Most Recently Amended by the Board of Elementary and Secondary Education: June 22, 2021
(1) Horace Mann Charter Schools: Horace Mann charter schools shall be funded through the local school district under the terms of the Memorandum of Understanding. A Horace Mann charter school shall submit a budget request to the local school district annually, in accordance with the budget schedule of the local school district and no later than April 1st. Such budget request shall be submitted to the superintendent and school committee of the district in which the charter school is located. The school committee shall act on the charter school budget request in conjunction with its approval of the district's overall budget. The board of trustees of the Horace Mann charter school may expend such allocation as it sees fit without any further approval by the superintendent or school committee. A Horace Mann charter school's budget allocation shall be consistent with the allocation of other public schools in the district. In the case of budget reductions in the school district, a Horace Mann charter school's budget may not be reduced disproportionately to other schools in the district. The Horace Mann charter school board of trustees shall follow the dispute resolution procedures outlined in the Memorandum of Understanding. The board of trustees may appeal a disproportionate budget allocation to the Commissioner. The Commissioner then shall determine an equitable funding level for the charter school and, if appropriate, shall require the school committee to provide such funding.
(2) Commonwealth Charter Schools: Every operating Commonwealth charter school shall receive tuition payments from each school district whose students attend the charter school. Such tuition payments shall be equal to the appropriate charter school tuition rate, as determined in accordance with 603 CMR 1.07(2)(a), multiplied by the number of students attending the charter school from the sending district in the current year. If any students attend the charter school for less than the full school year, the tuition payment shall be reduced based on the number of days of enrollment. Such tuition payments shall be paid in accordance with 603 CMR 1.07(2)(d).
(4) Surplus Determination: Every Commonwealth charter school shall maintain a separate fund on its books of account for tuition revenue. The Commissioner, in consultation with the State Auditor, shall prescribe supplemental reports for the purpose of calculating the school's cumulative unspent tuition revenue, and such reports shall be submitted as part of the school's audited financial statements. Commonwealth charter schools are permitted to retain a reasonable surplus as working capital for the upcoming fiscal year equal to no more than 25% of the prior year's tuition payments plus 20% of the budgeted operating and capital expenses for the upcoming year. Payments of excess cumulative tuition revenue due to sending districts and the Commonwealth shall be made by the Commissioner through adjustments to monthly tuition payments and monthly distribution of charter 70 aid.
(5) Capital Plan and Reserves: A charter school may establish and periodically update a capital plan identifying current and future capital projects. The Commissioner shall prescribe the information to be reported for each such project as part of the school's annual report. A charter school may establish a separate capital reserve account for each project identified in its capital plan, and may make payments into said accounts. Funds in a capital reserve account may only be used for the project or purpose for which the account was established, provided, that such funds may be transferred to another capital reserve account or to the school's operating fund with the prior approval of the Commissioner.
M.G.L. c. 69, § 1B; c. 71, § 89
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Last Updated: April 26, 2022
Massachusetts Department of Elementary and Secondary Education
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