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Unformatted text preview: cts of financial incentives are mitigated by the lottery
admission system, and charter schools cannot refuse to admit special education students.
Charter schools collectively enroll slightly fewer students with individualized education
plans (IEPs), but these students tend to have low-cost handicaps requiring only resource
teachers. (KPMG-Peat Marwick, 1998).12 Students requiring self-contained classrooms
almost always stay in school districts.
12 In 1996-97, according to KPMG-Peat Marwick, the state average special education enrollment (prototypes
502.1 to 502.4) was 15.2 percent compared to 11.1 percent in charter schools. Almost the entire differential Appendix 145 Venturesome Capital: State Charter School Finance Systems Categorical Programs: Most programs, such as special education, bilingual education and compensatory education, are factored into one or more of the 11 enrollment categories
included in the foundation funding formula of the school districts. Subsequently, charter
schools get most of this money through the tuition calculation. This funding is based on
demographic characteristics of the sending schools district, not the enrollment
characteristics of the charter school.
Bilingual Education: Bilingual education is an enrollment category in the general state aid formula, and the expenditures are passed on to charter schools in the tuition calculation
based on the bilingual programs and students of the sending school district.
Low-Income Students: Low-income and compensatory education students are included in two of the 11 enrollment categories in the foundation formula. Based on the low-income
characteristics of the sending school districts, funding is passed on to charter schools at the
Transportation: Students who reside in the district in which the charter school is physically located are entitled to transportation on the same basis as other public school pupils.
School districts must accommodate all charter schools—even those having school days and
school years that are different from the district’s. If a charter school provides its own
transportation, it gets the average cost per student (not user) from the sending district for
students actually transported.
Capital Outlay and Facilities Financing: In Massachusetts, only debt service in excess of State Building Assistance Bureau (SBAB) grants for debt retirement enters the charter
school tuition calculation. SBAB funds up to 90 percent of the debt retirement cost of new
facilities in cities where facilities construction is an integral component of a racial
desegregation plan; otherwise SBAB funds about half of debt retirement costs for
qualifying projects, or no funding at all. A KPMG-Peat Marwick study of 33 school
districts sending students to charter schools found that two-thirds had some capital
expenditure for facilities included in tuition. On average, 63 percent of long-term debt was
included in the tuition calculation. In 1998-99, a one-time state appropriation gave charter
schools an additional $260 per pupil for facilities funding—approximately equivalent to
the annual SBAB average grant. Therefore, total facilities fu...
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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.
- Spring '09