Charter Development 101:
Pre-Approval
Moving from charter idea
to charter approval.
Presented by the Charter Association
in cooperation with
Business and Development Specialists
For California Charter Schools
Course Overview
• Audience: New Charter Developers
• Purpose: Help new charter developers understand the
charter development process, and present key strategies
and the primary elements needed to complete a charter
school application successfully. However, the goal of this
workshop is not only to prepare developers to write a
charter application, but also to prepare them to
successfully open and run a school.
• Outline:
– Hour 1: Timeline, Team, Mission & Vision
– Hour 2: Education Plan, Assessments, & Special
Education
– Hour 3: Financial and Operational Plans
– Hour 4: Legal Issues for Charter Developers
2
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Hour 1: Timeline, Team, Mission
Overview of Hour 1:
– Charter development and approval timeline
– Vision and Mission statements
– Charter development team
– Creating an efficient development process
3
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline
Although some charter development processes can take as little as four months,
developers should plan on the process taking about a year (assuming the developers
have a clear idea of the school they want to create).
Month 1: Pull together team, apply for grants, if applicable.
Month 2: Develop Vision and Mission
Month 3 & 4: Develop detailed outline of curriculum; begin to recruit community
partners and support.
Month 5-6: Create first draft of charter.
Month 6-7: Edit and finalize charter; collect signatures; continue to recruit
community partners and support.
Month 7-8: Submit charter; develop presentation for public hearing.
Month 8-9: Public hearing.
Month 9-10: Charter approval [or] appeal to the county.
Month 10-11: Hearing at the county
Month 11-12: Charter approval [or] appeal to the state; apply for charter school
number (soft deadline May 21; hard deadline May 31)
Month 12 & 13: Hearing and approval at state board
4
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Curriculum
• The curriculum outline is a critical component of
the charter petition and, of course, the school
itself.
• Some developers spend over a year creating the
curriculum; plan on the curriculum taking at least
2 months (assuming the developers are already
well underway in understanding the type of
school they want to create.) The curriculum will
evolve as the school grows and matures.
5
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Approval
• The Law: The district has 30 days to hold a hearing on
the charter petition once submitted, and another 30 days
to make a final decision. Extensions may be granted by
mutual consent up to a total of 90 days.
• The Reality: It is not uncommon that a district will hold a
hearing in 30 days after submittal, however, the decision
period will likely be longer than 30 days.
• Check with your sponsoring district to find out what their
process is. Some districts will review drafts before formal
submittal. Others, such as LAUSD, have a long process,
and strongly encourage submitting a draft in the
November timeframe to get a decision by March or April.
6
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Approval (2)
Be thoughtful about the timing of the
submittal to the district.
– If you think the school board members will be
allies in the process, make sure the hearing
date is not around major holidays.
– Try to ensure that your supporters can attend
the hearing date. Community support at the
hearing can influence the publicly-elected
school board.
7
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Appeals
Upwards of 90% of charter petitions are approved
at the local level (district). Petitioners should
focus their energy on gaining approval at the
local level by:
– Putting together a solid petition.
– Dotting the “i’s” and crossing the “t’s”: ensure
everything is in order.
– Work whatever political channels you might have
including working cooperatively with district staff,
building relationships with school board members, and
bringing in influential community partners.
8
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Appeals (2)
However, if your charter is not passed at the local level, you
can appeal to the county and then to the state.
– The county appeal process is identical to the district process (30
days + 30 days). You must submit the same charter as you
submitted to the county as well as the official “findings” from the
district (reason the district denied petition). Counties seem to
rarely approve petitions on appeal.
– The state has 60 days to hold a hearing and then 30 days to
make a decision. This seems in conflict with the charter law that
says that the whole process may only take 180 days, but such is
the reality. The state board has a standard by which it must
evaluate charter petitions which is set in regulation. Make sure
your charter petition addresses all the standards set forth in the
regulations if you hope for charter approval on appeal to the
state. §11967.5.1. Criteria for the Review and Approval of Charter School Petitions by the
State Board of Education.
9
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timeline: Key Dates
Some dates that may impact when you want to submit your
charter:
– Prop 39: Charter applicants may submit a Prop 39 request for a
facility from the sponsoring district, if the school submits its
charter by November 14. The school must then submit a Prop 39
request by January 1, and must have its charter approved by
March 1.
– Startup/Implementation Grant: The next grant cycle for the
Federal charter school grant program will likely be in the Winter. If
you haven’t been approved you can apply for a start-up and
implementation grant ($450,000 total) from the state.
– Advance Apportionment: Approved charters can be pre-funded
by the state based on projected ADA figures. In order to get the
advance apportionment, the charter must submit its charter
number application (after being approved) by the end of May to
the Charter School’s office at the CDE.
10
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Vision and Mission
• Develop articulate and precise Vision and
Mission Statements!
• The initial work should begin with a clear
understanding and definition of your mission,
vision and goals (outcomes).
• Spend sufficient time developing your mission
and vision. These are the heart and soul of your
school and should be the driving force behind
your school and all future decisions.
11
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission Statement
• What is a Mission?
• A mission is not a description of your
program or your curriculum strategies. A
school mission is a GOAL.
• Missions should precisely describe what
the school does and for whom.
• School goals should be measurable.
12
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission Statement (2)
• Align standards, assessment and
curriculum with school vision and missions.
• Use the school’s mission and vision in
making decisions in all other areas.
13
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission Statement (3)
Consider the following questions when
writing a mission:
– What are the ultimate goals for student
achievement?
