Charter Schools
Education Could Do More to Assist Charter Schools with Applying for Discretionary Grants Gao ID: GAO-11-89 December 7, 2010The number of charter schools is growing, spurred by demand for innovation and federal incentives, such as the Race to the Top Fund, which favors states supportive of charter schools. However, states often define charter schools differently than traditional public schools. Some charter schools operate as a school district, while others are part of a school district and some are for-profit entities. These differences could complicate eligibility determination for federal administrators. GAO was asked: (1) To what extent do charter schools apply for federal discretionary grant programs and what challenges do they face, if any, in doing so? (2) What role has the U.S. Department of Education played in helping charter schools establish their eligibility for federal discretionary grant programs? GAO identified grant programs governmentwide for which charter schools are eligible to apply, surveyed a stratified random sample of charter school officials, and interviewed federal agency officials. We also visited charter schools, school districts, charter school associations, and state educational agencies in 3 states.
Based on our survey of charter schools, approximately 7 percent of all charter schools applied for federal discretionary grants during school year 2008-2009, the most recent information about grant applications available at the time of our survey. The types of charter schools that applied differed. For example, 8 percent of charter schools designated as their own local educational agency (LEA) applied for grants compared to 2 percent of schools that are part of a larger school district or LEA. Based on their responses to our survey, some of the schools that are part of a larger school district believed they needed an LEA designation to be eligible for federal discretionary grants and did not apply because of their charter school status. We identified 47 discretionary grant programs for which charter schools are potentially eligible. Both charter schools designated as their own LEA and individual charter schools were potentially eligible for the majority of the 47 programs. The Department of Education administered 33 of the 47 programs. Given the range of application rates in 2008-2009, some charter schools may be unaware that they can apply directly for these grant programs. On the other hand, charter schools that are part of a larger LEA were not eligible to apply for grants that did not designate a public school or a nonprofit organization as an eligible applicant and may not have applied for that reason. In addition to a lack of resources and a lack of experienced and knowledgeable staff available to prepare competitive grant applications, officials also indicated their lack of awareness about the grant opportunities available to charter schools was a major reason their school infrequently applied for discretionary grants. Several officials we surveyed expressed a desire for an improved means of learning about grant opportunities that address their school's needs. While the Department of Education has taken steps to encourage charter schools to apply for grants, information about opportunities may not reach all charter schools. Education has inserted language into grant announcements of 17 of the department's 33 grant programs for which charter schools are potentially eligible in order to explicitly alert those charter schools authorized as LEAs of their eligibility to apply for grants. Of the programs for which surveyed charter schools applied, most included such language in their grant announcements. Education has not taken steps to clarify grant eligibility for charter schools that are part of a larger LEA. As public charter schools, these schools could apply for grants for which individual public schools are eligible. Although Education uses multiple methods to publicize grant opportunities, such as the Federal Register, http://grants.gov, and Education's Forecast of Grant Opportunities, these mechanisms are directed toward all schools and do not target outreach to charter schools. Furthermore, for 16 of the 33 grant programs for which charter schools are potentially eligible, grant announcements sent to potential applicants through these mechanisms do not explicitly identify charter schools as eligible applicants Education has published a guidebook to accessing federal programs for charter schools, but charter schools cannot access it through the Charter School Program's Web page on Education's Web site. GAO recommends that Education clarify grant opportunities for charter schools, highlight charter schools' eligibility in relevant grant announcements, and post its grant application guidance for charter schools on its Web site. Education agreed with our recommendations.
RecommendationsOur recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director: Cornelia M. Ashby Team: Government Accountability Office: Education, Workforce, and Income Security Phone: (202) 512-8403GAO-11-89, Charter Schools: Education Could Do More to Assist Charter Schools with Applying for Discretionary Grants
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United States Government Accountability Office:
GAO:
Report to Congressional Requesters:
December 2010:
Charter Schools:
Education Could Do More to Assist Charter Schools with Applying for
Discretionary Grants:
GAO-11-89:
GAO Highlights:
Highlights of GAO-11-89, a report to congressional requesters.
