[Federal Register Volume 64, Number 73 (Friday, April 16, 1999)]
[Notices]
[Pages 18887-18890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9616]


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DEPARTMENT OF EDUCATION

[CFDA No.: 84.282A]


Public Charter Schools Program (PCSP)

    Notice inviting applications for new awards for fiscal year (FY) 
1999.
    Purpose of Program: The major purpose of the PCSP is to expand the 
number of high-quality charter schools available to students across the 
Nation by providing financial assistance for the planning, program 
design, and initial implementation of public charter schools; 
evaluation of the effects of charter schools; and the dissemination of 
information about charter schools and successful practices in charter 
schools.
    Who May Apply: (a) State educational agencies (SEAs) in States with 
a specific State statute authorizing the establishment of charter 
schools. The Secretary awards grants to SEAs to enable them to conduct 
charter school programs in their States. SEAs use their PCSP funds to 
award subgrants to ``eligible applicants,'' as defined in this notice, 
for planning, program design, and initial implementation of a charter 
school; and to support the dissemination of information about, and 
successful practices in, charter schools. A charter school may apply 
for funds to carry out dissemination activities, whether or not the 
charter school has applied for or received funds under the PCSP for 
planning or implementation, if the charter school has been in operation 
for at least 3 consecutive years and has demonstrated overall success , 
including--

    (i) Substantial progress in improving student achievement;
    (ii) High levels of parent satisfaction; and
    (iii) The management and leadership necessary to overcome initial 
start-up problems and establish a thriving, financially viable charter 
school.
    (b) Under certain circumstances, an authorized public chartering 
agency participating in a partnership with a charter school developer. 
Such a partnership is eligible to receive funding directly from the 
U.S. Department of Education if--

    (i) The SEA in its State elects not to participate in this program; 
or
    (ii) The SEA in its State does not have an application approved 
under this program.
If an SEA's application is approved in this competition, applications 
received from non-SEA eligible applicants in that State will be 
returned to the applicants. In such a case, the eligible applicant 
should contact the SEA for information related to its subgrant 
competition.

    Note: The following States currently have approved applications 
under this program: California, Colorado, Georgia, Louisiana, 
Massachusetts, Michigan, Minnesota, Missouri, Ohio, Rhode Island, 
Pennsylvania, South Carolina, and Texas. In these States, only the 
SEA is eligible to receive an award under this competition. Eligible 
applicants in these States should contact their respective SEAs for 
information about participation in the State's charter school 
subgrant program.

    Deadline for Transmittal of Applications: June 1, 1999.
    Deadline for Intergovernmental Review: June 30, 1999.
    Applications Available: April 16, 1999.
    Available Funds: $50,000,000.
    Estimated Range of Awards:

State educational agencies: $500,000-$5,000,000 per year
Other eligible applicants: $25,000-$150,000 per year

    Estimated Average Size of Awards:

State educational agencies: $3,000,000 per year
Other eligible applicants: $100,000 per year

    Estimated Number of Awards:

State educational agencies: 10-15
Other eligible applicants: 20-30

    Note: These estimates are projections for the guidance of 
potential applicants. The Department is not bound by any estimates 
in this notice.


[[Page 18888]]


    Project Period:

State educational agencies: Up to 36 months
Other eligible applicants: Up to 36 months

    Note: Grants awarded by the Secretary directly to non-SEA 
eligible applicants or subgrants awarded by SEAs to eligible 
applicants will be awarded for a period of up to 36 months, of which 
the eligible applicant may use--
    (a) Not more than 18 months for planning and program design;
    (b) Not more than two years for the initial implementation of a 
charter school; and
    (c) Not more than two years to carry out dissemination 
activities.

    Applicable Regulations and Statute: The Education Department 
General Administrative Regulations (EDGAR) in 34 CFR Parts 75 (except 
75.210), 76, 77, 79, 80, 81, 82, 85, and 86. Title X, Part C, 
Elementary and Secondary Education Act of 1965 (ESEA), as amended, 20 
U.S.C. 8061-8067.

SUPPLEMENTARY INFORMATION: As part of wider education reform efforts to 
strengthen teaching and learning, charter schools can be an innovative 
approach to improving public education and expanding public school 
choice. While there is no one model, public charter schools are 
exempted from most statutory and regulatory requirements in exchange 
for performance-based accountability. They are intended to stimulate 
the creativity and commitment of teachers, parents, students, and 
citizens and contribute to better student academic achievement.
    Congress reauthorized the PCSP in October 1998, by enacting the 
Charter School Expansion Act of 1998. Under the new legislation, SEA 
applicants for funding are required to include in their applications 
descriptions of how the SEA (a) will inform each charter school in the 
State about Federal funds the charter school is eligible to receive and 
Federal programs in which the charter school may participate; (b) will 
ensure that each charter school in the State receives the charter 
school's commensurate share of Federal education funds that are 
allocated by formula each year, including during the charter school's 
first year of operation; and (c) will disseminate best or promising 
practices of charter schools to LEAs in the State. The new legislation 
also added a requirement that SEA applicants as well as charter school 
applicants include in their applications descriptions of how charter 
schools that are considered to be LEAs under State law and LEAs in 
which a charter school is located will comply with sections 613(a)(5) 
and 613(e)(1)(B) of the Individuals with Disabilities Education Act. 
Additional information regarding the required contents of applications, 
diversity of projects, and waivers are provided in the application 
package for this program.
    The following definitions, selection criteria, priority criteria, 
amount criteria, authorized uses of funds for dissemination activities, 
and allowable activities are taken from the Public Charter Schools 
statute, in Title X, Part C, of the ESEA. They are being repeated in 
this application notice for the convenience of the applicant.

