Charters Hold Key to Saving State Big Education Dollars

by Andrew J. Coulson

This article appeared in the Detroit News on December 17, 2009.

Michigan is awash in concern over education funding. Recent budget cuts ranging from $165 to $465 per pupil — with another $127 per-pupil cut on hold — have been described as a "tsunami that threatens to push scores of districts into deficit this year." But if Michigan converted all its conventional public schools into charters (also known as public school academies), that tsunami would explode into a refreshing mist — complete with fiscal surplus rainbow.

Based on the latest (2006-07) figures, the average charter school in Michigan spends $2,000 less in state and local tax dollars per pupil than the average district school. So the savings from a district-to-charter student exodus would add up to $3.5 billion annually. To put that in perspective, it would erase Michigan's recent $2.8 billion state budget shortfall and still allow for a $700 million across-the-board tax cut.

And the benefits of migrating completely to charter schools would go beyond the financial. One of the key concerns voiced by parents in response to Gov. Jennifer Granholm's spending cuts is that they will lead to larger class sizes. But Michigan's charter schools not only spend 20 percent less than district schools, they also have 20 percent fewer pupils per teacher.

How is that possible? Charter schools typically employ far fewer nonteaching staff than conventional public schools, so they can hire more teachers and still operate at a lower per pupil cost.

Thus far, the governor and state Legislature seem unaware of the vast savings to be had from universal charter schooling. But they have shown their willingness to promote charters in response to a far smaller financial inducement. Read More @Cato