How are Charter Schools Funded?
California public schools, including charter schools like , are free and open for all students to attend, Public schools funding is based on student characteristics, enrollment and attendance and allocated to schools from the State based on the Local Control Funding Formula. However, Charter Schools receive less public funding than traditional public schools and pay fees to the Districts for oversight and compliance.
The Need for Charter Schools
In public schools, almost all of the funding is provided by a split of state and local resources, with a smaller share coming from federal sources that is intended to complement specialty areas, not provide core foundational operating funds.
Affluent areas may pass additional bonds or parcel taxes or endow an educational foundation. Every aspect of the school’s resource base is affected by the local community’s economy. Parents in wealthier areas often have more available free time to commit to volunteering within the classroom and advocating with administrations, and may have more expendable income to spend on targeted school initiatives.
These structural and societal factors pile up to create a momentum of imbalance that charter schools that serve historically underfunded communities seek to assuage.
Charter schools were created to help address the structural imbalances and inherently different needs of specific groups, often including historically underserved communities. The “charter” in charter schools is an agreement between the school and the government. In exchange for more flexibility in running the school, the school will provide the government with more data and active oversight. This charter provides schools the autonomy to adjust to the real needs of their students and experiment with the implementation of cutting-edge understanding of best educational practices while preserving the need for increased accountability.
Charter School Funding Sources
The main source of funding for charter schools is calculated by the LCFF (Local Control Funding Formula), which adjusts funds as available fund information becomes known. This is a combination of state funds and “in-lieu of property taxes” funding. It generally works out to be significantly less than equivalent local public school funding. There are also special grants that may contribute:
- Charter School Facility Grant Program (helps offset facility costs for schools serving low-income families)
- New schools can receive the Public Charter School Grant Program (PCSGP) to help with startup costs.
- Special Education funds (IDEA) help with the education of students with disabilities
While current government policy creates an excellent opportunity for innovative charter schools to exist, it leaves gaps in the necessary funds to support those same initiatives. Charter schools are expected to make up those gaps with internal fundraising efforts.
ĢƵ Foundation – Building a Base for Success
The ĢƵ Foundation was created to help close the gap that is created between current funding sources and ideal funding for charter schools. It is composed of enthusiastic thought leaders committed to transformative public education through engaged philanthropy and advocacy.
The Foundation’s mission is to “raise resources and visibility for the ĢƵ network of schools, advocate for policies that improve quality public education for historically underserved youth, and build partnerships to strengthen ĢƵ schools and the communities that ĢƵ serves. We believe in the unlimited potential of our scholars and work to shine a bright light on what is possible for all public schools.”
The ĢƵ Foundation has already granted more than $31 Million in funds that have gone directly to services bringing educational excellence to 25,000 alumni and an additional 12,000 current scholars across 25 schools.
If you are passionate about improving the quality of public education in our ĢƵ Communities, we encourage you to learn more and get involved with the ĢƵ Foundation.