The federal government has also acted on behalf of charter schools. Growth in Charter Schools Reflects Diverse National Reform Movement

As of January 1995, nine states had approved 134 charter schools with diverse instructional and operating characteristics. State laws influence charter schools’ autonomy by how they provide for their (1) legal status, (2) approval, (3) funding, and (4) exemption from rules. Will it encourage charter schools to have more traditional instructional programs? School districts are considered LEAs for the purposes of federal program administration; they receive allocations of federal funds from their states and are held legally responsible for meeting program requirements. However, an important issue is whether some charter schools—those with legal independence—can be considered LEAs. Title I and special education programs illustrate challenges posed by charter schools to federal education program administration. Whether charter schools can be held accountable for student performance depends in part on how well student performance is assessed and reported. The challenges charter schools pose for federal program administration concern their status as single schools operating as LEAs. (a) FINDINGS.--The Congress finds that (1) enhancement of parent and student choices among public schools can assist in promoting comprehensive educational reform and give more students the opportunity to learn to challenging State content standards and challenging State student performance standards, if sufficiently diverse and high-quality choices, and genuine opportunities to take advantage of such choices, are available to all students; (2) useful examples of such choices can come from States and communities that experiment with methods of offering teachers and other educators, parents, and other members of the public the opportunity to design and implement new public schools and to transform existing public schools; (3) charter schools are a mechanism for testing a variety of educational approaches and should, therefore, be exempted from restrictive rules and regulations if the leadership of such schools commits to attaining specific and ambitious educational results for educationally disadvantaged students consistent with challenging State content standards and challenging State student performance standards for all students; (4) charter schools, as such schools have been implemented in a few States, can embody the necessary mixture of enhanced choice, exemption from restrictive regulations, and a focus on learning gains; (5) charter schools, including charter schools that are schools-within-schools, can help reduce school size, which reduction can have a significant effect on student achievement; (6) the Federal Government should test, evaluate, and disseminate information on a variety of charter schools models in order to help demonstrate the benefits of this promising education reform; and (7) there is a strong documented need for cash flow assistance to charter schools that are starting up, because State and local operating revenue streams are not immediately available. ADMINISTRATION. Address Correction Requested
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the growth of charter schools, focusing on: (1) the number of charter schools that have been approved under state laws; (2) the characteristics of charter schools' instructional programs; (3) whether charter schools operate autonomously and are held accountable for student performance; and (4) the challenges charter schools pose for federal education programs.

What GAO Found

GAO found that: (1) 9 states have approved 134 charter schools developed by teachers, school administrators, parents, and private corporations; (2) as charter schools increase in number, so do their diversity and innovation; (3) charter school instructional programs focus on multiage classes and often teach subjects within a common theme; (4) some charter schools specialize in certain subjects, while other charter schools target specific student populations; (5) charter schools' autonomy varies among the states based on their legal status, approval, funding, and exemption from rules; (6) charter schools vary in how they measure student performance and it is too soon to determine whether these schools will meet their student performance objectives; (7) the major challenge for federal program administration is determining whether those charter schools that are legally independent of their school districts can be considered local education agencies (LEA) for program administration purposes; and (8) although states have taken different approaches to address charter schools' status as LEA, further clarification is needed on how charter schools can be treated for federal program administration and whether these schools are eligible for educational funds.