HF2754: Charter School Reforms

Overhauls Iowa's education statutes with major changes to charter school governance, funding, and oversight, expands preschool program participation to community-based providers, revises rules for private and independent instruction, updates the Iowa Public Employees’ Retirement System (IPERS) eligibility, and creates new funding mechanisms for charter school facilities. It clarifies and expands student access to public school extracurricular activities, revises education savings account eligibility and amounts, and strengthens the recognition of diplomas from private instruction. Significant appropriations and new program funding are included.

Key Points & Impacts

• Expands charter school authorizer eligibility to include the University of Northern Iowa, with corresponding changes to application, approval, monitoring, and contract provisions throughout the charter school statutes.

• Removes or limits references to innovation zone schools and consolidates provisions for 'legacy' charter schools under a new subchapter, restricting new approvals after July 1, 2021.

• Requires charter schools to incorporate a performance framework into contracts, aligning with oversight and renewal procedures, and strengthens requirements for audits, reporting, and compliance.

• Revises funding formulas for charter schools, including expanded state cost per pupil supplements and direct interaction with area education agencies for services and payments. Area education agencies now must provide services and media to charter schools, with state aid deductions to fund these services.

• Establishes a Charter School Facilities Revolving Loan Program Fund with annual appropriations, enabling loans and credit enhancement for facility acquisition and improvement.

• Expands access for charter and nonpublic school students to participate in public school extracurricular activities, with new limits, eligibility requirements, and fee rules.

• Allows community-based providers to directly participate in the Statewide Voluntary Preschool Program, receive direct state funding, and sets administrative cost limits for both school districts and providers. Adjusts funding, reporting, and oversight accordingly.

• Provides for the recognition of diplomas and documentation issued by private or independent instruction as equivalent to district diplomas for all legal purposes, and liberalizes requirements for independent private instruction (removing prior caps on students, tuition, and unrelated restrictions).