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EXPLAINER: Charter schools in Kentucky

Kentucky is the only U.S. state where charter schools are legal but not funded. Here's why.
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LOUISVILLE, Ky. — After a recent ruling regarding charter schools in Kentucky, many in the Commonwealth are asking: what are charter schools and how are they funded?

What is a charter school?

A charter school is a tuition-free school of choice that is publicly funded, but independently run. They often focus on specific subjects, such as STEM or the arts.

Nonprofit or for-profit companies or organizations can apply to open a charter. In Kentucky, school boards and mayors can approve these companies to open a charter school.

If approved, the operator and the authorizer will agree to a contract that places responsibilities and expectations on the school. 

Charter schools often have more autonomy than standard public schools when it comes to setting curriculum, school day hours and terms of employment. Some charter schools also extend the school day or hold classes on weekends. Charter schools can also fire teachers more easily than traditional public schools.

Charter schools must meet certain quality benchmarks, or else they can be shut down. According to a 2020 study of all charter schools that opened between 1999 and 2017, more than one-quarter of the schools closed after operating for five years, and about half closed after 15 years.

Who can attend charter schools?

Unlike traditional public schools, charter schools require interested parents to apply to have their child admitted.

If there are more applications for enrollment than there are spots available, Kentucky law says that the school must hold a “randomized and transparent lottery.” 

Since charter schools require parents to apply for entrance, some people believe the system cherry picks families by discouraging those who may not have the time or ability to apply.

How many other states have charter schools?

Forty-four states, the District of Columbia, Puerto Rico and Guam have charter schools. California leads the nation with at least 1,334 charter schools, and Arizona tops the U.S. proportionally with 1 in 5 students enrolled in a charter school.

Charter schools aren't legal in Montana, North Dakota, South Dakota and Nebraska.

Across the country, there are about 7,821 schools serving more than 3.7 million students, according to the National Alliance for Public Charter Schools. That means approximately 7.5% of all public school students attend a charter school.

Looking at Kentucky's neighboring states, Ohio had the most charter schools during the 2019-2020 school year, with 318. Indiana had 103, Tennessee had 118 and West Virginia had 8.

The No. 1 charter high school in America for the 2023-2024 school year, according to U.S. News & World Report, is just a two hour drive from Louisville. The Signature School in Evansville, Ind., was also named the second-best high school in the U.S. by the same report.

Why doesn't Kentucky have any charter schools?

Kentucky is the only U.S. state where charters are legal, but not funded. 

On Monday, a Kentucky judge struck down a law aimed at funding charter schools in the Commonwealth.

Franklin County Circuit Court Judge Phillip Shepherd ruled the measure violated Kentucky's constitution.

Gov. Andy Beshear vetoed the bill during the 2022 session, but the legislature overrode his decision.

Opponents of the bill said charter schools would take money from traditional public schools. Supporters believe charter schools give parents more choices for their children’s education.

State lawmakers authorized charter schools several years ago but did not provide a permanent funding mechanism. They tried to remedy that with the measure enacted in 2022, which was just struck down once again.

However there likely will be a resurrected effort to expand school choice across the state. Republican lawmakers aim to pass legislation to create a constitutional amendment that would give them more flexibility in implementing a scholarship tax credit program. It would incentivize private school enrollment.

For any of this to happen, Kentuckians would have to vote in favor of amending the state constitution for this purpose -- assuming it gets on the ballot -- in the next general election.

Kentucky's General Assembly is set to convene on Jan. 2 to kick off the 2024 legislative session.

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