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Charter and Public School Funding

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By Ronald Freeman

Abstract

Many questions arise in educational forums nationwide surrounding the idea of charter schools and their ability to be a driving force in increasing student performance. The distribution of charter schools across states has been a growing concern for many education policy enthusiasts. Questions linger amongst prominent researchers as to what is so attractive about charter schools, how they operate, and how they are funded. Some even delve into concerns surrounding the notion that they may be better at educating students than regular public schools. With these types of questions looming, charter schools have undoubtedly become the source of ongoing controversy and debate. Research indicates that larger management organizations run a growing share of charter schools. An overarching question exists in the discussion of what defines a public school. Charter schools have been placed against public education systems to bring forth options in school choice. They increase classroom innovations and provide parents with an excellent, well-rounded educational opportunity for their children, seemingly vastly superior to many public schools.

Several states give taxable revenue to private schools through program vouchers. Savings incentives have gained notoriety within private schools. They have come under more regulations because they are not considered public schools. More than a few states promote charter schools as an entryway to educational equity for poor and minority students; research suggests they are neither, despite passionate arguments on both sides. In New York City, many policies and practices around reducing inequities, such as fair Student Funding and the resources and services provided to charter schools, have proven effective. However, increased analysis is warranted to eradicate the disparities.

Articles for Review

Fischler. J (2021) Understanding Charter Schools vs. Public Schools: Charter schools present choices, but there is much for parents to evaluate. US News and World report URL: https://www.usnews.com/education/k12/articles/understanding-charter-schools-vs-public schools

Fischler (2021) states that once Charter Schools became popular amongst policymakers, a significant change occurred in education. Charter schools provided new options, even for parents without the means or desire to send their students to private schools. A significant focus of the article lies in the understanding, according to Fischler that

  1. Charters have more flexibility. Rather than being part of a public school district, which dictates curriculum and standards in all schools,
  2. Charters operate autonomously through individual agreements, or charters, with state or local governments that dictate rules and performance standards.

In understanding that fewer restrictions are placed on charter schools, Fischler informs us that charter schools should be more accountable to parents and the state or local governments that authorize them in return for that type of flexibility. The article promulgates that charter schools can create educational environments void of the uncomplicated curriculum that is imparted in public schools. Furthermore, Fischler states that some schools may focus on arts or theater. Others prioritize ecology and sustainability or racial and social justice, which is vastly different from most public schools that focus on test scores or overdependence on classroom technology.

The article speaks directly to the racial disparity in education in New Orleans, where nearly all public schools became charters after Hurricane Katrina in 2005, still deals with the stratification of students and a pernicious racial achievement gap. Fischer states that in a 2020 study by Stanford University’s Center for Research on Education Outcomes (CREDO) study in Washington state found that “in both reading and math, four out of nine or 44% of charters do not differ significantly from the traditional public school option.”

Prothero, Ariana, (2018) What Are Charter Schools? Education Week https://www.edweek.org/policy-politics/what-are-charter-schools/2018/08

The article is an overview of the questions raised on what constitutes a “charter school’’ and the parameters a charter school designation entails. The outline is as follows.

  1. Who Runs Charter Schools?
  2. Are Charter Schools Non-Profit?
  3. How Are Charter Schools Funded?
  4. Charter Schools: Are They Public or Private?

Prothero (2018), indicates that larger management organizations run a growing share of charter schools. According to Prothero (2018), a significant argument lies in the definition of what it means to be defined as a public school. If the description of a public school rests on being an entity elected by a school board, charter schools fall short, especially if they were not authorized by a school district or elected state board.

The article stipulates that elected boards do run not all school districts. Prothero (2018) points out that charters are generally viewed under state laws as public schools whose students must take all the same assessments as those who attend traditional district schools. Outlining the pros and cons of why charter schools attract parents is explained by recognizing that according to Prothero (2018), charter schools take risks and approach curriculum with a different lens than public schools. Charter schools look to enhance particular fields of study, such as the arts or technology.

Mahoney, D. & Wolf, P. (2017) Charter School Funding: Inequity in New York City. School Choice Demonstration Project Department of Education Reform University of Arkansas http://www.uaedreform.org/wp-content/uploads/charter-school-funding-inequity-in-new york-city.pdf

Primarily the research examined how equitably resources within the public school sector and the surrounding locations have been distributed in New York City. The study analyzed public schools in New York per-pupil funding related to spending in specific geographic areas. The in-depth analysis of charter school physical locations provided data on funding inequities.

While the importance of why inequalities in funding transpire as the main focus of the research, the literature presented information on what types of funding sources were used by the schools, such as Fair Student Funding, Categorical Allocations, and Programmatic Allocations. The notable study by Mahoney and Wolf (2017) asserts that within the charter school finance system there exist two important factors revealed through the research. One factor in the study is that public school districts provide over 25% of the resources in kind to charter school students. Subsequently, as funding is provided, locations for schools are sparse. Mahoney and Wolf, (2017) point out that many charter schools are divided into what amounts to co-locations within the district.

The focus of the research intends to raise awareness on the issue of inequities in public school finance in one of the largest school districts. In studying the disparities, the article points out that since public school funding resources are often passing through charter schools, it is complicated to form a concise analysis of the spending. Furthermore, Mahoney and Wolf (2017) revealed that biases and inequities exist concerning funding related to the physical location of charter schools. The research reports indicated that charter schools received a higher rate of funding in more economically disadvantaged areas of New York City. Another critical element that points out the inequities in funding as it relates to physical location is the fact that Co-located charter schools received more total per-pupil funding than non-co-located charters.

