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FISCAL NOTE
House Bill 363
Committee: Education Policy Sponsor: Representative Terri Collins
Analyst: John Friedenreich Date: 05/03/2023
House Bill 363 as reported by the House Committee on Education Policy would provide that
start-up public charter schools: (1) be funded during start-up and planned structured growth
years based on anticipated enrollment, as provided in the approved charter application, with the
resulting Foundation Program allocation being adjusted to reconcile the variance between
anticipated and actual funded enrollment; and (2) participate in other Education Trust Fund
(ETF) and Public School Fund (PSF) appropriations in the same manner as a non-charter public
school system.
This bill would also provide that conversion public charter schools: (1) be funded at the same
level as the school was funded prior to conversion to a public charter school; (2) receive from
the local board a pro-rata share of other Education Trust Fund (ETF) appropriations; and (3) be
appropriated from the local school board all federal, state, and local funds allocated to support
the conversion public charter school.
This bill could increase the administrative obligations of the Alabama State Department of
Education (SDE) by requiring SDE to: (1) forward all funds to public charter schools on the
same schedule as a non-charter public school, rather than quarterly as provided by current law;
and (2) annually calculate per-student allocations and ensure distribution of those funds directly
to public charter schools. This bill would also require the State Superintendent of Education to
intervene to allocate local funds to conversion charter schools under certain conditions.
In addition, this bill could increase the obligations of the Alabama Public Charter School
Commission by an undetermined amount dependent upon the number of new non-merit
employees, if any, hired as provided by the bill. This bill would also allow the Commission and
SDE to enter into a cost-sharing agreement for services, supplies, facilities, and other related
costs.