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.
North Carolina
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 North Carolina may be authorized by the State Board of Education.

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. 
Funding Formula

Funding for charter schools in North Carolina is calculated based on local school district revenue.

Charter schools receive the average per student formula amount in the school district where the charter is located. However, students with disabilities and English-language learners are withheld from this calculation, and charter schools are funded for the actual number of such students attending the charter, based on the state’s funding formula. In addition, charter schools receive a per student share of appropriations from county property taxes and any supplemental taxes levied on behalf of the school district.

References:
N.C. Gen. Stat. Ann. § 115C-218.105 (Lexis 2019)
N.C. Gen. Stat. Ann. § 115C-426 (Lexis 2019)
Funding Distribution
Funding Distribution

Charter schools in North Carolina receive funding directly from the state, as well as from local school districts.

Charter schools typically receive state funding from the state and local funding from the district(s) where their students reside. When charters are first established or when they experience growth of more than 20%, the state Department of Public Instruction withholds state funding from local school districts to direct to charter schools.

References:
N.C. Gen Stat. Ann. § 115C-218.105 (Lexis 2019)
pers. comm. Eric Moore, North Carolina General Assembly, email, January 22, 2019
pers. comm. Eric Moore, North Carolina General Assembly, email, October 9, 2018
Withholdings

State law in North Carolina does not specify that a share of charter funding is withheld.

References:
pers. comm. Eric Moore, North Carolina General Assembly, email, January 22, 2019.
Local Taxes

All charter schools in North Carolina receive a share of local tax revenue.

The school district(s) where charter students reside will provide the charter school with the per student share of expenditures from local revenue sources, including appropriations from county property taxes and revenue from supplemental taxes levied by or on behalf of the local school district.

References:
N.C. Gen Stat. § 115C-218.105 (Lexis 2019)
N.C. Gen Stat. § 115C-426 (Lexis 2019)
Data and Reporting
Legal Status

Charter schools in North Carolina constitute their own local education agencies.

References:
pers. comm. Eric Moore, North Carolina General Assembly, email, October 9, 2018.
Student Count

Charter school students in North Carolina are counted as students of the charter they attend for state reporting purposes.

References:
pers. comm. Eric Moore, North Carolina General Assembly, email, October 19, 2018
Funding

State funding for charter schools in North Carolina is reported separately from state funding for any district.

References:
pers. comm. Eric Moore, North Carolina General Assembly, email, October 19, 2018.
Expenditures

Charter school expenditures in North Carolina are reported separately from expenditures of any school district.

References:
pers. comm. Eric Moore, North Carolina General Assembly, email, October 19, 2018.