19-0424-RS1 April 24, 2019 RESOLUTION BY THE BOARD OF EDUCATION OF THE CITY OF CHICAGO REGARDING ADOPTION OF AN EQUITABLE, FUNDING FORMULA FOR THE CHARTER SCHOOLS WHEREAS, pursuant to Section of the School Code, 105 the Board of Education has the authority to, by resolution, adopt an alternative funding formula for its charter schools, WHEREAS, the Board of Education deSIres to fund its charter schools in an equrtable manner based on the academic needs of the students the charter schools serve and With the method of funding used for other district schools, WHEREAS, the Board of Education has reVIewed the alternative student-based funding formula and believes it is the most farr and equrtable method of funding [ts charters, NOW THEREFORE, be it resolved by the Board of Education of the City of Chicago, as follows Section 1 The Board of Education hereby adopts an eqUItable, alternative funding formula for the district?s charter schools for the 2019-2020 school year that encompasses the District?s per pupil funding formulas set forth in Appendix of the CPS Budget Book The funding streams Within this formula are as follows Student Based Budgeting Formula (SBB) Student Based Budgeting rs a per- pupil funding allocation weighted based on grade level CPS weights for different grades based on student need Charter schools receive $88 funds based on the same weighted formula Charter schools also receive the per-pupil equwalent of the teacher salary adjustments, multiple budding adjustments, eqwty grant and foundation pOSItions The per pupil rates for these adjustments are calculated by taking the amount allocated to district schools for these funding streams and diViding by the total weighted enrollment for district schools The 888 base rate for FY 2020 Will be determined once the district?s full budget is ?nal and published in Appendix in the approved CPS budget Funding for charter schools IS adjusted based on the enrollment on the 20th day of the school year according to the CPS calendar, With a second adjustment based on the enrollment on the 10th day of the second semester Charters Will be funded based on the higher of the prior or current year enrollment counts on each of these count dates to reflect a funding policy Similar to that used for district schools Non-Student Based Budgeting Formula funds) - Charter schools receive a per-pupil equwalent for additional serwces that are provrded to district schools, including operations and maintenance, security, Board-funded programs (e magnet, selective enrollment), and central of?ce management The non?SBB base rate IS determined by diViding the components of the non- SBB allocation by the total weighted enrollment for district-run schools For three components operations, security, and IT phone/data networks the total weighted enrollment includes charter school students who attend school in a CPS-owned fac?ity and opt into faculty sewices The non-SBB base rate for FY 2020 Will be determined once the district?s full budget is final and published In Appendix the approved CPS budget This rate is then weighted by grade level 19-0424-R51 Section 2 Section 3 Section 4 Section 5 Section 6 . Supplemental Aid Supplemental Aid funds are local funds distributed to charter schools in proportion to the number of pupils enrolled who are eligible to receive free or reduced-price meals . FaCilities Supplement FaCilities supplement for charter schools in non-CPS IS tied to the ?ve (5) year average of the prinCIpal and interest payments on CPS long-term debt 0 SpeCIal Education fundinq Charter schools receive per-pupil funding based on student least restrictive enVIronment (LRE) status to fund speCIal education serwces The Board of Education Will continue to prowde supplemental English learner (EL) funds to its charter schools based on the number of EL students Within the school The Board of Education Will continue to prowde a proportionate share of federal funds to its charter schools Title funds are distributed pursuant to a formula that is based on the ratio of TANF (Temporary to Needy Families) and free and reduced?price meal school data as a percentage of enrollment Charter schools are charged for A) employer contributions to the Chicago Teachers Pen3ion Fund that the District makes on behalf of eligible charter employees Schools are charged 11 16 percent of the salary costs of partiCipating employees B) any facrlities seNices prowded by the District C) an administrative fee of 3 percent to cover the District?s costs in administering these schools and programs Should CPS suffer an unexpected finanCial dif?culty resulting in a decrease of funding to district schools, charter schools would experience a Similar decrease in funding, proportionate to the decrease in funding for district schools For purposes of calculating the per capita tUition charge, in-kind financral support for long-term faculty costs, unfunded pen5ion liability, and short term borrowmg costs Will be included in the funding calculation CPS Will continue to calculate into the PCTC calculation other deductions including administrative fees, faculties charges, current year pen5ion deductions, pensron true?ups from the prior fiscal year(s), and any other applicable ?true-up? deductions THEREFORE, this Resolution is hereby adopted by the Members of the Board of Education of the City of Chicago on April 24, 2019