Charter School Law, Funding, and School Vouchers in Iowa
The landscape of school funding in Iowa has changed. Are you ready for what is to come?
At Iowa Choice Charter School, we are passionate about educating Stakeholders and our Community about the factors that impact our overall structure and function as an educator of Students. Through this Blog Post, we aim to enlighten everyone about what is truly happening when it comes to Public Charter School law and the financial security therein.
Part One | Charter School Law
In 1988, the concept of Public Charter Schools was brought forth by Albert Shanker who, at the time, was president of the American Federation of Teachers. [1] Shanker’s goal was to offer an alternative public education option for historically underserved Students through utilizing teams of teachers to implement innovative methods. [1] Public Charter Schools quickly proved their effectiveness in providing quality education in support of Students with low access to such an education and, from there, state laws started to appear in an effort to regulate Charter Schools more heavily.
Some may argue that legislation is the only way to create societal change. And, it can also be viewed as a barrier to societal progress. In confirmation of the latter, prior to July 2021, only 2 Public Charter Schools were authorized to operate and serve Students in the state of Iowa. [2] However, in the Summer of that same year, a new bill was approved, making it possible for new Charter Schools to seek establishment in our state with greater ease. [3] This created space for Educational Institutions like Iowa Choice Charter School to come to life!
Including us, there are now 5 Public Charter Schools authorized to operate and serve Students in the state of Iowa [2] with an estimated 10 additional Public Charter Schools with plans to apply for this distinction soon. For this, we are grateful and excited! The almost immediate growth in the presence of Public Charter Schools upon this new bill coming into existence not only reveals the need for Public Charter Schools in the state of Iowa, but also reveals the passion that Leaders in our region have on behalf of Students across School Districts.
Part Two | Disproportionate Funding
The formula representing funds allocated for Public Charter Schools is simple: (Cost Per Student + Prior Year Teacher Leadership and Compensation) ÷ 180 days of school = current Public Charter School state funding amount. [4] As it relates to the 2023-2024 school year, this dollar amount comes to about $48 per day that Iowa Public Charter Schools receive in state funds. [5]
Students who begin and end the school year with a Public Charter School receive the full Per Student funding amount plus the full Teacher Leadership and Compensation. Alternatively, Students who are not enrolled at a Public Charter School during an entire school year, either because they start past the first day of Classes or graduate early, do not receive the full amount of funds they would otherwise be eligible for. In fact, they are only eligible to receive the daily rate. This is the case for all Public Charter Schools and creates a gap in funding while simultaneously presenting an issue of inequity. For us, the question remains: What does this mean for Iowa Choice Charter School?
The Iowa Department of Education allows Educational Institutions across School Districts, including Accredited Nonpublic Schools, to choose between meeting one of the following requirements as providers of education to Students in the state: 180 days of Classes or 1,080 hours of Instruction. [6] During the 2022-2023 school year, Public Charter Schools in Iowa reported holding an average of 166 days of Classes with 1083 hours of Instruction. [7] From a funding perspective, the Iowa Department of Education uses the 180 days of Classes requirement to calculate the daily rate of $48 per Student. [5] Unfortunately, this is the primary source of the inequitable funding seen among all Public Charter Schools in the state of Iowa. And, this means less funding for the Students of these schools, including Iowa Choice Charter School, as we received about $30,000 less than what was provided to other Public Schools due to serving Students over an average of 166 days despite 1083 Instructional hours having been recorded.
Recently, the Iowa Department of Education elected to include Public Charter Schools as eligible candidates for Title IA, IIA and IVA funds: [8]
Title IA, also known as the Improving Basic Programs Operated by Local Education Agencies (LEAs) initiative, provides financial aid to schools that are focused on reducing and eliminating achievement gaps for Students, primarily those from low-income Families. [9]
Title IIA refers to the Supporting Effective Instruction program which offers grant funding to state educational agencies and subgrants to districts who show their commitment to Student achievement on various levels through methods such as tangibly showing improvement as it relates to the efficacy and quality of school Educators, Faculty, and Leaders. [10]
Under Title IVA, funding is distributed through Student Support and Academic Enrichment Grants once it has been determined that the Educational Institution has the capacity to increase access for Students across 3 main focal areas: Health and Safety, the Use of Technology through Effective Methods, and Offering Education that is Well-Rounded. [11]
The opportunity that Public Charter Schools now have to apply for and potentially access these funding sources represents positive change. And, for us, the question still remains: What does this mean for Iowa Choice Charter School?