Why GAO Did This Study:
The number of charter schools is growing, spurred by demand for
innovation and federal incentives, such as the Race to the Top Fund,
which favors states supportive of charter schools. However, states
often define charter schools differently than traditional public
schools. Some charter schools operate as a school district, while
others are part of a school district and some are for-profit entities.
These differences could complicate eligibility determination for
federal administrators. GAO was asked: (1) To what extent do charter
schools apply for federal discretionary grant programs and what
challenges do they face, if any, in doing so? (2) What role has the
U.S. Department of Education played in helping charter schools
establish their eligibility for federal discretionary grant programs?
GAO identified grant programs governmentwide for which charter schools
are eligible to apply, surveyed a stratified random sample of charter
school officials, and interviewed federal agency officials. We also
visited charter schools, school districts, charter school
associations, and state educational agencies in 3 states.
What GAO Found:
Based on our survey of charter schools, approximately 7 percent of all
charter schools applied for federal discretionary grants during school
year 2008-2009, the most recent information about grant applications
available at the time of our survey. The types of charter schools that
applied differed. For example, 8 percent of charter schools designated
as their own local educational agency (LEA) applied for grants
compared to 2 percent of schools that are part of a larger school
district or LEA. Based on their responses to our survey, some of the
schools that are part of a larger school district believed they needed
an LEA designation to be eligible for federal discretionary grants and
did not apply because of their charter school status. We identified 47
discretionary grant programs for which charter schools are potentially
eligible. Both charter schools designated as their own LEA and
individual charter schools were potentially eligible for the majority
of the 47 programs. The Department of Education administered 33 of the
47 programs. Given the range of application rates in 2008-2009, some
charter schools may be unaware that they can apply directly for these
grant programs. On the other hand, charter schools that are part of a
larger LEA were not eligible to apply for grants that did not
designate a public school or a nonprofit organization as an eligible
applicant and may not have applied for that reason. In addition to a
lack of resources and a lack of experienced and knowledgeable staff
available to prepare competitive grant applications, officials also
indicated their lack of awareness about the grant opportunities
available to charter schools was a major reason their school
infrequently applied for discretionary grants. Several officials we
surveyed expressed a desire for an improved means of learning about
grant opportunities that address their school‘s needs.
While the Department of Education has taken steps to encourage charter
schools to apply for grants, information about opportunities may not
reach all charter schools. Education has inserted language into grant
announcements of 17 of the department‘s 33 grant programs for which
charter schools are potentially eligible in order to explicitly alert
those charter schools authorized as LEAs of their eligibility to apply
for grants. Of the programs for which surveyed charter schools
applied, most included such language in their grant announcements.
Education has not taken steps to clarify grant eligibility for charter
schools that are part of a larger LEA. As public charter schools,
these schools could apply for grants for which individual public
schools are eligible. Although Education uses multiple methods to
publicize grant opportunities, such as the Federal Register,
[hyperlink, http://grants.gov], and Education‘s Forecast of Grant
Opportunities, these mechanisms are directed toward all schools and do
not target outreach to charter schools. Furthermore, for 16 of the 33
grant programs for which charter schools are potentially eligible,
grant announcements sent to potential applicants through these
mechanisms do not explicitly identify charter schools as eligible
applicants. Education has published a guidebook to accessing federal
programs for charter schools, but charter schools cannot access it
through the Charter School Program‘s Web page on Education‘s Web site.
What GAO Recommends:
GAO recommends that Education clarify grant opportunities for charter
schools, highlight charter schools‘ eligibility in relevant grant
announcements, and post its grant application guidance for charter
schools on its Web site. Education agreed with our recommendations.
View [hyperlink, http://www.gao.gov/products/GAO-11-89] or key
components. For more information, contact Cornelia Ashby at (202) 512-
7215 or ashbyc@gao.gov.
