Answer

R.S. 17:3995 provides for type 2 charter schools to be funded by the MFP formula approved by BESE. The Legislature approves this formula through Senate Concurrent Resolutions (SCR). The SCR typically says that in order to provide "...appropriate accountability of state funds while providing local school board flexibility in determining specific expenditures, local school boards must ensure that 70% of the local school system general fund expenditures are in the areas of instruction and school administration at the school building level as derived by the Department of Education." Therefore, the SCR requires that 70% of local school system general fund expenditures must be in the areas of instruction and school administration at the school building level. Normally, a Type 2 charter school is not exempt from the same rules as other schools receiving funds from the minimum foundation program (MFP), in this case the 70% rule. However, the Department of Education may issue a rule that exempts the charter school from the 70% rule because the rule is based on test scores. Since in the first year of the charter school there are no test scores, the charter school would be exempt for the first year only. Louisiana Legislative Auditor website: 05/13/2025 12:24:13 AM