Although it was originally unclear whether or not Public Charter Schools would be included as eligible to apply for Title IA, IIA, and IVA grant funding, due to our recent inclusion, Iowa Choice Charter School received about $32,000. These funds are to be allocated towards summer school, remedial mathematics and reading classes as well as work experience coordination.
As we continue to move forward with our Mission of increasing the Iowa High School graduation rate as a Public Charter School, we continue to monitor changes in legislation that impact us and therefore, our Students. We also continue to advocate for funding practices that positively impact our belonging within the Public School system and that are, most importantly, equitable.
Part Three | The True Impact of School Vouchers
A Research Brief that examined the impact of Private Schools in comparison to Public Charter Schools alongside the impact of School Vouchers found that while many Public Charter Schools showcase benefits mirroring those often linked to Private Schools (leveling the playing field in education, offering flexible and innovative teaching methods, and providing a more personalized learning experience to Students) they are not eligible for School Vouchers simply because they are designated as a Public School. [12] This Brief also revealed that the benefits associated with attendance at a Private School are typically accompanied by issues like separating Students from peers that look like them and share similar life experiences, which can be harmful to their educational development. The same has not been proven to be the case as far as Public Charter Schools are concerned. [12]
A School Voucher is a portion of money each state has allocated in an effort to provide partial or full tuition coverage for Families that feel a Private School is the best fit for their Student’s educational needs, but without a School Voucher, would find it challenging or impossible to access enrollment for their Student. Funds that support School Voucher programming originate from state taxes with the types of taxes included and the amounts varying by state. [13] Accredited Nonprofit Private Schools, including both religious and non-religious options, are eligible to receive these Vouchers. [13] Public Charter Schools, however, do not get this money.
In Iowa, the School Voucher program is referred to as the Students First Education Savings Account. Through this program, each applicant receives about $7,598 in funds that are to go towards a Private School education in our state. [14] This only occurs if all requirements as outlined by the application are met, including set deadlines, with June 30th representing the current deadline to apply and September 30th (which is also the program close date) representing the current deadline for approval prior to allowing Iowa Families Private School enrollment access. As we are not Private, Iowa Choice Charter School does not have any access to our state’s School Voucher program which means that we do not have any access to Students First Education Savings Accounts.
Here’s how School Voucher programs typically work: [13]
Step One: Family researches a school, discovers those that seem like a good fit for their Student, and becomes connected with opportunities to learn more (i.e. setting up an in-person visit, meeting with a Student advisor virtually, etc.) in an effort to compare and contrast the options based upon their desires and expectations.
Step Two: Family selects a school that they believe uniquely fits their Student’s needs, works together with the selected school to get a Voucher, fills out paperwork and completes with a signature prior to enrolling their Student.
Step Three: The cost of tuition is calculated and the School Voucher is applied as required with the potential of funds remaining.
At Iowa Choice Charter School, we understand that School Vouchers make it possible for Families who are disproportionately impacted by systemic factors to enroll their Student(s) into a school that they conclude is truly the best fit and meets the needs of their Student, despite external circumstances. In fact, we encourage the use of School Voucher programs as we, too, are passionate about reducing barriers to education while providing access for Students who may not otherwise have it. And, we’d like to encourage everyone to consider the following:
For Your Consideration | Leftover Voucher Funds
Once the cost of a Student’s Private School tuition has been satisfied through a School Voucher, excess funds may be leftover. This is a possibility that both program administrators and applicants are aware of. Families in our state are allowed to utilize these funds to cover additional educational expenses on behalf of their Student, but only through a platform governed by the Iowa Department of Education and program administrators either directly or through a third-party. Here in Iowa, we have chosen to utilize a third-party. And, unfortunately, it does not seem to be going well so far.
