Bill > HB0219

This bill modifies the Charter School Credit Enhancement Program to provide more flexible financing options for qualifying charter schools. The bill changes the standards for designating a charter school as "qualifying" by focusing on financial metrics such as debt service coverage ratios and days cash on hand, rather than previous criteria like investment grade ratings or operating history. The legislation introduces a tiered approach to bond issuance and annual maintenance fees based on a charter school's credit rating: schools with investment-grade ratings will have fees waived, those with BB+ ratings will pay a 0.15% fee, and schools with BB ratings will be subject to a 0.25% fee, with the authority having discretion to adjust fees based on rating changes. The bill also increases the bond issuance limitation from 3.0 to 2.0 times the proportion of charter school enrollment to total state enrollment. Additionally, the bill includes a one-time transfer of $4 million to the Charter School Reserve Account and specifies that the bill will take effect on July 1, 2025. The goal appears to be providing more support and financial flexibility for charter schools while maintaining fiscal responsibility.

Education

https://le.utah.gov/~2025/bills/static/HB0219.html