ABSTRACT

Money and education seem to be two topics linked in an eternal struggle. Does money matter? How much is enough? What performance can be guaranteed at what price? Now, on top of the continuing battle to fund education adequately comes a new level of argumentfunding for traditional public schools (TPSs) versus funding for charter schools. Recent research has looked for answers to these questions. In 2005, the Fordham Institute evaluated the 2003 revenues provided to TPS districts and to charters to determine if both received similar funding. Th at research found a 21.7% gap in funding between districts and charters. While the Fordham research focused on the revenue received, little research has evaluated the fi nancial impact of charter school growth by reviewing how school districts and charters spend money. Th is chapter reviews what, if any, fi nancial changes occur as a result of charter school growth by examining four year expenditure patterns for two TPS districts and the charter schools that operate within their boundaries. Th en the chapter evaluates if other factors infl uence the expenditure decisions of TPSs and charter schools, such as the needs of special education populations or the structure of state charter school laws.