[End of section]
Contents:
Letter:
Background:
Few Charter Schools Apply For Federal Discretionary Grants Despite
Being Potentially Eligible:
Education Has Taken Steps to Encourage Charter Schools to Apply For
Grants, But All Charter Schools May Not Be Reached:
Conclusions:
Recommendations for Executive Action:
Agency Comments and Our Evaluation:
Appendix I: Scope and Methodology:
Appendix II: Federal Discretionary Grant Programs for which Charter
Schools Are Potentially Eligible:
Appendix III: Comments from the Department of Education:
Appendix IV: GAO Contact and Staff Acknowledgments:
Tables:
Table 1: Estimated Percentage of Charter Schools that Applied for
Federal Discretionary Grants during School Year 2008-2009, by School
Characteristic:
Table 2: Federal Discretionary Programs Potentially Available to
Charter Schools Funded in Fiscal Year 2008, by Administering Agency:
Table 3: Number of Identified Federal Discretionary Grant Programs
Available to Charter Schools, by Agency and Eligible Applicant:
Table 4: Number of Federal Discretionary Grant Applications Submitted
during School Year 2008-2009 by Surveyed Charter Schools:
Table 5: Percentage of Charter Schools Indicating Selected Challenges
as a Major Reason the School Did Not Pursue Federal Discretionary
Grants during School Year 2008-2009:
Table 6: Programs that Explicitly Include Eligibility Language for
Charter Schools in Grant Announcements and Those that Do Not, by
Department of Education Office:
Table 7: Charter School Population, Sample Size, Responses, Out-of-
Scope, and Response Rate, by Stratum:
Table 8: Criteria for Selecting Charter Schools:
Table 9: Federal Discretionary Grant Programs For Which Charter
Schools Are Potentially Eligible and Level of Fiscal Year 2008 Program
Funding:
Figures:
Figure 1: LEA Status in States with Operating Charter Schools:
Figure 2: Improving Literacy through School Libraries Program Grant
Application and Award Process:
Figure 3: Formula Grant and Discretionary Grant Funding Flows:
Figure 4: Estimated Percentage of Charter Schools That Directly
Applied for Federal Discretionary Grants during School Year 2008-2009:
Figure 5: Characteristics of Charter Schools that Were Awarded and
Those that Were Denied a Federal Discretionary Grant in School Year
2008-2009:
Figure 6: Number of Education Grant Programs for Which Surveyed
Charter Schools Applied by Existence of Charter School Eligibility
Language:
Abbreviations:
CCD: Common Core of Data:
CSP: Charter Schools Program:
DOL: Department of Labor:
Education: Department of Education:
EMO: educational management organization:
ESEA: Elementary and Secondary Education Act of 1965:
GEAR UP: Gaining Early Awareness and Readiness for Undergraduate
Programs:
IDEA: Individuals with Disabilities Education Act:
ITEST: Innovative Technology Experiences for Students and Teachers:
KIPP: Knowledge is Power Program:
LEA: local educational agency:
NCRR: National Center for Research Resources:
NEA: National Endowment for the Arts:
NIAID: National Institute of Allergy and Infectious Diseases:
NOAA: National Oceanic and Atmospheric Administration:
OESE: Office of Elementary and Secondary Education:
OELA: Office of English Language Acquisition:
OII: Office of Innovation and Improvement:
OPE: Office of Postsecondary Education:
OSDFS: Office of Safe and Drug-Free Schools:
Resource Center: National Resource Center for Charter School Finance
and Governance:
SEA: state education agency:
SEPA: Science Education Partnership Award:
SPECA: Secondary Education, Two-Year Postsecondary Education and
Agriculture in the K-12 Classroom Challenge Grants:
[End of section]
United States Government Accountability Office:
Washington, DC 20548:
December 7, 2010:
Congressional Requesters:
From about 3,000 charter schools in school year 2003-2004 to almost
5,000 in school year 2008-2009, the number of charter schools in the
United States continues to grow. Spurring this growth are parents' and
others' desire for schools that reflect their vision and federal
incentives, such as the recent $4 billion Race to the Top competitive
grant fund, which favor states that encourage the growth of high
performing charter schools. While charter schools are public schools
that operate free from certain state and local regulations that
traditional schools are subject to, there is concern that charter
schools may be ineligible for or have difficulty accessing federal
program resources that traditional public schools receive. Because
charter schools are a relatively new phenomenon in public education,
little was known about the extent to which they apply for and receive
these resources, and it was also not known if charter schools face
challenges when they are applying that traditional public schools do
not.
