State charter school laws and policies vary widely with respect to the degree of autonomy provided to the schools, the number of charter schools that may be established, the qualifications required for charter school applicants and teachers, and the accountability criteria that charter schools must meet. Title I Program

Title I is the largest federal elementary and secondary education aid program. Regardless of which of the three approaches states use, individual charter schools are generally allocated funds on the basis of whether they are treated as (1) an independent LEA, or school district (independent model), or as (2) a dependent of an LEA—that is, as a public school component of a preexisting school district (dependent model). Charter Schools’ LEA Status Dictates Minimum Criteria Used to Determine Funding Eligibility

Under title I and IDEA, the Department of Education is responsible for allocating funds to SEAs, which are required to allocate funds to LEAs. Schools within these areas generally receive special education services, rather than grant funds. Most Charter School Operators Surveyed Believed They Received an Equitable Share of Title I and IDEA Funds

Regardless of funding model, more than two-thirds of charter school operators expressing an opinion believed that they received an equitable share of both title I and IDEA funding. Charter School Officials Cited Several Barriers to Receiving Title I and IDEA Funds

On the basis of our preliminary work, charter schools do not appear to be at a disadvantage in terms of how federal funds are allocated. However, our survey has identified a variety of barriers that made it difficult for charter school operators to apply for and receive title I and IDEA funds. access these funds. In some cases, charter school officials noted that they did not receive funds because they failed to meet federal or district qualifying requirements. Outreach and Technical Assistance Most Frequently Cited as Facilitating Factors

Charter school officials most frequently cited receiving information about the availability of federal funds and how much their schools would be eligible for as facilitating factors in accessing title I and IDEA monies. In addition, charter school officials credited training and technical assistance provided by these sources with helping them to access federal funds. Finally, some respondents told us that their schools employed consultants to assist in applying for federal and state funds, which enabled them to focus their time and effort on other matters. Conclusion

In conclusion, our preliminary work suggests that the barriers that charter schools face in accessing federal funds appear to be unrelated to whether charter schools are treated as school districts or as members of school districts. These other barriers include state systems that base funding allocations on the prior year’s enrollment and student eligibility data, the costs of accessing funds relative to the amounts that schools would receive, and the significant time constraints that prevent charter school operators from pursuing funds. Charter School States and Number of Schools Operating in School Year 1996-97

States with charter legislation but no charter schools. States and the District of Columbia not included in our survey.
Why GAO Did This Study

GAO discussed charter schools' ability to access categorical education grant funds, focusing on: (1) how federal title I of the Elementary and Secondary Education Act and the Individuals With Disabilities Education (IDEA) funds are distributed to charter schools, and the opinions of charter school operators on whether the distribution is equitable; and (2) what factors appear to be facilitating and impeding charter schools in accessing these funds.

What GAO Found

GAO noted that: (1) title I and IDEA funds are allocated to schools that meet established federal, state, and local demographic criteria; (2) these criteria relate to the number of enrolled children from low-income families and the number of enrolled children with disabilities that require special education services; (3) although most public schools receive funding under these programs, some public schools, including some charter schools, do not meet eligibility criteria and, as a result, do not receive funding; (4) GAO's preliminary work suggests that states are allocating federal funds to charter schools in much the same manner as they allocate funds to traditional public schools; (5) in general, states either treat charter schools as individual school districts or as components of existing districts; (6) although charter schools treated as school districts avoid having to meet additional criteria used to distribute funds beyond the district level, GAO's survey results thus far indicate that these schools were no more likely to have received title I and IDEA funds for the 1996-97 school year than were charter schools treated as components of existing school districts; (7) most charter school operators surveyed who expressed an opinion told GAO that they believe they received an equitable share of federal title I and IDEA funds; (8) while charter schools do not appear to be at a disadvantage in terms of how federal funds are allocated, GAO's survey has revealed a variety of barriers that have made it difficult for charter schools to access title I and IDEA funds; (9) these factors include a lack of enrollment and student eligibility data to submit to states before funding allocation decisions are made and the time required and the costs involved in applying for such funds, given the amount of funds available; (10) in addition, some charter schools have failed to meet statutory eligibility requirements for receiving federal funds; (11) charter school operators most often cited training and technical assistance as factors that facilitated their accessing title I and IDEA funds; (12) on the basis of survey responses, some states appear to be making a comprehensive effort to inform charter schools of the availability of federal funds and how to apply for them; and (13) charter school operators in other states told GAO that they received technical assistance from local school districts, while other charter school operators employed consultants to assist them.