Economic Pressure of Charter on Public Schools

September 23, 2018 - por

Arizona: Moody’s Investors Service maps out how charter schools pressure the credit standing of traditional public schools. “Traditional districts lose revenue when a student leaves a district for a charter school, [Moody’s analyst William] Oh said. But the district is left with instructional, administrative and facilities costs for the student that cannot be reduced quickly. ‘Additionally, the negative financial impact of losing students to charter schools will likely increase as districts compete by adding programs, or are unable to find cost efficiencies and/or reduce expenditures,’ Oh said. ‘Further, as districts lose market share, they face the prospect of local voters failing to support capital improvement bonds or supplemental operations and maintenance tax levies.’