– What is the vision for how the school will best
prepare its students?
– What is the vision for what the school will be in
five years and in ten years?
14
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission & Vision Statements (4)
Sample Mission / Vision Statements:
“High Tech High provides students with rigorous and relevant academic
and workplace skills, preparing its graduates for rewarding lives in
our increasingly technological society.”
The primary goals of High Tech High are:
To integrate technical and academic education in a school that prepares
students for post-secondary education and for leadership in the high
technology industry.
To increase the number of educationally disadvantaged students in
math and engineering who succeed in high school and postsecondary education and who become productive members and
leaders in San Diego's high technology industry.
To provide all HTH students with an extraordinary education, and to
graduate students who will be thoughtful, engaged citizens prepared
to take on the difficult leadership challenges of the 21st century.
15
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission & Vision Statements (5)
Sample Mission / Vision Statements:
The mission of the Lighthouse Community Charter School (LCCS) is to prepare
a diverse, K-12 student population for higher education or the career of their
choice by equipping each child with the skills, knowledge, and habits of mind
to become a self-motivated, competent, lifelong learner. To be fully
educated and prepared for the 21st century, we believe every child must
maintain a natural curiosity about the world, relentlessly pursue their goals,
construct and communicate knowledge, display personal and social
responsibility, work collaboratively with others, and reflect consistently on
their growth as a learner.
For each child to reach his or her fullest potential, we believe:
• Every child must be held to clearly articulated, high expectations for
achievement,
• The school, families, and community must collaborate to meet the cognitive,
social, emotional, and physical needs of every child, and
• Teachers must be engaged in a reflective and collaborative environment of
ongoing professional development that is focused on student achievement.
16
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Mission Statement (6)
• Make your description believable,
understandable, motivating and
achievable.
• How will your school fit the needs of your
students and parents, your staff and your
community?
17
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Required Skill Sets
• What are the critical skill sets you need for
a successful effort?
• What are your key teams and
committees?
Disclaimer
Please note that many of the items we will be discussing today are
NOT required petition elements and not grounds for denial. Your
teams or experts will play a continuing role in the development of your
programs and your school and we have given you a broad overview of
the skills sets you will need to acquire.
18
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Teams Development
Key Teams:
– Education/Curriculum & Assessments/Outcomes
(Hour 2)
– Business/Finance (Hour 3)
– Fundraising
– Facilities
– Technology
– Governance (Hour 4)
– HR/Staffing
– Community and Public Relations/ Outreach
These are the primary areas of responsibility and
these “teams” have roles which extend beyond
the petition-only phase.
19
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: Business and Finance
Business/Finance: (more in hour 3)
– Development of a Business Plan
– Create school budgets, including a cash flow budgets
that reflect the academic focus of the school.
– This team needs to understand the state funding
mechanism and cash flow issues.
Districts look very closely at the budgets for the school.
Since charter schools tend to operate more efficiently
than districts (by necessity given the funding levels),
districts are often skeptical of the charter school’s
budgets. Be sure to back up every line item with
reasonable assumptions.
20
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: Education & Assessments
Education & Assessments (more in Hour 2)
– Curriculum:
• Based on Research & State Standards.
• Who is school educating?
• What does it mean to be an educated person in the 21st C?, *How
does learning best occur?
• Students to be Served - identify school’s population, grade levels,
numbers, etc.
– Develop an academic accountability plan
Developing a solid, research-based curriculum and
assessment plan is naturally fundamental to getting a
charter approved and a school open. This committee will
have the largest amount of work and should be strongly
committed to the school and its mission.
21
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: Facilities
Facilities:
–
–
–
–
–
–
Conduct a needs assessment
Identify options
Evaluate and inspect potential sites
Review Codes, ordinances and regulations
Meet with City Planning Dept.
Prop 39 Request an option?
Districts often challenge charter schools on their
facilities options as part of the charter review
process, so it is best to have realistic facilities
possibilities that are accurately reflected in the
school’s budget.
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
22
Team: Technology
Technology:
– Technology Plan
– Integral part of Curriculum
– Curriculum drives the technology, not other
way around.
23
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: Governance
Governance:
–
–
–
–
–
–
–
–
Determine a governance structure
Recruit potential Board members
Develop Bylaws
Distinguish roles and responsibilities of the Board
Develop a Board manual and calendar
Identify legal status, tax exempt status
Review the Brown Act
Evaluation Plan for Board
Districts look closely at the governance structure of
a school, and will want to see that the
governance plan in the charter is consistent with
the school’s corporate bylaws.
24
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: HR
HR/Staffing/Handbooks:
– Create “draft” personnel policies and handbook
– Create “draft” parent/student handbooks
– Develop hiring policies and procedures (write job
descriptions)
– Develop staff evaluation process and policies
– Design benefits packages, vacation policies, pension
plans, workers compensation, unions representation
– Establish parent contracts
– Develop a school calendar
Draft contracts, handbooks, etc. can go a long way
toward convincing a district that the charter
school is prepared to open in the Fall.
25
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Team: Community Outreach
Community & Public Relations:
– Develop an action plan
– PR - positive image of school
– Marketing & Enrollment
– Parent and Community Venues
– District Liaison (Trustees & Superintendent)
26
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Charter Development 101:
Pre-Approval
Moving from charter idea
to charter approval
Hour 2: Curriculum & Assessment
Presented by the Charter Association
in cooperation with
Business and Development Specialists
For California Charter Schools
Elements A-C
• The charter petition
requirements have three core
education elements:
– Curriculum and education program
– Student outcomes
– Assessments to measure student
outcomes
• Every major part of the
curriculum (at least each core
subject) should follow the
pattern to the right.
