Provides additional funding for new century charter school rent or lease and repair, maintenance, and improvement costs; encourages the State to enter into leases with charter schools at nominal rates comparable to other state agencies. (SD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that lack of facilities funding is a significant financial and operational challenge for new century charter schools. Current funding for new century charter schools is calculated on a per-pupil allocation for each regular education and special education student based upon average enrollment in all cost categories, as published in the department of education's consolidated annual financial report. However, there is no allocation for charter schools to establish and maintain school facilities. The capacity to provide a long-term physical location, infrastructure maintenance, and building improvements contributes to the successful development and stability of individual charter schools.

Additionally, due to prohibitive costs and zoning restrictions, public charter schools often have great difficulty leasing affordable lands. The legislature believes that charter schools, as public schools and state agencies, should have access to state-held lands and buildings and enjoy comparable rates and conditions as those afforded other state agencies.

The purpose of this Act is to provide additional funding for new century charter schools to use for rent or lease costs and repair, maintenance, and improvement costs for charter school facilities, and to encourage the State to enter into long-term leases of public lands and buildings with charter schools for the location of school facilities.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§302A-   Facilities funding for new century charter schools. (a) The department of education shall allocate funds to new century charter schools for the purpose of facilities rent or lease costs and repair, maintenance, and improvement costs. The amount provided shall be calculated on a per-pupil basis. The formula for the allocation shall be based on a five-year average of the department of education's debt service level as provided in the department's most recent consolidated annual financial report. The allocation for facilities is in addition to any other per-pupil allocation currently authorized under this chapter and received by the charter schools.

(b) To enable new century charter schools to access state funding prior to the start of each school year, foster their fiscal planning, and enhance their accountability, the department shall allocate funds on the same schedule as the per pupil general allocation pursuant to section 302A-1185(c). This section does not apply to new century conversion charter schools."

SECTION 3. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§171-   Lease to public new century charter schools. Notwithstanding any limitations to the contrary, the board of land and natural resources may lease to new century charter schools, at nominal consideration, by direct negotiation and without recourse to public auction, public lands and buildings under the control of the department of land and natural resources. Except as provided in this section, the terms and conditions of sections 171-33 and 171-36 shall apply. The lands and buildings leased under this section shall be used by the new century charter schools for educational purposes only. This section shall not apply to new century conversion charter schools."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2006-2007, for rent or lease costs and repair, maintenance, or improvement costs for new century charter school facilities.

SECTION 5. The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2006.