Structural Disadvantages of Funding for Public Charter Schools

Submitted by Jack McCarthy on April 12, 2010 - 11:56am

As the District of Columbia begins hearing on the budgets for DC Public Schools (“DCPS”) and DC Public Charter Schools (“PCS”), its useful to know some facts and figures regarding the structural disadvantages that public charter schools have in funding.

As the District of Columbia begins hearing on the budgets for DC Public Schools (“DCPS”) and DC Public Charter Schools (“PCS”), its useful to know some facts and figures regarding the structural disadvantages that public charter schools have in funding. The following information was developed by Friends of Choice in Urban Schools:

Operating Funding

  • All operating funding for DCPS and for the charter schools is required to be distributed on a uniform per-student basis through the Uniform Per Student Funding Formula (“UPSFF”).
  • Although the UPSFF does provide uniform funding for each similarly-situated public charter school and DCPS student, each year charters are underfunded compared to DCPS.
  • This happens for a variety of reasons. First, charters are funded only for students actually enrolled in their schools, while DCPS is funded for the number of students the government predicts will be enrolled. In FY ‘10 DCPS got an extra $19 million because of this, 68% of this amount by projecting hundreds of level 2, 3, and 4 special ed students who did not end up enrolling.
  • In addition, in FY ‘10 DCPS received nearly $8 million in fund transfers from other D.C. agencies.
  • In FY ‘10 DCPS building maintenance and capital project management, already funded by the UPSFF, were taken care of by Allen Lew’s office (OPEFM). This amounted to $32 million of UPSFF-generated monies that DCPS didn’t have to spend.
  • Finally, DCPS doesn’t have to pay for contributions to the teacher pension fund, saving it another $3 million per year or around $67 per student.
  • For FY ‘10, all of this adds up to $62,000,000 in operating funding that charters didn’t get -- $1,386 per student.
  • For FY 2011, the mayor is projecting a DCPS enrollment increase of more than 1,000 students (in FY 2010 it lost 400+ students). If DCPS enrollment stays flat (a much more likely possibility), DCPS would receive approximately $24 million for students it does not enroll.
  • OPEFM is budgeted for $27.6 million in FY 2011 for DCPS maintenance and project management; intergovernmental transfers are budgeted at $8 million; and teacher pensions at $3 million.

Capital Funding

  • The charter school facilities allowance was $3,109 per student two years ago but only $2,800 this year.
  • Meanwhile, DCPS’s capital funding continues to increase on an absolute and per student basis, and in FY 2011 it will amount to $262 million or $5,859 per student — more than twice the charter school amount.
  • Between FY 2012 and FY 2016 the DCPS capital budget is projected to total $1.5 billion—an average of $300 million per year.
  • Meanwhile, for FY 2012 and beyond charters will be fighting to get their facilities allowance back up to the FY 2008 level of $3,109 per student.

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