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Fiscal Impacts of Charter Schools: Lessons from New York

Author

Listed:
  • Robert Bifulco

    (Center for Policy Research, Syracuse University)

  • Randall Reback

    (Department of Economics, Barnard College, Columbia University)

Abstract

This brief argues that charter school programs can have direct fiscal impacts on school districts for two reasons. First, operating two systems of public schools under separate governance arrangements can create excess costs. Second, charter school financing policies can distribute resources to or away from districts. Using the city school districts of Albany and Buffalo in New York, we demonstrate how fiscal impacts on local school districts can be estimated. We find that charter schools have had fiscal impacts on these two school districts. Finally, we argue that charter schools policies should seek to minimize any avoidable excess costs created by charter schools and ensure that the burden of any unavoidable excess costs is equitably distributed across traditional public schools, charter schools, and the state. We offer concrete policy recommendations that may help to achieve these objectives. © 2014 Association for Education Finance and Policy

Suggested Citation

  • Robert Bifulco & Randall Reback, 2014. "Fiscal Impacts of Charter Schools: Lessons from New York," Education Finance and Policy, MIT Press, vol. 9(1), pages 86-107, January.
    • Handle: RePEc:tpr:edfpol:v:9:y:2014:i:1:p:86-107
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/EDFP_a_00121
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    References listed on IDEAS

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    1. Booker, Kevin & Gilpatric, Scott M. & Gronberg, Timothy & Jansen, Dennis, 2008. "The effect of charter schools on traditional public school students in Texas: Are children who stay behind left behind?," Journal of Urban Economics, Elsevier, vol. 64(1), pages 123-145, July.
    2. Bettinger, Eric P., 2005. "The effect of charter schools on charter students and public schools," Economics of Education Review, Elsevier, vol. 24(2), pages 133-147, April.
    3. Imberman, Scott A., 2011. "The effect of charter schools on achievement and behavior of public school students," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 850-863, August.
    4. Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March.
    5. Thomas J. Nechyba, 2003. "Introducing School Choice into Multidistrict Public School Systems," NBER Chapters, in: The Economics of School Choice, pages 145-194, National Bureau of Economic Research, Inc.
    6. Tim R. Sass, 2006. "Charter Schools and Student Achievement in Florida," Education Finance and Policy, MIT Press, vol. 1(1), pages 91-122, January.
    7. Dennis N. Epple & Richard Romano, 2003. "Neighborhood Schools, Choice, and the Distribution of Educational Benefits," NBER Chapters, in: The Economics of School Choice, pages 227-286, National Bureau of Economic Research, Inc.
    8. Robert Bifulco & Helen F. Ladd, 2006. "The Impacts of Charter Schools on Student Achievement: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 1(1), pages 50-90, January.
    9. Brunner, Eric J. & Cho, Sung-Woo & Reback, Randall, 2012. "Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs," Journal of Public Economics, Elsevier, vol. 96(7), pages 604-614.
    10. Chakrabarti, Rajashri & Roy, Joydeep, 2016. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Journal of Urban Economics, Elsevier, vol. 91(C), pages 88-103.
    11. Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
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    Citations

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    Cited by:

    1. Christian Buerger, 2020. "The Influence of Finance Policies on Charter School Supply Decisions in Five States," Public Budgeting & Finance, Wiley Blackwell, vol. 40(2), pages 44-74, June.
    2. Sarah R. Cohodes & Elizabeth M. Setren & Christopher R. Walters, 2021. "Can Successful Schools Replicate? Scaling Up Boston's Charter School Sector," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 138-167, February.
    3. Buerger, Christian & Bifulco, Robert, 2019. "The effect of charter schools on districts’ student composition, costs, and efficiency: The case of New York state," Economics of Education Review, Elsevier, vol. 69(C), pages 61-72.
    4. Tobin, Zachary, 2024. "How do public schools respond to competition? Evidence from a charter school expansion," Economics of Education Review, Elsevier, vol. 99(C).
    5. Cooper, Zack & Gibbons, Stephen & Skellern, Matthew, 2018. "Does competition from private surgical centres improve public hospitals' performance? Evidence from the English National Health Service," Journal of Public Economics, Elsevier, vol. 166(C), pages 63-80.
    6. Helen F. Ladd & John D. Singleton, 2020. "The Fiscal Externalities of Charter Schools: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 15(1), pages 191-208, Winter.
    7. Aaron Sojourner & José Pacas, 2019. "The Relationship Between Union Membership and Net Fiscal Impact," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(1), pages 86-107, January.
    8. Michah W. Rothbart, 2020. "The Impact of School Choice on Public School Budgets: Evidence From Open Enrollment in New York City," Public Budgeting & Finance, Wiley Blackwell, vol. 40(4), pages 3-37, December.
    9. Sorensen, Lucy C. & Holt, Stephen B., 2021. "Sorting it Out: The Effects of Charter Expansion on Teacher and Student Composition at Traditional Public Schools," Economics of Education Review, Elsevier, vol. 82(C).
    10. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    11. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    charter schools; fiscal policy; New York;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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