Iowa governor proposes equal funding for charter schools 

Iowa Gov. Kim Reynolds is proposing legislation to give public charter schools the same state funding as traditional public school districts. 

Reynolds announced the proposal in a release last week saying current funding levels disadvantage charter schools. 

“Public charter schools currently receive less state funding than traditional public district schools,” Reynolds said. “As demand for public charter schools grows, we should ensure that state funding – provided for the purpose of educating students – follows them to whatever public school they choose.” 

Iowa had just two charter schools in 2021 but now has 19 serving more than 1,000 students. 

Between 2019 and 2024, charter enrollment grew by more than 200% while traditional public school enrollment declined by nearly 2%, a period during which the state enacted a universal school choice program. 

Reynolds’ proposal would also make it easier for charter school students to enroll concurrently in classes or athletic programs at their zoned public school and would allow charter schools to serve as placements for student teaching assignments. 

Charter schools are publicly funded and tuition-free but are independently operated and generally have more flexibility to innovate than district-run public schools. 

Previous research has found that charter schools often produce stronger academic outcomes, including for minority and low-income students. 

A Stanford University study found charter school learning gains equivalent to an additional 16 days of reading instruction and six days of math. 

Despite those outcomes, charter schools are typically underfunded. A 2023 University of Arkansas analysis found charter schools receive, on average, 21% to 34% less funding than district-run public schools. 

That gap persists even after accounting for the higher costs associated with educating students with greater needs, such as those with disabilities or English language learners. 

Iowa currently spends more than $16,000 per public school student annually, with roughly half of that funding coming from the state and the remainder from local and federal sources. 

If enacted, Reynolds’ proposal would provide charter schools with an additional $1,200 per student, equalizing state funding between charter and district schools.