The rules and structure of charter schools depend on state authorizing legislation and differ from state to state. A charter school is authorized to function once it has received a
charter, a statutorily defined performance
contract detailing the school's mission, program, goals, students served, methods of assessment, and ways to measure success. The length of time for which charters are granted varies, but most are granted for 3–5 years.
Operational autonomy Often, charters create unique school cultures to tailor to students, particularly minority students in urban school districts, whose school performance is affected by social phenomena including
stereotype threat,
acting white, non-dominant
cultural capital, Most teachers, by a 68 percent to 21 percent margin, say schools would be better for students if principals and teachers had more control and flexibility about work rules and school duties.
Accountability for student achievement Charter schools are accountable for student achievement to their sponsor—a local
school board, state education agency, university, or other entity—for producing positive
academic results and adhere to the charter contract. While this accountability is one of the key arguments in favor of charters, evidence gathered by the
United States Department of Education suggests that charter schools may not, in practice, be held to higher standards of accountability than traditional public schools. Typically, these schools are allowed to remain open, perhaps with new leadership or restructuring, or perhaps with no change at all. Charter school proponents assert that charter schools are not given the opportunities to restructure often and are simply closed down when students perform poorly on these assessments. A 2013 Study by the Center for Research on Education Outcomes (CREDO) at
Stanford University institute linked overall improvement of the charter school sector to charter school closures, suggesting that charter schools as a whole are not getting better, but the closure of bad schools is improving the system as a whole. Although the U.S. Department of Education's findings agree with those of the
National Education Association (NEA), their study points out the limitations of such studies and the inability to hold constant other important factors, and notes that "study design does not allow us to determine whether or not traditional public schools are more effective than charter schools."
Chartering authorities Chartering authorizers, entities that may legally issue charters, differ from state to state, as do the bodies that are legally entitled to apply for and operate under such charters. In some states, like
Arkansas, the State Board of Education authorizes charters. In other states, like
Maryland, only the local school district may issue charters. Some school districts may authorize charter schools as part of a larger program for systemic improvement, such as the
Portfolio strategy. States including
Arizona and the District of Columbia have created independent charter-authorizing bodies to which applicants may apply for a charter. The laws that permit the most charter development, as seen in Minnesota and
Michigan, allow for a combination of such authorizers. As of 2012, 39% of charters were authorized by local districts, 28% by state boards of education, 12% by state commissions, with the remainder by universities, cities and others.
Caps Andrew Rotherham, co-founder of Education Sector and opponent of charter school caps, wrote in 2007, "One might be willing to accept this pent-up demand if charter school caps, or the debate over them, were addressing the greater concern of charter school quality. But this is not the case. Statutory caps as they exist now are too blunt a policy instrument to sufficiently address quality. They fail to differentiate between good schools and lousy schools and between successful charter school authorizers and those with a poor track record of running charter schools. And, all the while, they limit public schooling options and choices for parents."
Demographics The U.S. Department of Education's 1997 First Year Report, part of a four-year national study on charters, was based on interviews of 225 charter schools in 10 states. The report found charters tended to be small (fewer than 200 students) and represented primarily new schools, though some schools had converted to charter status. Charter schools often tended to exist in urban locations, rather than rural. This study also found enormous variation among states. Charter schools tended to be somewhat more racially diverse, and to enroll slightly fewer students with special needs or limited English proficiency than the average schools in their state.
Funding Charter school funding is dictated by each state. In many states, charter schools are funded by transferring per-pupil state aid from the school district where the charter school student resides. Charters on average receive less money per-pupil than the corresponding public schools in their areas, though the average figure is controversial because some charter schools do not enroll a proportionate number of students that require special education or student support services. Additionally, some charters are not required to provide transportation and nutrition services. The Federal Elementary and Secondary Education Act, Part B, Sections 502–511 authorizes funding grants for charter schools. In August 2005, the
Thomas B. Fordam Institute, a pro-charter group, published a national report of charter school finance. It found that across 16 states and the District of Columbia—which collectively enrolled 84 percent of that year's one million charter school students—charter schools receive about 22 percent less public funding per-pupil than the district schools that surround them, a difference of about $1,800. For a typical charter school of 250 students, that amounts to about $450,000 per year. The study asserts that the funding gap is wider in most of twenty-seven urban school districts studied, where it amounts to $2,200 per student, and that in cities like San Diego and Atlanta, charters receive 40% less than traditional public schools. The funding gap was largest in South Carolina, California, Ohio, Georgia, Wisconsin and Missouri. The report suggests that the primary driver of the district-charter funding gap is charter schools' lack of access to local and capital funding. A 2010 study by the Center for Education Reform, a pro-charter advocacy group, found that charters received 64 percent of their district counterparts, averaging $7,131 per pupil compared to the average per pupil expenditure of $11,184 in the traditional public schools in 2009/10 compared to $10,771 per pupil at conventional district public schools. Charters raise an average of some $500 per student in additional revenue from donors. However, funding differences across districts remain considerable in most states that use local property taxes for revenue. Charters that are funded based on a statewide average may have an advantage if they are located in a low-income district, or be at a disadvantage if located in a high-income district.
Spending The overwhelming majority of charter schools advertise to attract students unlike traditional schools, where generally, students go to the school closest to their homes. In Utah, some of the schools which spent the most on
advertising performed poorly on academic standards. For example,
Mountain Heights Academy, which spent $819,000 on marketing from 2015 to 2019, received an "F" from the state in 2016. In Pennsylvania, 12 of its 14 cyber charter schools spent more than $21 million in taxpayer dollars on advertising over three years.
Virtual charter schools In November 2015, the first major study into online charter schools in the United States, the National Study of Online Charter Schools, was published. It found "significantly weaker academic performance" in mathematics and reading in such schools when they were compared to conventional ones. The study was the result of research carried out in 17 US states which had online charter schools, and was conducted by researchers from the
University of Washington,
Stanford University and
Mathematica Policy Research. It concluded that keeping online pupils focused on their work was the biggest problem faced by online charter schools, and that in mathematics the difference in attainment between online pupils and their conventionally educated peers equated to the cyber pupils missing a whole academic year in school. == State-specific structure and regulations ==