N.Y. Education Law § 2856: Financing of charter schools

§ 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.