Odyssey, the Company currently charged with handling all facets of our Students First Education Savings Accounts, [15] was founded in June 2021 and originally went by the name Agora, before undergoing a rebrand in August of last year. [16] On their website, they mention their capacity to adequately manage different levels microgrants and education savings accounts quickly and with ease as they are the first Company to create a technologically advanced platform in an effort to do so.
In order to be considered for a School Voucher that is to be funded during the 2023-2024 school year, Iowa Parents and Families interested in applying were directed to Odyssey’s website and funneled through an unfamiliar user interface with limited access to a representative who could personally guide them along the way. Despite this new process presenting challenges and forcing applicants to navigate through unknown territory, on October 12, 2023, the Iowa Department of Education shared the following regarding program applications: [17]
18,893 Student applications were approved
10,719 Student applications were either denied (due to their not meeting income or residency requirements) or closed out (primarily due to technical errors)
Overall, this data can be viewed as positive. But, there is a crucial piece missing related to leftover funds. In addition to facilitating the School Voucher program application process, Odyssey is responsible for creating and supervising what is referred to as the MarketPlace. The MarketPlace is to be the place for Parents and Families to spend any remaining funds available in their Educational Savings Account(s) to cover educational expenses on behalf of their Student(s). And, it has yet to be made available to them. The only update, which was vague and shared no direct information or timeline about when the MarketPlace would be up and running, was published nearly 3 months ago on Odyssey’s website. [18] This has presented a major issue for Parents and Families as many of them were counting on using the funds to purchase tools such as computers, tutoring services, and other equipment to support their Student.
It is quite unfortunate that the MarketPlace platform was not and still is not ready to go for Parents and Families once School Vouchers were approved as there is now a gap in existence for their Students as it relates to their ability to adequately participate and engage in their educational journey. This is a gap that should not be present at all and could have likely been avoided. Iowa plans to partner with Odyssey over the next 3 years, and it is unclear how long it will take them to address this issue.
For Your Consideration | The Meaning of “Best Fit”
In the realm of education, “best fit”often refers to aspects such as the likelihood that Students will be able to effectively connect with their peers and Educators, the presence of a healthy culture that prioritizes diversity, equity, and inclusion as well as the quality of the overall learning experience. And, to what level certain aspects are considered impactful can shift as the phrase “best fit” is always subjective. For instance, one Family may feel that the school reporting the highest rate of acceptance among their High School graduates into Colleges and Universities is the best fit, despite the fact that enrolling their Student at this school would move them away from friends who come from a similar background. On the other hand, a Family considering the same school may lead with a prior negative experience stemming from their Student being separated from friends due to a change in school. So, despite the quality of education provided and the culture within, their main factor in determining the best fit will be how easy a school makes it for their Student to connect with and build relationships with others.
In today’s society it is often purported that when something is exclusive or challenging to gain access to, like a Private School, it is automatically the best fit or of the highest quality when in reality, this may not be the case at all. Nearly all of the Parents, Families and Support Systems connected to our Students have deemed Iowa Choice Charter School the best fit to meet their needs across a variety of categories. This has often been communicated to us in comparison to other Educational Institutions they considered for enrollment, including schools attended in the past and Private Schools.
As a Nonprofit Accredited Public Charter School, we are a FREE education option for all Iowa Students and we offer enrollment year-round to Students who need to complete any grades 9-12 and are under the age of 21. We focus on achieving our Mission of increasing the High School graduation rate in our state. And, although we do not represent the Private School sector, we know that we can still be considered as the best fit for each and every Student we partner with.
For Your Consideration | Moving Forward Together
Instead of perpetuating a divisive narrative between Private and Public Schools, it is our belief that cooperation and synergy should be at the forefront. By bridging the gap between Public and Private educational sectors, the exchange of innovative practices, resources, and ideas that can enhance the quality of education on a large scale can begin to occur. The focus should always be on creating an environment where every Student, regardless of their educational setting, has the opportunity to thrive and reach their full potential. If we unite our efforts, we can collectively contribute to a more equitable and enriched educational experience for all Students and positively impact the Community at large as a result.
At Iowa Choice Charter School, we recognize that the landscape of education is always evolving. And, we recognize that Public Charter Schools, along with the policies governing them, play a pivotal role in shaping the future of our educational system.
