Maryland Proposes First-Ever Charter School Funding Formula

The Maryland State Department of Education (MSDE) and the State Board of Education have initiated the process of establishing a formal funding formula for public charter schools across the state. This proposal represents the first attempt to standardize how these schools are funded since their inception in 2003, aiming to bring greater transparency and equity to the allocation of resources for the 50 charter schools that currently serve approximately 25,000 students, but there are no charter schools in Washington County which would be affected by this proposal. The public will have a 30-day window to provide feedback on the draft regulation once it is published.

Currently, Maryland law mandates that local school systems provide charter schools with funding equivalent to that of other public schools within their jurisdiction, a concept known as commensurate funding. However, the absence of specific guidelines or a defined formula has led to ambiguity in these calculations. The newly proposed regulations seek to rectify this by aligning charter school funding with the principles of the Blueprint for Maryland’s Future legislation. A key component of the proposal includes the establishment of an administrative fee for shared services, which are services commonly provided to all public schools, such as transportation, student meals, and employee healthcare.

The initiative follows a series of directives and resolutions from the State Board of Education and the State Superintendent of Schools throughout 2025. These actions have guided local school boards to consider all available revenue streams when calculating charter school funding and to engage in negotiations for shared services. The State Board’s rulings have clarified that local school boards possess significant discretion over up to 25 percent of Blueprint funding but are obligated to allocate a proportionate share to charter schools. Additionally, the framework allows for the deduction of excess special education costs from a school system’s operating budget when determining commensurate funding for charter schools.

Following the public comment period, the proposed regulation will undergo review by the Administrative, Executive and Legislative Review (AELR) Committee of the Maryland General Assembly for a 15-day review period. If the AELR Committee does not hold the proposed regulation for further review, it is published in the Maryland Register for a 30-day public comment period. The notice will include the point of contact and feedback methods (email, mail, phone). This structured process aims to ensure that the developed funding formula is both fair and effective, ultimately contributing to improved teaching and learning environments for all students in Maryland’s public education system.

Article by Mel Anara, based upon information from the Maryland State Department of Education

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