Fy 14 Csp Non Reg Guidance

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    Charter Schools Program

    Title V, Part B of the ESEA

    Nonregulatory Guidance

    January 2!"

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    Title V, Part B# Nonregulatory Guidance

    Charter Schools Program

    Table of Contents

    Introduction..........................................................................................................................5

    Summary of Major Changes................................................................................................5

    A. General Provisions of the Charter Schools Program (CSP).....................................

    A!". #hat is the $ur$ose of the CSP%.......................................................................

    A!&. 'o does the statute define a charter school%..................................................

    A!. In addition to the $rovisions of title *+ $art ,+ su-$art " of the SA+ hatother significant /ederal statutory and regulatory authorities a$$ly to reci$ients of

    funds under the CSP%.......................................................................................................0,. ligi-ility and 1se of /unds.....................................................................................2

    ,!". #hich State educational agencies (SAs) are eligi-le to a$$ly for a CSP

    grant%...............................................................................................................................2

    ,!&. #hat if a State elects not to $artici$ate or does not have an a$$lication

    a$$roved%......................................................................................................................."3

    ,!. May the Secretary aive any eligi-ility or a$$lication re4uirements%..........."3

    ,!. May an SA aive any eligi-ility or a$$lication re4uirement%.............. ......."3

    ,!5. #hat are dissemination grants%......................................................................."3

    ,!6. #ho is eligi-le to a$$ly for a dissemination grant%........................................""

    ,!. #hat are some limitations on the use of dissemination funds%.......................""

    ,!0. Is a $rivate school eligi-le to receive CSP funds%...........................................""

    ,!2. Could a $rivate school convert to a $u-lic charter school and -e eligi-le toreceive CSP funds%........................................................................................................""

    ,!"3. May an organi7ation that o$erates a $rivate school a$$ly for funds to o$en a

    charter school%..............................................................................................................."&

    ,!"". May a charter school share a facility ith a $rivate school%..........................."&

    ,!"&. Is a for!$rofit entity that holds a legal charter eligi-le to a$$ly for a CSP grantor su-grant%..................................................................................................................."&

    ,!". #hat factors does the Secretary consider in determining hether a charter

    school is inde$endent of a for!$rofit charter management organi7ation (CM8) oreducational management organi7ation (M8) ith hich the charter school has

    contracted to manage its day!to!day o$erations%..........................................................."

    C. Multi$le Charter Schools........................................................................................"

    &

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    C!". May an SA aard CSP start!u$ su-grants to multi$le charter schools

    esta-lished under a single charter%................................................................................"

    C!&. May a ne charter school receive CSP funds if it is located in the facility of a

    recently closed charter school that also received CSP funds%......................................."5

    C!. May one governing -oard oversee multi$le charter schools%........................."5

    9. 1se of Grant /unds................................................................................................."5

    9!". 'o must CSP grant funds -e used -y SAs%..............................................."5

    9!&. 'o may charter schools use CSP start!u$ grants or su-grants%...................."6

    9!. #hat ty$es of costs other than those s$ecified in 9!& of this guidance 4ualify

    as :other initial o$erational costs that cannot -e met from State or local sources;%....."6

    9!. May CSP funds -e eecruitment+ and Admissions...................................................................."

    !". #hat is a lottery for $ur$oses of the CSP%....................................................."

    !&. 1nder hat circumstances must a charter school use a lottery%....................."0

    !. Are eighted lotteries $ermissi-le%................................................................"0

    !a. May eeligious and Community!,ased 8rgani7ations ith Charter

    Schools...............................................................................................................................&&

    /!". May a charter school -e religious in nature%...................................................&&

    /!&. May charter schools use $u-lic funds to su$$ort religious $rograms oractivities%.......................................................................................................................&

    /!. May charter schools enter into $artnershi$s ith religious organi7ations to

    $rovide secular services%...............................................................................................&

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    /!. May charter schools use the facilities of a religious organi7ation%.................&

    /!5. May charter schools conduct outreach activities in churches or throughreligious organi7ations%.................................................................................................&

    /!6. May community!-ased organi7ations and -usiness entities $lay a role in

    charter schools%.............................................................................................................&

