Closure Rate for Charter Schools at 15 Percent

By Elyse Morrigan

A new report by the Center for Education Reform that analyzes the level of accountability and the general state of the nation’s charter schools shows that the current closure rate is at around 15 percent, with many of the closures being blamed on finance.

The report, “The State of Charter Schools: What We Know – and What We Do Not – About Performance and Accountability”, is the first-ever national analysis regarding the number of charter schools that have closed since 1992, the basis by which authorizers ensure performance-based accountability.

“All too often, supporters and opponents of charter schools claim that bad charter schools don’t close,” said Jeanne Allen, president of The Center for Education Reform.

“The truth is charter schools that don’t measure up are closing at a rate of 15 percent. Regrettably, the same can’t be said for traditional public schools.”

The report finds that of the approximately 6,700 charter schools that have been opened across the country, 1,036 have closed since 1992.

These closures have been due to five key factors:

41.7 percent cited financial difficulties, 24 percent said mismanagement led to their closures, while 18.6 percent cited academic issues and the other 10 percent citid district and facilities obstacles.

Most charter schools that close appear to close within the first five years, or within their first charter contract. But academic closures usually take longer because it takes the whole charter term to gather enough sound data and make proper comparisons, the report shows.

In the report, the correlation between strong charter school laws, accountability and effective charter schools was hit home. Independent that have full control over how they evaluate charter schools are able to create streamlined, effective tools to manage their portfolio of charter schools and close those that are not living up to their contract.

“The quality of charter schools in the U.S. is not as simple as saying ‘there are too many bad charters out there,’” said Allen.

“The real story about charter school closures and accountability is that strong state charter laws and strong authorizers give schools a better chance at success because they hold them accountable and can offer them tools to succeed.”