Charter Schools

Oregon’s charter school law (ORS Ch. 338) has been in effect since 1999. The number of public charter schools approved by and operating in school districts continues to increase each year. During the 2001-02 school year there were 17 public charter schools operating in Oregon. In 2004-05 there are 56 public charter schools in operation, 54 chartered by local school boards and two chartered by the State Board of Education.

For complete information about Oregon’s charter school law and a current listing of Oregon’s charter schools, see OSBA's Charter School Resource Center.

Definition of Charter School

A charter school is a public school that receives public funds under a written agreement – a charter – that outlines student performance goals and educational services the public charter school will provide. Charters are excluded from many statutes and rules guiding traditional public schools. In exchange for this freedom from regulation, the public charter school guarantees in its written agreement (charter) certain levels of student performance.

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Public Charter School Sponsors

The law allows for only two sponsors: a local school board or the State Board of Education. The state Board can only sponsor a public charter school if a local school board denies the application. Currently, the State Board of Education sponsors two public charter schools: one in Portland and one in Ontario.

The law specifically prohibits private or religious schools from converting to public charter school status.

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Charter Proposal Requirements

A charter school’s written proposal must include at least the following:

• Identification of the charter applicant
• Description of the curriculum
• Projected enrollment and the ages or grades to be served
• Address, facilities and physical location of school
• School’s proposed budget and financial plan
• Description of staff and teacher qualifications
• Name of the proposed school
• Description of the curriculum’s expected results
• Target student population the school will serve
• Description of admission policies and application procedures
• Standards of student behavior and procedures for student discipline, suspension or expulsion
• Date of beginning operation
• Description of the school’s philosophy and mission
• Governance structure
• Description of any distinctive learning or teaching techniques
• Statutes and rules that will apply to the school
• School calendar, including length of school day and year
• Arrangements for special education services
• Length of the charter
• How program review and fiscal audits will be conducted
• Plan for insurance or performance bonds
• Information on how community groups will be involved in planning and development
• Plan for what will happen with employees and students if the charter is terminated or not renewed
• Other information the local school board considers relevant to the formation or operation of the public charter school.

(ORS 338.045)

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Criteria for Reviewing Applications

School boards use the following questions, based on the evaluation criteria listed in the law (ORS 338.055), to review charter school applications. Many of the terms used in the law are vague and undefined. Consequently, OSBA advises school boards to define these terms in their policies and procedures for public charter schools. The sample policy OSBA recommends is available online in OSBA’s Charter School Resource Center.

• Is there demonstrated, sustainable support for the public charter school by teachers, parents, students and other community members?
• Is the applicant capable of providing comprehensive instructional programs?
• Has the applicant answered or addressed the necessary information required by the law and by the school district?
• If the applicants are seeking to convert an existing public school, are there alternative arrangements for students, teachers and other school employees who choose not to attend or be employed by the public charter school?
• Can the applicant demonstrate financial support for the public charter school? (Examples include grants from the sponsoring school district, fees and support from the community for facility rental, instructional materials, utilities, insurance, etc.)
• Is the applicant capable of providing comprehensive instructional services to students identified as low achieving?
• Is the value of the public charter school outweighed by any (as quoted in the statute) “directly identifiable, significant and adverse impact on the quality of the public education students residing in the school district in which the public charter is located?”
• What are the arrangements to meet the needs of special education students and those with disabilities, as required by law?

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Application Review Timeline

See this flowchart (18k ) for the schedules and steps a local school board must follow after receiving a charter application.

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Charter Application Denial

If a charter application is denied, the applicant may request a review of the school board’s decision by the State Board of Education. Ultimately the state Board may become the sponsor. (See flowchart (18k )) (OAR 581-020-0331)

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Charter Termination

A charter may be terminated by the sponsor (local school board or State Board of Education) if the charter school fails to:

• Meet the terms of an approved charter, or any provision of ORS Chapter 338,
• Meet the requirements of student performance stated in the charter,
• Correct a violation of federal or state law that is described in ORS 338.115,
• Maintain insurance as described in the charter, or
• Maintain financial stability.

