Maryland charter schools have long argued with local school systems over how much money they should receive for each student. That argument may be about to end.

The Maryland State Board of Education issued a decision this week that charter schools — publicly funded schools that operate independently from local school systems — should receive 98% of the amount per student that a regular public school does.

In Baltimore, home to 31 of Maryland’s 50 charter schools, that’s likely to give them more money to operate. The city’s charters now get about 75% of the amount per student, with the school system holding onto the rest for services they say they provide, such as the cost of bargaining teacher contracts. Charter school teachers are union members.

“This decision will ensure that the funding charter schools receive is fair so that they can effectively operate strong education programs,” said Josh Michael, president of the state school board.

Charter schools control their own budgets and can use the funding for anything from hiring more teachers to field trips. The decision could give them greater certainty about their ability to operate in a state that has historically been seen as restricting their growth.

The decision also helps fund services for special education students, whether they are in charters or not, by requiring charters to bear the cost of all special education students, not just their own.

Students with serious disabilities are often attending specialized schools, called nonpublic schools, that cost as much as $100,000 a student. Previously, those costs are have been borne by the public school systems, but the state board said that all schools — including charter schools — must pay for the cost of serving those students.

Those costs are significant. Alison Perkins-Cohen, the chief of staff for Baltimore City Public Schools, said while state and federal funding covers a portion, there remains a funding gap of $100 million that the city must pay. Previously, the city school system picked up that entire cost and could not charge the charters.

“We are really pleased the state board has recognized the need to take the special education costs off the top,” Perkins-Cohen said, adding that the resources the district receives for special education do not cover expenses. The decision, she said, will allow the district to “make sure that all the students receive the services they need.”

Baltimore is the only school system that’s seen significant growth in charter schools over the years. Its 31 charters enroll about 20,000 of the city’s 75,000 students. City charters have chafed at the way funding is distributed, though the state chose not to intervene in a dispute that arose last year.

But now the state school board has committed to passing new regulations in the coming months to settle matters between charters and the local school systems that give them approval to operate.

“The board is committed to providing further clarity on rules for school funding and financing and plans to adopt regulations for the first time,” Michael said.

Will McKenna, executive director of Afya Baltimore Inc. which operates two schools, called the commitment a “godsend.”

“We’ve wanted to diminish disputes with the school district for years, but we never had clarity about how to do that,” he said. “The state board saying it is going to develop regulations and provide more comprehensive guidance on charter school funding would be extraordinarily helpful.”

Maryland State Superintendent Carey Wright has already convened a group to discuss what the regulation should say. Those debates are likely to be intense.

The Education Hub

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