Definitions

    The following definitions apply to this program:
    (a) Charter school means a public school that--
    (i) In accordance with a specific State statute authorizing the 
granting of charters to schools, is exempted from significant State or 
local rules that inhibit the flexible operation and management of 
public schools, but not from any rules relating to the other 
requirements of this definition;
    (ii) Is created by a developer as a public school, or is adapted by 
a developer from an existing public school, and is operated under 
public supervision and direction;
    (iii) Operates in pursuit of a specific set of educational 
objectives determined by the school's developer and agreed to by the 
authorized public chartering agency;
    (iv) Provides a program of elementary or secondary education, or 
both;
    (v) Is nonsectarian in its programs, admissions policies, 
employment practices, and all other operations, and is not affiliated 
with a sectarian school or religious institution;
    (vi) Does not charge tuition;
    (vii) Complies with the Age Discrimination Act of 1975, title VI of 
the Civil Rights Act of 1964, title IX of the Education Amendments of 
1972, section 504 of the Rehabilitation Act of 1973, and part B of the 
Individuals With Disabilities Education Act;
    (viii) Is a school to which parents choose to send their children, 
and that admits students on the basis of a lottery, if more students 
apply for admission than can be accommodated;
    (ix) Agrees to comply with the same Federal and State audit 
requirements as do other elementary and secondary schools in the State, 
unless the requirements are specifically waived for the purposes of 
this program;
    (x) Meets all applicable Federal, State, and local health and 
safety requirements;
    (xi) Operates in accordance with State law; and
    (xii) Has a written performance contract with the authorized public 
chartering agency in the State that includes a description of how 
student performance will be measured in charter schools pursuant to 
State assessments that are required of other schools and pursuant to 
any other assessments mutually agreeable to the authorized public 
chartering agency and the charter school.
    (b) Developer means an individual or group of individuals 
(including a public or private nonprofit organization), which may 
include teachers, administrators and other school staff, parents, or 
other members of the local community in which a charter school project 
will be carried out.
    (c) Eligible applicant means an authorized public chartering agency 
participating in a partnership with a developer to establish a charter 
school in accordance with this program.
    (d) Authorized public chartering agency means a State educational 
agency, local educational agency, or other public entity that has the 
authority under State law and is approved by the Secretary to authorize 
or approve a charter school.

Selection Criteria for SEAs

    The maximum possible score for all of the criteria in this section 
is 140 points. The maximum possible score for each criterion is 
indicated in parentheses following each criterion. In evaluating an 
application from an SEA, the Secretary considers the following 
criteria:
    (a) The contribution that the charter schools grant program will 
make in assisting educationally disadvantaged and other students to 
achieve State content standards, State student performance standards, 
and, in general, a State's education improvement plan (20 points).
    (b) The degree of flexibility afforded by the SEA to charter 
schools under the State's charter schools law (20 points).
    (c) The ambitiousness of the objectives for the State charter 
school grant program (20 points).
    (d) The quality of the strategy for assessing achievement of those 
objectives (20 points).
    (e) The likelihood that the charter schools grant program will meet 
those objectives and improve educational results for students (20 
points).
    (f) The number of high quality charter schools created under this 
part in the State (20 points).
    (g) In the case of State educational agencies that propose to use 
grant funds to support dissemination activities under section 
10302(c)(2)(C)of the

[[Page 18889]]

ESEA, the quality of those activities and the likelihood that those 
activities will improve student achievement (20 points).

Selection Criteria for Non-SEA Eligible Applicants

    The maximum possible score for all of the criteria in this section 
is 140 points. The maximum possible score for each criterion is 
indicated in parentheses following each criterion. In evaluating an 
application from an eligible applicant other than an SEA the Secretary 
considers the following criteria:
    (a) The quality of the proposed curriculum and instructional 
practices (20 points).
    (b) The degree of flexibility afforded by the SEA and, if 
applicable, the local educational agency to the charter school (20 
points).
    (c) The extent of community support for the application (20 
points).
    (d) The ambitiousness of the objectives for the charter school (20 
points).
    (e) The quality of the strategy for assessing achievement of those 
objectives (20 points).
    (f) The likelihood that the charter school will meet those 
objectives and improve educational results for students (20 points).
    (g) In the case of an eligible applicant that proposes to use grant 
funds to support dissemination activities under section 10302(c)(2)(C) 
of the ESEA, the quality of those activities and the likelihood that 
those activities will improve student achievement (20 points).

