Charter School Funding Revisions

The bill was renumbered from HB 219 to HB 219 (Substitute #1) and the title changed to reflect modifications to the Charter School Credit Enhancement Program rather than creating a new revolving fund.

The appropriation amount was reduced from $50,000,000 to $4,000,000, changing the source from the Public Education Economic Stabilization Restricted Account to the Charter School Reserve Account.

Eligibility standards were changed to require charter schools to have an investment grade credit rating to waive maintenance fees, with lower-rated schools facing fees of 0.15% or 0.25% of outstanding debt.

The maximum loan amount for facility additions or expansions was reduced from $2,000,000 to $1,000,000, and loans must now be secured by a promissory note and deed of trust.

New requirements were added for annual certification of debt service reserve funds to the Governor by December 1, with mandatory repayment schedules if funds are restored by the state.

The effective date for waiving maintenance fees for schools with investment grade ratings was changed from March 16, 2011 to July 1, 2025, and the bill's effective date was updated to July 1, 2025.

Administrative authority was transferred from the State Board of Education to the Utah Charter Finance Authority, which is now responsible for setting interest rates, amortization schedules, and other loan terms.