Because charter schools are a relatively recent phenomenon, the
Department of Education and other federal agencies may not have
developed consistent policies toward them, especially with respect to
grant opportunities. Further, charter schools are often defined
differently by states than traditional public schools, which may
create some confusion when a federal agency is determining a charter
school's eligibility for discretionary grants. For example, unlike
traditional public schools, which are part of a larger local
educational agency (LEA) or school district, some states allow charter
schools to operate as their own LEA, while others establish charter
schools as schools within an LEA. In addition, depending on state
legislation, charter schools may be set up as nonprofit organizations.
Should these schools choose, they may apply for status as tax-exempt
organizations under Internal Revenue Code section 501(c)(3). These
distinctions complicate charter school eligibility determinations for
federal discretionary grant programs. Because of these complexities,
federal agencies may not provide charter schools grants for which
traditional public schools and school districts are eligible.
In response to congressional interest in charter schools' access to
federal funding, we addressed the following questions: (1) To what
extent do charter schools apply for federal discretionary grant
programs and what challenges do they face, if any, in doing so? and
(2) What role has the U.S. Department of Education played in helping
charter schools establish their eligibility for federal programs?
To determine the extent to which charter schools apply for federal
discretionary grant programs and any challenges charter schools have
faced, we surveyed a stratified random sample of 640 charter schools
in the 40 states and the District of Columbia with operating charter
schools.[Footnote 1] The survey response rate was 78 percent. The
survey collected data on the federal discretionary grant programs to
which charter schools applied in school year 2008-2009, the most
recent information about grant applications available at the time of
our survey, the outcome of the applications, schools' LEA, nonprofit
and for-profit status, school size, and the demographic
characteristics of their students. We analyzed whether charter
schools' characteristics, such as size of student body and years of
operation were related to whether or not they applied for federal
grants. We also conducted site visits to New York City, New York;
Columbus, Ohio; and Miami-Dade, Florida; school districts to interview
representatives of the school districts and charter schools about
charter schools' experience in applying for federal grants. To
identify federal discretionary grant programs for which charter
schools may be eligible, we matched and merged two governmentwide
lists of federal K-12 education grant programs and screened them to
select only discretionary grant programs that provided funding, which
yielded a list of about 90 programs.[Footnote 2] We obtained the lists
of federal K-12 education grant programs from the National Resource
Center for Charter School Finance and Governance and GAO's prior work.
[Footnote 3] To confirm the programs on our list, we contacted agency
officials who managed the programs. To further refine the list, we
developed a questionnaire to collect basic descriptive information for
each program from the responsible agency official. In addition to
collecting program information, the questionnaire allowed us to
confirm, exclude, and add programs based on consultations with agency
officials. Our final list contained 47 programs for which charter
schools are potentially eligible. To determine what role Education has
played in helping charter schools establish their eligibility for
federal programs, we interviewed agency officials with oversight
responsibility for the federal discretionary grant programs identified
in study question 1.[Footnote 4] We asked about any experience they
had with charter school applicants to the programs, outreach they had
conducted to inform charter schools about their eligibility, and any
challenges charter schools faced in establishing their eligibility for
the programs. We also reviewed relevant federal laws and regulations.
Appendix I provides a detailed description of our methodology and its
limitations, as well as our scope.
We conducted this performance audit from October 2009 to December
2010, in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit
to obtain sufficient, appropriate evidence to provide a reasonable
basis for our findings and conclusions based on the audit objectives.
We believe that the evidence obtained provides a reasonable basis for
our findings and conclusions based on our audit objectives.
Background:
Charter schools are public schools created to address a number of
concerns with the educational system. Intended as a means to address
failing schools and to encourage innovation in public education
policy, charter schools operate with more autonomy than traditional
public schools. In exchange, they are held accountable for meeting the
terms of their charters in order to remain open.
