New Hampshire Center for School Reform
www.nhschoolreform.org


Telephone:  603.224.0366                    Fax:  603.224.8366
Postal Address
:  89 South Street, Concord, NH 03301 Email: info@nhschoolreform.org

FUNDING STUDENTS IN STATE-AUTHORIZED CHARTER SCHOOLS

Susan Hollins, Ph.D.
April 6, 2006

Nationally, New Hampshire has the most inequitable funding system for state-authorized charter schools. While the average cost per student in 2004-2005 was $11,239, students in charter schools are funded with $3500 per year/per student. Of 135 New Hampshire districts, only 7 fund education below $7,000 per student or $9,000 per student when non-operational costs are added (DOE, Cost Per Pupil Per District, 2004-2005, posted 1/19/2005).

In 2005, the legislature renamed state education funding from “adequacy grants” to the "equitable education aid" program. So what is equitable? If statewide open enrollment charter school students received a weight of 2.0, their allocation would be $7,000 and inching up to the allowance for our least-funded students. A graph is provided to clarify the extraordinary inequities for public students in state-authorized charter schools.

A graph is provided to clarify the extraordinary inequities for public students in state-authorized charter schools.

Additional Information:

1. New Hampshire's statewide average total per pupil school expenditure was $11,239.99 in 2004-2005 (purple column) and this includes the state average non-operational costs, approx. $2,000 per student. Students in state-authorized charter schools receive $3500 for their public education in 2005-2006 (red column) which is less than $2000 per student when non-operational costs are reduced (yellow column).

2. To grasp how little $3500 per year is, consider that in 2004-2005 only 3 school districts in the entire state reported financing public education at less than $6,500 per student: Mascenic Regional @ $6468 for middle students; Franklin @ $6472 for middle students; and Weare @ $6399 for elementary students. And these computations do not include what these districts spend on non-operational costs, which averages $2000 per student statewide.

3. With regard to #2, above, New Hampshire’s lowest-funded school districts provided students more than twice the public funding for education in 2003-2004 than the state provided for students in state-authorized chartered schools in 2005-2006 (2 years later).

4. Another way of comparing equitable public funding: students in state-authorized charter schools receive 15-20% afforded students in wealthier school districts, even when using expenditure data from two years ago.

5. With only $3500 as state funding, charter schools still must cover non-operational costs that are excluded from per pupil calculations of districts. Statewide average facility and transportation costs per student, for example, were $1645 in 2004-2005. Most statewide charter schools apply $1000-$1600 per student toward facility expenses. Charter schools can also have expenditures for transportation, community service programs, tuitions for internet-based courses, non-facility capital items, and interest on loans.

Thus, the average non-operational cost for charter schools is probably similar to other public schools, e.g. $2,000 per student. Deducting non-operational costs from the $3500 base state aid, students in state-authorized charter schools, where space is rented, have only $1500 or less per student to provide for each student's education.

Deducting non-operational costs from the state aid of $3500, charter school students in 2005-2006 are allotted 1/4th the per student operational funding of students in New Hampshire’s poorest school districts.

6. New Hampshire charter schools were intended to be efficient--to produce more for less. The 1995 statute gives 80% as the amount locally-authorized chartered school students will receive from their home districts--a 20% reduction of district per pupil expenditure. The 1995 charter school funding policy of 80% of funding is workable for most charter schools. For state-authorized schools, perhaps 70% of average costs could be workable.

7. State funding policy should acknowledge that certain populations of students cost more than state average, e.g. deaf students and so the 20%-30% reduction would result in a different amount per student.

8. Most states have a policy of equity in public school funding, assuring that public students receive relatively equitable funding regardless of what public school they attend.

9. Nationwide, based on available reports, 65% of average student funding is the lowest percentage for a state charter school funding policy.

10. If New Hampshire set its charter school funding policy for state-authorized schools at 65% of the total state average cost, New Hampshire would still only tie for last place for equity of charter student funding nationwide. But even at 65%, our state-authorized charter schools would have a good chance of sustainability, which is what the funding policy should strive to achieve.

*New Hampshire has 2 methods of charter school authorization and each method has a different funding scheme. Two methods with two funding schemes is not unreasonable, provided each can provide an adequate education.

**Using DOE's 2004-2005 statistical data, only 7 districts provided education at less than $7,000 per student without calculating in the $2,000 per student non-operational costs.


Telephone:  603.224.0366                   Fax:  603.224.8366
Postal Address
:  89 South Street, Concord, NH 03301 Email:  susan@nhschoolreform.org