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Charter Schools: Federal Funding Available but Barriers Exist

HEHS-98-84 Published: Apr 30, 1998. Publicly Released: May 07, 1998.
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Highlights

Pursuant to a congressional request, GAO provided information on: (1) the way selected states allocate Elementary and Secondary Education Act Title I and Individuals With Disabilities Education Act (IDEA) funds to charter and other public schools; (2) factors that help and hinder charter schools in accessing Title I and IDEA funds; (3) whether factors that help or hinder charter schools to access federal funds vary by the funding path used in selected states; and (4) state and federal efforts designed to help charter schools access federal funds.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Education The Secretary of Education should direct states to include in their Title I plans information on the strategies, activities, and resources that the state educational agencies will use to ensure that Title I program resources serve eligible charter school students.
Closed – Implemented
In a June 1999 letter to the Comptroller General, the Secretary of Education wrote that, through the Department's implementation of the Charter Schools Expansion Act (P.L. 105-278), the intent of GAO's recommendation is being fulfilled. In October 1998, the Congress passed this law to, among other things, require the Secretary and State educational agencies to ensure that every charter school receives the federal funding for which it is eligible, not later than 5 months after the charter school first opens or after it significantly expands its enrollment. Covered federal programs include Title I of the Elementary and Secondary Education Act and the Individuals with Disabilities Education Act, and other programs under which the Department allocates funds to States on a formula basis. On May 18, 1999, the Department published proposed rules to implement the requirements.
Department of Education The Secretary of Education should take the steps necessary to direct states to include charter school representation on states' Title I committees of practitioners that advise states on implementing their Title I program responsibilities.
Closed – Not Implemented
In a June 1999 letter to the Comptroller General, the Secretary of Education wrote that the Department did not have the authority to direct states to include charter school representation on states' Title I committees of practitioners. Congress addressed the recommendation in the Charter Schools Expansion Act (Public Law 105-278). GAO believed that including charter school representatives on such committees would provide charter schools with a forum for addressing their concerns about federal funding. Public Law 105-278 requires the Secretary and the states to ensure that charter schools receive the federal funding for which they are eligible not later than 5 months after schools open or after schools significantly expand enrollment. Covered federal programs include:(1) Title I of the Elementary and Secondary Education Act, (2) the Individuals with Disabilities Education Act, and (3) other programs under which the Department allocates funds to states on a formula basis.

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Topics

Aid for educationCharter schoolsEligibility determinationsIntergovernmental fiscal relationsLocally administered programsSchool districtsSchool management and organizationlocal relationsSurveysTechnical assistance