06/27/2024 | News release | Archived content
Every year, the State Board of Education (SBOE) approves new charter schools following a comprehensive application, review, and public hearing process that culminates in late June. The commissioner of education also approves dozens of new charter schools through the charter expansion amendment process each year, a process which lacks SBOE input and involves minimal accountability and transparency with no public notice or hearings.
To support SBOE members in making informed decisions about approving or vetoing new charter applications, Texas AFT collaborates with a broad coalition of public education advocates to analyze Texas Education Agency (TEA) data on school districts' finances,enrollment,transfers, and cost of recapture. The rigorous analysis we provide to SBOE members aims to:
This data-driven approach not only aids SBOE decision-making but also supports local advocacy efforts. School district officials, parents, educators, and community organizations use this information to voice their concerns to the SBOE, especially in districts facing rapid charter school expansion and its negative fiscal impacts. Across Texas, charter expansion is contributing to growing budget deficits, forcing many districts to consider closing neighborhood schools and holding Voter Approval Tax Rate Elections (VATREs) to balance their budgets.
Generation 29 Charter Applications
In response to public education stakeholders from across the state voicing their concerns, the SBOE vetoed two of the five Generation 29 charter applications in its preliminary vote on Wednesday, June 26, including two of the three new charters that our union has been most concerned about: Infinite Minds and Visionary STEM Academy.
Infinite Minds is to be located within Arlington ISD, the school district with the ninth highest total estimated loss of revenue to charter transfers from the 2019-2020 through the 2023-2024 school year. The district's estimated annual revenue loss due to charter transfers increased by 16.4% from $58,663,288 in the 2019-2020 school year to $68,309,300 in the 2023-2024 school year. While charter transfers out from Arlington ISD have increased from at least 7,269 in 2019-2020 to at least 7,285 in 2023-2024, the district's enrollment has declined 8% from 59,532 to 54,750.
In a disappointing turn of events, one of our allies on the SBOE missed the final vote to veto Infinite Minds on Friday, June 28, resulting in a vote of 6-7. This means that the SBOE is taking "no action" on the new charter application and it will be approved to open. When Infinite Minds reaches its maximum enrollment of 483 students, the charter school is projected to impose an additional $4,325,721 of revenue loss on the school districts in its geographic boundaries. After the final vote, Visionary STEM Academy was vetoed while the other four have been approved.
Use of Fiscal Impact Analyses in Legislative Advocacy
Texas AFT extends the use of this district-level data to our legislative advocacy. During legislative sessions and the interims between them, we meet with current and prospective Texas Legislature members to discuss public education advocates' concerns about charter school expansion and share data on how expansion affects the school districts they represent. This data-driven approach is effective to demonstrate the fiscal impact of charter schools even among legislators who were initially unconcerned about charter expansion. These hard facts help counter misleading claims made by charter school marketing campaigns and the many well-funded lobbyists employed by the charter industry.
Analysis of Fiscal Impact of Charter Expansion
The results of our updated analysis on estimated revenue loss due to charter transfers are alarming. School districts statewide are experiencing a large and growing drain on their resources due directly to charter expansion, as charters enrolled about 8 percent of Texas students (ADA) in FY 2023 but received about 20% of Foundation School Program state aid for public education.
Summaries of the fiscal impact of charter expansion on public school districts across the state can be found at: https://www.texasaft.org/fiscal-impact-of-charter-school-expansion-on-texas-public-schools/
Major urban districts like Houston ISD and Dallas ISD continue to experience significant fiscal impacts due to unlimited charter expansion, while smaller school districts have seen a comparatively small number of charter transfers translate into a large impact on their budgets. School districts in the Rio Grande Valley and the Houston, Dallas-Fort Worth, San Antonio, El Paso, and Austin areas have seen the most charter expansion over the past several years. Charter schools are rapidly expanding into rural Texas as well.
These figures represent a significant financial burden, diverting resources that could otherwise enhance educational services and student experiences in public schools. The scope of this issue is expanding, as evidenced by the increasing number of affected districts and the rising total estimated revenue losses:
When considering these figures, it is also important to realize that the number of charter transfers, total estimated revenue loss, and tally of affected districts are undercounts because the number of charter transfers out from a school district are sometimes not available (i.e. masked) to comply with the Family Educational Rights and Privacy Act (FERPA). Masked numbers are typically small although larger numbers may be masked to prevent imputation.
However, the available data reveals a growing financial strain on public education resources:
The implications of these findings extend beyond district finances to the communities they serve. The growing financial pressure could lead to:
The trends of increasing revenue losses and the broadening impact across more districts are unsustainable and demand immediate attention from policymakers. Action is needed to mitigate further adverse effects on public schools and ensure a more equitable approach to public and charter school funding. The data clearly shows that the financial viability of many districts is at risk, which has severe implications for educational quality and equity across the state.
These stark realities underscore the need for robust, data-driven discussions among policymakers, educators, and community stakeholders. As we advocate for a more equitable approach, we must consider:
Texas AFT remains committed to using data-driven advocacy to protect and strengthen our public education system. We call on all stakeholders - legislators, educators, parents, and community members - to engage in this critical conversation about the future of public education in Texas. By working together and making informed decisions based on comprehensive data, we can ensure that all Texas students have access to high-quality education without compromising the financial stability of our public school districts.
The challenge before us is significant, but with continued advocacy and collaboration, we can work towards a more equitable and sustainable educational landscape for all Texas students to thrive.