States began adopting charter school laws in the early 1990s,
beginning with Minnesota in 1991. States allow charter schools
flexibility in their operation for agreeing to accomplish specific
academic goals contained in their charters. The specifics of these
arrangements vary, as each state sets up its own charter school
structure and guidelines, and states have continued to revise them
over time. During school year 2008-2009, 40 states and the District of
Columbia had state laws authorizing charter schools.[Footnote 5],
[Footnote 6]
Charter School Structure and Operation:
Oversight authority for charter schools may rest with several
entities, including state boards of education, which set educational
policy, and state departments of education, which implement those
policies. In addition, some states have created charter school
offices, housed in the state department of education, that support and
advocate for charter schools. States specify which entities within the
state can authorize the establishment of a charter school, such as
state departments of education, state boards of education, local
educational agencies, institutions of higher education, and municipal
governments. Some states have also created independent charter school
boards that can authorize charter schools in the state.
Depending on the state, a wide range of individuals or groups,
including parents, educators, nonprofit organizations, and
universities, may apply for permission to operate a charter school.
The charter document, agreed upon by the applicants and the
authorizer, defines specific academic goals and outlines school
finances and other operational considerations. In some states, a
single charter may cover the establishment of multiple schools. Once
charter schools are in operation, the authorizer is responsible for
monitoring school performance and has authority to close the school or
take other actions if academic goals or state financial requirements
are not met.
States' Definitions of Charter Schools' Status:
States define charter school status in different ways. For example,
unlike traditional public schools that are part of a larger LEA,
consisting of multiple schools, some states establish charter schools
as their own LEA. Other states require them to be part of a larger
LEA, while still other states allow charter schools the option of
being either a distinct LEA or part of a larger LEA. Further, some
states allow charter schools to be their own LEA for some purposes and
part of a larger LEA for others. Figure 1 shows the designation of LEA
status in states with operating charter schools.
Figure 1: LEA Status in States with Operating Charter Schools:
[Refer to PDF for image: U.S. map]
Charter schools are their own LEA:
Connecticut;
Delaware;
Indiana;
Michigan;
Minnesota;
Missouri;
New Jersey;
North Carolina;
Ohio.
Some charter schools are their own LEA and some are part of a larger
LEA:
Arkansas;
Arizona;
California;
Georgia;
Idaho;
Illinois;
New Mexico;
Texas;
Wisconsin.
Charter schools are their own LEA for some purposes and part of a
larger LEA for others:
District of Columbia;
Louisiana;
Massachusetts;
New Hampshire;
New York;
Oklahoma;
Pennsylvania;
Utah.
Charter schools are part of a larger LEA:
Alaska;
Colorado;
Florida;
Hawaii;
Iowa;
Kansas;
Maryland;
Mississippi;
Nevada;
Oregon;
South Carolina;
Tennessee;
Virginia;
Wyoming.
State does not allow charter schools:
Alabama;
Kentucky;
Maine;
Montana;
Nebraska;
North Dakota;
South Dakota;
Vermont;
Washington;
West Virginia.
Source: GAO analysis of data from GAO survey of charter school state
agency officials; Map Resources (map).
Note: GAO's survey of charter school state agency officials was
conducted for prior work, reported in GAO, Charter Schools: To Enhance
Education's Monitoring and Research, More Charter School-Level Data
Are Needed, GAO-05-5, (Washington, D.C.: Jan. 12, 2005). The survey
data were updated for this report.
[End of figure]
Depending on state legislation, charter schools may be set up as
nonprofit organizations. Should these schools choose, they may apply
for status as tax-exempt organizations under IRS section 501(c)(3).
Nonprofit status presents another avenue for charter schools applying
for federal discretionary grant funds.
There are two types of federal grants--formula and discretionary--
which differ in their grant application and award process.[Footnote 7]
For example, with education-related formula grants, in most instances
the entity designated as the SEA--usually the state department of
education--applies for and administers funds allocated by a federal
agency in accordance with a distribution formula prescribed by law.
