Chronology of D.C. Public Charter Schools Funding Issues

April 1996 Passage of the D.C. School Reform Act of 1995, authorizing public charter schools and mandating that the District devise a per-pupil formula to apply equally to public charter schools and D.C.P.S. schools, beginning in FY'97.
August 1996 The Education Committee of the District Council recommends a temporary formula, which averages $5,361 per pupil. The Council approves this formula but exempts D.C.P.S. from its application for FY'97.
September 1996 The District's first two public charter schools open.
May 1997 District Council renews the temporary funding formula, after the development of a permanent formula is bogged down. For FY98, D.C.P.S. is again exempted from the formula.
May 1997 The District budget is sent to Capital Hill with only $1.2 million for public charter schools, enough for roughly 135 students. More than 300 students are anticipated and ultimately enroll.
August 1997 The District chartering authorities receive 37 public charter school applications.
September 1997 The two existing and one new public charter schools begin the school year uncertain as to whether they will receive their full allotments.
September 1997 In Conference, after intensive advocacy by the D.C. Public Charter School Coalition, the FY98 public charter school appropriation is raised to $3.76 million. The D.C. Appropriations Act also:
  • Directs the District to address public charter school facilities costs; and
  • Creates a revolving loan fund for 1st year charter schools using any funds allocated for public charter schools that were not expended in the prior fiscal year.
October 1997 The October 15th payment to charter schools is delayed because of underfunding; Options public charter school is forced to take out a cashflow loan.
November 1997 The D.C. Appropriations Act inadvertently repeals a provision of the charter law known as the “1/12th payment,” which provided new charter schools with funds in September of their first year. Without this provision, new charter schools receive only 12 months of funds for their first 13 months of operation.
February 1998 The Education Committee of the District Council recommends an increased per pupil formula and a robust, formula-based facilities allowance.
May 1998 D.C. Public Charter School Coalition predicts, accurately, that $30 million will be required to fund public charter schools in FY99.
June 1998 The Consensus D.C. Budget sent to Capitol Hill includes only $12.2 million for public charter schools, a shortfall of approximately $18 million.

The District Council passes the proposed per pupil funding formula and charter school facilities allowance as recommended by the Education Committee. However, the facilities allowance is reduced to $617 per pupil, from the $1,040 per pupil required by the formula.

For FY99, D.C.P.S. is again exempted from application of the per-pupil formula.

 

July 1998 Due to administrative delays, the New Charter School Loan Fund, required by law to disburse funds by June 1, makes its first payment almost two months late.
August 1998 The House D.C. Appropriations Bill supplements the inadequate local public charter school appropriation with federal funds. The Senate D.C. Appropriations Bill does not.
September 1998 Sixteen new public charter schools open uncertain as to whether they will receive their full per-pupil allotment.
October 1998 Most of the new public charter schools do not receive their first scheduled payment from the District. Payments are contingent on passage of the D.C. Appropriations Act because continuing resolutions only provide funding at previous year levels. Cashflow problems put several public charter schools in serious jeopardy.
November 1998 The D.C. Appropriations Act passes as part of the Omnibus federal budget on November 19. The District charter schools appropriation is supplemented by $15.6 million of federal funds, resolving the potential shortfall.
March 1999 The D.C. Public Charter Schools Coalition estimates that growth in public charter school enrollment will require that the charter school appropriation be raised $30 million over FY99 expenditures.

Mayor William's proposed budget includes an increase of only $17.8 million, to be placed in a “Public Education Escrow Account.”

For FY00, DCPS is again exempted from application of the per-pupil formula.

 

April 1999 The District Council, in the consensus budget, eliminates the Mayor's escrow fund and increases the public charter school appropriation by only $2 million over FY99, enough to fund only 300 of the expected increase of 3,500 students.
June 1999 In the Budget Support Act, the District Council reserves 5% of the DCPS budget -- approximately $30 million -- to accommodate anticipated public charter school enrollment growth based on the September 15, 1999, enrollment count.

The New Charter Schools Loan Fund again misses the June 1st deadline for disbursement to new charter schools. Loan disbursements are not made until July for some schools, September for others.

 

September 1999 Nine new public charter schools open. It remains unclear how the CFO will interpret the facilities allowance formula and thus how much each school will receive per pupil.

The new public charter schools finally receive disbursements from the New Charter Schools Loan Fund.

The date of the charter school student count is changed from September 15, as mandated in the School Reform Act, to October 7th, which is the day DCPS counts students for Title 1 purposes. Few of the charter schools receive clear or timely notice of the date change.

 

October 1999 The President vetoes the D.C. Appropriations Act and the budget is funded through continuing resolutions.

New charter schools are allowed to draw down $358 per pupil, in addition to the $1558 per pupil already made available through the New Charter School Loan Fund. Other charter schools draw down approximately the same amount they received in the fall of 1999. For the many schools that expanded by 50-100%, this amount is far less than expected.

The District Council directs the CFO to set the FY00 per pupil facilities allotment at $1,058 per pupil. This closely matches the D.C. Public Charter School Coalition's interpretation of the formula.

 

November 1999 The President signs the D.C. Budget as part of the Consolidated Appropriations Act on November 29th.

The CFO announces that further payment will be withheld pending the results of an enrollment and residency audit commissioned by the Control Board.

 

December 1999 Audit results are issued in mid-December.

The CFO informs school leaders that payments will be withheld until a decision is reached as to how the audit results should be interpreted.

Five public charter schools report that they are in danger of missing their end of year payroll. Others will fall short in January. Still others have taken out costly lines of credit or deferred payment of all non-payroll expenses.

The CFO works with FOCUS and the D.C.. Public Charter School Coalition to determine which schools are in most immediate need of funds. During the week before Christmas, these schools receive a per pupil sum equal to last year's facilities allotment.

January 2000 As of January 3rd, no charter school has received its full October payment. The CFO reports that further disbursements will be made by January 7th, but the basis of these payments is still unclear.

Friends of Choice in Urban Schools (FOCUS)
1530 16th Street, NW #001 ~ Washington, DC 20036
202-387-0405 | 202-667-3798