Charter School Oversight

Independent charter school oversight costs LAUSD nearly $15.4 million per year


• The annual oversight revenue collected from charter schools does not cover the annual budget of the Charter Schools Division (CSD).

• The cost to the district for the space occupied by the Charter Schools Division, estimated at $92,006/year, represents a direct cost to the district that is not covered by charter school oversight funds.

• There are direct costs to the district for oversight that are beyond those allocated to the CSD and not currently funded by the oversight revenues. The additional oversight activities occur in the Special Education Division (SPED) and the Office of the Inspector General (OIG). The total cost is estimated at $1,416,259.

• There are significant and quantifiable indirect costs to LAUSD for the independent charter schools operating in the district. Indirect costs include time/opportunity losses when district staff spend time managing or dealing with charter schools, rather than district schools. Many district functions have these time/opportunity costs in support of charter schools, but they have not been identified, gathered, or quantified. The indirect administrative cost is estimated at $13,845,203. These costs are not supported through the 1% oversight fee that is collected and used to fund the CSD.

• There are 56 charter schools in LAUSD that are operating in district facilities. The law allows the district to collect a 3% oversight fee for charter schools located in district facilities that are not paying rent. None of the 56 schools is paying the 3% fee. The estimated oversight revenue lost is $2,062,517.

• Get the full details of how the unmitigated growth of charter schools currently results in over half a billion dollars in lost revenue and added costs. Read the independent fiscal impact report here.

• Read about the common-sense solutions proposed by In the Public Interest and UTLA in our policy brief. Read the policy brief here.