Venturesome Capital- State Charter School Finance Systems

Coming through the state or local school districts

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Unformatted text preview: ter schools or school districts have been used as models in the calculations, particularly when dealing with problems presented by the provision of in-kind services resulting from local negotiations between school districts and charter schools. Components of Revenue Revenues from several possible sources are studied in each state. Base funding. Coming through the state or local school districts, this revenue source is commonly referred to as per-pupil funding. In some states, the base funding is a minimum amount, and the other revenue sources identified below are added to it. In other states, the base funding received by charter schools incorporates some or all of the following revenues obtained individually by school districts. In either case, the individual sources of revenue are identified as well as possible. Revenues derived from student weightings. Usually based on student characteristics such as special education disabilities or free-lunch eligibility, additional weight allows some students to generate more state aid. For example, a student qualifying for free lunch may generate 10 percent more base funding than an average student. The revenues generated by student weightings are similar to categorical program revenues but generally do not require that the funding flow to specific programs for the individual students generating the revenue. Student counts. As in public school districts, the details of enrollment and attendance calculations play a role in determining aggregate funding. These issues include time of year when membership is calculated and whether average daily attendance is a funding factor. Effect of geographic location and school or district size. State aid formulas for traditional public schools sometimes contain adjustments for cost-of-living differentials, the high cost of rural districts, the high cost of urban districts, the high cost of small districts and numerous other factors. Usually, a charter school inherits the extra funding from the school district in which it is located through its per-pupil funding allocation. Sometimes a characteristic of the charter school itself, e.g., small size, generates the extra funding. In Arizona, for example, small charter schools located in urban areas benefit from the same extra funding that small rural school districts receive. 23 Venturesome Capital: State Charter School Finance Systems Effect of school district financial characteristics. In many states, the local funding of traditional public schools partly depends on local property tax wealth or the willingness of school district residents to tax themselves at higher rates. In some states, the revenues generated by this ability or willingness to support traditional public education are passed on to charter schools. In other states, however, charter schools are funded based on a state average (e.g., Connecticut) or are denied access to all of the revenues generated by high district wealth (e.g., Michigan). Role of negotiations and the in...
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This note was uploaded on 02/11/2013 for the course ECON 101 taught by Professor Smith during the Spring '09 term at Harvard.

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