The 21st Century Charter Schools Initiative

Funding
Generally
Public schools are funded by the government, while charter schools are funded through
sponsors and grants. According to the National Center for Education Statistic and the Common
Core of Data that collects public and secondary education expenditures and revenues data,
approximately $487.6 billion dollars was collected in revenues in 2005 fiscal year. The
expenditures totaled $424.6 billion also in 2005 . Seventy percent of the funding was spent on
instructions and instructional-related activities, while only eighteen percent was spent on the
operation of the schools. The public schools system received about $8,000 per pupil for both
secondary and elementary education. On top of the $8,000 for each pupil, the schools received
an additional $5,000 for education and educational-related activities. The dollar amount for
each pupil varies from state to state. For example the expenditures in New York schools may
receive about $9,000, while schools in Utah may be given $3,000 per pupil.
Federal support for charter schools began in 1995 with the authorization of the Public Charter
Schools Program (PCSP), administered by the U.S. Department of Education (ED). Charter
schools are mainly funded by grants/sub-grants and sponsors; however, in 1965 there was a
federal act called the Elementary and Secondary Education Act that obligates charter schools to
meet accountability requirements to obtain financial assistance. Unlike public education,
charter schools are awarded grants on a three-year cycle instead of year to year like public
schools. The grant amount was given out in 1995 was $6 million which then increased to $218.7
million in 2004 because of the growth of charter schools. Just like the public school systems,
charter schools use a majority of their funds on instructional materials.
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