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.
Provides relative to the payment of accrued liabilities of retirement systems and other retirement obligations from minimum foundation program funds allocated to charter schools (OR DECREASE FC LF EX)
Provides relative to the Student Scholarships for Educational Excellence Program, parent petitions for certain schools to be transferred to the RSD, charter school authorizers, and course providers (EN INCREASE LF EX See Note)
Provides relative to school choice, including the Student Scholarships for Educational Excellence Program, parent petitions to transfer certain schools to be RSD, charter school authorizers, and course providers. (gov sig) (EG INCREASE LF EX See Note)
Provides for charter schools to pay a proportionate share of the local school district's of Teachers' Retirement System UAL payment. (6/30/16) (OR INCREASE SG RV See Note)