Louisiana House Bill HB643

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Provides with respect to the payment of UAL and other retirement obligations from MFP to determine state-funded per pupil allocation for charter schools, course providers, and scholarship schools (OR SEE FISC NOTE GF EX)

Impact

By adjusting the parameters of how funding is allocated, HB643 is poised to create a shift in the financial dynamics of charter schools compared to traditional public schools. It establishes specific calculations for 'employer retirement costs', factoring in contributions to state retirement systems and health benefits for retirees. This change may provide charter schools with a clearer budgetary framework, potentially increasing their operational budgets but also raising questions about the sustainability of funding for public schools losing these allocations.

Summary

House Bill 643 addresses the funding structure for charter schools and educational course providers in Louisiana. The bill modifies existing laws to state that the state-funded per pupil allocation for these institutions will be calculated without including employer retirement costs. This strategy aims to ensure that charter schools receive a more precise and potentially increased per pupil allocation based on the regular state funding mechanisms while alleviating the burden of retirement costs from their total funding calculation.

Sentiment

The sentiment surrounding HB643 appears mixed among legislators and community stakeholders. Proponents argue that the bill represents a vital improvement in the funding stability for charter schools, encouraging educational diversity and innovation. However, critics express concerns that removing retirement costs from the funding formula could undermine public school funding and exacerbate inequities in educational resource allocation, potentially leading to broader implications for public education financing in Louisiana.

Contention

The main points of contention in discussions about HB643 relate to the balance of funding between charter and traditional public schools. Critics argue that the bill may lead to a net loss of funding for traditional public schools, as charter schools may receive a larger share of state resources at the expense of public institutions. Additionally, there are apprehensions about the long-term implications of shifting financial burdens of retirement obligations away from charter schools and how this could affect the overall health of the state's educational budget and its commitment to fulfilling all educators' retirement needs.