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Determining Funding for Online Schools

Policy Brief - Oct 15, 2013

Author(s) - Bruce D. Baker, Rutgers University Justin Bathon, University of Kentucky

How much do online schools cost? A new brief investigates the funding of online education and virtual schools and provides a new, unified conceptual approach to funding online education. As supplemental online education and full-time virtual schools become more prominent in education, policymakers must address the key challenge of determining a fair and effective way to allocate funds for these institutions. Policymakers should develop new funding formulas based on the actual costs of operating virtual schools and link funding to accountability so cost-effectiveness can be determined. Bruce Baker of Rutgers University and Justin Bathon of the University of Kentucky provide tenets of a reformed online school financing system, designed to serve as a practical guide for state and local subsidies. Model legislation, based on their recommendations, is also provided.