REVISED
STATEMENT OF PURPOSE
RS27582 / H0511
Public charter schools undergo a renewal review by their authorizers every five years. The reviews examine
a public charter school's academic performance, operations and financial condition. The results of the review
determine whether a public charter school can continue to operate for another five years.
However, if a public charter school is on a path to bankruptcy due to poor financial management and is at risk of
closing its doors before its next renewal, current law is unclear about the rights and responsibilities of both the
school's board and the authorizer. Not only does this create confusion for families, it also puts taxpayer dollars
at risk because when a public charter school closes mid-year, the state assumes responsibility for continued
payment of the school's ongoing financial obligations including year-long teacher contracts and facilities costs.
This bill provides clarity for both public charter schools and authorizers by requiring that schools end their
fiscal year with at least fifteen days cash on hand, while at the same time ensuring the school has one year to
cure any deficiency before the authorizer may begin closure proceedings, and establishing a timeline so the
school will not close mid-year.
FISCAL NOTE
There is no cost to the general fund because authorized chartering entities already monitor public charter schools'
finances through annual audits.
Contact:
Blake Youde
(208) 696-9447
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 02/19/2020, 12:56 PM


Statutes affected:
Bill Text: 33-5209C
Engrossment 1: 33-5209C