The effects of charter school enrollment losses and tuition reimbursements on school districts: Lifting boats or sinking them?

Abstract

We analyze a natural experiment in which policymakers in Pennsylvania first implemented, and later removed, reimbursements to districts for students exiting to brick and mortar and cyber charter schools. Generalized difference-in-difference models show that larger shares of students enrolling in charter schools predict decrements in spending, financial health, and achievement in sending districts; however, these relationships attenuate in years when districts receive reimbursements. After receiving reimbursements, districts with increased competition spent more on instruction and instructional support services, but not on facilities or non-instructional operations. Perhaps due to higher instructional expenditures, the relationship between competition and student achievement in reimbursement years is significantly less negative, and at times even positive, compared to non-reimbursement years. Cyber charter schools induce fewer instructional expenditures in districts than brick and mortar charter schools. The findings show clear policy choices can support traditional public systems experiencing competition.

Political orientation and education investment: an OECD perspective

“…Xie and Kang (2009); Wang and Lu (2022). 32 Biasi et al (2021); Khanal (2018); Mann and Bruno (2022). Previous literature has found that economies concentrated in the industry and services sectors have a high demand for skilled human capital.…”

“…On the other hand, the left political ideology exerts a negative impact on enrollment rates (see Column (3) in Table 3), which also suggests the same. It needs 49 see e.g., Biasi et al (2021); Khanal (2018); Mann and Bruno (2022). 50 see Blundell and Bond (1998).…”

Charter Schools’ Effectiveness, Mechanisms, and Competitive Influence

“…This is an uncommon strategy, but might be a promising model to help district schools adjust to the presence of charter schools in the short term. Work examining a similar district reimbursement policy in Pennsylvania found the financial incentives increased instructional and support services among districts experiencing charter competition (Mann & Bruno, 2020).…”

The Boundaries of Competition: Examining Charter Schools’ Impact on Traditional Schools

“…The diversity of charter schools makes aggregate analysis suspect. On the other hand, research that focuses on only a single county or district can also be misleading since local contexts and policies may be determining the results (Mann & Bruno, 2022). Additionally, studies also vary in the level of analysis, with many focusing on student-level outcomes.…”

“…Consistent with a growing body of evidence, our findings suggest that both the competition arguments for improving traditional schools’ performance and diversity and the counter arguments that competition will harm traditional schools’ performance and diversity are off the mark. The discussion might be better aimed at how to make both charter and traditional schools improve their educational programs, perhaps, as indicated by Mann and Bruno (2022) by increasing financial assistance to traditional schools experiencing enrollment losses to charter schools.…”