Education Commission of the States (2018) Charter Schools: Who provides charter schools with their funding? http://www.ecs.org/

According to the National Center for Education Statistics (2017), around 7,000 schools and 3 million students are in Charter School settings. Additionally, the NCES (2017) reported a steady increase in enrollment in public charter school students between fall 2009 and fall 2018. The enrollment numbers, according to NCES, indicated an increase from 1.6 million students in fall 2009 to 3.3 million students in fall 2018. In comparison, students who enrolled in conventional public schools enrollment decreased. The NCES further points out that, in contrast, the number of students attending traditional public schools decreased by 0.4 million between fall 2009 and fall 2018. Because of the trends listed, the percentage of all public school students who attended public charter schools increased from 3 to 7 percent over this period. Although statistical, the article points out that although the data reveals vital information on the disparities in enrollment, it is equally as important to note that Charter schools do not draw students from an assigned area; families choose to send their children to them, fueling the school choice debate.

Major Trends

According to Prothero (2018), A charter school is a tuition-free school of choice that is publicly funded but independently run. Prothero (2018) and many other prominent researchers indicate the historical nature of the creation of charter schools designed to loosen funding areas and decrease political “red tape” related to the expansion of charter schools in urban areas serving low-income students. Mahoney and Wolf (2017) revealed the monies received to fund many charter schools come primarily from federal government financing, state and local funding sources, and philanthropic sources. Charter Schools provide special education services, just like traditional district schools, based on student enrollment. Accordingly, the Education Commission of the States (2018), supported by Prothero (2018), indicates that charters receive state and local money based on the number of students they enroll and money from the federal government to provide special education services comparable to traditional district schools. Outlining the pros and cons of why charter schools attract parents is understood by recognizing that according to Prothero (2018), charter schools take risks and approach curriculum with a different lens than public schools. Charter schools look to enhance particular fields of study, such as the arts or technology.

According to Rafa, A., Erwin, B., Kelly, B., and Wixom, charters are bound to the terms of a contract. Subsequently, they operate under a written contract assigned by a state, district, or other entity. The term charter, according to Finnigan, K., Adelman, N., Anderson, L., Cotton, L., Donnelly, M.B., and Price, T. (2004), reports entitled Evaluation of the Public Charter Schools Program highlights the key components such as the financial guidelines, mission, academic goals, and responsible parties.

Gaps in Literature

Prothero (2018) states that a fundamental reason for attracting individuals to the Charter school model is that they serve as credible competition to the traditional public schooling system. However, the significant outcome is that Charter schools are siphoning stretched resources. Additionally, Prothero (2018) indicates that Charter schools educate only a tiny share of the nation’s public-school students–about 6 percent. Some states also allow for-profit companies to be involved, this further complicates the public status of charter schools and adds to the confusion: Although the schools themselves are not-for-profit, they may contract with a for-profit company to manage some or much of the school; this could include hiring teachers, providing school facilities, developing curricula, and setting school policies. Most states do not allocate funds for charter school facilities.

Fischler (2021) indicates that many of the same problems that plague traditional public schools are also found in charters. Mahoney and Wolf, (2017) suggest in their research that the NYCDoE has made a substantial financial commitment to charter schools; however, no state financial reporting appears within the official documents. (p.8)

Analysis: relationship among articles

Prothero (2018) and Fischler (2021) both indicate that charter schools have been impactful in allowing a greater level of autonomy in providing families with choices around educational decision-making for their children. Although Mahoney and Wolf (2017) offer a great deal of helpful information regarding the disparity in spending between public and charter schools related to funding, they do not reveal how the budgets of the charter schools promote increased student performance. Mahoney and Wolf (2017) stipulated that the inequalities in the funding are primarily due to the targeted student population in which charter school officials enroll. In New York City, there is currently a cap on how many charters are permitted to operate as a vehicle for choice for parents. The question remains, will the new administration that seems to lean pro-charter lift the cap and allow for additional charter schools. Or will he, with a new and progressive schools chancellor, make drastic changes to the district public schools and restore confidence in the public school system. We shall see.

Works Cited

Finnigan, K., Adelman, N., Anderson, L., Cotton, L., Donnelly, M., & Price, T. (2004). Evaluation of the PublicCharter Schools Program. Washington D.C: SRI International.

Fischler, J. (2021, October 19). Understanding Charter Schools vs. Public Schools. Retrieved from US News and World Report: usnews.com/education/k12/articles/understanding charter-schools-vs-public-schools

Maloney, L. D., & Wolf, P. J. (2017). Charter School Funding Inequity in New York City. Fayetteville: Department of Education Reform University of Arkansas.

Prothero, A. (2018, August 09). What Are Charter Schools. Retrieved from Education Week: edweek.org/policy-politics/what-are-charter-schools/2018/08

Rafa, A., Erwin, B., Kelley, B., & Wixom, M. (2020, January 8). Education Commission of the States. Nationwide.

About the Author

Ronald “Lael” Freeman is a Social and Public Policy graduate student at SUNY Empire State College. He is passionate about education policy and its effects on underrepresented and underfunded schools and districts. He currently serves as an education specialist for the most extensive afterschool programs in New York City.

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