Utah Admin. Code R277-552-6 - Requests for a New Satellite School or Large Expansion

(1) An authorization process developed by an authorizer in accordance with Subsection R277-552-2(2) shall comply with this Section R277-552-6 for a satellite school or large expansion request.

(2) An authorizer may not consider an application for a satellite school from a charter school governed by a different authorizer.

(3) An authorizer may only approve an application from a charter school for a satellite school or large expansion if:

(a) the charter school is in compliance with the requirements of federal and state law, regulations, and Board rule;

(b) the charter school meets the academic and other standards and requirements of the charter school authorizer, and is in good standing according to the standards established by the charter school's authorizer in the authorizer's process for charter school expansion or satellite school described in Subsection R277-552-2(2), including whether the charter LEA, as a whole, qualifies as high performing under the charter school's authorizer's approved definition of high performing;

(d) subject to Subsection (4), the charter school is operationally successful, taking into consideration at least two years of data for every school under the charter agreement;

(e) the charter school has plans for the new satellite school or large expansion to:

(i) provide educational services consistent with state law and Board rule;

(ii) administer and have capacity to carry out statewide assessments including proctoring statewide assessments, consistent with Section 53E-4-303 and Rule R277-404; and

(iii) provide evidence-based instruction for special populations as required by federal law;

(f) the charter school has adequate qualified administrators and staff to meet the needs of the proposed student population at the new school;

(g) the school is in compliance with all public school legal obligations;

(h) the charter school is in good standing with its authorizer;

(i) the charter school has no outstanding corrective action that has not yet been resolved by the completion of a corrective action plan;

(j) the charter school provides a market analysis, including documentation of the school's potential for enrollment stability; and

(k) the charter school provides any additional information or documentation requested by the authorizer.

(4)

(a) For purposes of this Subsection (4), "debt coverage ratio" means:

(i) a debt coverage ratio calculated using (revenue -expenditures + interest cost + depreciation) divided by annual debt service; or

(ii) if the charter school's facilities are leased and not owned, a debt coverage ratio calculated using (revenue - expenditures + facility lease payment + real property taxes + depreciation) divided by annual debt service.

(b) A charter school is considered to be operationally successful if:

(i) for each of the schools under the charter agreement, the charter school meets the following criteria:

(A) for a school with 350 or less students enrolled in the school, at least 120% debt coverage ratio for each of the three years before the request for a satellite;

(B) for a school with between 351 and 499 students enrolled in the school, at least 115% debt coverage ratio for each of the three years before the request for a satellite;

(C) for a school with between 500 and 750 students enrolled in the school, at least 110% debt coverage ratio for each of the three years before the request for a satellite; or

(D) for a school with more than 750 students enrolled in the school, at least 105% debt coverage ratio for each of the three years before the request for a satellite;

(ii) the charter school is financially viable, as evidenced by the charter school's financial records, including the charter school's:

(A) most recent annual financial report (AFR);

(B) annual program report (APR); and

(C) audited financial statements;

(iii) the charter school has maintained a net lease adjusted debt burden ratio of under 25% for each of the last three years; and

(iv) the charter school's financial statements report revenues in excess of expenditures for at least three of the last four years;

(v) the charter school is meeting the terms of its charter agreement;

(vi) the charter school has maintained for each of the last three years:

(A) a re-enrollment rate of at least 80%;

(B) a wait list of at least 40% of its annual enrollment; or

(C) there is a demonstrated demand for the proposed satellite or large expansion, taking into consideration the market analysis required under Subsection (3)(j).

(5) An authorizer may provide additional requirements for a charter school in addition to the minimum requirements described in this Section R277-552-6.

(6) An authorizer shall provide documentation of an applicant school's eligibility for a satellite school or large expansion under Subsection (3) to the Superintendent upon request.

(7) An authorizer shall:

(a) approve a proposed large expansion request or satellite school before October 1 of the state fiscal year before the school year that the proposed school intends to first serve students;

(b) provide the total number of students by grade that the expanded or satellite school is authorized to enroll to the Superintendent on or before October 1 of the state fiscal year before the school year that the proposed school intends to first serve students; and

(c) ensure that a proposed school that will receive School LAND Trust funds has a charter trust land council and satisfies all requirements of Rule R277-477, including transparency of information for parents.

(8) A charter school and all of the charter school's satellite schools are a single LEA for purposes of public school funding and reporting.

(9) If a satellite charter school does not open within 36 months of approval, the approval shall expire.

(10) If an authorizer denies an application for a satellite school, the school may immediately apply for a new charter in accordance with an authorizer's approved processes.

Notes

Utah Admin. Code R277-552-6

Adopted by Utah State Bulletin Number 2019-3, effective 1/9/2019 Amended by Utah State Bulletin Number 2019-12, effective 5/23/2019 Amended by Utah State Bulletin Number 2020-21, effective 10/23/2020 Amended by Utah State Bulletin Number 2021-04, effective 2/9/2021 Amended by Utah State Bulletin Number 2023-11, effective 5/23/2023 Amended by Utah State Bulletin Number 2023-22, effective 11/7/2023