Since their inception, charter schools have been funded differently than districts when it comes to special education students. That's changing this year.
Districts are funded based on a rolling average of the most recent five years of special education enrollment, with growth taken into account. That creates some predictability and protects districts from massive immediate drops in funding if there are decreases in special education enrollment. On the other hand, it also reduces the rate of funding growth if there is a large increase in such enrollment. In short, it's a predictable fairly stable funding formula.
Charters have been funded based on actual special education enrollment each year, with the student count taken on December 1. This is unpredictable for charters. Where districts know in advance what their funding will be, charters haven't known until January. This can also create wild swings in the funding amount as schools regularly cycle students in and out of the special education program based on need and progress.
Beginning this year, charters will be funded much more like districts, using an average of the previous five years' enrollment (or whatever years the school has been open, if less than five). It's harder to take growth into account in charters as they have enrollment caps that can change from year to year, but the formula will take expansions and satellites into account.
For new charters, the formula will use a statewide charter enrollment average in funding for schools during their first year. In theory, the formula allows for exceptions for schools that are specifically focused (like Spectrum Academy) on students with disabilities, but there's not a new example of that to test the formula on.
The impact to charters will be:
- A more predictable and more stable funding stream
- A challenge if a school enrolls an increase in high cost or self-contained students, as funding will not keep pace with sudden changes in enrollment up or down
- Very little change in dollars this year between funding under the new formula or the old formula given schools' current enrollment
This change had to come. The previous formula was put in place by USOE in an administrative decision based on the differences between charters and districts. (The most significant of those is generally newness--how can you use a five year average when charters are mostly brand new--and size. Small charters--all of us--are more susceptible to significant changes in enrollment demographics.) But as the old system wasn't authorized by rule or statute, the change was legally necessary.
The Special Education Finance Committee (of which I am the charter school member) thought this was a fair system that kept the spirit and letter of the law, was consistent with existing funding realities, and recognized the need for exceptions and the differences between charters and districts.