Education Program
leads to…
Student Outcomes
Which are measured by assessments,
which in turn inform…
28
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Elements A-C
• After the pedagogical approach has been
identified, it may help to organize elements A-C
in a table to ensure the alignment of curriculum,
outcomes, and assessments, e.g.:
Curricular Approach
/Curriculum
Physics Lab/experiential
learning
Student Outcomes
Students will understand the
basic laws of Newtonian
physics
Assessments
Authentic assessments,
portfolios, CST
29
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Education Program: Element A
• Education Philosophy, based on Research & Standards.
– Whom is the school educating?
– What does it mean to be an educated person in the 21st C?
– How does learning best occur?
• Students to be Served:
– Identify school’s population
– Grade levels
– Numbers, etc.
• Curriculum & Instructional Design:
–
–
–
–
Framework aligned with target population.
Basic learning environment
Teaching methods
Materials and technology
30
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Education Program: Curriculum
CURRICULUM AND INSTRUCTIONAL DESIGN
Include a framework for instructional design
How will the school meet the needs of the targeted student
population?
• Answer should include:
–
–
–
–
–
–
–
–
Curriculum
What is to be taught and why?
Methodology
How is it to be taught?
Resources/materials
What resources/ materials will be employed?
Learning Environment
Where does learning take place?
31
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Education Program: Curriculum
Explain methodology/ approach
What instructional approach, learning styles, methodologies will be used to
promote student achievement of desired goals?
Sample: “There are many educational theories and practices that have proven to be
effective in the classroom environment; XYZ schools will not subscribe to
only one approach. We believe in allowing successful teachers to teach in an
environment that supports their own successful practices and strategies.”
-”It is the intention of Small Town Academy to model its instructional program after
the ten characteristics of successful small schools outlined by the School
Redesign Network at Stanford University. ….”
“The following instructional strategies will be used in the classroom:
Project based learning
Cooperative learning”
“Fundamental to our approach is service learning…”
32
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Education Program: Curriculum
What are the areas of study?
Start with a purpose statement and/or a rationale.
•
“The curriculum is based on the belief that knowledge is information put to use and
that to be informed is to be responsible…”
•
“The curriculum framework described herein is based upon the California Content
Standards for grades five through eight, and is designed to prepare students for the
best high schools, colleges, and universities in the country. Teachers will work with the
School Leader to supplement this curriculum with their own innovations, research, and
expertise.”
Next describe the content to be covered
Samples:
Science: While it’s based on the California State Board of Education Science framework,
the curriculum emphasizes exploration and discovery through hands on
experimentation….
Mathematics: The math curriculum will provide students with the skills they need to excel
in advanced math tracks at top high schools in the country…
33
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Education Program: Curriculum
Resources
What resources will be drawn upon to deliver and
strengthen the curriculum?
Tools and resources can include:
• Technology
• Curricular materials such as state/district
approved textbooks
• Specialized curriculum such as reading recovery
• Expertise unique to your community
34
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Planning for all types of students
• Authorizers will look for evidence that
charter developers have thought about
how to address the needs of many types of
students, specifically:
– Academic low achievers
– Academic high achievers
– English Learners
– Special Education students
35
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Academic Outcomes
Academic outcomes
Expectations for core content areas and necessary academic skills such as
critical thinking skills, communication, etc…
Exit outcomes
What skills, attitudes, habits will students need to have to graduate?
Core Academic Skills
• Mathematics: Students will develop abilities to reason logically and to
understand and apply mathematical processes and concepts, including
those within arithmetic, algebra, and other mathematical subjects.
• Critical Thinking : Students will think critically, creatively, and reflectively in
making decisions, analyzing information, and solving problems.
• Life long learning Skills: Work ethic; Study skills
Promotional outcomes
How will students matriculate through grades?
• Students will advance and progress by demonstrating mastery of critical
benchmarks of performance at designated times…..
• Mastery of the objectives at each grade level will be the basis for promotion
36
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Academic Outcomes
• Explore a wide variety of student outcome
possibilities:
–
–
–
–
–
–
Subject-matter competency
Academic achievement improvement
Leadership growth
Engagement in academic and non-academic activities
Placement into college or career
Re-designation to Fluent English Speaker
• Set realistic goals for achievement growth. Bear
in mind the benchmarks set by NCLB and the
state (addressed in the following slides) to
ensure that the school’s goals at least meet the
state and federal goals.
37
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Assessment
• Assessments & Outcomes: How do you know
you are doing a good job? Describe the outcome
you expect.
• API & AYP How will you meet your API and AYP
targets?
• Methods of Assessment Variety of objective
assessment methods, (STAR, CAHSEE, student
portfolios, authentic assessments.)
• Dissemination of Assessment How to use
assessment for continuous improvement.
Communications with major stakeholders.
38
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
State Standardized Test Primer
Test
Type of test
Scoring Output
Date
Administered
CA English
Language
Development
Test (CELDT)
Test proficiency in English for non-native
speakers.
Five levels of proficiency:
Beginner, Early Intermediate,
Intermediate, Early Advanced,
Advanced (and then students
test out)
Used to determine Limited
English Proficient funding and
factors into Similar schools rank
on API.
Testing window
is July 1 – Oct
31.