    G. Administrative and /iscal >es$onsi-ilities............................................................&

    G!". #hat are the administrative and fiscal res$onsi-ilities of a charter schoolgrantee under the CSP%..................................................................................................&

    G!&. #hat are the rules governing :conflicts of interest; in the administration of

    CSP grants%....................................................................................................................&

    G!. #hat $rocedures must CSP grantees follo hen $urchasing e4ui$ment or

    services%.........................................................................................................................&5

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    $ntroduction

    he Charter Schools Program (CSP) as originally authori7ed in 8cto-er "22+ under titleB+ $art C of the lementary and Secondary ducation Act of "265+ as amended (SA)+ &3

    1.S.C. 036"!036. he $rogram statute as amended in 8cto-er "220 -y the Charter School

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    this nonregulatory guidance ill -e made availa-le on the 9e$artment?s #e- site athtt$F&.ed.gov$rogramscharterlegislation.html.

    6

    http://www2.ed.gov/programs/charter/legislation.htmlhttp://www2.ed.gov/programs/charter/legislation.html
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    Charter Schools Program Guidance

    A' General Pro(isions of the Charter Schools Program )CSP*

    A+!' hat is the -ur-ose of the CSP.

    he $rimary $ur$ose of the CSP (title *+ $art ,+ su-$art " of the SA) is to

    e

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    e) Is nonsectarian in its $rograms+ admissions $olicies+ em$loyment$ractices+ and all other o$erations+ and is not affiliated ith a sectarian

    school or religious institutionE

    f) 9oes not charge tuitionE

    g) Com$lies ith the Age 9iscrimination Act of "25+ title *I of the Civil>ights Act of "26+ title IB of the ducation Amendments of "2&+ section

    53 of the >eha-ilitation Act of "2+ title II of the Americans ith9isa-ilities Act of "223+ as amended+ and $art , of the Individuals ith

    9isa-ilities ducation ActE

    h) Is a school to hich $arents choose to send their children+ and that admitsstudents on the -asis of a lottery+ if more students a$$ly for admission than

    can -e accommodatedE

    i) Agrees to com$ly ith the same /ederal and State audit re4uirements as

    do other elementary schools and secondary schools in the State+ unless suchre4uirements are s$ecifically aived for the $ur$ose of this $rogramE

    j) Meets all a$$lica-le /ederal+ State+ and local health and safetyre4uirementsE

    @) 8$erates in accordance ith State laE and

    l) 'as a ritten $erformance contract ith the authori7ed $u-lic chartering

    agency in the State that includes a descri$tion of ho student $erformanceill -e measured in charter schools $ursuant to State assessments that are

    re4uired of other schools and $ursuant to any other assessments mutuallyagreea-le to the authori7ed $u-lic chartering agency and the charter school.

    &3 1.S.C. &&"i(").

    A+1' $n addition to the -ro(isions of title V, -art B, su-art ! of the ESEA, 0hat

    other significant 3ederal statutory and regulatory authorities a--ly to

    reci-ients of funds under the CSP.

    >eci$ients of funds under this $rogram should -e aare of the folloing

    significant statutory re4uirements in addition to those in title *+ $art ,+

    su-$art " of the SAF

    a) he definitions and other $rovisions set out in title IB of the SA+hich esta-lishes general $rovisions for all $rograms authori7ed under

    the SAE

    -) itle *I of the Civil >ights Act of "26+ hich $rohi-its discriminationon the -asis of race+ color+ or national originE

    0

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    c) itle IB of the ducation Amendments of "2&+ hich $rohi-itsdiscrimination on the -asis of seeha-ilitation Act of "2+ hich $rohi-its

    discrimination on the -asis of disa-ilityE

    e) he Age 9iscrimination Act of "25+ hich $rohi-its discrimination onthe -asis of ageE

    f) itle II of the Americans ith 9isa-ilities Act of "223+ as amended

    (A9A)+ hich $rohi-its discrimination on the -asis of disa-ility -y $u-licentities+ including $u-lic charter schools and local educational agencies+

    regardless of hether they receive /ederal financial assistanceE

    g) Part , of the Individuals ith 9isa-ilities ducation Act+ hich re4uiresStates to ma@e availa-le a free a$$ro$riate $u-lic education to children

    ith disa-ilities+ as does section 53 of the >eha-ilitation Act. (See

    C/> "3. of the 9e$artment?s >egulations for Dondiscrimination onthe ,asis of 'andica$ in Programs or Activities >eceiving /ederal

    /inancial Assistance+ hich re4uires a reci$ient of /ederal financial

    assistance that o$erates a $u-lic elementary or secondary educational$rogram or activity to $rovide a free+ a$$ro$riate $u-lic education

    J/APK to children ith disa-ilities.)E

    h) /or eligi-le entities that received grants in fiscal year (/L) &3"3 for there$lication or e

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    B+2' hat if a State elects not to -artici-ate or does not ha(e an a--lication

    a--ro(ed.

    If a State elects not to $artici$ate in the CSP or is denied funding+ an eligi-lea$$licant may a$$ly directly to the 9e$artment for a grant. Charter schools

    located in States that have not enacted charter school legislation do not 4ualifyas eligi-le a$$licants. (See ,!".) &3 1.S.C. &&"a(-).

    B+1' %ay the Secretary 0ai(e any eligiility or a--lication re5uirements.

    Les+su-ject to certain limitations+ the Secretary may aive any statutory orregulatory re4uirement over hich the Secretary e

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    B+7' ho is eligile to a--ly for a dissemination grant.

    A charter school may a$$ly for a dissemination grant or su-grant+ regardless of

    hether it has a$$lied for or received funds for $lanning+ $rogram design+ orim$lementation under the CSP+ if the charter school has -een in o$eration for at

    least three consecutive years and has demonstrated overall success+ includingthe folloingF (a) su-stantial $rogress in im$roving student academic

    achievementE (-) high levels of $arent satisfactionE and (c) the management andleadershi$ necessary to overcome initial start!u$ $ro-lems and esta-lish a

    thriving+ financially via-le charter school. &3 1.S.C. &&"c(f)(6)(A).

    B+8' hat are some limitations on the use of dissemination funds.

    =i@e all /ederal grants+ CSP dissemination grants and su-grants must -e usedin accordance ith statutory and regulatory re4uirements. A charter school

    may not use dissemination grant funds+ either directly or through a contractor+for mar@eting or recruitment activities designed to $romote itself or its

    $rograms to $arents or the community. Grant funds may -e used to develo$materials documenting successful $ractices of the charter school for the

    educational $ur$ose of assisting other $u-lic schools in ada$ting the charterschool?s $rogram or im$roving student academic achievement. Any charter

    school receiving a dissemination grant or su-grant should $rovide thoroughand high!4uality information that meets the needs of other schools trying to

    learn from the charter school?s e

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    esta-lished as a $u-lic school and com$ly ith a$$lica-le State and /ederallas regarding $u-lic schools. In its creation+ develo$ment+ and o$eration+ a

    charter school must not have any affiliation :ith a sectarian school orreligious institution.; ,ecause a nely created $u-lic charter school ould not

    have any :$reviously enrolled; students+ all students ould need to a$$ly for

    admission and ould have to -e selected -y lottery if there are more a$$licants

    than s$aces availa-le. Similarly+ the charter school must idely inform thecommunity of its $u-lic school status and have a fair and open admissions

    $rocess. &3 1.S.C. &&"-(-)()(I) and &&"i(")() and (').

    B+!' %ay an organi;ation that o-erates a -ri(ate school a--ly for funds to o-en

    a charter school.

    An eligi-le a$$licant under the CSP is defined as :a develo$er that has a$$liedto an authori7ed $u-lic chartering authority to o$erate a charter schoolE and

    $rovided ade4uate and timely notice to that authority under section 5&3(d)()Jof the SAK.; A :develo$er; means :an individual or grou$ of individuals

    (including a $u-lic or $rivate non$rofit organi7ation)+ hich may includeteachers+ administrators and other school staff+ $arents+ or other mem-ers of the

    local community in hich a charter school $roject ill -e carried out.; hestatute does not s$ecifically $rohi-it a develo$er from o$erating -oth a charter

    school and a $rivate school. In such a case+ the charter school ould have to-e o$erated se$arately from the $rivate school. &3 1.S.C. &&"i(&) and ().

