100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5997

 

Introduced , by Rep. Emanuel Chris Welch

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/27A-10.5
105 ILCS 5/27A-11.10 new

    Amends the Charter Schools Law of the School Code. Provides that a charter school established on or after the effective date of the amendatory Act may not enter into a contract with a for-profit charter management organization or educational management organization. Sets forth provisions concerning property purchased with public funds. Provides that no chief executive officer of a charter school may receive compensation greater than 80% of the compensation of the superintendent of schools of the school district where the charter school is located. Provides that no charter school principal may receive compensation greater than 10% more than the average compensation for principals in the school district where the charter school is located. Provides that a charter school authorized under the Code must expend a minimum of 84% of the total revenues due from the authorizer on incurred expenses for instruction, instructional materials, operations and maintenance, transportation, and support services that may have been applicable prior to July 1, 2018, as identified by the State Board of Education. Provides that the remaining 16% of the total revenues may, subject to limitations, be expended by the charter school, at its discretion, on administrative or program support costs.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
527A-10.5 and by adding Section 27A-11.10 as follows:
 
6    (105 ILCS 5/27A-10.5)
7    Sec. 27A-10.5. Educational or charter management
8organization.
9    (a) In this Section:
10    "CMO" means a charter management organization.
11    "EMO" means an educational management organization.
12    (b) All authorizers shall ensure that any charter school
13established on or after January 1, 2015 (the effective date of
14Public Act 98-783) this amendatory Act of the 98th General
15Assembly has a governing body that is separate and distinct
16from the governing body of any CMO or EMO. In reviewing charter
17applications and charter renewal applications, authorizers
18shall review the governance model proposed by the applicant to
19ensure that there are no conflicts of interest.
20    A charter school established on or after the effective date
21of this amendatory Act of the 100th General Assembly may not
22enter into a contract with a for-profit EMO or CMO.
23    (c) No charter school may employ a staff person who is

 

 

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1simultaneously employed by an EMO or CMO.
2    (d) All charter school equipment, furnishings, and
3physical plants that are purchased with public funds are the
4property of the charter school, not the EMO or CMO. In the
5event a charter school is dissolved, such property must be
6transferred to the authorizer.
7(Source: P.A. 98-783, eff. 1-1-15.)
 
8    (105 ILCS 5/27A-11.10 new)
9    Sec. 27A-11.10. Proper use of funds.
10    (a) No chief executive officer of a charter school may
11receive compensation greater than 80% of the compensation of
12the superintendent of schools of the school district where the
13charter school is located. No charter school principal may
14receive compensation greater than 10% more than the average
15compensation for principals in the school district where the
16charter school is located. A charter school shall include these
17prohibitions in any contract with an educational or charter
18management organization.
19    (b) A charter school authorized under this Code must expend
20a minimum of 84% of the total revenues due from the authorizer
21on incurred expenses for instruction, instructional materials,
22operations and maintenance, transportation, and support
23services that may have been applicable prior to July 1, 2018,
24as identified by the State Board of Education. Expenses under
25this subsection (b) shall exclude charter school central

 

 

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1administration costs, any management fees charged by a charter
2management organization or educational management
3organization, debt service, or any advertising or other student
4recruitment materials. Subject to these exclusions, the
5remaining 16% of the total revenues may be expended by the
6charter school, at its discretion, on administrative or program
7support costs.