Municipal finance analysts at Moody’s recently took a look at the impact of charter school growth on public finances, finding “while the vast majority of traditional public districts are managing through the rise of charter schools without a negative credit impact, a small but growing number face financial stress due to the movement of students to charters.”The report found that cutting costs to match declines in funding can be difficult, as decisions to close schools—even if they are half-empty—can result in fierce political fights. And decisions to cut academic programs can actually exacerbate funding problems further by spurring still more students to leave for charter schools.
You can read more about the Moody's study in the latest issue of The Atlantic.
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