Relates to certain functions of charter schools, establishes the charter school loan and lease program and expands the charter school stimulus fund

Section 2 amends subdivision 9 of section 2852 of the education law to increase the number of charter schools from 200 to 460.

Section 3. Amends paragraph (b-1) of subdivision 1 of section 2853 of the education law to allow charter schools to operate at multiple locations under the same governance structure.

Sections 3-a and 4 amend paragraph (p) of subdivision 2 of section 2851 of the education law and paragraph (a) of subdivision 1 of section 2853 to make modifications to the term of a charter school approval to include five instructional years, plus the period commencing with the effective date of the charter and ending with the opening of the school for instruction.

Section 5 amends paragraph (a) of subdivision 2 of section 2854 of the education law to allow but not mandate a lottery preference for English Language Learners and students with disabilities.

Sections 6, 7, 8, and 9 amend paragraph (c) of subdivision 2 of section 2854, subdivision 1 of section 2856 of the education law, and subdivisions 1 and 9 of section 3602-e to allow charter schools to provide pre-kindergarten education.

Section 10 amends the public authorities law by adding a new section 1689-j to create a loan and lease guarantee program for charter schools with the dormitory authority.

Section 11 amends section 97-sss of the state finance law to allow the charter schools stimulus fund to provide loan and lease guarantees and credit enhancement to charter school applicants and charter schools for start-up costs and for costs associated with the acquisition, renovation or construction of school facilities and costs associated with operating pre-kindergarten programs.

Justification

The provisions contained in this bill are key to competitively position New York to win federal aid to public education in the Race to the Top (RTTT) competition. They include:

* An increase in the charter schools cap to 400 * Authorization of multiple-site governance by a single board * Authorization of Pre-K education at charter schools * Facilities financing for charter schools * Loan and lease guarantee program for charter schools * Access to BOCES services for charter schools * Enrollment preference for LEP and Special Education students * A five-year renewal period for charters

Together, they not only address the legislative agenda approved by the Board of Regents, but position New York for success in the federal Race to the Top--to the benefit of students in all public schools. New York State stands to from the Race to the Top competition. The winning states will be determined by a comparison of overall scores. assigned by independent reviewers based on the competition guidelines. According to the guidelines, a state's charter school policy can earn (or lose) up to 40 points out of a possible 500. Specific subcategories whose individual point values are not specified, are:

* Cap law: A "charter school law that does not prohibit or effectively inhibit the number of charter schools" (Reviewers are advised to award unspecified "high" points if a fully filled cap would imply at least 10% of all public schools in the state would be charter schools.) * Authorizing: The state has laws and guidelines about authorization practices. Authorizers consider student achievement, encourage charters schools to serve similar populations to district schools and high-need students, and have a record of closing or not renewing ineffective schools. * Equitable funding: Charter schools receive "equitable funding compared to traditional public schools, and a commensurate share of local, State, and Federal revenues." (Reviewers are advised to award "high" points if charter schools' per-pupil funding is > 90% of district funding.) * Facilities funding: Charter schools receive "funding for facilities (for leasing facilities, purchasing facilities, or making tenant improvements), assistance with facilities acquisition, access to public facilities, the ability to share in bonds and mill levies, or other supports" and do not face stricter requirements than traditional public schools.

In its meeting of December 14-15, 2009, the Board of Regents adopted a set of charter-related "legislative priorities" intended to help New York win the Race to the Top (emphases added):

* "raising the charter school cap to facilitate the creation of new charter schools, particularly secondary schools, focused on serving high need populations of students, i.e., low-income students, students at Levell or Level 2 performance on the NY State assessments, over-age and under-credited high school students, English language learners (ELLs), and students with disabilities (SWDs). As part of raising the cap:

- Encourage authorizing single Board governance of multiple schools with a common management entity, the provision of pre-K education by charter schools, strengthen equitable funding for charter schools, and access to facilities financing for charters; -Ensure that charter school funding, student enrollment policies, and all charter board and school-level practices are fully transparent and their actions and results fully accountable to public authority; and continue to evaluate the local impact of placing new charter schools into particular communities. * authorizing the Commissioner to order - in extraordinary circumstances - an LEA to convert a struggling school into a charter school; and * authorizing charter schools access to BOCES services."

The provisions in this bill collectively offer a robust legislative response to these priorities; and, in turn, to the Race to the Top criteria. It is important to note that, while we believe New York is well positioned under the criterion of equitable operating funding given the state's per-pupil formula, any attempt to repeat last year's suspension of the formula-which singled out charter schools for a funding freeze-would vitiate the state's good standing under this criterion and send a blatant signal of hostility to charter schools. The result would be a material degradation of New York's competitive stance vis-a-vis other states.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

July 1 next succeeding the date on which it shall have become a law, provided however, that the amendments to subdivision 1 of section 2856 of the education law made by section seven of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith.