When Stability Threatens Progress:  Why Charter Funding Must Keep Pace With Students

The SC Revenue and Fiscal Affairs Office (RFA) recently released its State Aid to Classrooms Report, a technical review of how the state distributes funding to public schools through student weights and enrollment counts. RFA’s goal is to improve consistency, transparency, and predictability in how dollars follow students, things that, on paper, most would agree are good policy choices. Yet, several recommendations raise real and alarming concerns about the future of fair and responsive funding for our state’s most dynamic and fastest-growing public school sector, charter schools.

Charter schools in SC are public schools that serve more than 60,000 students across the state. With the exception of charter schools authorized by local school districts, they are funded directly by the state, their only source of funding, because they do not have access to local property tax revenue.

Potential Separation of Charter Funding or Differential Treatment

The most glaring recommendation, and perhaps the most dangerous, represents a fundamental shift away from equity, separating the funding mechanism for statewide charter authorizers from the use of charter-specific student weights. Altering these without a clear financial impact could inadvertently isolate the charter sector or reduce resources for students who depend on these public schools.

Use of Prior-Year Enrollment to Determine Funding

The report also suggests that future funding be based on the previous year’s enrollment rather than current-year student counts. While the intent is to provide predictability for budgeting, this change could have serious unintended consequences for charter schools. Because charters are the state’s fastest-growing schools, funding based on prior-year numbers would leave many underfunded for hundreds, or even thousands, of enrolled students. For new schools, this could mean starting operations with significant budget gaps before state dollars match the reality of the students they serve. Stability should never come at the expense of fairness or responsiveness to growth.

The Public Charter School Alliance of SC will continue to study the RFA report, share insights with our members, and engage directly with state leaders to ensure that charter schools are represented in any funding discussions. Any changes to state education funding should strengthen, not weaken, the ability of all public schools to serve students.

As conversations about K-12 funding continue, it’s vital to remember that charter schools are not separate from public education; they are a part of it. We call on policymakers to protect funding structures that recognize growth, reward innovation, and ensure that charter students are funded fairly as part of South Carolina’s public school system. Our shared goal should be a funding model that reflects today’s realities, supporting growth, flexibility, and equitable access to quality education for every student in our state.