Georgia Code
Article 31 - Charter Schools Act of 1998
§ 20-2-2068.1. Charter School Funding

The product obtained in paragraph (4) of this subsection shall be the amount of local funds to be distributed to the local start-up charter school by the local board; provided, however, that nothing in this subsection shall preclude a charter petitioner and a local board of education from specifying in the charter a greater amount of local funds to be provided by the local board to the local start-up charter school if agreed upon by all parties to the charter. Local funds so earned shall be distributed to the local start-up charter school by the local board. Where feasible and where services are provided, funds for construction projects shall also be distributed to the local start-up charter school as earned. In all other fiscal matters, including applicable federal allotments, the local board shall treat the local start-up charter school no less favorably than other local schools located within the applicable school system and shall calculate and distribute the funding for the start-up charter school on the basis of its actual or projected enrollment in the current school year according to an enrollment counting procedure or projection method stipulated in the terms of the charter. The local school system shall distribute to each local charter school the proportionate amount of federal funds for which such local charter school is eligible under each federal program, including, but not limited to, funds earned pursuant to Title I, Title II, and Title III of the federal Elementary and Secondary Education Act and pursuant to the federal Individuals with Disabilities Education Act; provided, however, that a local charter school and a local board of education may mutually collaborate and agree upon specific ways for some or all of the charter school’s proportionate amount of federal funds to be provided by the local school system through in-kind services, with the terms of such mutual agreement to be included in the charter. Local charter schools shall use any federal funds received pursuant to this subsection for the purposes of the federal program for which they were earned.
(c.1) The adjustments in each program for training and experience used in calculating the start-up charter school’s QBE formula earnings shall be calculated in the same manner as for any local school within the local school system; provided, however, that the adjustments in each program for training and experience used in calculating the start-up charter school’s QBE formula earnings shall not be less than one-half of the comparable percentages for the local school system in which the charter school is located.
(c.2) For newly approved local charter schools, including charter renewals, the local board of education may retain an amount of the charter school’s per pupil share of state and local funding not to exceed 3 percent of the total funds earned by the charter school to reimburse the local school system for administrative services actually provided to the charter school.
(c.3) (1) Each local board of education that has one or more local charter schools shall provide each local charter school with a preliminary annual allotment sheet itemizing the preliminary calculation of state, local, and federal allocations to be provided by the local school system to the local charter school for the upcoming fiscal year not later than 45 calendar days after the local school system receives its preliminary annual allotment sheet from the Department of Education.
(2) The local board of education shall publish in a prominent location on its website the calculation of earnings to each local charter school made pursuant to subsections (a), (b), and (c) of this Code section, including federal funds received by each local charter school. Such calculations shall be published as soon as practicable prior to the distribution of funds to the local charter school by the local board, and no later than October 1 of each year, and shall be updated:
(3) In the event that the local board of education determines that an adjustment to the allocation for a local charter school is necessary, including, but not limited to, adjustments as provided for in subparagraph (B) of paragraph (2) of this subsection, the local board of education shall provide the local charter school with 30 days’ notice before the allocation is adjusted, shall provide an amended itemized allotment sheet to the local charter school, and shall publish the amended itemized allotment sheet in a prominent location on its website.
(A) (i) QBE formula earnings and QBE grants earned by the state chartered special school based on the school’s enrollment, school profile, and student characteristics. For purposes of this subparagraph, the term “QBE formula earnings” means funds earned for the Quality Basic Education Formula pursuant to Code Section 20-2-161, including the portion of such funds that are calculated in accordance with Code Section 20-2-164. QBE formula earnings shall include the salary portion of direct instructional costs, the adjustment for training and experience, the nonsalary portion of direct instructional costs, and earnings for psychologists and school social workers, school administration, facility maintenance and operation, media centers, additional days of instruction in accordance with Code Section 20-2-184.1, and staff development, as determined by the department; and
(ii) A proportional share of earned state categorical grants, non-QBE state grants, transportation grants, school nutrition grants, and all other state grants, except state equalization grants, as determined by the department;
(B) The state-wide average amount of the total revenues less federal revenues less state revenues other than equalization grants per full-time equivalent for all school systems; provided, however, that, if the average amount of the total revenues less federal revenues less state revenues other than equalization grants per full-time equivalent for the local school systems that comprise the attendance zone of the state chartered special school is less than the state-wide average amount of the total revenues less federal revenues less state revenues other than equalization grants per full-time equivalent for all school systems, the state chartered special school shall receive the greater of:
History. Code 1981, § 20-2-2068.1 , enacted by Ga. L. 2002, p. 388, § 1; Ga. L. 2005, p. 798, § 15/SB 35; Ga. L. 2007, p. 185, §§ 12, 13/SB 39; Ga. L. 2008, p. 603, § 2/HB 881; Ga. L. 2009, p. 8, § 20/SB 46; Ga. L. 2012, p. 1298, § 2A/HB 797; Ga. L. 2017, p. 105, § 3/HB 430; Ga. L. 2018, p. 650, § 6/HB 787; Ga. L. 2018, p. 1112, § 20/SB 365; Ga. L. 2020, p. 584, § 1/HB 755; Ga. L. 2021, p. 243, § 3/SB 153; Ga. L. 2021, p. 256, § 6/SB 59; Ga. L. 2022, p. 302, § 3/HB 1215.
