What The Revenue & Fiscal Affairs Presentation Means & Why We’re Paying Attention

This week, the South Carolina Revenue and Fiscal Affairs Office (RFA) shared its State Aid to Classrooms Report with the House Ways and Means Subcommittee. It was a technical presentation, but the main points matter for public charter schools and the students they serve.

At the Alliance, we’re in the thick of these discussions. We regularly meet with state officials, legislative leaders, and the Governor’s Office to make sure charter schools are heard. Funding decisions might happen far from classrooms, but they have a direct impact on what schools can offer, how they grow, and how they serve families.

The RFA focuses on consistency, predictability, and transparency. Goals we all support. Charter schools especially need clear information, since state funding is their main, and many times the only, source of revenue. Still, some recommendations need more careful review.

One that stands out is basing funding on the previous year’s enrollment. This might seem reasonable at first, but it creates a problem: growing charter schools would have to serve more students with last year’s budget. This could lead to delayed hiring, larger class sizes, fewer support staff, or reduced programs. New charter schools could also face challenges from the start. While predictability is important, fairness should not be overlooked.

Why is this important? Charter schools are growing because more families are choosing them. Since the 2022–2023 school year, charter enrollment has increased by 35%, outpacing traditional districts. Funding formulas designed for stable or declining enrollment do not work for schools that are expanding to meet demand. Overlooking this growth could leave students without the resources they need.

Another RFA recommendation, also included in the Governor’s Executive Budget, separates funding for brick-and-mortar and virtual students. This is an important issue. Charter students are the lowest funded public school groups because they do not receive local property taxes or have the ability to issue bonds. Any changes must be made carefully to avoid reducing resources.

After direct conversations with the RFA, state policymakers, and other stakeholders this week, we do not think these proposals are meant to reduce charter funding overall, but that doesn’t mean we’re sitting back. The Alliance is actively engaged in the process, pressing for clear fiscal modeling and asking tough questions about intent and potential outcomes. We’re meeting directly with state officials and legislative leaders, and working closely with our member schools to understand how any changes could affect them. Our mission is simple: to make sure charter schools are treated fairly and recognized as a vital part of South Carolina’s public education system.

Charter schools are public schools, and their students are public school students. Any funding system should reflect current enrollment, meet real needs, and be fair to every school. We’ll keep connecting what happens in classrooms to the decisions made at the State House.

More to come.