EDGAR Part 76 Subpart H (How Does a State or LEA Allocate Funds to Charter Schools?)
Subpart H_How Does a State or Local Educational Agency Allocate Funds to
Charter Schools?
Source: 64 FR 71965, Dec. 22, 1999, unless otherwise noted.
General
Sec. 76.785 What is the purpose of this subpart?
The regulations in this subpart implement section 10306 of the
Elementary and Secondary Education Act of 1965 (ESEA), which requires
States to take measures to ensure that each charter school in the State
receives the funds for which it is eligible under a covered program
during its first year of operation and during subsequent years in which
the charter school expands its enrollment.
(Authority: 20 U.S.C. 8065a)
Sec. 76.786 What entities are governed by this subpart?
The regulations in this subpart apply to--
(a) State educational agencies (SEAs) and local educational agencies
(LEAs) that fund charter schools under a covered program, including SEAs
and LEAs located in States that do not participate in the Department's
Public Charter Schools Program;
(b) State agencies that are not SEAs, if they are responsible for
administering a covered program. State agencies that are not SEAs must
comply with the provisions in this subpart that are applicable to SEAs;
and
(c) Charter schools that are scheduled to open or significantly
expand their enrollment during the academic year and wish to participate
in a covered program.
(Authority: 20 U.S.C. 8065a)
Sec. 76.787 What definitions apply to this subpart?
For purposes of this subpart--
Academic year means the regular school year (as defined by State
law, policy, or practice) and for which the State allocates funds under
a covered program.
Charter school has the same meaning as provided in title X, part C
of the ESEA.
Charter school LEA means a charter school that is treated as a local
educational agency for purposes of the applicable covered program.
Covered program means an elementary or secondary education program
administered by the Department under which the Secretary allocates funds
to States on a formula basis, except that the term does not include a
program or portion of a program under which an SEA awards subgrants on a
discretionary, noncompetitive basis.
Local educational agency has the same meaning for each covered
program as provided in the authorizing statute for the program.
Significant expansion of enrollment means a substantial increase in
the number of students attending a charter school due to a significant
event that is unlikely to occur on a regular basis, such as the addition
of one or more grades or educational programs in major curriculum areas.
The term also includes any other expansion of enrollment that the SEA
determines to be significant.
(Authority: 20 U.S.C. 8065a)
Reponsibilities for Notice and Information
Sec. 76.788 What are a charter school LEA's responsibilities under
this subpart?
(a) Notice. At least 120 days before the date a charter school LEA
is scheduled to open or significantly expand its enrollment, the charter
school LEA or its authorized public chartering agency must provide its
SEA with written notification of that date.
(b) Information. (1) In order to receive funds, a charter school LEA
must provide to the SEA any available data or information that the SEA
may reasonably require to assist the SEA in estimating the amount of
funds the charter school LEA may be eligible to receive under a covered
program.
(2)(i) Once a charter school LEA has opened or significantly
expanded its enrollment, the charter school LEA must provide actual
enrollment and eligibility data to the SEA at a time the SEA may
reasonably require.
(ii) An SEA is not required to provide funds to a charter school LEA
until the charter school LEA provides the SEA with the required actual
enrollment and eligibility data.
(c) Compliance. Except as provided in Sec. 76.791(a), or the
authorizing statute or implementing regulations for the applicable
covered program, a charter school LEA must establish its eligibility and
comply with all applicable program requirements on the same basis as
other LEAs.
(Approved by the Office of Management and Budget under control number
1810-0623)
(Authority: 20 U.S.C. 8065a)
Sec. 76.789 What are an SEA's responsibilities under this subpart?
(a) Information. Upon receiving notice under Sec. 76.788(a) of the
date a charter school LEA is scheduled to open or significantly expand
its enrollment, an SEA must provide the charter school LEA with timely
and meaningful information about each covered program in which the
charter school LEA may be eligible to participate, including notice of
any upcoming competitions under the program.
(b) Allocation of Funds. (1) An SEA must allocate funds under a
covered program in accordance with this subpart to any charter school
LEA that--
(i) Opens for the first time or significantly expands its enrollment
during an academic year for which the State awards funds by formula or
through a competition under the program;
(ii) In accordance with Sec. 76.791(a), establishes its eligibility
and complies with all applicable program requirements; and
(iii) Meets the requirements of Sec. 76.788(a).
(2) In order to meet the requirements of this subpart, an SEA may
allocate funds to, or reserve funds for, an eligible charter school LEA
based on reasonable estimates of projected enrollment at the charter
school LEA.
(3)(i) The failure of an eligible charter school LEA or its
authorized public chartering agency to provide notice to its SEA in
accordance with Sec. 76.788(a) relieves the SEA of any obligation to
allocate funds to the charter school within five months.
(ii) Except as provided in Sec. 76.792(c), an SEA that receives
less than 120 days' actual notice of the date an eligible charter school
LEA is scheduled to open or significantly expand its enrollment must
allocate funds to the charter school LEA on or before the date the SEA
allocates funds to LEAs under the applicable covered program for the
succeeding academic year.
(iii) The SEA may provide funds to the charter school LEA from the
SEA's allocation under the applicable covered program for the academic
year in which the charter school LEA opened or significantly expanded
its enrollment, or from the SEA's allocation under the program for the
succeeding academic year.
(Approved by the Office of Management and Budget under control number
1810-0623)
(Authority: 20 U.S.C. 8065a)
Allocation of Funds by State Educational Agencies
Sec. 76.791 On what basis does an SEA determine whether a charter
school LEA that opens or significantly expands its enrollment
is eligible to receive funds under a covered program?