The 2020 amendment, effective January 1, 2021, in subsection (c.3), designated the existing provisions as paragraphs (c.3)(1) and (c.3)(2), added “provide each local charter school with a preliminary annual allotment sheet itemizing the preliminary calculation of state, local, and federal allocations to be provided by the local school system to the local charter school for the upcoming fiscal year not later than 45 calendar days after the local school system receives its preliminary annual allotment sheet from the Department of Education” in paragraph (c.3)(1); in paragraph (c.3)(2), added “The local board of education shall” at the beginning, inserted “, and no later than October 1 of each year,” in the second sentence, and substituted “Part 3B” for “Part 3A” in the third sentence; and added paragraph (c.3)(3).
The 2021 amendments.
The first 2021 amendment, effective July 1, 2021, added subsection (j). The second 2021 amendment, effective July 1, 2021, in the ending undesignated paragraph of paragraph (c)(4), in the fifth sentence, substituted “The local school system shall distribute to each local charter school the” for “The Department of Education shall implement procedures that ensure that each local charter school receives from its local school system the” at the beginning, inserted commas following “including” and “but not limited to” in the middle, and substituted the present provisions of the former sixth sentence for the former provisions, which read: “. The local school system shall distribute funds to a local start-up charter school; provided, however, that by agreement between the local school system and the local start-up charter school, the proportionate amount of federal funds for which the local start-up charter school is eligible may be provided through the provision of in-kind services by the local school system.”
The 2022 amendment, effective July 1, 2022, added the proviso in the first sentence in the introductory language of subsection (c); rewrote the second sentence in paragraph (c.3)(2), which read: “Such calculations shall be published as soon as practicable prior to the distribution of funds to the local charter school by the local board, and no later than October 1 of each year, and shall be updated upon receipt of any additional federal funds received pursuant to state reallocation of federal funds and distributed to local charter schools.”, and, inserted “including, but not limited to, adjustments as provided for in subparagraph (B) of paragraph (2) of this subsection” in paragraph (3).
Code Commission notes.
Pursuant to Code Section 28-9-5, in 2009, “non-QBE” was substituted for “nonQBE” in the first sentence of subsection (b).
Pursuant to Code Section 28-9-5, in 2012, “; and” was substituted for a period at the end of division (d)(1)(A)(i).
Editor’s notes.
Ga. L. 2007, p. 185, § 1/SB 39, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Charter Systems Act.’”
Ga. L. 2007, p. 185, § 2/SB 39, not codified by the General Assembly, provides: “The General Assembly finds that schools and school systems should be given high flexibility to tailor their educational programs to meet the unique needs of their communities. In furtherance of this, schools and school systems should be encouraged to use innovative educational programs including local management of schools and should be provided resources to help design and implement innovative programs. The General Assembly further finds that schools and school systems shall be held accountable for student achievement.”
Ga. L. 2007, p. 185, § 15/SB 39, not codified by the General Assembly, provides: “Section 12 of this Act shall become effective on July 1, 2008 and shall apply beginning in the 2008-2009 school year and every year thereafter; provided, however, local school systems shall plan for such changes to the law pursuant to Section 12 of this Act and take all necessary measures with regard to budgeting prior to such effective date.”
Ga. L. 2021, p. 243, § 1/SB 153, not codified by the General Assembly, provides: “It is the intent of the General Assembly to study alternative education models and funding including those focused on dropout prevention, high school credit recovery, and service of adult and incarcerated students. Such study of alternative education models and funding shall include alternative charter schools and state support of such schools. Such study shall occur during 2021 and 2022 and shall conclude with a recommendation to the General Assembly regarding alternative education models and funding.”
Law reviews.
For article, “Having it Both Ways: How Charter Schools Try to Obtain Funding of Public Schools and the Autonomy of Private Schools,” see 63 Emory L. J. 303 (2013).
For note on 2007 amendment of this Code section, see 24 Ga. St. U.L. Rev. 121 (2007).