    B+!!' %ay a charter school share a facility 0ith a -ri(ate school.

    here are no s$ecific statutory or regulatory $rohi-itions against funding acharter school that shares a facility or other resources ith a $rivate school+

    $rovided that the charter school truly is se$arate from the $rivate school. In

    such a case+ the grant or su-grant reci$ient may e 5.33.

    B+!2' $s a for+-rofit entity that holds a legal charter eligile to a--ly for a CSP

    grant or sugrant.

    Do+ a for!$rofit entity does not 4ualify as an eligi-le a$$licant for $ur$oses of

    the CSP. 8nly non!$rofit entities may 4ualify as eligi-le a$$licants under the

    CSP. A non!$rofit charter school receiving CSP funds+ hoever+ may enter intoa contract ith a for!$rofit entity to have the for!$rofit entity manage thecharter school on a day!to!day -asis. In such a case+ the non!$rofit entity

    receiving the CSP grant must directly administer or su$ervise theadministration of the $roject. =i@eise+ the grant reci$ient is directly

    res$onsi-le for ensuring that CSP grant funds are used in accordance ithstatutory and regulatory re4uirements. C/> 5.33!3" and 5.30(-).

    "&

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    B+!1' hat factors does the Secretary consider in determining 0hether a

    charter school is inde-endent of a for+-rofit charter management

    organi;ation )C%

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    C' %ulti-le Charter Schools

    C+!' %ay an SEA a0ard CSP start+u- sugrants to multi-le charter schools

    estalished under a single charter.

    Section 5&3&(d)(") of the SA $rovides that :JaK charter school may not

    receive more than one grant for J$lanning and im$lementationactivitiesK.; /or $ur$oses of the CSP+ a :charter school; is defined as+

    among other criteria+ :a $u-lic school that is created -y a develo$er as a

    $u-lic schoolE o$erates in accordance ith State laE and has a ritten$erformance contract ith the authori7ed $u-lic chartering agency in the

    State.; hus+ the 4uestion of hether an SA may aard CSP start!u$

    su-grants to multi$le charter schools esta-lished under a single charter

    de$ends onF (a) hether the charter school at issue meets the definition of acharter school as set forth in section 5&"3(") of the SAE and (-) hether

    the charter school has received a CSP start!u$ grant or su-grant $reviously.

    An SA may not aard CSP start!u$ su-grants to multi$le charter schools

    esta-lished under a single charter here the charter schools are merely

    e

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    g) #hether the charter schools? day!to!day o$erations are carried out -y

    different administrators.

    he e

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    =+2' /o0 may charter schools use CSP start+u- grants or sugrants.

    Charter schools may use CSP start!u$ grant or su-grant funds only for $ost!

    aard $lanning and design of the educational $rogram+ and initialim$lementation of a charter school. Planning activities may include refinement

    of the desired educational results and the methods for measuring $rogresstoard achieving those results and $rofessional develo$ment of teachers and

    other staff ho ill or@ in the charter school. Initial im$lementationactivities may includeF (a) informing the community a-out the schoolE (-)

    ac4uiring necessary e4ui$ment and educational materials and su$$liesE (c)

    ac4uiring or develo$ing curriculum materialsE and (d) other initial o$erational

    costs that cannot -e met from State or local sources. Planning andim$lementation grants generally may -e aarded for a $eriod of u$ to three

    years+ ith no more than "0 months used for $lanning and $rogram design andno more than to years used for initial im$lementation of the charter school.

    In addition+ 8M, Circular A!"&& esta-lishes $rinci$les for determining

    alloa-le costs for /ederal grants to non!$rofit entities. As a general matter+costs must -e reasona-le+ necessary+ and alloca-le to meet the o-jectives of the

    grant. &3 1.S.C. &&"c(f)()E & C/> &3 (cost $rinci$als for non!$rofitorgani7ations).

