Review of Charter School Funding: Inequity Expands

The University of Arkansas Center for Education Reform’s report on charter school funding inequities proclaims large and growing inequities between school district and charter school revenues, even after accounting for differences in student needs. But the report displays complete lack of understanding of intergovernmental fiscal relationships, which results in the blatantly erroneous assignment of “revenues” between charters and district schools. A district’s expenditure can be a charter’s revenue, since charter funding is in most states and districts received by pass-through from district funding, and districts often retain responsibility for direct provision of services to charter school students—a reality that the report entirely ignores when applying its resource-comparison framework. In addition, the report suffers from alarmingly vague documentation regarding data sources and methodologies, and it constructs entirely inappropriate comparisons of student population characteristics. Simply put, the findings and conclusions of the study are not valid or useful.