Issues in the Allocation of ESEA Title I Funds to Charter Schools

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The focus of this paper is on the formulas used to allocate Title I funds to charter schools that are treated under state law as separate LEAs. It begins with a brief overview of the formulas used to allocate Title I funds to states and to traditional, geographically-based LEAs (hereafter referred to simply as traditional LEAs). This is followed by a discussion of the current policies for adjusting those LEA allocations to provide funds for eligible charter schools treated as separate LEAs under state laws, or charter school LEAs. The paper concludes with a discussion of a possible alternative policy for allocating Title I funds to charter school LEAs and a discussion of potential effects.

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