A bill that would change the state’s public school funding formula passed the House on Monday, sparking both jubilation and confusion among lawmakers.
Supporters call the plan a victory for students whose education has been denied due to economic inequality, but critics point out that 64 of the bill’s 87 pages are focused on cutting funding for charter schools and increasing regulations to save money.
Dr. Ann Clark, CEO of the Pennsylvania Coalition of Public Charter Schools, derided the provision capping tuition payments by school districts at $8,000 per student, a stringent regulation she believes is misleading and unnecessary.
“Contrary to common assertions that cyber charter schools can operate at low cost, these schools face unique and often high expenses,” she said Monday. “While faculty and staff salaries are comparable to those of traditional schools, cyber charter schools incur significant costs for technology infrastructure, cybersecurity and individualized student support services.”
The cap would save schools a total of $530 million, roughly 49% of districts’ reported tuition costs, according to the bill’s fiscal memo.
Online charter school tuition ranges from $9,000 to $23,000 per student. In 2023, 179 charter schools (14 of which were fully online) served 164,000 students.
Clark said the proposal ignores the financial realities of operating cyber charter schools, which are often a haven for vulnerable students with illnesses, special learning needs or trauma from bullying.
“The long-term impacts on Pennsylvania’s education and economic future could be harmful, because limiting school choice undermines efforts to build a diverse and dynamic education ecosystem,” she said.
But many school board officials say the cap, which updates a 27-year-old law that first established cyber charters, is forcing school districts to overpay by $455 million each year.
The problem is exacerbated by disparities in funding for special education students, who often need less expensive learning support than students who attend mainstream schools, Kevin Buscher, chief advocacy officer for the Pennsylvania School Boards Association, said at a press conference in April.
“School boards are being forced to choose between raising property taxes on their neighbors, cutting programs and services for their students, and postponing critical building, technology and curriculum upgrades in order to pay for mandatory cyber charter tuition,” he said. “This is completely unfair to taxpayers and students.”
The bill also limits the fund balance that charter schools can hold in case of budget difficulties or tax increases, setting a limit of between 8% and 12% depending on the school’s expenses.
No such restrictions exist in traditional schools, according to Elizabeth Stehle, director of policy analysis at the Commonwealth Foundation.
In an op-ed published Saturday, Stell said some districts in western Pennsylvania, including the Highlands and Allegheny Valley, have more than 50% in savings.
The foundation said the district already deducts certain operational costs, such as transportation and facility maintenance, from tuition upfront, resulting in a 27 percent cost savings.
