4. HOW ARE CHARTER SCHOOLS FUNDED?

Charter schools receive less funding per pupil than district schools and the primary driver of this discrepancy is lower levels of local funding. Two national datasets demonstrate that charter schools received $3,499 less in total public funding per pupil and spent 14% less than district schools per pupil in FY2021. In regards to local funding, which is based on property tax revenues and local bond and mill levy initiatives, charter school students received less than half ($3,400) of what district schools received ($8,300).

School Funding Overview

The National Alliance obtained and analyzed data on public school funding from the Common Core of Data School District Finance Survey (F-33) conducted by the National Center for Education Statistics (NCES). The finance survey only has district-level data revenue available which limits the dataset to 28 states where a sufficient number of charter schools serve as their own Local Educational Agency (LEA). Summary trend data and funding differences by sector are presented in Table A while state data for FY2021 (2020-21 school year) are presented in Table B. Notably, the difference in per pupil funding rates increased by nearly $600 per pupil even after controlling for inflation.

To adjust for inflation, the National Alliance utilized the inflation adjustment calculator from the Bureau of Labor Statistics (BLS). The F-33 dataset was cleaned to account for schools with limited enrollment and outlier records. Across a majority of states, charter schools are required to serve as their own LEA under state law. However, charter school laws (and local context) vary significantly by state.

Table A: Per Pupil Revenue Trend (PPR) by Sector and Year 2020-21
Year Charter District PPR Difference YOY Difference
2006-07 $15,632 $20,344 ($4,712) N/A
2007-08 $15,405 $20,046 ($4,641) $71
2008-09 $15,519 $19,693 ($4,174) $467
2009-10 $16,289 $19,663 ($3,374) $800
2010-11 $14,966 $20,751 ($5,785) ($2,411)
2011-12 $14,266 $19,121 ($4,855) $930
2012-13 $13,699 $19,502 ($5,803) ($948)
2013-14 $13,433 $19,186 ($5,753) $50
2014-15 $13,349 $18,848 ($5,499) $254
2015-16 $13,580 $17,828 ($4,248) $1,251
2016-17 $13,390 $18,377 ($4,987) ($739)
2017-18 $12,708 $15,709 ($3,001) $1,986
2018-19 $12,533 $15,750 ($3,217) ($216)
2019-20 $12,773 $15,690 ($2,917) $300
2020-21 $13,080 $16,578 ($3,499) ($582)

[1] Summary statistics were prepared by the National Alliance through analysis of NCES School District Finance Survey (F-33) data. This resource includes data for traditional school districts and charter schools that serve as their own LEA. Data were adjusted for inflation using the Bureau of Labor Statistics CPI Inflation Calculator. A portion of the difference in funding levels between sectors may be a consequence of the different number of states/students included in each annual dataset.

