Dr. Carey Wright State Superintendent | Maryland Department Of Education
The Maryland State Department of Education (MSDE) and the State Board of Education have introduced a draft regulation aimed at establishing a transparent funding formula for public charter schools across the state. This marks the first such regulatory proposal since charter schools were authorized in Maryland in 2003.
Currently, local school systems are legally required to provide charter schools with funding that is proportionate to what other public schools receive, a standard known as commensurate funding. However, there has been no formal guideline or formula in place to determine these amounts. The proposed regulations seek to address this gap by aligning charter school funding practices with the Blueprint for Maryland’s Future legislation and introducing an administrative fee for shared services.
“Transparency and good-faith negotiations between local school systems and charter schools are critical to achieving shared goals for student success,” said Dr. Carey M. Wright, State Superintendent of Schools. “We want to ensure a more equitable playing field for all schools.”
“For too long, ambiguity has stood in place of policy — creating uncertainty in funding calculations for charter schools in Maryland,” said Dr. Joshua Michael, State Board of Education President. “Today’s action to advance fair, transparent charter school funding regulations brings needed clarity and helps refocus on improving teaching and learning in all public schools.”
Maryland currently has 50 public charter schools operating within eight local school systems, serving approximately 25,000 students.
As part of the regulatory review process, community members will have 30 days after publication in the Maryland Register to submit feedback on the proposed regulation. After this period, the regulation will be reviewed by the Administrative, Executive and Legislative Review (AELR) Committee of the Maryland General Assembly before returning to MSDE and the State Board for further consideration and possible adoption.
This proposal builds on previous actions taken by the State Board in December 2024 and August 2025 that directed local boards to include all revenue streams when calculating charter school funding and negotiate terms regarding centralized services such as student meals, transportation, and employee healthcare. A resolution passed by the State Board in May 2025 affirmed these decisions as well as guidance from Dr. Wright concerning calculation methods.
According to recent rulings by the State Board, local boards retain significant discretion over up to 25 percent of Blueprint funding but must still allocate a proportionate share to charter schools. Additionally, excess special education costs may be deducted from annual operating budgets when determining commensurate funding levels.
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