SEAs then disburse funds to school districts and schools on the basis
of a formula or other criteria. However, with discretionary grants,
entities that meet eligibility criteria established by law or
regulation apply and are awarded grants on the basis of a competitive
process. The steps for preparing and submitting a federal
discretionary grant application, and the criteria for making grant
awards, are available from the federal program office.[Footnote 8]
Figure 2 shows the grant application and award process for one federal
discretionary grant program, the Department of Education's Improving
Literacy through School Libraries program.
Figure 2: Improving Literacy through School Libraries Program Grant
Application and Award Process:
[Refer to PDF for image: illustration]
Department of Education:
Drafts and posts grant announcements:
Announcements include:
* Application instructions;
* Application timeline;
* Grant purpose;
* Eligible applicants;
* Available funds;
* Estimated number of awards.
Local Educational Agencies (LEA) and other applicants:
Prepare and submit applications.
Department of Education:
Reviews applications based on published criteria;
Criteria include:
* Meeting the purpose of the statute;
* Need for school library resources;
* Use of funds;
* Use of scientifically based research;
* Broad-based involvement and coordination;
* Evaluation of quality and impact.
Makes award decisions;
Notifies all applicants of award decisions.
Local Educational Agencies (LEA) and other applicants:
Receive notification of award decisions.
Source: GAO analysis of Education‘s Improving Literacy Through School
Libraries Program.
[End of figure]
For education-related discretionary grant programs, eligible
applicants likely will include local educational agencies, individual
public schools, nonprofit organizations, or partnerships comprised of
multiple eligible entities. Charter schools that are their own LEA may
be eligible to apply directly to a federal agency for a federal
discretionary grant. Charter schools that are part of a larger school
district must apply through their school district for discretionary
grants that designate LEAs, but not individual schools, as eligible
applicants. However, charter schools within a district may apply
directly to a federal agency for discretionary grants that designate
public schools as eligible applicants. In states that establish
charter schools as nonprofits, these schools may apply for
discretionary grants that designate nonprofits as eligible applicants,
as well.
Once a grant award is made, federal funding follows different paths to
charter schools depending on the type of grant. For formula grants,
such as those authorized by the Elementary and Secondary Education Act
of 1965 (ESEA) Title I, Part A and the Individuals with Disabilities
Education Act (IDEA), Education makes grant payments to the SEA
grantee. The SEA then distributes formula grant funding directly to
qualifying charter school LEAs. School districts also receive formula
grant payments from the SEA and distribute the funds to qualifying
charter schools that operate within their district and are not
distinct LEAs. For discretionary grants, the administering federal
agency makes payments directly to successful applicants of grant
competitions, which may include charter school LEAs, individual
charter schools, or nonprofits. Charter schools that are part of a
larger school district receive federal discretionary grant payments
from their school district, if the school district wins a grant
competition and if the school district has made provision for charter
schools in the grant application. If charter schools that are part of
a larger school district win grant competitions for which individual
schools are eligible applicants, those charter schools receive grant
payments from Education (see figure 3).
Figure 3: Formula Grant and Discretionary Grant Funding Flows:
[Refer to PDF for image: illustration]
Formula Grants:
ESEA Title I part A and IDEA Federal funds distributed by state
governments:
Federal agencies: to:
State education agency: to:
Local educational agency (LEA); Individual schools (acting as LEA).
Discretionary Grants:
Federal funds distributed directly by federal agencies on a
competitive basis:
Federal agencies: to:
State education agency[A].
Source: GAO analysis.
Note: On the discretionary grant side of the figure, the size of some
icons for LEAs and individual schools acting as an LEA was reduced to
include greater numbers of them, indicative of the number of potential
applicants.
[A] SEAs also are eligible for some discretionary grants.