(a) For purposes of this subpart, an SEA must determine whether a
charter school LEA is eligible to receive funds under a covered program
based on actual enrollment or other eligibility data for the charter
school LEA on or after the date the charter school LEA opens or
significantly expands its enrollment.
(b) For the year the charter school LEA opens or significantly
expands its enrollment, the eligibility determination may not be based
on enrollment or eligibility data from a prior year, even if the SEA
makes eligibility determinations for other LEAs under the program based
on enrollment or eligibility data from a prior year.
(Authority: 20 U.S.C. 8065a)
Sec. 76.792 How does an SEA allocate funds to eligible charter school
LEAs under a covered program in which the SEA awards subgrants
on a formula basis?
(a) For each eligible charter school LEA that opens or significantly
expands its enrollment on or before November 1 of an academic year, the
SEA must implement procedures that ensure that the charter school LEA
receives the proportionate amount of funds for which the charter school
LEA is eligible under each covered program.
(b) For each eligible charter school LEA that opens or significantly
expands its enrollment after November 1 but before February 1 of an
academic year, the SEA must implement procedures that ensure that the
charter school LEA receives at least a pro rata portion of the
proportionate amount of funds for which the charter school LEA is
eligible under each covered program. The pro rata amount must be based
on the number of months or days during the academic year the charter
school LEA will participate in the program as compared to the total
number of months or days in the academic year.
(c) For each eligible charter school LEA that opens or significantly
expands its enrollment on or after February 1 of an academic year, the
SEA may implement procedures to provide the charter school LEA with a
pro rata portion of the proportionate amount of funds for which the
charter school LEA is eligible under each covered program.
(Authority: 20 U.S.C. 8065a)
Sec. 76.793 When is an SEA required to allocate funds to a charter
school LEA under this subpart?
Except as provided in Sec. Sec. 76.788(b) and 76.789(b)(3):
(a) For each eligible charter school LEA that opens or significantly
expands its enrollment on or before November 1 of an academic year, the
SEA must allocate funds to the charter school LEA within five months of
the date the charter school LEA opens or significantly expands its
enrollment; and
(b)(1) For each eligible charter school LEA that opens or
significantly expands its enrollment after November 1, but before
February 1 of an academic year, the SEA must allocate funds to the
charter school LEA on or before the date the SEA allocates funds to LEAs
under the applicable covered program for the succeeding academic year.
(2) The SEA may provide funds to the charter school LEA from the
SEA's allocation under the program for the academic year in which the
charter school LEA opened or significantly expanded its enrollment, or
from the SEA's allocation under the program for the succeeding academic
year.
(Authority: 20 U.S.C. 8065a)
Sec. 76.794 How does an SEA allocate funds to charter school LEAs
under a covered program in which the SEA awards subgrants on a
discretionary basis?
(a) Competitive programs. (1) For covered programs in which the SEA
awards subgrants on a competitive basis, the SEA must provide each
eligible charter school LEA in the State that is scheduled to open on or
before the closing date of any competition under the program a full and
fair opportunity to apply to participate in the program.
(2) An SEA is not required to delay the competitive process in order
to allow a charter school LEA that has not yet opened or significantly
expanded its enrollment to compete for funds under a covered program.
(b) Noncompetitive discretionary programs. The requirements in this
subpart do not apply to discretionary programs or portions of programs
under which the SEA does not award subgrants through a competition.
(Authority: 20 U.S.C. 8065a)
Adjustments
Sec. 76.796 What are the consequences of an SEA allocating more or
fewer funds to a charter school LEA under a covered program
than the amount for which the charter school LEA is eligible
when the charter school LEA actually opens or significantly
expands its enrollment?
(a) An SEA that allocates more or fewer funds to a charter school
LEA than the amount for which the charter school LEA is eligible, based
on actual enrollment or eligibility data when the charter school LEA
opens or significantly expands its enrollment, must make appropriate
adjustments to the amount of funds allocated to the charter school LEA
as well as to other LEAs under the applicable program.
(b) Any adjustments to allocations to charter school LEAs under this
subpart must be based on actual enrollment or other eligibility data for
the charter school LEA on or after the date the charter school LEA first
opens or significantly expands its enrollment, even if allocations or
adjustments to allocations to other LEAs in the State are based on
enrollment or eligibility data from a prior year.
(Authority: 20 U.S.C. 8065a)
Sec. 76.797 When is an SEA required to make adjustments to allocations
under this subpart?
(a) The SEA must make any necessary adjustments to allocations under
a covered program on or before the date the SEA allocates funds to LEAs
under the program for the succeeding academic year.
(b) In allocating funds to a charter school LEA based on adjustments
made in accordance with paragraph (a) of this section, the SEA may use
funds from the SEA's allocation under the applicable covered program for
the academic year in which the charter school LEA opened or
significantly expanded its enrollment, or from the SEA's allocation
under the program for the succeeding academic year.
(Authority: 20 U.S.C. 8065a)
Applicability of This Subpart to Local Educational Agencies
Sec. 76.799 Do the requirements in this subpart apply to LEAs?
(a) Each LEA that is responsible for funding a charter school under
a covered program must comply with the requirements in this subpart on
the same basis as SEAs are required to comply with the requirements in
this subpart.
(b) In applying the requirements in this subpart (except for
Sec. Sec. 76.785, 76.786, and 76.787) to LEAs, references to SEA (or
State), charter school LEA, and LEA must be read as references to LEA,
charter school, and public school, respectively.
(Authority: 20 U.S.C. 8065a)
EDGAR version June 23, 2005
