Local Budget Stress: Charter Schools & Fixed Costs Stranded in Public Schools
State-mandated charter schools lead to significant “fixed costs” stranded in traditional public schools, which local school districts must bear without state assistance.
Fixed costs — including hard-to-adjust expenses such as maintenance, staffing, transportation, and utilities — jeopardize school districts’ ability to deliver adequate and equitable educational opportunities.
State policymakers should mitigate the negative fiscal impact of charter schools — and address concerns about unfunded mandates — through measures such as:
State policymakers should mitigate the negative fiscal impact of charter schools — and address concerns about unfunded mandates — through measures such as:
- Reimbursing districts for fixed costs related to charter schools
- Revising the state’s charter school funding system to allow districts to reduce their charter funding rate based on actual fiscal costs
- Adjusting downward charter school funding in any charter that under-enrolls low-income students or students with disabilities