CA High
School Exit
Exam
(CAHSEE)
Standards-based test covering state
standards through Grade 10. Only grade 10
testing is required, but students who fail
either ELA or Math must retake that part
until they pass (they have five more
chances). Use of CAHSEE as a prerequisite
for graduation from HS has been postponed
until 2006.
Pass/Fail in ELA and Math (10th
graders this year will need to
pass by the time they are
seniors.)
Grade 10 pass rate factors into
API for high schools. (10%
weight)
Multiple testing
dates in winter
and Spring
(Feb, March,
and May)
Physical
Fitness Test
(PFT)
aerobic capacity (cardiovascular
endurance), body composition (percent of
body fat), abdominal strength and
endurance, trunk strength and flexibility,
upper body strength and endurance, and
overall flexibility
Various measures of fitness
(speed, flexibility, endurance,
etc)
Spring
39
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
State Standardized Test Primer
• California has a variety of standardized tests to track
student performance, the core of which is STAR:
Test
Type of test
Scoring Output
Date
Administered
California
Standards Test
(CST)
Tests students on proficiency on grade level
state content standards (ELA and Math in 211; History in 8, 10, 11; Science in 5, 9-11;
Comp in 4 & 7). Absolute standard set by
panel of experts.
Five levels of proficiency:
Advanced, Proficient, Basic,
Below Basic, Far Below Basic
80% of API
Testing window
is mid April-mid
May
California
Achievement
Test (CAT6)
Norm-referenced achievement test relative
to national sample of students. (Reading,
Language, Spelling, Math in 2-8; Reading,
Language, Math, Science in 9-11))
National Percentage Rank in
quartiles
20% of API
Same as CST
Spanish
Assessment of
Basic
Education
(SABE)
Norm-referenced achievement test.
(Reading, Spelling, Language, Math in 2-11)
Sometimes used with EL.
Referenced percentile rank in
quartiles. (Reference Percentile
is the mean reference normal
curve equivalent.)
Not factored into API
Mid-Marchmid-May.
CA Alternative
Performance
Assessment
Standards-based test for students with
severe cognitive disabilities. (ELA and Math
in 2-11)
At or above proficient standard
Replaces CST for eligible
students on API score.
Mid-April –
mid-May
40
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Adequate Yearly Progress (AYP)
• API is the centerpiece of California’s
accountability model. The new AYP is state’s
accountability model for No Child Left Behind
(NCLB).
• Whereas API is a growth accountability model,
AYP is status model based on absolute
benchmarks.
• Failure to meet AYP (on the same indicator) in
successive years has serious implications for
schools that accept federal funds (Title I, II…)
41
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Alternative Assessments
• Many charter schools use alternative
assessment measures to track their progress
internally and report to the chartering agency
(these assessments do not replace the statemandated assessments discussed previously)
– Digital Portfolios
• Digital repository of essays, photos of projects, etc.
• School should have clear rubric on how portfolios are
assessed to ensure consistency.
– Non-academic measures of progress
• Surveys of student satisfaction
• Attendance rates, parent participation, etc.
• Technology skills measured by CTAP annual surveys
42
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Formative Assessments
• Some schools also use ongoing formative
assessments to help shape the learning program
during the course of the year.
• Formative assessments help teachers and
students understand where more work needs to
be done while there is still time to address
academic weaknesses.
• Some vendors provide computer-based
assessments that align with the state standards,
including:
– Renaissance Learning
– EduSoft, PLATO, others
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
43
Assessments
Outcomes
Assessment
Students will exceed the average performance
levels of students in schools with similar
demographics in the District in reading, English,
and mathematics.
California Assessment Test-6th Edition (CAT-6), California Standards
Test.
Students will possess a strong foundation of
basic academic skills and will maintain progress
towards benchmarks of proficiency in all
academic subjects as defined by the California
Core Content Standards.
CAT-6, California Standards Test, Golden State Examinations
(beginning in seventh grade), student portfolios, student journals,
daily subject area monitoring, projects, unit tests, ongoing teacher
assessments.
44
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Special Education
• Plan for Special Education
• Process to identify Special Education pupils
• How will school provide services and
programs
• What are the legal responsibilities and how will
school meet these obligations
45
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
SPED Responsibilities
• What are the responsibilities of Charter Schools to Meet the
Needs of Special Education Students?
– Comply with a student’s IEP by providing:
• a “free, appropriate public education” (FAPE)
• with access to the “full continuum” of special education services
• in the “least restrictive environment.”
– Comply with:
• Individuals With Disabilities Act
• Americans With Disabilities Act (ADA)
• Section 504 of US Rehabilitation Code.
– Adhere to SELPA Local Plan (Special Education Local Planning Area)
– May not discriminate against an “otherwise qualified” student.
46
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
SPED Qualifications
• Who Qualifies for Special Education?
• Learning Disabled Students: Students with a
severe discrepancy between their ability and
achievement in one or more of: oral expression,
listening comprehension, written expression,
basic reading skill, reading comprehension,
mathematics calculation, mathematics
reasoning.
• Physically Disabled Students: Students with
physical disability, such as: asthma, obesity,
muscular dystrophy, growth issues, cancer,
diabetes, hearing loss, impaired vision,
ADD/ADHD, recovering students
47
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
SPED Options
When drafting the language of your charter
as it relates to special education consider
the following questions:
– Who will be responsible for serving students?
– Who will be responsible for funding services?
