54-104 (4); except that the institute shall use the charter school's at-risk pupil enrollment for the 2026-27 budget year instead of accounting district's at-risk pupil enrollment as used in the formula in section 22-54-103.5 (6)(b) if: The accounting district's funded pupil count is less than seven thousand, the accounting district's 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 the accounting district's 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 2026-27 budget year instead of the accounting district's 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)(g)(III) of this section, a charter school whose accounting district is a school 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)(g)(III) of this section, a charter school whose accounting district is a school 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, the institute shall distribute to each of its charter schools an amount equal to the greater of:

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

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

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

(h) (I) For each budget year beginning with the 2027-28 budget year through the 2030-31 budget year, the institute shall determine each of its charter schools' phase-in amounts of total program. Each charter school's phase-in amount of total program is the amount calculated by the institute using the calculation described in section 22-54-103.3 (3)(c) for the applicable budget year; except that, when making the calculations, the institute 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 the accounting district's at-risk pupil enrollment and use the charter school's percentage of at-risk pupils instead of the accounting district's percentage of at-risk pupils as used pursuant to sections 22-54-103.5 (6)(a) and 22-54-104 (4); except that the institute shall use the charter school's at-risk pupil enrollment for the applicable budget year instead of accounting district's at-risk pupil enrollment as used in the formula in section 22-54-103.5 (6)(b) if: The accounting district's funded pupil count is less than seven thousand, the accounting district's 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, the institute shall determine each of its charter schools' old formula amounts of total program. Each charter school's old formula amount of total program is the amount calculated by the institute 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 institute shall:

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

(C) Use the charter school's English language learner pupil enrollment for the applicable budget year instead of accounting district's 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)(h)(IV) of this section, a charter school whose accounting district is a school 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 distribution described in subsection (2)(h)(IV) of this section, a charter school whose accounting district is 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, the institute shall distribute to each of its charter schools, an amount equal to the greater of:

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

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

(3) (a) On or before November 10 of each year, the institute shall certify to the state board each institute charter school's pupil enrollment and online pupil enrollment for that year. In certifying the pupil enrollment of each institute charter school to the state board, the institute shall specify the number of pupils enrolled in half-day kindergarten; the number of pupils enrolled in full-day kindergarten; the number of pupils enrolled in first grade through twelfth grade, specifying those who are enrolled as full-time students and those who are enrolled as less than full-time students; the number of expelled pupils receiving educational services pursuant to section 22-33-203; the number of pupils receiving educational programs under the "Exceptional Children's Educational Act", article 20 of this title; and the number of at-risk pupils. The institute shall also notify the department as to whether each institute charter school is a qualified charter school.

(b) For purposes of the "Public School Finance Act of 2025", article 54 of this title 22, the department shall add the pupils enrolled in an institute charter school to the funded pupil count and the online pupil enrollment of the institute charter school's accounting district.

(4) (a) (I) For each institute charter school, the department shall withhold from the state equalization payments of the institute charter school's accounting district an amount equal to one hundred percent of the accounting district's adjusted per pupil revenues multiplied by the number of pupils enrolled in the institute charter school who are not online pupils plus an amount equal to one hundred percent of the accounting district's per pupil online funding multiplied by the number of online pupils enrolled in the institute charter school. The department shall forward to the institute the amount withheld minus an amount not to exceed one percent of the amount withheld that the department may retain as reimbursement for the reasonable and necessary costs to the department to implement the provisions of this part 5.

(I.5) The institute shall forward to each institute charter school an amount equal to the institute charter school's pupil enrollment multiplied by the accounting district's adjusted per pupil revenues of the institute charter school's accounting district, minus:

(A) The amount withheld not to exceed one percent retained by the department pursuant to subparagraph (I) of this paragraph (a);

(B) Repealed.

(C) Any amount agreed to by the institute and the institute charter school for repayment of a loan to the institute charter school from the institute charter school assistance fund created in section 22-30.5-515.5;

(D) Any amount withheld pursuant to section 22-30.5-406 for the direct payments made by the state treasurer of principal and interest due on bonds issued on behalf of the institute charter school by a governmental entity for the purpose of financing institute charter school capital construction;

(E) An amount equal to three percent of the amount calculated for the institute charter school pursuant to subparagraph (I) of this paragraph (a), which amount shall be credited to the account created pursuant to section 22-30.5-506 (4) and used to offset administrative overhead costs; and

(F) The amount agreed to in the institute charter contract for any additional services, as provided in paragraph (b) of this subsection (4).

(II) Repealed.

