Abstract

This study examines the expenditure allocation pattern of charter schools in Texas and compares those patterns to non-charter public schools to determine if the autonomy afforded to charter schools results in significant differences. Findings indicate the allocation patterns of charter schools do differ from those of non-charter public schools. After controlling for various student and school characteristics, charter schools allocate approximately two percentage points less than non-charters to instruction, 1.76 percentage points less to instructional services, and two percentage points less to support services. Conversely, charters dedicate 1.4 percentage points more to school leadership and 4.5 percentage points more to “other costs,” as compared to non-charters. That is, charters appear to allocate less to instruction-related activities and more to “overhead”—such as administration and “other costs”. All of these differences are statistically significant, and the differences in instructional services, support services, and “other costs” are practically significant, as measured by effect sizes.

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