Among other reform efforts, the Congress has focused on the development of charter schools. Charter school operators and others at the hearings raised concerns about charter schools’ receiving the share of federal title I and IDEA grant funds they are eligible to receive. Under title I and IDEA, the Department allocates funds to state educational agencies (SEA), which then allocate funds to local educational agencies (LEA) or school districts. Title I Program

Title I is the largest federal elementary and secondary education aid program. Charter Schools’ Experience With Federal Funds

A majority of the charter school operators that we surveyed reported that they received fiscal year 1996 federal start-up grant funds. States awarded grants to these schools ranging from $7,000 to $84,000; the average grant amount was about $36,000 and the median was $32,500. The charter schools in our survey that received start-up grants used these funds most often to help pay for school equipment and curriculum materials, technology, and facilities renovation or leasing. About two-fifths of the charter schools we surveyed did not apply for title I funds. Regarding the IDEA program, slightly more than half of our survey respondents received funds or IDEA-funded services. Some Barriers Hinder Charter Schools in Accessing Title I and IDEA Funds

Even though many charter school operators we surveyed believe that they received a fair share of federal funds, they reported, as did state officials and technical assistance providers, that several barriers hindered charter schools’ access to title I and IDEA funds. These barriers included (1) difficulties in establishing program eligibility, (2) workload demands that prohibited schools from pursuing program funds or made doing so too costly, and (3) charter school operators’ and district and state administrators’ lack of program and administrative experience. Charter school operators reported that outreach and technical assistance were critical to their ability to access federal funds. State and Federal Efforts to Help Charter Schools Access Federal Funds

Several states and the Department have taken steps to help charter schools access federal funds. Some states, for example, are changing allocation procedures to better accommodate charter schools and providing training and technical assistance to school operators. Using these funds, the Department has sponsored national meetings for state officials and charter school operators. Conclusions

Charter schools have used federal start-up funds for a variety of purposes, depending on the schools’ particular needs. Several states and the Department of Education have initiatives under way to facilitate such access.
Why GAO Did This Study

GAO discussed charter schools' experiences in accessing selected federal funds, focusing on: (1) start-up grants under title I of the Elementary and Secondary Education Act (ESEA) and the Individuals with Disabilities Education Act (IDEA); (2) factors that help and hinder charter schools in accessing title I and IDEA funds; (3) charter school operators' opinions about whether they are receiving a fair share of these funds; and (4) state and federal efforts intended to help charter schools gain access to title I and IDEA funds.

What GAO Found

GAO noted that: (1) slightly more than half of the schools GAO surveyed received fiscal year 1996 start-up grants ranging from $7,000 to $84,000; the average grant amount was $36,000; (2) the schools used the start-up grant funds for a variety of purposes, including curriculum materials and equipment, other technology, and facilities renovation or leasing; (3) about two-fifths of the charter schools GAO surveyed received title I funds, and slightly more than half of the schools received IDEA funds or IDEA-funded special education services; (4) most charter school operators GAO surveyed who expressed an opinion told GAO they believe they received a fair share of federal title I and IDEA funds; (5) nonetheless, charter school operators also cited a variety of barriers to accessing title I and IDEA funds, including: (a) difficulties in establishing program eligibility; (b) workload demands; and (c) a lack of program and administrative experience; (6) they reported that outreach and technical assistance were critical to helping them access federal funds; (7) several states and the Department of Education have begun initiatives to help charter schools access federal funds; (8) some states, for example, are revising or developing alternative allocation policies and procedures to better accommodate charter schools' access to federal funds and providing training and technical assistance to charter school operators; and (9) the Department has recently issued guidance to states and school districts on allocating title I funds to charter schools, and, among other things, has sponsored national meetings for state officials and charter school operators.