Maryland Charter School Funding: Q&A
Maryland Charter School Funding FAQs
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Maryland’s State Department of Education released a new draft funding rule (July 10, 2025) that would increase district fees charged to charter schools and let districts deduct certain districtwide costs—like special education “overages” and some central expenses—from charter school funding. Charter leaders believe this would make it mathematically impossible for many schools to operate.
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Yes. Maryland charter schools are public, tuition-free schools that welcome every student. They reflect the diversity of their communities, often serving large minority populations, and many are among the state’s highest performers. These schools have been integral to the public system for over twenty years.
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Because they are. In Prince George’s County, for example, district schools spend about $22,000 per student, while charters receive about $14,600 on average after Blueprint deductions—before new proposed charges. A visual in your materials contrasts what’s left for classroom instruction: charters about $9,450, districts about $16,500 (apples-to-apples after similar categories). Charter schools also do not receive any capital funding and must spend a significant amount on their facilities.
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The Blueprint for Maryland’s Future is the state’s school funding formula. It adds money based on student needs (poverty, English learners, special education), but in practice, some charter schools saw lower per-pupil revenue under the Blueprint while costs (like salaries/benefits) rose, further tightening budgets.
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Unlike district-run schools, charters don’t receive state or district capital funding for buildings. They must pay rent, mortgages, maintenance, and utilities out of operating budgets—typically 15–20% of funds (often about $2,000 per student). That’s money not available for teachers, tutoring, or programs.
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Districts charge an “administrative fee” for central services (payroll, HR, etc.). Historically, this was 2%, but the new draft regulation sets it at 5% (and some districts already went higher after a 2024 state decision). Raising the fee takes dollars directly from classrooms.
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Districts define Special Education “overages” as the gap between what they spent on special education (including transportation) and what they received from federal, state, and local SPED funds. The draft rule would let districts deduct a per-pupil share of that districtwide gap from charter funding—even though charters aren’t LEAs and don’t control district SPED budgets or placements.
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Because it applies a system cost (district overspending) to individual schools that don’t control it, it double-counts against charters already paying for their own operations and facilities. It hits charters much harder since they start with less funding. In PGCPS, the same flat deduction can be 10–15% of a charter’s operating budget, but a fraction of a percent for the district overall.
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Our comparison graphic shows how, after Blueprint adjustments and typical deductions (admin fee, SPED overage estimate, facilities, and operator costs), charters are left with ~43% of the county average for classroom instruction, while traditional schools still have about 75%. That’s the core student-impact story in one picture.
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No. The draft rule is statewide. But your materials include a PGCPS example because the math is easy to visualize and because charters there already face the sharpest fee increases and deductions. A separate chart comparing average per-pupil amounts by school type shows charters at the low end system-wide.
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“Buy-backs” are optional services that a charter school can choose to purchase from the district, while “in-kind” services are provided at no cost. The issue arises when districts charge excessive fees, withhold revenue, or deduct overages before offering services. This practice leaves limited funds for schools that already manage their own finance, HR, or IT operations and do not need overlapping services.
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No. The request is equal treatment at the school level (“commensurate funding”). If a traditional school’s site-level budget isn’t reduced to cover districtwide SPED overspending or debt service, charters shouldn’t be charged those district costs either, especially while they shoulder building costs districts don’t.
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In short:
Restore the admin fee cap to 2%.
Remove SPED overage deductions (or limit to actual school-specific costs).
Count charter-specific costs (like facilities and independent operations) when defining “commensurate.”
Provide transparency: show all revenues and all deductions clearly.
Do a real fiscal impact analysis before finalizing any rule.
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Without changes, schools may be forced to cut programs, staff, or services, or, in worst-case scenarios, face closure over the successive budget cycles. That’s why advocacy now matters.
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No. Maryland charters are public, union schools that operate within the public system.
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Check the Funding Graphic (side-by-side per-pupil walk-through) and the Stakeholder Feedback letter summarizing the draft rule’s 5% fee and SPED overage deduction. For deeper background, see Hidden Costs (explains facilities/operations burdens) and Why Charters Are in Trouble—and How to Fix It (policy options).
Quick Myth-Busters
“Charters take money from district schools.”
Charters are public schools; funding follows students. The issue is adding extra fees and districtwide deductions on top of historically lower charter funding, which drains classrooms.
“Charters don’t serve diverse kids.”
Many Maryland charter schools serve large populations of underrepresented students within culturally, socioeconomically, racially, and identity-diverse communities. These schools are often high-performing and are critical in closing achievement gaps.
“If districts have SPED overages, everyone should chip in.”
Charter schools should receive commensurate funding just as traditional schools do. District overspending does not reduce site budgets for traditional schools, and the same standard should apply to charters, particularly since they already shoulder building costs that districts typically cover.
What success looks like
2% fee cap restored
No districtwide SPED overage deduction from school budgets
Transparent revenue & deduction calculations
Facilities burden acknowledged (or, at a minimum, not punished by extra district charges)
Charter School classrooms receive a fair share comparable to traditional public schools.