    =+1' hat ty-es of costs other than those s-ecified in =+2 of this guidance

    5ualify as >other initial o-erational costs that cannot e met from State or

    local sources?.

    As stated in 9!&+ for $ur$oses of the CSP+ initial im$lementation activities may

    includeF (a) informing the community a-out the schoolE (-) ac4uiringnecessary e4ui$ment and educational materials and su$$liesE (c) ac4uiring or

    develo$ing curriculum materialsE and (d) other initial o$erational costs thatcannot -e met from State or local sources. As a general matter+ these costs may

    include+ -ut are not necessarily limited to+ the folloingF

    a) Costs associated ith creating and im$lementing office functions+ such asaccounting systems+ attendance and registration systems+ and human

    resources $oliciesE

    -) Costs associated ith the installation of com$uters+ data systems+ netor@s+

    and tele$honesE

    c) Personnel e

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    and effort records to document the amount of time each em$loyee or@s ontas@s related to the initial im$lementation of the charter school.)E and

    d) >ental or occu$ancy costs for the school facility for a reasona-le $eriod oftimein $re$aration for the school?s o$ening.

    All of the e

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    E+2' 4nder 0hat circumstances must a charter school use a lottery.

    A charter school receiving CSP funds must use a lottery if more students a$$ly

    for admission to the charter school than can -e admitted. A charter school ithfeer a$$licants than s$aces availa-le does not need to conduct a lottery. &3

    1.S.C. &&"i(")(').

    E+1' Are 0eighted lotteries -ermissile.

    #eighted lotteries (i.e.+ lotteries that give additional eight to individualstudents ho are identified as $art of a s$ecified set of students+ -ut do not

    reserve or set aside seats for individual students or sets of students) are

    $ermitted only in certain circumstances.

    /irst+ eighted lotteries may -e used hen they are necessary to com$ly

    ith title *I of the Civil >ights Act of "26E title IB of the ducationAmendments of "2&E section 53 of the >eha-ilitation Act of "2E title II

    of the Americans ith 9isa-ilities Act of "223+ as a$$lica-leE the e4ual$rotection clause of the ConstitutionE or a$$lica-le State la.

    Second+ a charter school may eight its lottery to give a slightly -etter

    chance for admission to students see@ing to change schools under the $u-lic

    school choice $rovisions of title I+ $art A of the SA for the limited$ur$ose of $roviding greater choice to students covered -y those $rovisions.

    /or e

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    """5(-)(&) of the SA+ hich include students ho are economically

    disadvantaged+ students ith disa-ilities+ migrant students+ limited nglish

    $roficient students+ neglected or delin4uent students+ and homeless students.

    #eighted lotteries may not -e used for the $ur$ose of creating schools

    e

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    5) Information concerning the amount or range of lottery eights that ill

    -e em$loyed or $ermitted and the rationale for these eights.

    An a$$licant for future CSP com$etitions that ishes to use a eighted

    lottery should $rovide the $ertinent information a-out its $ro$osed lottery inits grant a$$lication.

    E+"' %ay a charter school e@em-t certain categories of a--licants from the

    lottery and admit them automatically.

    A charter school that is oversu-scri-ed and+ conse4uently+ must use a lottery+

    generally must include in that lottery all eligi-le a$$licants for admission. Acharter school may e

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    num-er of s$aces availa-le at the charter school. &3 1.S.C. &&"-(-)()(I) and&&"i(")()+ (G)+ and (').

    E+6' %ay a charter school create se-arate lottery -ools for girls and oys, in

    order to ensure that it has a reasonaly e5ual gender alance.

    Do+ a charter school receiving CSP funds must hold one lottery that

    $rovides 4ualified students ith an e4ual o$$ortunity to attend the school.herefore+ a charter school receiving funds under the $rogram is $recluded

    from holding se$arate lotteries for -oys and girls. Dor may a school eight

    its lottery in favor of one gender over another. A school see@ing to increase$artici$ation of one gender should do so -y targeting additional recruitment

    efforts toard that gender. &3 1.S.C. &&"-(-)()(I) and &&"i(")(').