48
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Special Education Options (2)
•
Charter Schools have three basic options for receiving services:
1. As a school within the District (the default): You pay
the“encroachment” and they provide service and take the risk
2. Become your own LEA and join a SELPA: You receive approx.
$650 in state and federal funds / ADA, and handle all Sped
(with the risk)
3. Create your own SELPA
•
By default a charter school is a public school of its granting agency
for special education purposes. Most petitioners will restate their
intention to remain a public school of the granting agency in the
charter.
By law, the granting agency must ensure that students of the
charter school are provided with services and funding for special
education in the same manner as other students in the granting
agency.
•
49
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Special Education Options (3)
Becoming your own LEA
Must provide verifiable written assurances in petition or otherwise that the
charter school will participate as a local educational agency in a special
education plan area (SELPA).
An LEA is solely responsible for compliance with IDEA with regard to services
and funding of services.
LEA benefits/burdens:
Benefits: participation in SELPA governance; no encroachment fee to granting
agency; management of own special education services
Burdens: unforeseeable, potentially catastrophic financial risk; risk of
noncompliance
Creating your own LEA
Authorized by law, but difficult to understand how it could legally work.
50
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
SPED Options (4)
• Key points to remember
– Your charter will likely limit flexibility on which option you can
choose
– The MOU with the District probably will specify funding and
responsibility
– Start early to identify and serve students since they need it and
will create liability if you don’t do it properly
• SPED is one of the hardest (and most expensive) areas
to tackle
– Children with special needs deserve extra-ordinary attention
– Failure to deliver needed services creates huge legal risks and
significant parental dissatisfaction
– Districts often consider charter schools as lower priority
– Costs (on average) exceed available state and federal funding
• Per ADA extra charges range from $0 to $800!
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
51
Charter Development 101:
Pre-Approval
Moving from charter idea
to charter approval.
Hour 3: Financial and Operational Plans
Presented by the Charter Association
in cooperation with
Business and Development Specialists
For California Charter Schools
Financial Plan
• A complete charter petition (element VII) includes
financial and operational information that
demonstrates that the developers understand
how to run a school, including:
– The financial plan for a charter school, showing:
• A sustainable budget and cash flow projections using realistic
assumptions
• How the school plans to manage its growth financially
• A good understanding of school funding and budgeting
– A plan for finding appropriate facilities
– A marketing plan for attracting students, teachers, and
resources
– Information on how the school will manage its day-today operations, payroll, accounting, transportation,
etc.
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
53
Financial Plan
• Charter petitioners should have someone on
their development team who can help devise or
oversee the creation of a solid, realistic, fiscallysound financial plan.
• Understanding the key, standard tools for
presenting the financial plan will aid in the
creation of the financial plan.
• The next few slides outline the three main
financial statements, and main funding sources
and expense drivers in charter school budgets.
54
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Financial Statements
• Income Statement
– Describes how much money the organization is expected (or did)
make or lose over a set period of time (typically a year)
– Broadly tells the developer and board where funds will come from
and where they will be spent. Often used in yearly budgeting.
– Interim (e.g. monthly) statements track progress against budget
• Cash Flow Statement
– Tracks the flow of cash into and out of the organization, typically on
a monthly basis
– This statement will tell management if the organization will be able to
pay its bills on time (a $150K check due from the state in two months
won’t pay the teachers’ salaries today)
– The cash flow statement is the most important financial statement for
the day-to-day management of the school.
• Balance Sheets
– Snapshot look at a school’s financial position: cash in the bank,
receivables due immediately, current payables (bills), and assets.