If the charter is terminated, the sponsor must notify the charter’s governing body at least 60 days before the proposed effective date of termination, stating the grounds for termination in the notice. The charter school’s governing body may re-quest a hearing by the sponsor and may appeal its decision. If a local school board is the sponsor, the appeal is to the State Board of Education. If the state Board is the sponsor, the appeal is to the circuit court in Marion County. (ORS 338.105)

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Student Selection

Enrollment in charter schools is voluntary. Any student living within the district in which the charter school is located may enroll. If applications from resident students exceed the school’s capacity by program, class, grade level or building capacity, the charter school must select students through an equitable lottery process.

Special education students may attend charter schools. However, the special education student’s resident school district is responsible for providing any required special education and related services.

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Employee Selection and Collective Bargaining Rights

Staff assignment to a public charter school is voluntary. The charter school’s governing body controls employee hiring. The “employer” of public charter school employees may either be the sponsoring entity or the public charter school governing body.

If the local school district is the sponsor and also the employer of the public charter school employees, then existing collective bargaining agreements may cover these employees.

Charter school employees may organize to form a bargaining unit and bargain under Oregon’s collective bargaining law with their employer if the state Board is the sponsor and also the employer, or if the public charter school’s governing body is the employer.

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Teacher License Requirements

At least one-half of the charter school’s total full-time equivalent (FTE) teaching and administrative staff must hold valid teaching licenses issued by the Teacher Standards and Practices Commission (TSPC). The other teachers must be registered with the TSPC. Teachers at a public charter school must comply with TSPC’s definition of “highly qualified staff” to be in compliance with federal No Child Left Behind Act (NCLB) requirements.

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Student Transportation

The charter school must provide student transportation and may negotiate with a school district for these services. Districts must provide transportation to students attending charter schools within their boundaries in the same manner they currently provide transportation to students attending private schools within their boundaries. Students must use current bus stops and routes. School districts are not required to alter or add bus routes to provide these transportation services.

Charter school student transportation costs are reimbursed by the state at the same rate as are other transportation costs.

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Charter Schools Funding

Charter schools are funded out of the State School Fund. Charter school students are considered residents of the school district in which the public charter school is located for purposes of distributing the State School Fund unless the student is eligible for special education and related services under the federal Individuals with Disabilities Education and Improvement Act (IDEIA). Under Oregon’s charter school law, the resident district of the student that is eligible for special education and related services maintains legal and financial responsibility for that student. The resident district must enter into a contract to fund the educational program for the student with disabilities at the charter school.

Funding for students with disabilities is similar to funding for students that are not eligible for special education and related services. Under ORS Chapter 338, students with disabilities generate an additional weight factor in the state school fund formula. The resident district must minimally transfer to the charter school either 40 percent of the double weight, if student is K-8, or 47.5 percent of the double weight, if the student is in grades 9 through 12.

There are two funding levels, based on the charter school’s sponsorship:

1. If a school district is the sponsor, it must contract with the charter school to pay for educational services. The payment must equal an amount per weighted average daily membership (ADMw) that is at least equal to: 80 percent of the amount of the school district’s General Purpose Grant per ADMw for students in grades K-8; and 95 percent of the amount of the school district’s General Purpose Grant per ADMw for students in grades 9-12.
2. If the State Board of Education is the sponsor, the school district in which the charter school is located must contract with the charter school to pay for educational services for charter school students. The payment must equal an amount per ADMw of the charter school that is at least equal to: 90 percent of the amount of the school district’s General Purpose Grant per ADMw for students in grades K-8; and 95 percent of the amount of the school district’s General Purpose Grant per ADMw for students in grades 9-12.

A school district and a charter school may negotiate contracts that pay more than the preceding examples. School districts legally are required to forward payment for educational services to the public charter school within 10 days after receiving the funds from the State School Fund through the Oregon Department of Education.

(ORS 338.155)

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