Every August, charter school leaders face the same tension: expenses are due, and state funding hasn’t arrived yet. This year, that pressure is showing up in the data. Here’s a look at what’s happening in key funding states — and what it means heading into the school year.
California: Enrollment is shrinking — and per-pupil funding with it
California K-12 enrollment posted its largest decline since the pandemic this school year — down 1.3%, with losses concentrated in the state’s largest counties. For charter schools competing for a smaller pool of students, that means tighter per-pupil revenue and more pressure to operate lean heading into the fall.
Arizona: A $206 million state shortfall delayed school funding
In 2025, Arizona schools and charters faced delayed state funding disbursements after a $206 million state budget shortfall — driven largely by ESA program overruns. When the state runs short, the funding timeline slips. The bills don’t.
Ohio: Charter schools receive 23% less per pupil than district schools
Even after recent funding increases, Ohio charter schools receive about 23% less per-pupil funding than their local district counterparts — and the latest state budget cut the charter equity supplement. That gap doesn’t close on its own, and it compounds over time.
Minnesota: Nine charter schools closed in 2024 — the most since 1996
Minnesota charter schools are already operating with 30% less funding than their traditional public school counterparts. In 2024, nine closed — the most in the state’s charter history. For schools still standing, cash flow stability is increasingly what separates the ones that make it from the ones that don’t.
Indiana: Indianapolis charter enrollment dropped 740 students in one year
Indianapolis charter schools saw their largest year-over-year enrollment drop in at least seven years in 2025-26 — down 740 students. That kind of shift hits per-pupil revenue hard and fast. Schools that have working capital in place can absorb it. Schools that don’t often can’t.
South Carolina: Charter schools operate on $3,500 less per student than district schools
South Carolina brick-and-mortar charter schools receive 27% less funding per student than traditional district schools — a gap of more than $3,500 per pupil annually — with no local tax revenue to make up the difference. That’s a tight margin to operate on, especially when funding timing doesn’t line up with expenses.
The common thread
Whether it’s enrollment decline, delayed disbursements, or structural funding gaps, charter schools across the country are heading into this school year with less financial cushion than they’d like. Working capital isn’t a last resort — it’s how schools stay operationally stable when the funding environment works against them.
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