– A valuable tool to reconcile the accounts of the school
55
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Income Statement
Startup Grant
2004-05
Operating
2005-06
2006-07
Total
SUMMARY
Revenue
General Block Grant
8100 Federal Income
8300 Other State Income
8600 Local Revenue
400,000
-
435,765
26,600
47,201
-
435,765
26,600
447,201
-
856,625
101,080
87,191
-
1,238,505
142,576
112,841
-
400,000
509,566
909,566
1,044,896
1,493,922
Operating Expenses
Ceritificated Salaries
2000 Classified Salaries
3000 Employee Benefits
4000 Books & Supplies
5000 Services & Other Operating Exp.
6000 Capital Outlay
75,000
45,000
8,500
150,000
39,220
37,280
202,000
18,903
42,029
7,000
220,008
-
277,000
63,903
50,529
157,000
259,228
37,280
376,012
45,080
102,042
26,650
449,012
10,000
518,178
50,256
139,598
92,300
631,663
10,000
Total Operating Expenses
355,000
489,940
844,940
1,008,796
1,441,995
45,000
19,626
64,626
36,100
51,927
19,626
64,626
(45,000)
30,000
49,626
49,626
36,100
55,726
51,927
(30,000)
55,726
107,653
25,348
30,264
43,260
8010
Total Revenue
1000
SACS
Categories
Operating Income
Fund Balance
Beginning Balance
Operating Income
Non-Operating Cash Expense
Other Cash Sources (Line of Credit)
Ending Balance
Recommended
Reserve
of Expenses)
Statuatory
Reserve
(3% (3%
of Expenses)
(45,000)
-
19,626
56
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Cash Flow Statement
Startup
Annual
Pre-July
Beginning Cash
Sources of Cash
Block Grant ADA Funding
In Lieu of Taxes
Categorical Funding
Economic Impact Aid
Instructional Time & Staff Dev
Lottery
Title I
Supplemental Programs
Implementation Grant
Fundraising
Total Sources
Uses of Cash
Compensation & Benefits
Books & Supplies
Operational Costs
Capital Outlays
Total Uses
Non-Operating Outflow
-
400,000
-
Ending Cash
Reserve
Unrestricted Fund Balance
32,376
12,438
11,504
200,000
Sept
21,504
82,970
23,008
4,372
2,879
Oct
Nov
75,669
44,499
15,339
15,339
1,345
886
180,000
-
400,000
509,566
200,000
128,500
150,000
39,220
37,280
262,932
7,000
220,008
-
55,000
22,500
7,844
37,280
355,000
489,940
122,624
45,000
-
Aug
244,028
191,737
16,815
11,072
3,588
12,000
26,600
3,726
-
191,504
113,229
15,339
17,570
36,750
67,500
15,688
-
36,750
30,000
15,688
-
26,293
15,000
17,771
-
26,293
2,444
17,771
26,293
2,444
17,771
119,938
82,438
59,064
46,508
46,508
45,000
Line of Credit
Net Cash Flow
Jul
19,626
100,000
(100,000)
9,000
32,376
(19,938)
9,066
54,165
(31,170)
(19,939)
32,376
12,438
21,504
75,669
44,499
24,561
3,679
7,277
9,750
11,522
12,917
14,312
28,697
5,161
11,754
64,147
31,582
10,248
57
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Balance Sheet
Balance Sheet
As of February 29,
2004
ASSETS
A snapshot at
this point in
time
Current Assets
Checking/Savings
General Checking
Petty Cash
Total Checking/Savings
170,051
439
170,491
Other Current Assets
Security Deposits
Total Other Current Assets
Total Current Assets
441
441
170,931
Fixed Assets
8,334
TOTAL ASSETS
179,265
LIABILITIES & EQUITY
Accounts Payable
23,310
Equity
Net Income
Total Equity
155,955
155,955
TOTAL LIABILITIES & EQUITY
179,265
58
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Revenue Drivers
• Enrollment and attendance which translate into Average
Daily Attendance are the main revenue drivers for charter
schools.
• Rates of Free and Reduced Lunch eligibility and English
Learner status are other major revenue drivers, (which is
one reason why it is essential to collect accurate FRL
information about your students early before school
starts, and make sure that all eligible students are
CELDT tested).
• Schools don’t reach scale until about 250-300 students,
so school developers need to be creative in their
budgeting to make the first few years work financially (or
get a start-up/implementation grant or other
philanthropy).
59
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Funding Model Overview
• Funding Sources
– Charter school block grant (State)
• General purpose grant (includes local property taxes and state aid (in
lieu)
– The split depends on your district
• Categorical block grant
– Economic Impact Aid
• For schools serving economically disadvantaged and English Language
Learner students (students who fall into both categories can be double
counted)
– Other Sources
•
•
•
•
•
•
•
Title I – V Federal Programs
CA Lottery
Class Size Reduction (K-3)
Instructional Materials Realignment
Instructional Time & Staff Development
School Library
Supplemental Hourly Program
60
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Budget Drivers & Assumptions
•
Funding Assumptions (03/04)
–
–
–
–
–
–
–
General Block Grant (Prop tax & State Aid)
• Grades K-3: $4,690 per ADA
• Grades 4-6: $4,737 per ADA
• Grades 7-8: $4,890 per ADA
• Grades 9-12: $5,670 per ADA
Categorical Block Grant
• Grades K-3: $280 per ADA
• Grades 4-6: $280per ADA
• Grades 7-8: $280 per ADA
• Grades 9-12: $280 per ADA
Title 1
• ~$450 per eligible student
Economic Impact Aid (ELL and FRL)
• $110 per eligible student
Class-size reduction
• $906 per K-3 student in classes of <20
Lottery
• $120 per ADA
Supplemental Hourly Instruction
• $~3.52 per student hour of supplemental
instruction delivered
General Assumptions:
•Enrollment by grade
•% of Daily Attendance  ADA
•Students eligible for Free & Reduced Lunch
(FRL) programs
•Number of English Language Learners (ELL)
•Student:Teacher ratios
Property Taxes and State Aid
•The amount of the General Block Grant is
fixed annually
•But the proportion paid by local property taxes
varies by District
•Since the timing of funds changes depending
on this proportion, research it early
All budget assumptions are rough
estimates only; costs vary widely based on
school size, type, district, etc. Developers need
to perform their own thorough due diligence to
create their own budgets. Per student funding
estimates are provided by the CSDC.
CAVEAT:
61
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timing of Funds (Received)
Jul
Property
Tax
State Aid
CatBGrnt
Ec.Im Aid
Lottery
Class
Size Red
Staff Dev
Title I–V*
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
6%
12%
8%
8%
8%
8%
8%
2/6th
1/6th
1/6th
1/6th
1/6th
As adjusted by PI
34%
2/6th
24%
1/6th
1/6th
1/6th
1/6th
As adjusted by PI
No cash flow in first year; funds are added to 2nd year apportionment
25%
75%
Adjust
No cash flow in first year; reimbursement in following year
40%
40%
20%
62
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Timing of Funds
Sample First Year Revenue Flow (received)
128 students, K-5 (20, 20, 20, 20, 24, 24); 95% attendance;
50% FRL; 56%/44% Block/Prop tax (Oakland)
$700,000
$700,000
$683,014
$636,532
$595,811
$600,000
$600,000
$502,848
$500,000
$543,570
$500,000
$409,885
$400,000
$400,000
$336,038
$316,551
$300,000
$300,000
$197,789
$200,000
$158,815
Title I
Class Size Red.
