Virginia Charter Schools Funding and National Charter School Trends

 

Cecelia W. Krill

Associate Professor

Educational leadership and Policy Studies

Virginia Tech

 

January 2001


Background


            The 1998 Virginia General Assembly passed legislation that authorized local school boards to accept charter school applications. Some specific requirements for school divisions resulted from actions in the last session, including § 22.1-212.14, “Funding of public charter schools; services provided”, subsection A, which states:

 

For the purposes of this article, students enrolled in a public charter school shall be included in the average daily membership of the relevant school division; however, public charter schools shall not be reported in fall membership for purposes of calculating the state and local shares required to fund the Standards of Quality if the enrollment at the public charter school is less than 100 students and constitutes less than five percent of the total enrollment of the relevant grades in that school division.


Standards of Quality

 

            The Standards of Quality (SOQs) include funding for (a) basic aid, (b) special education, (c) vocational education, (d) remedial education, (e) gifted education, and (f) related fringe benefits for each of these programs. Each of the six accounts within the SOQs represents the instructional cost for that program based on the required number of instructional teaching positions.

 

            In Virginia the September 30th membership report is used to determine the level of SOQ funding for each local school division based on state funded instructional positions. State funding for other SOQ requirements continues to be provided based on the state’s projected membership for any given fiscal year until the March 31st membership report, after which increases or decreases in state funding are made, usually in the May and June fund transfers.

 

Intent of the Law

 

            Kent Dickey, Director of the Office of Budget, Virginia Department of Education, explained that, by excluding charter school enrollments of less than 100 students who represent less than five percent of the local division enrollment in the corresponding grades, legislators intended to protect state funds from being expended for very small charter school classes, especially at elementary grade levels.

            The concern about the small size of potential charter schools is legitimized by the most recent “Fourth Year Report” on charter schools issued in January 2000 by the Office of Educational Research and Improvement of the U. S. Department of Education in conjunction with RPP International. The report states:

 

·        [I]n 1998-99 more than 3 times as many charter schools as compared to other public schools enrolled fewer than 200 students (65 percent and 17 percent respectively). Nearly 4 times as many charter schools as compared to other public schools enrolled fewer than 100 students (35 percent and 9 percent respectively).

 

·        Newly created charter schools were especially likely to be smaller than other public schools, with a median enrollment of 128 students. Charter schools that were pre-existing public schools had a median enrollment of 368, much closer to the median enrollment of all public schools [475 students].

 

·        Only 8 percent of charter schools enrolled more than 600 students, as opposed to 35 percent of all public schools. Only 1 percent of charter schools enrolled more than 1,000 students, as compared to 11 percent of all public schools. (p. 20)

 

The report also confirms the legislators’ concern regarding grade configuration and class size. Grade level configuration comparisons between public schools and public charter schools provided the following descriptions:

 

·        In 1998-99, about one-half (52 percent) of all charter schools were structured according to a traditional grade-level configuration of elementary, middle, or high school as compared to more than three-fourths (78 percent) of all public schools in the 27 charter states (in 1997-98).

 

·        In comparison to other public schools, almost 3 times as many charter schools spanned kindergarten through 8th grade (15.7 percent), almost 4 times as many charter schools spanned kindergarten through 12th grade (8.0 percent), almost twice as many charter schools spanned the middle-high grades (9.9 percent), and over twice as many charter schools had “other “ grade configurations (5.0 percent).

 

·        The highest percentage of both charter and other public schools were elementary schools—but nearly twice as many other public schools were elementary (47 percent) as compared to charter schools (25 percent).

 

·        The high school grade configuration was the only one with approximately equal percentages in both charter (17 percent) and other public schools (15 percent). (p. 22)

 

However, in comparing student-teacher ratios, the report does not describe significantly smaller class sizes in public charter schools than exist in all public schools:

 

·        In 1998-99, most charter schools had a slightly lower teacher to student ratio than did all public schools in the 27 charter states (1997-98). The median student to teacher ratio for charter schools was 16.0 as compared to 17.2 for all public schools

.

·        The most notable difference between the charter school and the all public school median student to teacher ratio was at the un-graded schools, with un-graded charter schools having a much higher student to teacher ratio, 18.8 students per teacher, as compared to 8.8 students per teacher in other public schools.

 

·        A higher proportion of all public schools had student to teacher ratios in the mid-range (16-20 students per teacher), while charter schools were more likely to have both smaller and larger class sizes. Some cases of high student to teacher ratios for charter schools—especially at the high school level—may reflect the school’s use of non-traditional educational approaches such as self-paced computer assisted instruction and distance learning. (p. 24)

 

The full text of the fourth-year report is available through the U. S. Department of Education’s home page: http://www.ed.gov  and is for sale from the U. S. Government Printing Office.

 

In discussing the rationale for not including charter school students in the September 30th membership count, Pam Curry of the Senate Finance Committee indicated that SOQ funding for instructional positions based on a September 30th enrollment count that excluded charter school students would have limited potential to adversely affect a local school division. She explained that in the process of determining funding levels, once the total costs for the SOQ accounts are calculated, that total cost is divided by the September 30th membership numbers to determine per pupil cost for each division. That per pupil cost is then multiplied by the number of all students, including charter school students, in the school division.

 

For example, because allocations are determined by a formula that is based on 30 students per teaching position at the elementary level, Ms. Curry indicated that the only instance where a local school division would be adversely affected by the non-inclusion of charter school students is when their inclusion would otherwise have boosted enrollment above 30 students in a class, which at 31 students would qualify the division for an additional SOQ funded elementary position. 

 

Ms.Curry also noted that the legislators were assuming that the charter school would be a K-8 or K-12 charter school, which would indicate very small class sizes if the enrollment were under 100 students.

 

Summary and Recommendations

 

            Virginia’s charter school legislation provides for the exclusion of public charter school students in the local school division’s September 30th membership count. That provision is based on three interacting assumptions: (a) that charter schools will be K-8 or K-12 in their grade configurations, (b) that charter schools will be of very small size, and (c) that charter schools will, therefore, have a very low student to teacher ratio.

 

            The fourth annual report on charter schools issued by the U. S. Department of Education provides a description of charter schools that is relevant to the Virginia legislation. Annual reports will need to be studied in order to determine trends in school size and grade configuration in charter schools nationally.

 

            Given the newness of this provision in charter school legislation in Virginia, it is important that the potential impact of the non-inclusion of charter school students in the September 30th membership reports be clearly determined and that any adjustments to the legislation and/or the SOQ funding process be considered in the best interests of both potential charter school applicants as well as their local school divisions.

 

Reference

 

            Office of Educational Research and Improvement. (2000). The state of charter schools: Fourth-year report. Washington, DC: U.S. Government Printing Office.


______________________

Cecelia W. Krill joined the faculty in Educational Leadership and Policy Studies at Virginia Tech's Northern Virginia Center in August, 1999 after nearly 20 years as an educator in the public schools as teacher, principal, associate superintendent for instruction, and superintendent of schools.

She earned a Ph.D. from University of Wisconsin-Madison in Educational Administration with a minor in Curriculum and Instruction. A Masters in Education was earned from the University of Virginia in Curriculum Development. Undergraduate studies were completed at St. Norbert College near her hometown of Green Bay, WI.

Dr Krill has taught courses at Virginia Tech at both masters and doctoral levels, including school-based budgeting, school personnel, and governance and policy in education courses.




EPI Policy Paper Number 7
Posted: February 7, 2001
By The Educational Policy Institute of Virginia Tech
sjanosik@vt.edu