    E+7' $n addition to title V, -art B, su-art ! of the ESEA, 0hat other statutory

    or regulatory authorities should a charter school recei(ing a CSP grant

    consider 0hen de(elo-ing its admissions -olicies.

    o -e eligi-le for CSP start!u$ grants+ a charter school?s admissions $ractices

    must com$ly ith a$$lica-le /ederal and State las.

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    E+9' %ay a tuition+ased -ri(ate -reschool -rogram that >feeds into? an

    elementary -ulic charter school at the Dindergarten le(el -ermit children

    enrolled in the -reschool -rogram to continue in the elementary -rogram

    0ithout going through a lottery -rocess.

    Do. In order to 4ualify for funds under the CSP+ a :charter school; must+ inaddition to meeting other re4uirements+ -e created as a $u-lic school and may

    not charge tuition. herefore+ the $rivate $reschool ould not 4ualify as acharter school and ould have to -e o$erated se$arately from the elementary

    :charter school;. Accordingly+ all a$$licants to the charter school+ including

    students attending the $rivate $reschool+ ould have to -e selected -y lottery if

    there are more a$$licants than there are s$aces availa-le. See also ,!"3.

    'oever+ the statute does not $reclude an elementary charter school in thisty$e of situation from holding its lottery a fe years early (e.g.+ hen students

    are ready to enroll in the $reschool). 1nder this a$$roach+ the charter schoolould have an affirmative res$onsi-ility to inform $ros$ective a$$licants that

    inning the lottery does not re4uire them to enroll in the $rivate $reschool.hus+ any child selected through the lottery ould -e guaranteed a slot in

    @indergarten a fe years later+ hether or not he or she enrolls in the $reschool$rogram.

    Additionally+ given the high mo-ility of children and families+ schools that

    choose to e

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    3+2' %ay charter schools use -ulic funds to su--ort religious -rograms or

    acti(ities.

    Do. All activities of a charter school must -e non!religious+ as is the case forall $u-lic schools. Pu-lic funds may not -e used for religious $ur$oses or to

    encourage religious activity. In addition+ even if funded -y non!$u-lic sources+religious activity may not -e conducted+ $romoted+ or encouraged during

    charter school activities -y charter school em$loyees or -y other $ersonsor@ing ith charter schools. &3 1.S.C. &&"i(")(). See also /!".

    3+1' %ay charter schools enter into -artnershi-s 0ith religious organi;ations to

    -ro(ide secular ser(ices.

    Les. =i@e other $u-lic schools+ charter schools may enter into $artnershi$sith community grou$s for secular $ur$oses+ such as tutoring or recreational

    activities. >eligious grou$s may -e $artners for these ty$es of activities+ solong as charter schools select $artners ithout regard to their religious

    affiliation+ ensure that no $u-lic funds are used for religious $ur$oses+ do notengage in or encourage religious activity+ and the $artner organi7ation does not

    engage in or encourage religious activity as $art of the $artnershi$ activities.Charter schools may not limit $artici$ation in the $artnershi$ to religious

    grou$s or certain religious grou$s+ and may not select students or encourage ordiscourage student $artici$ation ith $articular $artners -ased on the religious

    or secular nature of the organi7ation. &3 1.S.C. &&"i(")().

    3+"' %ay charter schools use the facilities of a religious organi;ation.

    Les. A charter school may use the facilities of a religious organi7ation to the

    same e

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    3+7' %ay community+ased organi;ations and usiness entities -lay a role in

    charter schools.

    Les. Community!-ased organi7ations and -usinesses can $lay a $ositive rolein creating and su$$orting charter schools.

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    or gives the a$$earance of -eing O motivated -y a desire for a $rivate financialgain for that $erson or for others. C/> 5.5&5.

    G+1' hat -rocedures must CSP grantees follo0 0hen -urchasing e5ui-ment

    or ser(ices.

    #hen using /ederal funds to $urchase e4ui$ment or services+ a charter school

    must com$ly ith the $rocurement standards set forth in the 9e$artment?sregulations at C/> .3!.0. hose standards re4uire /ederal grant

    reci$ients to develo$ ritten $rocurement $rocedures and to conduct all

    $rocurement transactions in a manner to $rovide+ to the ma