In conclusion, we feel that the journey towards educational excellence requires a collaborative effort, encompassing Policymakers, Educators, Families, and our Community as a whole. In all aspects of what we do, we keep the educational well-being of our Students front and center by individualizing and customizing their experience. And, as we navigate the complexities of the educational systems that impact us, we know how essential it is to remain focused on the equitable access to quality education for all Students.
Sourced Material
[1] National Charter School Resource Center. (n.d.). What is a charter school?. What is a Charter School | NCSRC. https://charterschoolcenter.ed.gov/what-charter-school
[2] Boyd, J. (n.d.). Authorized Charter Schools. Iowa Department of Education. https://educateiowa.gov/pk-12/options-educational-choice/charter-schools
[3] Kauffman, C. (2021, May 19). Reynolds signs into law new expansion of Charter Schools in Iowa. Education. https://iowacapitaldispatch.com/2021/05/19/reynolds-signs-into-law-new-expansion-of-charter-schools-in-iowa/
[4] Center for Public Education. (2021). Research Brief - How States Fund Charter Schools. National School Boards Association. https://www.nsba.org/-/media/NSBA/File/cpe-waiver-research-brief-2021.pdf
[5] Iowa Code. (2022). Charter Schools - School Board and Founding Group Models. Section 256E.8 Funding. https://www.legis.iowa.gov/docs/code/256E.pdf
[6] Iowa Department of Education. (2018, July 17). Iowa teaching standards and model criteria - Instructional Hours vs Days. Educate Iowa. https://educateiowa.gov/sites/default/files/documents/IowaTeachingStandardsAndCriteria_0.pdf
[7] Snow, M. (2023). State of Iowa School Performance. Iowa State Summary: Reporting Year - 2023. https://www.iaschoolperformance.gov/ECP/StateDistrictSchool/StateSummary?y=2023
[8] Iowa Department of Education. (n.d.). ESSA guidance and allocations. Every Student Succeeds Act (ESSA). https://educateiowa.gov/pk-12/every-student-succeeds-act-essa/essa-guidance-and-allocations
[9] Iowa Department of Education. (2022, October). Title I, Part A Guidance. Educate Iowa. https://educateiowa.gov/
[10] Iowa Department of Education. (2022, October). Title II, Part A Guidance. Educate Iowa. https://educateiowa.gov/
[11] Iowa Department of Education. (2021, January 13). Title IV, Part A Guidance. Educate Iowa. https://educateiowa.gov/
[12] Brian, G. (2001, January 1). Separating the Rhetoric from the Reality. What do we know about Vouchers and Charter Schools? https://www.rand.org/pubs/research_briefs/RB8018.html
[13] EdChoice. (2023). What are School Vouchers?. EdChoice. https://www.edchoice.org/school-choice/types-of-school-choice/what-are-school-vouchers-2/
[14] Iowa Department of Education. (2023, January 25). Gov. Reynolds signs Students First Act into law | Press Release. Governor Kim Reynolds. https://governor.iowa.gov/press-release/2023-01-24/gov-reynolds-signs-students-first-act-law
[15] Gruber-Miller, S. (2023, March 1). Kim Reynolds hires firm to run Iowa’s education savings accounts. what is Odyssey? The Des Moines Register. https://www.desmoinesregister.com/story/news/politics/2023/03/01/kim-reynolds-hires-odyssey-to-run-iowa-private-school-education-savings-account-program/69955937007/
[16] Odyssey. (n.d.). About Us - History. Odyssey. https://withodyssey.com/about.html
[17] Iowa Department of Education. (2023, October 12). Students First ESA applications for 2023-2024 closed; 18,893 application approved. Iowa Department of Education. https://educateiowa.gov/article/students-first-esa-applications-2023-2024-closed-18893-applications-approved#:~:text=ESA%20accounts%20for%20applicants%20who,residency%20or%20household%20income%20requirements
[18] R, E. (2023, August). When will the Iowa Marketplace Open? . Odyssey. https://support.withodyssey.com/hc/en-us/articles/17838168503195-When-will-the-Iowa-Marketplace-open-