Abstract: This study compares district and charter school finance in Utah and documents that charters suffer from a significant funding shortfall. In 2004, charter schools received $801 per pupil less than district schools. Over two-thirds of the difference is due to the exclusion of several revenue sources from the "local replacement funding" formula for charter schools. These include debt service revenues and state funds that supplement local property taxes. A smaller portion of the funding difference is caused by differing student populations. (Charter schools in Utah do not enroll as many disadvantaged students who qualify for certain types of federal aid.) The authors suggest that to reduce the funding gap between charter schools and districts, policymakers should focus on facility support and revenues that are provided to charter schools on a per-pupil basis.
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