School Choice & Charters

Oklahoma Charter Schools Granted Local Tax Revenue in ‘Seismic’ Settlement

By Nuria Martinez-Keel, The Oklahoman — March 26, 2021 3 min read
This July 19, 2019 photo shows an Epic Charter Schools office in Oklahoma City. The Oklahoma State Board of Education voted Thursday in favor of an agreement with the state's public charter school association to settle a 2017 lawsuit.
  • Save to favorites
  • Print

A groundbreaking settlement will fundamentally change the way charter schools are funded in Oklahoma, despite vehement opposition from the state’s top education official.

The Oklahoma State Board of Education voted 4-3 on Thursday in favor of an agreement with the Oklahoma Public Charter School Association to settle a 2017 lawsuit.

The charter school association called the agreement a “tremendous step” for equality in school funding.

State schools Superintendent Joy Hofmeister said the settlement could violate state law and have “seismic” implications by redistributing school funding.

“Today’s board action circumvents the will of the people of Oklahoma and the state legislature by unilaterally determining how public education is to be funded,” Hofmeister said in a statement Thursday evening. “I fear this action knowingly violated Oklahoma statute and the Oklahoma Constitution.”

The agreement will allow charter schools to receive local tax dollars previously unavailable to them, such as property taxes and motor vehicle taxes, in proportion to their student attendance. There are 81,000 students attending Oklahoma charter schools.

This agreement would bring charter schools on nearly equal footing with the way traditional public school districts are funded and could drive hundreds of dollars more per student to charter schools.

However, charter schools still would lack the ability to issue bonds or levy taxes. The settlement does not include back pay to charter schools.

The decision potentially could generate millions of local tax revenue to statewide virtual charter schools, Hofmeister said. The state’s largest virtual charter school system, Epic Charter Schools, is already booming with state funds because of spiking enrollment.

Charter schools and virtual charter schools are public schools that have more freedom over their curricula and are subject to extra oversight. Families must choose to enroll in charter schools, unlike traditional school districts where students are automatically zoned.

Hofmeister said the settlement offer was made a day before the board’s Thursday meeting.

“I do not support this nor do I think the board should vote to approve this settlement, which came in yesterday,” Hofmeister said during the board meeting.

Board members Estela Hernandez, Brian Bobek, Trent Smith, and Jennifer Monies voted in favor of the settlement. Carlisha Williams-Bradley and Bill Flanagan joined Hofmeister in voting against it.

The board discussed the details of the agreement in a private meeting and voted publicly on the issue without reading or summarizing the settlement. The Oklahoman later obtained the full text of the agreement.

The president of the Oklahoma Public Charter Schools Association, Chris Brewster, praised the board’s decision. Brewster is the superintendent of the Santa Fe South Schools charter district.

“This settlement is a tremendous step toward funding equity for the students who attend our state’s public charter schools,” Brewster said in a statement. “We pursued this action based on the belief that our students deserve the same educational opportunities and funding as their peers who attend traditional public schools. It is fundamentally unfair for districts to receive funding for students who do not attend their schools. This settlement rights that wrong.”

The charter school association sued the state board in Oklahoma County District Court in 2017, demanding charter schools have access to the same local revenues that fund traditional public schools.

Charter schools have been funded through state aid dollars and federal funding with no revenue from local tax sources.

The charter school association argued the difference in funding opportunities meant public school districts could receive hundreds, if not thousands, of dollars more per student.

Copyright (c) 2021, The Oklahoman. Distributed by Tribune Content Agency.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, and responsible adoption.
Content provided by Lightspeed Systems
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
AI in Schools: What 1,000 Districts Reveal About Readiness and Risk
Move beyond “ban vs. embrace” with real-world AI data and practical guidance for a balanced, responsible district policy.
Content provided by Securly
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
K-12 Lens 2026: What New Staffing Data Reveals About District Operations
Explore national survey findings and hear how districts are navigating staffing changes that affect daily operations, workload, and planning.
Content provided by Frontline Education

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

School Choice & Charters The Federal Choice Program Is Here. Will It Help Public School Students, Too?
As Democrats decide whether to opt in, some want to see the funds help students in public schools.
9 min read
Children play during recess at an elementary school in New Cuyama, CA on Sept. 20, 2023. Can a program that represents the federal government’s first big foray into bankrolling private school choice end up helping public school students?
As Democratic governors decide whether to sign their states up for the first major federal foray into private school choice, some say they want public school students to benefit. Here, children play during recess at an elementary school in New Cuyama, Calif., on Sept. 20, 2023.
Marcio Jose Sanchez/AP
School Choice & Charters Where Private School Choice Enrollment—and Spending—Is Surging
States have devoted billions of dollars recently in public funds families can use on private schooling.
13 min read
20260203 AMX US NEWS COULD TEXAS SCHOOL VOUCHER PROGRAM 1 DA
Enrollment in private school choice programs has grown quickly around the country in recent years. Applications open this month for Texas' newly created private school choice program, the largest such program in the country. Private "microschools"—such as the Humanist Academy in Irving, Texas, shown on Jan. 8, 2026—could benefit.
Juan Figueroa/ The Dallas Morning News via Tribune Content Agency
School Choice & Charters Federal Program Will Bring Private School Choice to At Least 4 New States
More state decisions on opting into the first federal private school choice program are rolling in.
6 min read
Tennessee Gov. Bill Lee speaks during a news conference Tuesday, Nov. 28, 2023, in Nashville, Tenn.. Lee presented the Education Freedom Scholarship Act of 2024, his administration's legislative proposal to establish statewide universal school choice.
Tennessee Gov. Bill Lee speaks in favor of establishing a statewide, universal private school choice program on Nov. 28, 2023, in Nashville, Tenn. Tennessee lawmakers passed that proposal, and Lee is also opting Tennessee into the first federal tax-credit scholarship program that will make publicly funded private school scholarships available to families. Tennessee is one of 21 participating states and counting.
George Walker IV/AP
School Choice & Charters As School Choice Goes Universal, What New Research Is Showing
New analyses shed light on the students using state funds for private school and the schools they attend.
Image of students working at desks, wearing black and white school uniforms.
iStock/Getty