[Federal Register Volume 67, Number 86 (Friday, May 3, 2002)]
[Notices]
[Pages 22422-22425]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11045]


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DEPARTMENT OF EDUCATION

[CFDA Nos.: 84.282A, 84.282B, and 84.282C]


Office of Elementary and Secondary Education--Public Charter 
Schools Program (PCSP); Notice Inviting Applications for New Awards for 
Fiscal Year (FY) 2002.

    Purpose of Program: The purpose of the PCSP is to increase national 
understanding of the charter school model and 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 charter schools; evaluating the effects of 
charter schools, including the effects on students, student academic 
achievement, staff, and parents; and encouraging States to provide 
support to charter schools for facilities financing in an amount more 
commensurate to the amount States have typically provided for 
traditional public schools.
    Eligible Applicants: (a) State educational agencies (SEAs) in 
States with a specific State statute authorizing the establishment of 
charter schools may apply for funding. 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 three consecutive 
years and has demonstrated overall success, including--
    (1) Substantial progress in improving student achievement;
    (2) High levels of parent satisfaction; and
    (3) The management and leadership necessary to overcome initial 
start-up problems and establish a thriving, financially viable charter 
school.
    (b) Non-SEA eligible applicants may apply for funding directly from 
the U.S. Department of Education (Department) if the SEA in the State 
elects not to participate in the PCSP or does not have an application 
approved under the program. An ``eligible applicant'' is defined as a 
developer that has applied to an authorized chartering authority to 
operate a charter school and has provided to that authority adequate 
and timely notice and a copy of its PCSP application, except that these 
requirements may be waived in the case of a pre-charter planning grant. 
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 non-SEA eligible 
applicant should contact the SEA for information related to the State's 
subgrant competition.

    Note: The following States currently have approved applications 
under this program: California, Colorado, Georgia, Indiana, Kansas, 
Louisiana, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New 
Mexico, Ohio, Pennsylvania, Rhode Island, 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. Non-SEA eligible applicants 
in States that are not listed above must apply directly to the 
Department on or before the deadline for transmittal of applications 
in order to be considered for funding in this competition.

    Applications Available: May 3, 2002.
    Deadline for Transmittal of Applications: July 2, 2002.
    Deadline for Intergovernmental Review: September 3, 2002.
    Estimated Available Funds: $50,000,000.
    Estimated Range of Awards:

  State educational agencies: $500,000-$8,000,000 per year.
  Other eligible applicants: $10,000-$150,000 per year.

    Estimated Average Size of Awards:

  State educational agencies: $2,500,000 per year.
  Other eligible applicants: $150,000 per year.

    Estimated Number of Awards:

  State educational agencies: 15-18.
  Other eligible applicants: 50-70.

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

    Project Period: 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, no more 
than 18 months of which may be used for planning and program design; 
no more than two years of which may be used for the initial 
implementation of a charter school; and no more than two years of 
which may be used to carry out dissemination activities.

    Applicable Regulations and Statute: (a) The Education Department 
General

[[Page 22423]]

Administrative Regulations (EDGAR) in 34 CFR parts 75, 76, 77, 79, 80, 
81, 82, 85, 86, 97, and 99; and (b) Title V, part B, subpart 1 
(formerly Title X, part C) of the Elementary and Secondary Education 
Act of 1965, as amended by the No Child Left Behind Act of 2001 (ESEA), 
20 U.S.C. 7221-7221j.

SUPPLEMENTARY INFORMATION: As part of wider education reform efforts to 
improve student achievement, the development of charter schools is an 
innovative approach to improving public education and expanding 
parental options in education. While charter school laws vary by State, 
public charter schools are granted greater flexibility in exchange for 
accountability for results. They are also public schools of choice in 
that all students, parents, and faculty associate with charter schools 
voluntarily. They are intended to stimulate the creativity and 
commitment of teachers, parents, students, and citizens to improve 
student academic achievement.
    Congress reauthorized the PCSP in January 2002, by enacting the No 
Child Left Behind Act of 2001. Under the new legislation, a non-SEA 
eligible applicant for PCSP funds must submit an application for a 
charter to an authorized public chartering agency and provide adequate 
and timely notice and a copy of its PCSP application to the authorized 
public chartering agency. The SEA or the Secretary may waive these 
requirements in cases where the eligible applicant is applying for a 
pre-charter planning grant or subgrant.
    The new legislation also added a specific provision prohibiting 
local educational agencies (LEAs) from deducting funds for 
administrative fees or expenses from a subgrant awarded to an eligible 
applicant, unless the eligible applicant voluntarily enters into a 
mutually agreed upon arrangement for administrative services with the 
LEA. Additional information about the PCSP, including application 
requirements, selection criteria, priorities, diversity of projects, 
and waivers is provided in the application package for this program.

