53F-2-706. Small charter school base funding -- Base funding study.

605 words·~3 min read·/ut/title-53f/chapter-2/53f-2-706

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)Subject to legislative appropriation, the state board shall distribute small charter school base funding to charter schools with 2,000 or fewer students in the amount of the greater of $40,000 or $115 per student.

(2)A charter school's eligibility for small charter school base funding is determined by the charter school's student enrollment on October 1 of a given year.

(3)Notwithstanding this section and subject to legislative appropriations, including intent language for the applicable fiscal year, the state board may distribute to charter schools, regardless of size, one-time funding that the Legislature appropriates.

(a)Subject to legislative appropriations, the state board shall coordinate and facilitate a comprehensive study of administrative and base funding costs for charter schools.

(b)The study described in Subsection (4)(a) shall include the following members to constitute the study group:

(i)a charter school business administrator from a small charter school whom the chair of the state board appoints;

(ii)a charter school director from a large charter school whom the chair of the state board appoints;

(iii)a school district business administrator whom the chair of the state board appoints;

(iv)the director of each charter school association that has a member charter school operating in the state, or the director's designee;

(v)a member of the Utah State Charter School Board whom the chair of the state board appoints;

(vi)a member of the state board whom the chair of the state board appoints;

(vii)relevant staff from the state board whom the chair of the state board appoints; and

(viii)a representative from the Governor's Office of Planning and Budget whom the director of the Governor's Office of Planning and Budget appoints.

(c)The chair of the state board shall:

(i)convene the first meeting of the study group no later than April 1, 2026; and

(ii)designate a member of the study group to serve as chair of the study group.

(5)The study group described in Subsection (4)(b) shall:

(a)examine how factors such as school size, enrollment scale, and operational models impact the relative costs of operating charter schools;

(b)analyze the adequacy and effectiveness of the charter school base funding formula in addressing economies of scale challenges faced by charter schools of varying sizes;

(c)compare administrative and operational cost structures across charter schools of different sizes and configurations and applicable districts;

(d)evaluate whether current funding mechanisms appropriately account for:

(i)fixed costs that do not scale proportionally with enrollment;

(ii)administrative requirements mandated by state and federal law; and

(iii)operational efficiencies or challenges unique to charter schools;

(e)consider funding models used in other states or jurisdictions that may provide insights for the charter school funding system; and

(f)identify any additional factors that significantly impact charter school operational costs beyond those currently considered in the funding formula.

(6)The state board shall submit a report to the Public Education Appropriations Subcommittee no later than December 1, 2026, that includes:

(a)findings from the study described in this section;

(b)recommendations for any modifications to the charter school base funding formula;

(c)proposed criteria or metrics for evaluating the ongoing adequacy of charter school base funding;

(d)estimated fiscal impacts of any recommended changes; and

(e)a proposed timeline for implementation of any recommended modifications.

(7)Subject to legislative appropriations, the state board may contract with a qualified third party, including institutions of higher education or research organizations, to conduct part of the study described in this section.

Amended by Chapter 228 , 2026 General Session