State Aid; CatBGrant; EIA
Property Tax
Accumulated
$200,000
$178,302
$100,000
$100,000
$14,615
$0
$0
JUL
JUN
MAY
APR
MAR
FEB
JAN
DEC
NOV
OCT
SEP
AUG
JUL
63
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Expense Drivers
• Typically, a charter school
budget will have the
following main expense
drivers:
– Teacher salaries
– Administrative overhead
and salaries
– Benefits
– Facilities
– Curriculum
– Capital Outlay
– Other operating expenses
Salaries
Admin
Benefits
Facilities
Curriculum
Capital Outlay
Other
64
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Expense Drivers (2)
• Given the main expense drivers of a
school, it is important to carefully look at
how the following items affect the budget:
– Student:teacher ratio and student:employee
ratio (student:teacher ratios of 18-20:1 for
elementary is common; 23-25:1 for middle and
HS.)
– Average teacher salaries and salary growth
projections.
– Level of employee benefits.
– Facilities needs and costs.
65
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Operational Plan: Facilities
• The charter petition regulations ask petitioners to
identify a potential site for the school. This
means that developers need to spend some time
and effort finding a site, even before the charter
petition is approved.
• Unfortunately, the funding levels for charter
schools are low which closes out a wide part of
the market, and few traditional commercial
spaces will meet a school’s needs.
66
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Operational Plan: Facilities
• Facility rules of thumb:
– Charter schools typically spend $500-$900 per student
on facilities (8-18% of ADA).
– Most schools range from 60-120 sq ft per student.
High school students typically require more space with
labs, etc.,
– Classrooms typically range from 700-1000 sq ft.
Kindergarten classrooms tend to be a little larger to
accommodate activity areas.
– Generally, charter schools should try to find facilities
that cost $1 per square foot/month (this is hard to
find.)
67
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Marketing Plan
• Identifying and recruiting potential students can be a
difficult process. It is best to have a clear plan of how the
school will become known in the community. Useful
marketing techniques for charter schools include:
– Connecting with community groups and faith-based
organizations.
– Generating buzz through well-placed advertisements and
newspaper articles.
– Disseminating brochures in multiple languages.
– Visiting potential feeder schools.
– Being extremely diligent about using a contact database to track
prospective students and potential funders and partners. Follow
up with people who showed any interest.
68
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Fundraising
•
Key points to remember
– Start early
– Don’t count on it in the budget unless you are highly certain
– It takes staff time (or money to hire an outsider) to raise money
•
Sources of fundraising
– State start-up/implementation grant (up to $450,000)
• Unfortunately the 2004 cycle is delayed. RFA will not be out until Fall with cash available
in spring/summer 2005
• The timing of the funding cycle may be advantageous to charter developers who are
starting the process now because the application requires a reasonably comprehensive
outline of what the school intends to accomplish. Charter developers that start the
process now will be well prepared by the Fall to write authoritatively about what their
charter vision is.
• Probably only 1 in 10 applications will be funded
– Philanthropic
• Great source, but requires time/relationships/differentiated story
–
–
–
–
National Council of La Raza (if primarily Hispanic)
Bay Area Coalition for Essential Schools
Gates Foundation (need to go through intermediaries)
Local Foundations
– School-based fundraising
• Board fundraising
• “Bake Sales”
69
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Operational Plan: Food Service
• Charter Schools can avoid providing food service
completely.
• HOWEVER, many schools find that the school
environment suffers without a food service program,
especially if students are not eating well at home.
• Independent of whether the school offers a food service
program, it is critical to collect the “Free and Reduced
Lunch” forms for students, since many Title and
Economic Impact Aid funds are based on percentages of
students qualifying for Free or Reduced Lunch (even if
they don’t receive the lunch).
• Free and Reduced Lunch forms should be collected (and
verified!), if at all possible, before school begins to start
benefits as quickly as possible.
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
70
Direct vs. Indirect Funding
• Direct Funding
– State funds flow from state to county to charter school
– Benefits:
• No district delays
• Reduced district oversight fee (sometimes)
– Negatives:
• Must fill out own Consolidated Application, LEA Plan
• Indirect Funding
– State funds flow from state to county to district to charter
school
– Benefits:
• Charter is rolled into district ConApp,
– Negatives:
• Subject to district delays which may put significant burden on
school cash flow
• Larger oversight fee (sometimes)
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
71
Calendar & Bell Schedule
• Often the calendar and bell schedule are integral elements of the
curriculum plan, and can help demonstrate to the chartering authority
that the school will meet minimum instructional minutes (next slide).
• Setup Instructional Calendar and Bell Schedule
– Verify instructional minutes requirements are met (next slide).
– Verify the calendar meets the minimum requirement of 175 days of
instruction.
– Consider reclassifying instructional days beyond 175 as “supplemental
instruction days” to tap into extra funding.
– Consider the benefits and costs of adopting the sponsoring district’s
calendar.
• If your school is planning to receive services from the district, such as SPED,
being on district schedule may be important.
• District attendance reporting dates may be aligned with the district’s calendar.
– If you expect increasing or decreasing enrollment, optimize calendar to
obtain highest average daily attendance.
72
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Calendar & Bell Schedule
Minimum Annual Instructional Minutes Requirements
Grade Level
Inst. Minutes Req.
Kindergarten
Grades 1-3
Grades 4-8
Grades 9-12
36,000
50,400
54,000
64,800
• Basic “passing time” rules (from CASBO)
– All grade levels: Passing time may not exceed 10
minutes and must be equal between all classes.
