School districts must apply the same funding rules to charter schools as they do other schools, the Colorado Court of Appeals has held in a Fort Collins case.

At issue is a provision inserted by the Poudre R-1 school board in the contract that governs the Ridgeview Classical Schools, a charter school.

The provision allowed the district to reduce financial support to Ridgeview when students transfer out.

Under Colorado law, school funding is based on an annual Oct. 1 enrollment count. Schools receive the same funding for the remainder of the year, even if some students leave.

Ridgeview signed the contract, but then sued, saying school leaders agreed under duress. The alternative to signing would have been to shut the school.

A lower court said the contract was binding.

But in a unanimous ruling, a three-judge panel of the appeals court held that Ridgeview is entitled to funding based on the October count, like other schools. That system gives the school a stable revenue stream for the year, the court held.

The ruling was handed down Nov. 26, but has not been previously reported.

A spokeswoman said the school district has filed a motion for the appeals court to reconsider. She declined further comment.

If the ruling stands, the district will have to refund money taken from Ridgeview during the two years the contract was in effect, said Barry Arrington, the lawyer who represented the school. He wasn't sure how much money is owed.

Ridgeview and the Poudre school district have been feuding for years. The Colorado Board of Education came down on the side of the school in 2006.

Ridgeview consistently scores among the top schools in statewide achievement tests. The high school portion was tops in the state in 2005 and 2006.

The provision struck down by the appeals court is found at few other charter schools, said Jim Griffin of the Colorado League of Charter Schools.

morsonb@RockyMountainNews.com