[End of figure]
Few Charter Schools Apply For Federal Discretionary Grants Despite
Being Potentially Eligible:
In School Year 2008-2009, Approximately 7 Percent of Charter Schools
Applied for Federal Discretionary Grants:
Although charter schools were potentially eligible for a variety of
federal discretionary grants administered across several agencies in
school year 2008-2009, most did not apply for them. Based on our
survey of charter schools, we estimate 7 percent of charter schools
applied for federal discretionary grants during that school year (see
figure 4).[Footnote 9]
Figure 4: Estimated Percentage of Charter Schools That Directly
Applied for Federal Discretionary Grants during School Year 2008-2009:
[Refer to PDF for image: illustration and pie-chart]
Charter schools applied as:
* A public school designated as an LEA;
* A public school that is part of a larger LEA;
* A nonprofit organization.
Did not apply for federal discretionary grants: 87%;
Directly applied for federal discretionary grants: 7%;
Did not know if school applied: 6%.
Source: GAO analysis of GAO charter school survey data.
[End of figure]
Charter schools designated as an LEA, those with large student
populations, and those in operation for a relatively longer time had
significantly larger percentages of grant applicants (see table 1).
According to our survey, approximately 8 percent of charter schools
designated as their own LEA applied for grants, compared to an
estimated 2 percent for schools that are part of a larger LEA.
Officials from charter schools that are part of a larger LEA most
frequently indicated that their lack of LEA designation was a major
reason they did not apply for federal grants. This may suggest that
some officials of charter schools that are part of a larger LEA are
unaware that they may apply to many federal programs as a public
school or a nonprofit organization. On the other hand, charter schools
that are part of a larger LEA may not have applied for discretionary
grants because they were not eligible to apply if the grant did not
designate a public school or a nonprofit organization as an eligible
applicant.
Similarly, the percentage of applicants was higher for schools with a
student population exceeding 400 students, compared to smaller schools
serving fewer than 200 students. Several school officials we surveyed
and visited specifically mentioned their school's small size has
discouraged them from applying for grants, in part because they
perceived that their small school could not compete against applicants
serving more students, such as traditional school districts. Further,
charter schools that had been in operation for 7 or more years had
significantly higher percentages of applicants versus schools that had
been open for less than 3 years.
Charter schools serving certain special populations also had higher
levels of applicants. As shown in table 1, charter schools with either
low-income student populations or minority student populations
exceeding 75 percent of their total population had significantly
higher percentages of applicants than schools with low-income or
minority student populations below 35 percent. This may reflect the
relatively high number of discretionary grant programs that focus on
serving special populations, including low-income and minority
students.
Table 1: Estimated Percentage of Charter Schools that Applied for
Federal Discretionary Grants during School Year 2008-2009, by School
Characteristic:
LEA status:
School characteristic: The charter school is designated as its own
LEA*;
Percentage of schools that applied for at least one grant: 8%.
School characteristic: The charter school is part of a larger LEA*;
Percentage of schools that applied for at least one grant: 2.
501(c)(3) status:
School characteristic: The charter school is set up as a 501(c)(3)
organization;
Percentage of schools that applied for at least one grant: 7.
School characteristic: The charter school is not set up as a 501(c)(3)
organization;
Percentage of schools that applied for at least one grant: 4.
Charter school size:
School characteristic: Large (over 400 students)*;
Percentage of schools that applied for at least one grant: 12.
School characteristic: Small (under 200 students)*;
Percentage of schools that applied for at least one grant: 4.
Years in operation:
School characteristic: Over 7 years*;
Percentage of schools that applied for at least one grant: 8.
School characteristic: Less than 3 years*;
Percentage of schools that applied for at least one grant: 4.
Proportion of low-income students:
School characteristic: Charter schools with 75 percent or more*;
Percentage of schools that applied for at least one grant: 13.
School characteristic: Charter schools with less than 35 percent*;
Percentage of schools that applied for at least one grant: 5.
Proportion of minority students:
School characteristic: Charter schools with 75 percent or more*;
Percentage of schools that applied for at least one grant: 13.
School characteristic: Charter schools with 35 percent or less*;
Percentage of schools that applied for at least one grant: 4.
Source: GAO analysis of GAO charter school survey data.
Legend:
* = differences in the percentage of charter schools applying for
federal discretionary grants were statistically significant (p