• Kindergarten: No passing time allowed, but recesses are
considered instructional.
• Grades 1-6: No lunch passing time (e.g. no passing time just
before or after lunch period); no recess passing time.
• Grades 7-12: One lunch passing time (either just before or
just after lunch period)
73
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Contracts & Staffing Policies
•
•
Increasingly, chartering authorities are expecting charter petition applicants
to have draft contracts and employee handbooks to show that they are
“demonstrably likely to successfully implement the program set forth in the
petition.”
It is a good idea to start early on contracts and policies in any case –
certainly before staff are hired, which often comes quickly on the heels of
approval:
– Although it may seem obvious to create legally-sound employee contracts before
hiring staff, it is not uncommon that contracts are an afterthought that surface as
hiring is taking place.
– Employee contracts take time to develop and refine (weeks typically), and
represent the binding agreement between the school and its employees. Spend
the time early in charter development to create contracts that the Board and
ED are comfortable with.
– Similarly, employee handbooks, which are typically legally-binding attachments to
the contract, need to be developed early. School policies should be hammered
out before misunderstandings take place among staff and the organization.
– There are many resources available to help schools create draft employment
contracts and handbooks/policies, however, schools should consider seeking
legal counsel to weigh in on the final drafts.
74
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Insurance
•
Several types of insurance
– Health Insurance ($250-$400/employee/month; up to $800 if it cover dependents):
• Often is very attractive if offered through the district
• Many schools have to buy it commercially as a small business
– Expensive, with limited plans – shop through a broker
• Some JPA’s exist, but not always cheaper (especially if your staff is young)
– Workers Comp (based on total payroll (2.5%-5% of payroll)
– School Liability (covers lawsuits against the school)
• Make sure it covers sports / field trips / autos
– School property (covers fire, theft, etc.)
– Directors Liability (covers decisions by the Board)
• School liability, property, and D&O work out to about $50-$80/student
– Staff Liability (covers actions by teachers & staff)
•
Options for coverage
–
–
–
–
•
Private sources
CCSA (very good program that covers workers’ comp and possibly liability)
Chartering Agency
Joint Powers Agencies
The process to get insurance quotes and activate the insurance can take 2-3
months.
75
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Funding Flow: Direct or Indirect
• Direct Funding
– State funds flow from state to county to charter school
– Benefits:
• No district delays
• Opportunity to apply directly for funding programs
– Negatives:
• Must fill out own Consolidated Application, LEA Plan, and apply for other
potential state and federal funds independently of district.
• Indirect Funding
– State funds flow from state to county to district to charter school
– Benefits:
• Charter is rolled into district ConApp; District does LEA Plan
• Some Districts may provide cash flow assistance
– Negatives:
• Subject to district delays which may put significant burden on school
cash flow
• It may take as much effort to get your fair share of federal and state
funds as applying for them directly.
76
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Charter Development 101:
Pre-Approval
Moving from charter idea
to charter approval.
Hour 4: Legal Issues for Charter Developers
Presented by the Charter Association
in cooperation with
Business and Development Specialists
For California Charter Schools
Charter Developers Legal Rights
•
•
•
Know the legislative intent (47601)
Understand the signature requirement (47605)
Understand the five bases for denial
(47605(b)(1)-(5)
– unsound educational program
– unlikely to succeed
– required signatures
– required affirmations
– reasonably comprehensive descriptions
78
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Suggested developer reading:
•
•
•
•
•
•
•
•
Know the SBE regulations on approval
Review the CDE analyses of charters on
appeal
Review SBE approved charters
Know the granting agency regulations on
approval
Know the District's past history with charter
schools
Know the County approval process
Know your options (State or COE-wide etc)
Know the CDE website QandA
79
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Top 10 legal issues on charter approval:
•
•
•
•
•
Comprehensiveness of charter petition
Facilities issues (the zoning/CEQA/building
codes)
Special education delivery and funding
Conflict of interest\Brown Act
Credentialing
80
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Top 10 legal issues on charter approval:
•
•
•
•
•
Admissions issues
(founders/preferences/requirements)
Liability and insurance
Audit standards (GASB v. FASB)
Charter school closure procedures
Private school conversion
81
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
MOU development with school district:
•
•
•
•
Now done before charter approval
No legal requirement
Can be more detailed than charter
Allows approval with conditions
82
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Charter school credentialing:
•
•
Know section 47605 (l)
Review CDE legal opinion June 30, 2003
–
–
–
–
•
•
Credential a condition of apportionment
No credential needed for non-core, noncollege prep
Teacher assignment not condition apportionment
No COE oversight
Inspection by granting agency
NCLB impacting flexibility
83
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
The Brown Act:
•
•
•
•
•
•
•
Applicability to charter schools?
Meetings in public, not public meetings
Regular meetings with 72 hour notice
Special meetings with 24-hour notice
Limited closed session ability
No serial meetings
Penalties/Cure
84
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Union and labor issues:
•
•
•
•
•
Right to organize
Employee organization rights
Sacramento High School
Representation rights
Card checks
85
© California Charter Schools Association,
EdTec Inc., SMY&M 2004
Proposition 39:
•
•
•
•
•
Proper paradigm/sharing facilities
General obligation of district
Timely annual request
Contentious negotiations
Legal challenges
–
–
–
Reasonably equivalent
Contiguous
Pupil records
86
© California Charter Schools Association,
EdTec Inc., SMY&M 2004