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A Parent's Guide to Charter School Funding Challenges

All of California's public schools have faced considerable budget challenges in recent years. Charter schools also face a number of unique, severe challenges around funding, which include:

On average, charter schools receive less funding per student than district schools.

California law is clear that charter schools should receive the same level of funding as all other public schools. In reality, charter schools generally receive less money per student, for a variety of reasons.

School districts receive much of their funding from the state in the form of "categorical funds," which must be used for specific programs. Charter schools have more flexibility, receiving much of their funding as a "block grant," which they can use for a range of purposes, instead of the more restrictive categorical funds. However, that grant provides at least $125 less per student than the statewide average spent on students that don't attend charters for the same programs.

Charter schools also don't usually have access to money traditional school districts can raise from school bonds or parcel taxes. The parents of charter school students pay their fair share of these taxes, but the charter schools their children attend don't benefit.

In addition to those challenges, newer charter schools have been impacted by changes in programs due to the state budget crisis that "freezes" funding levels at prior year levels. New charters do not have a "prior" year, so they may be losing more than $1,000 per student because of this.

Many charter schools are forced to spend a large percentage of their budgets on facilities.

By law, school districts are required to provide space for many charter schools, but that does not always happen. As a result, many charters pay to rent facilities-- money that would otherwise be spent in the classroom. Basically, charter schools in this situation have to take money from the classroom to pay for the classroom itself. This unfairness can widen the funding gap between a charter and non-charter schools by 15 to 20%, or as much as $800 per student.

Under the state's Charter School Facility Grant Program, charter schools located in areas where 70% of students are low-income can get up to $750 per student to pay for facility rental and lease costs. This funding is helpful, but a many charter schools cannot access these programs due to limited funding, eligibility restrictions or both.

State budget deferrals hit charter schools especially hard.

California is in such a severe budget crisis that the state is struggling to guarantee it has enough cash on hand to pay its expenses on time. One way that the state government has dealt with this crisis is through "deferrals" -delaying its required payments to public schools for operations. These deferrals have gotten worse every year since 2007. In 2012, some charter schools had 35% or more of their expected state payments delayed several months. Imagine your boss asks you to buy something for $100, but he only pays you back $65 on time, with the rest coming months later. Wouldn't that make it harder for you to pay your bills?

School districts can borrow money at very low interest rates, However, charter schools are often forced to pay more to borrow money, if they can find a bank to lend them money at all.

Take Action!

Know how your charter school is funded.

Connect with your school leader to understand your school's various sources of income and which government programs are especially important for your school. Not every charter school is funded the same way, and it is important to know what programs and individual funding systems your charter school uses.

Get involved in your local bond measure or parcel tax campaign.

If your local school district is considering a campaign to increase local funding, get involved and push for charter schools to get a fair share of the revenues.

Connect with your local elected officials and make sure they know how state programs affect your school.

The key to effectively working with your elected leaders is to build a relationship before you need it. Work with your school leader to invite local elected officials to visit your school and to set up opportunities for them to hear directly from parents, students and staff at your school. That groundwork will be key for connecting with them when you critically need their support in Sacramento.

Keep up-to-date on the yearly budget negotiations and new state laws proposed in Sacramento.

Click Join to sign up for all the latest updates and action alerts on happenings in the Capitol that could affect your school.

Did you know that every student absence costs your school money?

Schools receive funding based on Average Daily Attendance (ADA). Basically, they only receive money for the days when a student is actually in school. If your child has an unexcused absence, the school loses money - about $45 per student per day. That can really add up!

• Download this information as a handout to share with other parents.

More Resources

• On January 26, 2012, the California Legislative Analyst's Office (LAO) issued a report confirming funding inequity between charter schools and traditional district schools.
• Charter School State Budget Updates
• Charter School Financial Management Guide
• Ball State Study on funding disparities between district and charter schools
• Facilities Funding Options for Charter Schools
• Overview of Proposition 39