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U.S. charter schools are publicly funded through state school finance formulas that often mirror the traditional public school finance systems. While charter school advocates and critics disagree over whether charters receive an equitable share of funding, few discussions are based on rigorous analyses of funding and expenditures. Most prior analyses, especially those presented in policy briefs or white papers, examine average funding differences without exploring underlying cost factors between the two sectors. Our purpose is to demonstrate how careful analysis of charter school funding with appropriate methodological approaches can shed light on disagreements about charter school finance policy. Using detailed school finance data from Texas as a case study, we find that after accounting for differences in accounting structures and cost factors, charter schools receive significantly more state and local funding compared to traditional public schools with similar structural characteristics and student demographics. However, many small charter schools are actually underfunded relative to their traditional public school counterparts. Policy simulations demonstrate that on average, each student who transfers to a charter school increases the cost to the state by $1,500. We discuss the implications of these findings for both school finance policy in Texas and nationally.
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Does the Measurement Matter? Assessing Alternate Approaches to Measuring State School Finance Equity for California’s Local Control Funding Formula
Scholars have not reached consensus on the best approach to measure state school finance equity. The regression-based approach estimates the relationship between district poverty rate and funding level, controlling for other district cost factors. A second commonly used approach involves estimating the weighted average funding level for low-income students or other subgroups. Meanwhile, policymakers have preferences for their own data systems and poverty indicators when reading reports and assessing progress. We constructed parallel, district-level panel data sets using data from the California Department of Education and the U.S. Census. We estimated changes over time in district-level school finance equity under California’s Local Control Funding Formula, using multiple school finance measurement approaches, with each of the two data sets. Our results show that different methods and analytic choices result in policy-relevant differences in findings. We discuss the implications for policy and future research.
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- PAR ID:
- 10169773
- Date Published:
- Journal Name:
- AERA Open
- Volume:
- 5
- Issue:
- 3
- ISSN:
- 2332-8584
- Page Range / eLocation ID:
- 233285841987742
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Journal Article:
- https://doi.org/10.1177/2332858419877424
