Funded: Charters

A Detailed Look at Each State's Charter School Funding Policies

Below, see summaries of the state’s education funding policy in each issue area. Click the Expand icon next to any summary to see more detail, if available, about that state’s policy regarding that issue area. Click the Citation icon

next to any summary to see the sources of the information regarding that issue area.

	Maryland
Funding Basics
Authorizer	Charter funding policies and reporting practices within each state may vary depending on the entity that authorized the charter school. Charter schools in Maryland may be authorized by local school districts. References: “Charter Schools: What organizations may authorize charter schools, and is there a statewide authorizing body?” Education Commission of the States, 50-State Comparison, January 2018. http://ecs.force.com/mbdata/mbquestNB2C?rep=CS1708
Funding Formula	Funding for charter schools in Maryland is calculated based on local school district expenditures. Maryland state law requires that charter schools should be funded at a rate commensurate with other schools in the district. Based on this requirement, the Maryland State Board of Education has established guidance to local school system authorizers to calculate charter funding based on the local school district’s total operating budget per student count. Certain parts of the budget, such as debt service and funding for adult education, are excluded from the calculation, and any state and federal funding for which the charter is not eligible is subtracted at the end of the calculation. References: City Neighbors Charter School v. Baltimore Board of School Commissioners (2005) Md. Code Ann., Educ. § 9-109 (Lexis 2019) pers. comm. Carol Beck, Maryland State Department of Education, email, October 15, 2018
Funding Distribution
Funding Distribution	Charter schools in Maryland receive all funding through local school districts. Charter schools receive funding through the local school district through which they are authorized. References: pers. comm. Donna Gunning, Maryland State Department of Education, email, October 5, 2018.
Withholdings	Charter schools in Maryland will have a share of their funding withheld, with the maximum set by state guidance. The State Board allows the local district to withhold up to 2% of the per pupil amount for administrative costs. References: City Neighbors Charter School v. Baltimore Board of School Commissioners (2005) Maryland State Department of Education pers. comm. Donna Gunning, Maryland State Department of Education, email, October 5, 2018
Local Taxes	All charter schools in Maryland receive a share of local tax revenue. Maryland state law requires that charter schools should be funded at a rate commensurate with other schools in the district. Based on this requirement, the Maryland State Board of Education calculates charter funding in a way that includes funding raised by local governments for local school districts. References: City Neighbors Charter School v. Baltimore Board of School Commissioners (2005) Md. Code Ann., Educ. § 9-109 (Lexis 2019) pers. comm. Carol Beck, Maryland State Department of Education
Data and Reporting
Legal Status	Charter schools in Maryland are part of local education agencies. Charter schools in Maryland are part of the local education agency of the district where they are located. References: pers. comm. Donna Gunning, Maryland State Department of Education, email, October 5, 2018.
Student Count	Charter school students in Maryland are counted as students of the school district in which the charter school is located for state reporting purposes. References: Donna Gunning, Maryland State Department of Education, email, October 11, 2018
Funding	State funding for charter schools in Maryland is reported as part of state funding for the school district where the charter school is located. References: pers. comm. Donna Gunning, Maryland State Department of Education, email, January 9, 2019.
Expenditures	Charter school expenditures in Maryland are reported as part of expenditures of the school district where the charter school is located. References: pers. comm. Donna Gunning, Maryland State Department of Education, email, October 5, 2018. Click here for Maryland's traditional district funding information.