Selection Criteria

    The Department will hold three (3) separate competitions under this 
program. All SEA applicants must apply for grant funds under CFDA No. 
84.282A. Non-SEA eligible applicants that propose to use grant funds 
for planning, program design, and implementation must apply under CFDA 
No. 84.282B; and non-SEA eligible applicants that are requesting funds 
for dissemination activities must submit their applications under CFDA 
No. 84.282C.
    (A) CFDA No. 84.282A--Selection Criteria for SEAs. SEAs that 
propose to use a portion of their grant funds for dissemination 
activities must address each selection criterion listed below. SEAs 
that do not propose to use a portion of their grant funds for 
dissemination activities must address selection criteria (1) through 
(7) only, and need not address selection criterion (8) below. The 
maximum possible score is 130 points for SEAs that do not propose to 
use grant funds to support dissemination activities, and 150 points for 
SEAs that propose to use grant funds to support dissemination 
activities. The maximum possible score for each criterion is indicated 
in parentheses following the criterion. To ensure fairness, if an SEA 
is not proposing to use grant funds to support dissemination 
activities, the Secretary will not consider points awarded under 
criterion (8) in determining whether to approve an application for 
funding.
    In evaluating an application from an SEA, the Secretary considers 
the following criteria:
    (1) The contribution the charter school grant program will make in 
assisting educationally disadvantaged and other students to achieve 
State academic content standards and State student academic achievement 
standards (25 points).
    (2) The degree of flexibility afforded by the SEA to charter 
schools under the State's charter school law (20 points).
    (3) The ambitiousness of the objectives for the State charter 
school grant program (15 points).
    (4) The quality of the SEA's strategy for assessing achievement of 
those objectives (15 points).
    (5) The likelihood that the charter school grant program will meet 
those objectives and improve educational results for students (15 
points).
    (6) The number of high-quality charter schools to be created in the 
State (20 points).
    (7) The adequacy of the management plan to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, timelines, and milestones for accomplishing 
project tasks (20 points).
    (8) In the case of SEAs that propose to use grant funds to support 
dissemination activities under section 5204(f)(6) of the ESEA, the 
quality of the dissemination activities and the likelihood that those 
activities will improve student achievement (20 points).
    (B) CFDA No. 84.282B--Selection Criteria for Non-SEA Eligible 
Applicants for Planning, Program Design, and Implementation Grants. The 
maximum possible score for all of the criteria in this section is 145 
points. The maximum possible score for each criterion is indicated in 
parentheses following the criterion. In evaluating an application from 
a non-SEA eligible applicant for Planning, Program Design, and 
Implementation, the Secretary considers the following criteria:
    (1) The quality of the proposed curriculum and instructional 
practices (20 points).
    (2) The degree of flexibility afforded by the SEA and, if 
applicable, the (LEA) to the charter school (10 points).
    (3) The extent of community support for the application (10 
points).
    (4) The ambitiousness of the objectives for the charter school (15 
points).
    (5) The quality of the strategy for assessing achievement of those 
objectives (15 points).
    (6) The likelihood that the charter school will meet those 
objectives and improve educational results for students during and 
after the period of Federal financial assistance (20 points). (7)
    (7) The extent to which the proposed project encourages parental 
involvement (10 points).
    (8) The qualifications, including relevant training and experience, 
of the project director; and the extent to which the applicant 
encourages applications for employment from persons who are members of 
groups that have traditionally been underrepresented based on race, 
color, national origin, gender, age, or disability (20 points).
    (9) The contribution the charter school will make in assisting 
educationally disadvantaged and other students to achieve State 
academic content standards and State student academic achievement 
standards (25 points).
    (C) CFDA No. 84.282C--Selection Criteria for Non-SEA Eligible 
Applicants for Dissemination Grants. The maximum possible score for all 
of the criteria in this section is 125 points. The maximum possible 
score for each criterion is indicated in parentheses following the 
criterion. In evaluating an application from a non-SEA eligible 
applicant for a dissemination grant, the Secretary considers the 
following criteria:
    (1) The quality of the proposed dissemination activities and the 
likelihood that those activities will improve student achievement (30 
points).
    (2) The extent to which the school has demonstrated overall 
success, including (a) substantial progress in improving student 
achievement (15 points); (b)

