Venturesome Capital- State Charter School Finance Systems

Federal funding in addition to federal start up

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Unformatted text preview: cal funding, and there is significant evidence that charter schools for at-risk children have been successful in obtaining competitively awarded funding. Other charter schools may have difficulty working through school districts for their share of categorical funds, or may find it not worth the effort to seek money from small categorical programs. Federal Funding In addition to federal start-up funding considered separately in Chapter 5, charter schools are eligible for most federal funding including programs for compensatory education, education reform, special education and bilingual education. The calculations in our report assume that charter schools get their fair share of federal funds either from a school district or by qualifying on their own as if they were their own school district. The GAO reports discussed at the end of Chapter 2 indicate that, for the most part, charter schools are receiving federal funds for which they are eligible but that some barriers still remain. One problem has been that in many instances, charter schools are unable to qualify for Title I and special education funding during their first year of operation. Legislation enacted in 1998 and regulations issued by the U.S. Department of Education the following year are expected to rectify this problem. The federal aid calculations for the three hypothetical charter schools are described in Table 1. The per-pupil amounts apply to total enrollment, not just the students generating the aid. Title I qualifying students, for example, can generate over $500 each, and special education students also each get several hundred dollars. It is assumed that Title I includes only the appropriation designated for pass-through to school districts. Special education aid corresponds to 75 percent of the basic state grant (the other 25 percent remains under the control of state plans). Infant and toddler special education, preschool special education, Medicaid and vocational rehabilitation funding are not included because few charter schools are likely to enroll students served by these federal programs. “Other” federal funding includes only the following programs: comprehensive school reform, class size reduction, education improvement, Eisenhower professional development, Goals 2000 and the technology literacy challenge fund. Funding will vary based on a number of factors including student population characteristics. The majority of the federal aid follows pupils with specific characteristics and requires schools to offer specific programs or provide qualifying services. Consequently, the three hypothetical charter schools, constructed to illustrate how state charter school funding works generate different federal funding. § All schools get the same amount of “other” aid. § Basic elementary charter schools only get “other” federal aid. § Middle cost charter schools are assumed to get the average federal aid for Title I, bilingual, special education. § At-risk upper grade charter schools are assumed to get double the average aid for Title I, bilingual and special education. 25 Venturesome Capital: State Charter School Finance Systems Charter schools for at-risk students sometimes receive federal funding through competitive federal grants, which is not reflected in the tables. TABLE 1 Average 1998-99 Federal Aid P...
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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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