New Hampshire Center for School Reform
and Charter School Resource Center
www.nhschoolreform.org


FUNDING STUDENTS IN STATE-AUTHORIZED CHARTER SCHOOLS

Susan Hollins, Ph.D.
November 11, 2005

New Hampshire stands out among states with charter school laws as having the most inequitable charter school funding for state-authorized charter schools. The 2005-2006 fixed amount of $3500/year per student is unrelated to contemporary public school funding in this state.

In 2005, the legislature renamed the legislature's state education funding program from “adequacy grants” to the "equitable education aid" program. The new name begs the question: why are the students in chartered public schools considered unworthy of "equitable education aid" for their public education? 

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

Explanatory information:

1. New Hampshire's statewide average total per pupil school expenditure was approximately $10,000 in 2003-2004 (Department of Education data). Students in state-authorized charter schools receive $3500 for their public education in 2005-2006.

2. New Hampshire’s lowest-funded school districts provided almost double in 2003-2004 the funding allowed students in state-authorized chartered public schools for 2005-2006.

3. Students in state-authorized charter schools can receive as little as 15-20% of public funding afforded students in wealthier school districts, even when using 2-year-old district expenditure data (ref. Newington comparison). The $3500 per year is 58-60% of public funding for students in our poorest districts.**

4. State data indicate average non-operational costs statewide per student at $1645 (facility, transportation, e.g.). There is no facility stipend in New Hampshire's charter school funding scheme. With high facility costs through rentals, most charter schools apply $1000-$1600 per student toward facility. Thus, students in state-authorized charter schools where space is rented actually have only $2000 or less per student for their public education. This is 1/3 the per student funding of students in New Hampshire’s poorest school districts.

5. Public school district expense data indicate that in 2003-2004 almost no NH school board financed public elementary education at less than $6,000 per student.

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.

7. 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.

8. The 1995 schema of 80% of funding is not unreasonable.

9. Nationwide, based on available reports, 65% of average is the lowest percentage of comparative funding for charter schools.

10. If New Hampshire set the % of weighted funding at 65% of the total state average cost, New Hampshire would still only tie for last place for equity of state-authorized charter student funding.

11. $3500 per student per year is less funding than the amount available for NH state-authorized charter schools in 2003, when the pilot project passed. At that time, Franklin Career Academy charter school was eligible for approximately $4400 per student under the weighted funding model allowing 20% additional weight for high school students. 

12. Today’s 2005-2006 per pupil allocation is 20% LESS than the amount available in 2003.

*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 2003-2004 statistical data, the lowest elementary school district expenditures 2 years ago were Weare at $5634, Franklin at $6009, and Croyden at $6550.  Examples of much higher elementary average expenditures were Newington at $17,417, LaFayette Regional at $13,600, and Waterville Valley at $21,328.  To make this 2003-2004 data relevant for comparison with the 2005-2006 $3500 allocation, district figures provided should be adjusted by a 3% estimated cost increase per year.