SB387 Alabama 2021 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2021

Title

Public charter schools, methods of providing operational funding to revised, Alabama School Choice and Student Opportunity Act, Sec. 16-6F-10 am'd.

Summary

SB387 revises how Alabama public charter schools receive operating funding from state and local sources, including per-student funding, local revenue sharing, start-up funding, and transportation.

What This Bill Does

Charter students' enrollment is counted with the local school system where they live, and charter schools must report data to the local districts and the state. In the first year and as they grow, public charter schools receive funding from the Education Trust Fund through the Foundation Program, with startup funds treated like a non-charter school during developmental years and adjusted during the year as enrollment changes. Each charter student gets the same per-student state funding as if enrolled in the resident district, including funds for items like transportation and nurses, adjusted for grade level and student needs; they also receive a per-student share of local tax revenue that would have gone to the non-charter district, with certain exclusions. Other funding and requirements include sharing federal/state categorical aid, direct state funding for special education, adherence to GAAP with annual independent audits, and transportation funding rules that may involve contracts with other providers.

Who It Affects

• Public charter schools and the students who attend them, who would receive per-student state and local funding and be subject to new reporting and audit requirements.
• Local school systems and the district that serves non-charter schools, which would allocate funds to charters based on per-student calculations and manage local tax revenue distributions.

Key Provisions

• Enrollment counts: charter students are included in local district enrollment and attendance counts, with data reported by the charter to the resident districts and then to the state.
• Startup and growth funding: initial year and growth funding come from the Education Trust Fund Foundation Program; startup funding is treated like new non-charter schools during development, with year-end adjustments based on actual enrollment.
• Per-student state funds: each charter student receives the same state funds per student as the resident district would allocate, including items in the Foundation Program related to transportation, nurses, technology, etc., adjusted for student characteristics.
• Per-student local revenue: each charter student receives local tax revenue equivalent to what the non-charter district would allocate for that student, with exclusions for debt service, capital, or transportation; start-up charters receive proportional funding within the county under applicable laws.
• Distribution rules: state funds are forwarded to charters quarterly or monthly; local funds are forwarded by the resident district; restricted or earmarked funds are excluded from the calculation.
• Categorical and special education funding: a proportional share of federal/state categorical aid goes to charters; the state pays directly for special education funds when applicable, with possible alternate arrangements negotiated in the charter contract.
• Accounting and audits: charters must follow Generally Accepted Accounting Principles and conduct an annual independent audit by a CPA, with reports filed to the authorizer by June 1.
• Transportation funding: the department disburses transportation funds to charters as it does to local districts; charters may contract with other providers for transportation; charters that do not provide transportation do not receive transportation-related funds.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Charter Schools