Department of Education

Choice/Charter Billing
Local Fund Exclusion Process

Part I. Fiscal Year 2017 (the process for the current year)
1. In early spring of 2016, DOE committed to reviewing the choice/charter exclusion
process, at the request of charter schools.
2. DOE advised the district business managers on April 8, 2016, at their meeting, that a
process was being developed and would be undertaken in the near future to review the
existing exclusions.
3. On May 25, 2016, DOE sent an email detailing the review process along with a detailed
spreadsheet for each district, which identified all local fund appropriations. Using that
spreadsheet, districts were instructed to submit requests for appropriations to be excluded
along with a justification by July 8, 2016.
4. DOE staff reviewed those district requests, and made recommendations for a list of
exclusions to be used during the Fiscal Year 2017 process, that was based on DOEs
interpretation of the DE Code and to ensure the consistent application of exclusions
statewide.
5. The recommended list of exclusions for the Fiscal Year 2017 calculations were released
to the school districts on August 8, 2016.
6. On August 16, 2016, DOE sent out choice/charter bills that were consistent with the
information provided on August 8th.
7. Shortly thereafter, the Department received concerns from district leaders regarding the
calculations and asking for reconsideration of the methodology.
8. On September 9, 2016, the decision to return to the prior year exclusion methodology
was made by the Secretary and communicated to legislators, school districts and charter
schools.
9. Revised bills were released and processed in accordance with that decision.

Part II. Fiscal Year 2018 (the process to be used in the future)
1. By the end of March each fiscal year, the Department will provide a listing of all local
fund appropriations in use within each school district, along with an identification of each
appropriations current status of excluded or included.
2. Each school district will be required to respond to the Department with explanations for
the exclusion requests and any requests for modification no later than the end of April
 each fiscal year. School district responses must be submitted using the document
provided by the Department, and must include justification to support any existing
exclusions or new modifications requested.
3. The Department will review all school district submissions by the end of May each fiscal
year, and provide the school districts with a general list of appropriations to be excluded
and district-specific appropriations by June 1st of each fiscal year.
4. If any school district should request a meeting with the Department to discuss their
district-specific exclusions, those requests should be made no later than June 15th of each
fiscal year, and the Department will work to accommodate those meeting requests by the
beginning of July of each fiscal year.
5. By July 15th of each year, the Department will provide a draft listing of local fund
appropriations to be excluded to the charter schools, for their review and input. If any
charter schools should request a meeting with the Department to make inquiry regarding
the explanation of any such excluded appropriation, those requests should be made no
later than August 1st.
6. Following the process outlined above, DOE will make a final decision on all requested
exclusions. DOE Finance will thereafter obtain certification of the approved local fund
appropriations to be excluded from the Secretary of Education, no later than August 31st
of each fiscal year.
7. Upon certification, DOE Finance will release the preliminary choice and charter billings
to school districts no later than September 15th of each fiscal year.
8. Final choice and charter billings, using the same methodology as certified in the
preliminary process, will be released upon certified unit count, no later than December 1st
of each fiscal year.