Priority Criteria

    In awarding grants for FYs 1999, 2000, and 2001 from funds 
appropriated under section 10311 of the ESEA that are in excess of $51 
million for the FY, the Secretary gives priority under this competition 
to States to the extent that the States meet the criteria described in 
paragraph (a) below, and one or more of the criteria described in 
paragraphs (b) through (d) below (20 points).
    (a) The State provides for periodic review and evaluation by the 
authorized public chartering agency of each charter school, at least 
once every 5 years unless required more frequently by State law, to 
determine whether the charter school is meeting the terms of the 
school's charter, and is meeting or exceeding the academic performance 
requirements and goals for charter schools as set forth under State law 
or the school's charter.
    (b) The State has demonstrated progress, in increasing the number 
of high quality charter schools that are held accountable in the terms 
of the schools' charters for meeting clear and measurable objectives 
for the educational progress of the students attending the schools, in 
the period prior to the period for which a State educational agency or 
eligible applicant applies for a grant under this competition.
    (c) The State--
    (i) Provides for one authorized public chartering agency that is 
not a local educational agency, such as a State chartering board, for 
each individual or entity seeking to operate a charter school pursuant 
to such State law; or
    (ii) In the case of a State in which local educational agencies are 
the only authorized public chartering agencies, allows for an appeals 
process for the denial of an application for a charter school.
    (d) The State ensures that each charter school has a high degree of 
autonomy over the charter school's budgets and expenditures.

Amount Criteria

    In determining the amount of a grant to be awarded under this 
competition to a State educational agency, the Secretary shall take 
into consideration the number of charter schools that are operating or 
approved to open in the State.

Allowable Activities

    An eligible applicant receiving a grant or subgrant under this 
program may use the grant or subgrant funds for only--
    (a) Post-award planning and design of the educational program, 
which may include--
    (i) Refinement of the desired educational results and of the 
methods for measuring progress toward achieving those results; and
    (ii) Professional development of teachers and other staff who will 
work in the charter school; and
    (b) Initial implementation of the charter school, which may 
include--
    (i) Informing the community about the school;
    (ii) Acquiring necessary equipment and educational materials and 
supplies;
    (iii) Acquiring or developing curriculum materials; and
    (iv) Other initial operating costs that cannot be met from State or 
local sources.

Use of Funds for Dissemination Activities

    A State educational agency may reserve not more than 10 percent of 
the grant funds to support dissemination activities. A charter school 
may use such funds to assist other schools in adapting the charter 
school's program (or certain aspects of the charter school's program), 
or to disseminate information about the charter school, through such 
activities as--
    (a) Assisting other individuals with the planning and startup of 
one or more new public schools, including charter schools, that are 
independent of the assisting charter school and the assisting charter 
school's developers, and that agree to be held to at least as high a 
level of accountability as the assisting charter school;
    (b) Developing partnerships with other public schools, including 
charter schools, designed to improve student performance in each of the 
schools participating in the partnership;
    (c) Developing curriculum materials, assessments, and other 
materials that promote increased student achievement and are based on 
successful practices within the assisting charter school; and
    (d) Conducting evaluations and developing materials that document 
the successful practices of the assisting charter school and that are 
designed to improve student achievement.
FOR APPLICATIONS OR INFORMATION CONTACT: John Fiegel, U.S. Department 
of Education, 400 Maryland Avenue, S.W., Room 3E122, Washington, D.C. 
20202-6140. Telephone (202) 260-2671. Internet address: John--
F[email protected]. Individuals who use a telecommunications device for the 
deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-
800-877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through 
Friday.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) upon request to the contact person listed in the preceding 
paragraph. Individuals with disabilities may obtain a copy of the 
application package in an alternate format, also, by contacting that 
person. However, the Department is not able to reproduce in an 
alternate format the standard forms included in the application 
package.

Electronic Access to this Document

    Anyone may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or 
portable document format (pdf) on the World Wide Web at either of the 
following sites:

http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

To use the pdf, you must have the Adobe Acrobat Reader Program with

[[Page 18890]]

Search, which is available free at either of the previous sites. If you 
have questions about using the pdf, call the U.S. Government Printing 
Office toll free at 1-888-293-6498.
    Anyone may also view these documents in text copy only on an 
electronic bulletin board of the Department. Telephone: (202) 219-1511 
or, toll free, 1-800-222-4922. The documents are located under Option 
G--Files/Announcements, Bulletins, and Press Releases.

    Note: The official version of a document is the document 
published in the Federal Register.

    Program Authority: 20 U.S.C. 8061-8067.

    Dated: April 12, 1999.
Judith Johnson,
Acting Assistant Secretary for Elementary and Secondary Education.
[FR Doc. 99-9616 Filed 4-15-99; 8:45 am]
BILLING CODE 4000-01-P