[[Page 22424]]

high levels of parent satisfaction (15 points); and (c) the management 
and leadership necessary to overcome initial start-up problems and 
establish a thriving, financially viable charter school (15 points).
    (3) The extent to which the results of the proposed project are to 
be disseminated in a manner that will enable others to use the 
information or strategies (20 points).
    (4) The qualifications, including relevant training and experience 
of the project director; and the extent to which the applicant 
encourages applications for employment from persons who are members of 
groups that have traditionally been underrepresented based on race, 
color, national origin, gender, age, or disability (15 points).
    (5) The adequacy of the management plan to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, timelines, and milestones for accomplishing 
project tasks (15 points).
    Priority Treatment: In accordance with statutory requirements, in 
awarding grants to SEAs under this competition, the Secretary gives 
priority to States to the extent that the State meets the statutory 
criterion described in paragraph (a) below, and one or more of the 
statutory criteria described in paragraphs (b) through (d) below. An 
SEA that meets priority (a) but does not meet one or more of the other 
priorities will not receive any priority points. Likewise, an SEA that 
does not meet priority (a) but meets one or more of the other 
priorities will not receive any priority points. The maximum number of 
priority points for all of the priorities in this section is 40 points.
    (a) Periodic Review and Evaluation. 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 (10 points).
    (b) Number of High-Quality Charter Schools. 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 an SEA or eligible applicant applies for a grant 
under this competition (10 points).
    (c) One Authorized Public Chartering Agency Other than an LEA, or 
an Appeals Process. The State--
    (1) Provides for one authorized public chartering agency that is 
not an LEA, such as a State chartering board, for each individual or 
entity seeking to operate a charter school pursuant to such State law; 
or
    (2) In the case of a State in which LEAs are the only authorized 
public chartering agencies, allows for an appeals process for the 
denial of an application for a charter school (10 points).
    (d) High Degree Autonomy. The State ensures that each charter 
school has a high degree of autonomy over the charter school's budgets 
and expenditures (10 points).
    Other Statutory Provisions: The following definitions, amount 
criteria, allowable activities, and authorized uses of funds for 
dissemination activities are taken from the PCSP authorizing statute, 
in Title V, Part B, Subpart 1 of the ESEA. They are repeated in this 
application notice for the convenience of the applicant. Other 
statutory requirements also apply to this program. The entire 
authorizing statute is included in the application package for the 
program.

Definitions

    The following definitions apply to this program:
    (a) Charter school means a public school that--
    (1) 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;
    (2) 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;
    (3) 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;
    (4) Provides a program of elementary or secondary education, or 
both;
    (5) Is nonsectarian in its programs, admissions policies, 
employment practices, and all other operations, and is not affiliated 
with a sectarian school or religious institution;
    (6) Does not charge tuition;
    (7) 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;
    (8) 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;
    (9) 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;
    (10) Meets all applicable Federal, State, and local health and 
safety requirements;
    (11) Operates in accordance with State law; and
    (12) 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 a developer that has (1) applied to an 
authorized public chartering authority to operate a charter school; and 
(2) provided adequate and timely notice to that authority under section 
5203(d)(3) of the ESEA.

    Note: Section 5203(d)(3) requires the eligible applicant to 
provide the authority with timely notice and a copy of its 
application for PCSP funds. The Secretary or SEA may waive these 
requirements in the case of an application for a precharter planning 
grant or subgrant.

    (d) Authorized public chartering agency means an SEA, LEA, or other 
public entity that has the authority under State law and is approved by 
the Secretary to authorize or approve a charter school.

Amount Criteria

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

[[Page 22425]]

Allowable Activities

    An eligible applicant receiving a grant or subgrant under this 
program may use the grant or subgrant funds only for--
    (a) Post-award planning and design of the educational program, 
which may include--
    (1) Refinement of the desired educational results and of the 
methods for measuring progress toward achieving those results; and
    (2) 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--
    (1) Informing the community about the school;
    (2) Acquiring necessary equipment and educational materials and 
supplies;
    (3) Acquiring or developing curriculum materials; and
    (4) Other initial operating costs that cannot be met from State or 
local sources.

Use of Funds for Dissemination Activities

    An SEA may reserve not more than 10 percent of the grant funds to 
support dissemination activities. A charter school may use those 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 start-up 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 AND FURTHER INFORMATION CONTACT: Rik Lanzendorfer, 
U.S. Department of Education, 400 Maryland Avenue, SW., Room 3C148, 
Washington, DC 20202-6140. Telephone (202) 205-9786. Internet address: 
[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.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed.
    Individuals with disabilities may also obtain a copy of the 
application package in an alternative format on request to the contact 
person listed above. However, the Department is not able to reproduce 
in an alternative format the standard forms included in the application 
package.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
www.ed.gov/legislation/FedRegister.
    To use PDF, you must have Adobe Acrobat Reader, which is available 
free at the previous site. If you have questions about using PDF, call 
the U.S. Government Printing Office (GPO) toll free at 1-888-293-6498; 
or in the Washington, DC area at (202) 512-1530.

    Note: The official version of a document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://www.access.gpo.gov/nara/index.html.

    Program Authority: 20 U.S.C. 7221-7221j.

    Dated: April 30, 2002.
Susan B. Neuman,
Assistant Secretary for Elementary and Secondary Education.
[FR Doc. 02-11045 Filed 5-2-02; 8:45 am]
BILLING CODE 4000-01-P