How Are Charter Schools Funded in Oregon?

Most charter schools receive funding from federal, state, and local government bodies like public schools. However, each state differs in how they allocate resources to charters. For instance, Oregon features laws regarding funding for charter schools. To help you better understand how Oregon charter schools finance operations, Oregon Charter Academy provides an overview of funding for charter schools in the state.

Calculating Funding For Charter Schools

In Oregon, the government considers charter schools residents of the school district they dwell in to determine how they distribute state funds. Whether the sponsor is the school district or the state Board of Education, it must create a contract stating how it will finance the charter school. The funding amount represents a negotiated percentage of the Charter Rate.

To figure out the Charter Rate, the sponsor divides the district’s General Purpose Grant by the average daily membership weighted (ADMw). The General Purpose Grant refers to the amount of money a district receives from local and state funds, while the ADMw consists of multiple weights applying to charter schools. These weights include:

  • Average Daily Membership (ADMr)

  • Poverty (0.25 based on the poverty rate for the district)

  • ESL (0.5 for the qualifying program)

  • Pregnant & Parenting (1.0 for the qualifying program)

  • Small High School Correction

  • Remote Small Elementary Correction

Differentiating Funding Based on Sponsor

Charters receive funding differently depending on the authorizing body. According to the Oregon School Boards Association, if the district sponsors the charter school, its payment must equal at least:

  • 80% of the amount of its General Purpose Grant per ADMw for kindergarten to middle school students, and

  • 95% of the amount of its General Purpose Grant per ADMw for high school students

If the Board of Education sponsors the charter school, the school district in which the charter school resides must provide funding that equates to:

  • 90% of the amount of the school districts General Purpose Grant per ADMw for kindergarten to middle school students, and

  • 95% of the amount of the school districts’ General Purpose Grant per ADMw for high school students

Oregon law requires school districts to advance money to the public charter school within 10 days of obtaining funds from the Oregon Department of Education. Additionally, it permits authorizers to preserve a portion of per-pupil funding, usually 20% for K-8 schools and 5% for high schools. Authorizers determine which organizations can start a charter, control whether a school stays open when its contract ends, and supervise district programs.

Federal Charter School Funding

Charter schools in Oregon also can acquire funding from the federal government through The Charter School Programs (CSP). This organization offers financing to create new public charters, locate appropriate facilities, and invest in national efforts supporting charter schools. It also may reward charters that form effective collaborations with conventional public schools.

Funding for Charter School Facilities

Although local and state bodies provide funding for operational expenses, they typically will not offer funds for facilities. Therefore, charter schools must pay for educational facilities using state school funds or private resources.

They also may pay for facilities with bond financing through the Oregon Financing Authority. This agency enables charters to request a list of available buildings or vacant spaces within buildings for setting up or expanding the school. While school districts and public organizations must supply this list, building owners do not have to sell or lease their facilities to charter schools.

Important Oregon Funding Statues

Besides the general provisions for calculating funding, several statutes set forth by the Oregon State Legislature dictate financing for charter schools, including:

  • ORS 338.155: Regarding allocation of State School Fund amounts

  • ORS 338.157: Concerning student capacity and poverty levels

  • ORS 338.165: Involving special education students and payments for services

  • ORS 327.013: State School Fund distribution calculations for school districts

Seek Online Charter School Education for Your Child

Funding allows charter schools to provide high-quality programs without the same restrictions as traditional public schools. If you wish to enroll your child in a charter school, consider a virtual option at Oregon Charter Academy.

We prepare students to thrive in a technologically advanced and global society by centering instruction on vital 21st-century skills. Our online learning environment offers many of the same educational opportunities found at in-person institutions, plus the added flexibility to attend classes from any location with an internet connection. As a public charter school, our virtual program comes at no extra cost to parents. Contact us today to learn more about how we serve elementary, middle school, and high school students throughout Oregon.

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