Table B: Per-Pupil Revenues (PPR) by State FY2021
State Charter-Revenue Per Pupil Charter-Federal Charter-State Charter-Local District-Revenue Per Pupil District-Federal District-State District-Local Revenue Per Pupil Difference
AL $15,761 25.8% 54.3% 19.9% $13,181 15.1% 53.5% 31.4% $2,580
AR $9,682 14.7% 78.4% 6.9% $12,957 16.2% 45.9% 38.0% ($3,275)
AZ $9,910 15.0% 79.6% 5.4% $12,060 17.7% 39.3% 43.1% ($2,150)
CA $13,486 10.3% 64.3% 25.4% $18,453 12.1% 49.9% 37.9% ($4,967)
CT $14,659 15.3% 74.9% 9.8% $26,893 5.1% 35.5% 59.4% ($12,235)
DC $29,920 10.2% 0.0% 89.8% $33,708 10.0% 0.0% 90.0% ($3,789)
DE $14,691 8.8% 60.2% 31.0% $21,735 7.2% 60.7% 32.1% ($7,044)
GA $10,922 10.7% 85.6% 3.7% $13,960 13.1% 46.1% 40.8% ($3,038)
ID $8,794 19.9% 75.6% 4.5% $11,058 16.5% 59.0% 24.5% ($2,264)
IN $10,936 15.3% 72.6% 12.1% $13,155 9.0% 55.4% 35.7% ($2,219)
LA $13,556 16.7% 38.2% 45.1% $15,036 14.9% 39.8% 45.3% ($1,481)
MA $22,019 7.6% 12.6% 79.8% $23,979 5.8% 40.9% 53.4% ($1,960)
ME $13,431 16.5% 78.1% 5.4% $21,071 12.6% 37.3% 50.1% ($7,640)
MI $11,585 15.3% 79.6% 5.1% $15,969 11.3% 55.8% 32.9% ($4,384)
MN $15,531 10.9% 86.9% 2.3% $17,672 9.2% 62.2% 28.7% ($2,140)
MO $15,838 13.9% 65.4% 20.7% $14,758 11.9% 28.0% 60.2% $1,080
MS $11,877 27.7% 41.5% 30.8% $12,150 19.2% 46.1% 34.6% ($273)
NC $9,774 5.7% 67.8% 26.5% $11,592 12.6% 61.3% 26.1% ($1,818)
NJ $19,767 10.2% 10.8% 79.0% $27,174 5.1% 43.2% 51.7% ($7,408)
NM $12,265 8.8% 83.8% 7.4% $14,974 15.6% 70.0% 14.4% ($2,709)
OH $10,880 16.8% 78.1% 5.1% $16,712 8.9% 37.1% 54.0% ($5,832)
OK $7,061 6.4% 77.9% 15.7% $11,970 14.8% 43.2% 42.1% ($4,909)
OR $18,722 7.5% 72.7% 19.8% $17,198 10.1% 57.9% 32.0% $1,524
PA $18,070 9.4% 0.8% 89.7% $22,100 6.6% 36.7% 56.7% ($4,029)
RI $19,220 14.6% 57.4% 28.0% $21,419 7.6% 35.5% 57.0% ($2,200)
TX $12,581 12.5% 83.1% 4.4% $13,454 11.6% 37.3% 51.1% ($872)
UT $9,673 8.9% 88.3% 2.8% $10,878 9.7% 50.8% 39.5% ($1,205)
WA $16,403 14.2% 76.0% 9.8% $18,755 7.8% 67.8% 24.4% ($2,352)
National $13,080 11.6% 58.9% 29.5% $16,578 10.3% 45.8% 43.9% ($3,499)

[1] South Carolina was excluded from this analysis due to limited charter school data.

[2] Oregon was included in this analysis and not included in the prior year analysis (FY2020).

[3] Only states with at least five reliable charter school records were included in this summary table. The data were trimmed for outliers and schools with enrollment levels of less than 20 students were removed from the dataset. Additional information about the National Alliance’s cleaning process and analytical approach can be found on the methodology page.

School Spending Overview

The National Alliance obtained and analyzed data on public school expenditures from the National Education Resource Database on Schools (NERD$), which is a joint effort of Georgetown University’s Edunomics Lab and Massive Data Institute. For FY2021, the NERD$ database includes public school expenditure data for all 50 states and the District of Columbia. Summary data and the expenditure differences by sector across 39 states and the District of Columbia are presented in Table C.