(b) As part of the institute charter school contract, the institute charter school and the institute board shall agree on the services, other than necessary administration, oversight, and management services, to be provided to the institute charter school by any third party with which the institute or institute charter school contracts and the costs of the services.

(c) and (d) Repealed.

(4.5) (a) For the 2012-13 budget year through the 2024-25 budget year, the general assembly shall appropriate to the charter school institute the amount calculated for at-risk supplemental aid pursuant to subsection (4.5)(b) of this section for each institute charter school whose percentage of at-risk pupils is less than the percentage of at-risk pupils in the accounting district. For the 2025-26 budget year and the 2026-27 budget year, the general assembly shall appropriate to the charter school institute for allocation to institute charter schools the amount described in subsection (4.5)(b.5) of this section. At-risk supplemental aid is additional funding and does not supplant any other funding allocated pursuant to this section. The charter school institute shall pass through one hundred percent of an institute charter school's at-risk supplemental aid to the institute charter school.

(b) The institute charter school's at-risk supplemental aid is equal to one-half of the difference between one hundred percent of the accounting district's per pupil revenues and one hundred percent of the accounting district's adjusted per pupil revenues for each pupil enrolled in the district charter school, not including online pupils or pupils enrolled in the TREP program.

(b) The institute charter school's at-risk supplemental aid is equal to one-half of the difference between one hundred percent of the accounting district's per pupil revenues and one hundred percent of the accounting district's adjusted per pupil revenues for each pupil enrolled in the district charter school, not including online pupils.

(b.5) For the 2025-26 budget year, each institute charter school's at-risk supplemental aid is the same amount that it received in the 2024-25 budget year. For the 2026-27 budget year, each institute charter school's at-risk supplemental aid is fifty percent of the amount that it received in the 2024-25 budget year.

(c) For purposes of this subsection (4.5), unless the context otherwise requires, "accounting district's per pupil revenues" has the same meaning as the term "district per pupil revenues" defined in section 22-30.5-112.

(d) If the appropriation to the charter school institute is insufficient to fund the at-risk supplemental aid determined pursuant to this subsection (4.5), the charter school institute shall reduce each institute charter school's at-risk supplemental aid proportionately.

(e) This subsection (4.5) is repealed, effective July 1, 2028.

(5) (Deleted by amendment, L. 2009, (SB 09-089), ch. 440, p. 2435, § 4, effective June 4, 2009.)

(5.5) (a) Notwithstanding any provision of this section to the contrary, if a district charter school converts to an institute charter school pursuant to section 22-30.5-510, the converted school's total program funding as the funding applied to the converted school before the conversion; except that this subsection (5.5) does not apply if the converted school was authorized by a small rural school district, as described in section 22-54-108 (3)(b)(IV), before the conversion.

(b) Repealed.

(6) (a) The governing body of an institute charter school is authorized to accept gifts, donations, or grants of any kind made to the institute 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 charter contract between the institute charter school and the institute.

(b) Moneys received by an institute charter school from any source and remaining in the institute charter school's accounts at the end of a budget year shall remain in the institute charter school's accounts for use by the institute charter school during subsequent budget years and shall not revert to the state. Moneys remaining in the institute charter school's accounts upon revocation or nonrenewal of the charter contract shall revert to the institute; except that any gifts shall be disposed of in accordance with any conditions prescribed by the donor that are not contrary to law.

(7) and (8) Repealed.

(9) (a) For the 2004-05 budget year through the 2025-26 budget year, the proportionate share of money generated under federal or state categorical aid programs shall be directed to institute charter schools serving students eligible for such aid.

(b) Each institute charter school that receives federal or state categorical aid shall comply with all applicable federal and state reporting requirements to receive such aid.

(10) (a) On or before December 1 each year, a representative from the governing board of each institute charter school and the institute board shall meet to review the level of funding received by the institute as a result of the money withheld by the institute for the amount of actual costs incurred by the institute in providing necessary administration, oversight, and management services to the institute charter schools. The institute charter school representatives and the institute board shall, at a minimum, review, for each budget year, the amount of money annually appropriated to the institute, the amount of costs incurred by the institute, and the services provided by the institute.

(b) Notwithstanding section 24-1-136 (11)(a)(I), on or before January 15, 2010, and on or before January 15 each year thereafter, the institute board shall submit to the education committees of the senate and the house of representatives, or any successor committees, the findings of the review described in subsection (10)(a) of this section and any recommendations for legislative changes regarding the operations of the institute.

(c) The provisions of this subsection (10) shall not be interpreted as limiting the authority of the institute or the institute board in making decisions concerning operations of the institute or the use of institute moneys.

(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 institute to the charter school pursuant to subsections (2)(g) and (2)(h) 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.