In California, there are several school options, with charter schools being one of the most talked-about choices. These schools come in various forms, including those that hold on-site classes like regular public schools, homeschool programs with oversight from a certified teacher, independent study programs, or a combination of these models. Many families who opt for charter schools are drawn by the budget they receive for education supplies and enrichment activities, particularly for homeschool and independent study students. Each charter school offers different allotment amounts, restrictions, and methods for distributing funds. Generally, charters that provide a student budget allow it to be used for non-faith-based curricula, office and art supplies, enrichment activities such as sports, arts, and tutors, and educational field trips. In this post, we’ll dive into the financial complexities of charter schools, examine the pros and cons, and explore the ongoing debate about how public money is allocated in education.
The Financial Breakdown
Those in favor of independent homeschooling argue that joining a charter encourages the government to continue spending tax dollars frivolously, leading to higher taxes for public education. They argue that if a significant portion of the population opted out of public education, or if there was a drastic withdrawal from traditional public schools, taxes for public education could dramatically decrease or even become nonexistent.
So, what are our taxes earmarked for public education used for? California public schools, including charters, receive about $10,000 per student annually. While traditional public schools use 100% of these funds at their own discretion, public charter schools allocate funds differently. Depending on the charter, a family may receive a student budget of around $1,500 to $3,000 per year. This raises the question: where does the remaining $7,000 plus go? This money covers salaries for administrators, support staff, and certified teachers, fees, licensing, building maintenance, insurance, political lobbying, and other operational costs. Additionally, profit is a factor, as charter schools, like any business, aim to generate revenue. Pursuing profit is often seen as part of the American dream through capitalism.
When traditional public schools had to close and scramble to create homeschool or online schooling options, charter homeschool and independent homeschool families found themselves better prepared. This readiness contributed to a significant migration from public schools to charter schools. Despite this shift, public school funding through taxes remained unchanged.
In fact, public charter schools have faced increased scrutiny and legislation aimed at making them more like traditional public schools. This is seen as an effort by public schools to retain their funding and make charter schools less appealing to families. Traditional public schools run by the State of California are very interested in keeping your tax dollars and don’t want public charter schools that are privately managed to take away from their pool of funds.
The Misappropriation of Funds
Whenever large sums of money are involved, there are always individuals who will try to steal or misuse it. Some of the most notable incidents of fraud in California charter schools include the A3 charter school scandal in San Diego County, where administrators were prosecuted for over $400 million in fraud. Another incident involved a charter school purchasing two Ford F-150 Raptors for the Executive Director’s children. Highlands Community Charter and Technical Schools of Twin Rivers Unified also engaged in fraudulent activities, receiving funds by placing adult students in K-12 grades, amounting to hundreds of millions in fraud.
Luckily, there is legislation, often supported by reputable charter schools, to prevent such abuses in the future. One such measure is SB 1477, passed on April 24, 2024, which requires charter schools to be audited by a public accountant and for the audits to be made public at a school board meeting.
Public school districts have also faced scrutiny for misappropriation of funds. For example, the Stockton Unified School District was audited by the state’s Fiscal Crisis Management Assistance Team in 2023, revealing fraud, misappropriation of funds, and non-compliance with policies and procedures. The Grand Jury estimated a budget deficiency of $30 million.
It’s not only school administrators who engage in fraudulent activities; parents can also attempt to misuse school funds. There are numerous stories of parents requesting reimbursement for non-educational expenses, such as backyard landscaping (claimed as gardening/life science), family vacations (noted as educational field trips), or enrolling students and spending their entire budget only to disenroll before the end of the school year. These actions have led charter schools to implement stricter expenditure checks, provide guidelines for acceptable purchases, and establish contractual measures to prevent misuse.
Bottom Line
The charter school funding debate is pretty tricky. On one hand, charters offer families flexibility and resources that many find appealing. On the other hand, there are serious questions about how public funds are being used and concerns about potential fraud.
Final Thought
When it comes to your child’s education, it’s important to weigh all your options and think about the pros and cons of different funding models. As the education landscape keeps changing, staying informed and pushing for transparency in how public money is spent is crucial. In the end, what really matters is making sure every student gets a top-notch education, no matter where they go to school.
If you are interested in using a California Public Charter School but unsure of the morality of accepting state funding for your kid’s education, check out my article, “To Use or Not Use a Public Charter School’s Funds for Education. That is the Question.”