Table C: Per-Pupil Expenditures (PPE) by State FY2021
Code Name Statewide PPE Charter PPE District PPE PPE Difference Included Records Charter LEAs Included District LEAs Included
AK Alaska $20,003 $15,987 $20,257 ($4,269) 429 30 399
AR Arkansas $10,825 $9,589 $10,939 ($1,350) 1,017 81 936
AZ Arizona $8,548 $9,279 $8,493 $786 1,181 149 1,032
CA California $14,020 $12,212 $14,251 ($2,039) 9,497 1,250 8,247
CO Colorado $12,396 $10,012 $12,806 ($2,794) 1,844 255 1,589
CT Connecticut $18,859 $13,695 $18,981 ($5,286) 962 21 941
DC District of Columbia $22,403 $22,247 $22,527 ($280) 228 113 115
DE Delaware $16,372 $13,074 $16,806 ($3,732) 206 21 185
FL Florida $9,472 $8,421 $9,623 ($1,202) 3,624 647 2,977
GA Georgia $10,936 $10,329 $10,963 ($634) 2,238 93 2,145
HI Hawaii $16,273 $10,053 $16,741 ($6,688) 290 37 253
ID Idaho $9,204 $8,114 $9,309 ($1,195) 694 66 628
IL Illinois $14,238 $14,402 $14,233 $168 3,781 131 3,650
IN Indiana $9,847 $8,550 $9,909 ($1,359) 1,790 105 1,685
KS Kansas $12,165 $6,819 $12,198 ($5,379) 1,223 7 1,216
LA Louisiana $12,876 $12,696 $12,902 ($206) 1,312 143 1,169
MA Massachusetts $18,460 $18,450 $18,460 ($10) 1,791 78 1,713
MD Maryland $15,521 $17,265 $15,472 $1,793 1,346 48 1,298
ME Maine $18,559 $16,414 $18,595 ($2,181) 540 13 527
MI Michigan $12,326 $10,453 $12,552 ($2,099) 3,173 356 2,817
MN Minnesota $14,282 $14,862 $14,236 $626 1,938 248 1,690
MO Missouri $11,334 $12,699 $11,296 $1,403 2,128 74 2,054
MS Mississippi $10,216 $8,819 $10,225 ($1,405) 863 7 856
NH New Hampshire $19,519 $11,381 $19,749 ($8,368) 460 32 428
NJ New Jersey $17,651 $15,019 $17,770 ($2,751) 2,434 84 2,350
NM New Mexico $11,537 $10,449 $11,639 ($1,190) 723 78 645
NV Nevada $9,269 $6,344 $9,703 ($3,359) 659 90 569
NY New York $23,238 $15,996 $23,780 ($7,784) 4,658 322 4,336
OH Ohio $13,146 $10,536 $13,340 ($2,804) 3,370 304 3,066
OK Oklahoma $9,673 $7,116 $9,960 ($2,844) 1,734 57 1,677
OR Oregon $15,150 $8,487 $15,580 ($7,093) 1,207 117 1,090
PA Pennsylvania $16,308 $14,094 $16,543 ($2,448) 2,717 152 2,565
RI Rhode Island $15,715 $13,141 $15,918 ($2,777) 285 33 252
SC South Carolina $11,858 $10,036 $11,897 ($1,861) 1,054 25 1,029
TN Tennessee $10,857 $15,371 $10,656 $4,716 1,745 107 1,638
TX Texas $10,437 $10,347 $10,445 ($98) 8,478 930 7,548
UT Utah $9,590 $8,581 $9,724 ($1,143) 990 135 855
VA Virginia $13,295 $16,431 $13,292 $3,140 1,785 5 1,780
WI Wisconsin $13,185 $12,467 $13,227 ($760) 2,112 201 1,911
WY Wyoming $17,586 $15,110 $17,603 ($2,493) 309 5 304

[1] Only states with at least five reliable charter school records were included in this summary table. The NERD$ dataset was cleaned to account for schools with limited enrollment and trimmed of outlier records. Additional information about the National Alliance’s cleaning process and analytical approach can be found on the methodology page.

Author

  • Senior Manager, Data and Research

    Yueting “Cynthia” worked as an ESL instructor and education consultant in Philadelphia prior to joining the research team at the National Alliance. During her undergraduate years at Sun Yat-sen University, she studied English language & literature and Economics. She received her master’s degree from the University of Pennsylvania with dual majors in ESL education and statistical measurement & research.

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