Relating to adult high school charter program funding.

Contracts

• SIS Vendors: Review contracts with Student Information System providers immediately. You must issue a change order or service ticket requiring them to update their funding logic to match the new SB1490 tiers (e.g., ensuring a student with 40% enrollment is calculated at 0.5 ADA, not 0.25 ADA).
• Lender Covenants: If your organization has debt covenants tied to revenue floors or debt service coverage ratios, notify lenders of the projected revenue increase for FY2026 to improve your credit standing.

Hiring/Training

• Registrars & PEIMS Coordinators: Retrain staff on the financial criticality of precise enrollment and withdrawal dates. A discrepancy of a few days could now shift a student between funding tiers, effectively doubling the revenue for that specific enrollee.
• Finance Team: CFOs must update revenue projection models immediately. The "per-student" revenue assumption for transient populations has increased significantly.

Reporting & Record-Keeping

• Attendance Audits: While the method of taking attendance remains standard, the audit risk increases due to higher payouts. Maintain strict documentation of the "instructional days" denominator used to calculate the percentage of the year a student is enrolled.
• PEIMS Submissions: Ensure your Fall 2025 PEIMS submission utilizes the new weighting codes. Submitting under old formulas will result in a permanent loss of eligible state revenue.

Fees & Costs

• Revenue Impact: This is a revenue-generating statute. The Legislative Budget Board estimates a positive impact of over $8 million to the sector in the first year alone.
• Administrative Costs: Minimal one-time costs associated with software reconfiguration.