Charter Sponsorship Inflation Adjustment

PURPOSE: This rule establishes the method of adjustment for inflation for charter sponsorship payment as required by the Department of Elementary and Secondary Education (department). The inflation adjustment serves to keep current the funding for the sponsor oversight for sponsors remaining in good standing by fulfilling the obligations under sections 160.400 to 160.425, 161.092, and 167.349, RSMo. (1) Section 160.400.11, RSMo, requires that the expenses of charter school sponsorship shall be defrayed by the department retaining one and five-tenths percent (1.5%) of the amount of state and local funding allocated to a charter school, not to exceed one hundred twenty-five thousand dollars ($125,000), adjusted for inflation. (2) Beginning with the 2016-17 school year, the Consumer Price Index (CPI) will be used to calculate the inflation adjustment for only those charter sponsors that have reached the maximum one hundred twenty-five thousand dollars ($125,000). The department will calculate the rate of inflation to be applied to the one hundred twenty-five thousand dollar ($125,000) limit as follows: (A) The base for the calculation is the December 2006 CPI as calculated by the U.S. Bureau of Labor Statistics; (B) The CPI for December 2006 will be divided into the CPI as calculated by the U.S. Bureau of Labor Statistics for the December immediately preceding the beginning of the current fiscal year; and (C) The quotient derived will be multiplied by one hundred twenty-five thousand dollars ($125,000) and the result will be the maximum payment to sponsors for the current year. AUTHORITY: sections 160.400 to 160.425 and 167.349, RSMo Supp. 2013, and section 161.092, RSMo Supp. 2014. Original rule filed Dec. 9, 2015, effective July 30, 2016. *Original authority: 160.400–160.425, RSMo, See Revised Statutes of Missouri Supp. 2012 and 161.092, RSMo 1963, amended 1973, 2002, 2003, 2013.