School finance systems are complicated, often controversial, and subject to a certain amount of speculation. Are public schools “overfunded” or “underfunded”? Are they wasting precious taxpayer dollars or putting them to effective use? From which sources are they receiving their funds, and what strings might be attached? Are our public institutions on solid financial footing, or are they in dire straits?
These are fundamental questions that parents and taxpayers have every right to ask and to which they’re owed clear answers. One crucial disclosure is a district’s statement of revenues and expenditures—akin to a business’s income and expense statement. This report describes how a district raised revenue and how it spent those funds during the past fiscal year.
But you may be surprised to learn that the state revenues received and transferred to charters are also included in a district’s financial statement. You wouldn’t know it by simply looking at the statement: Consider, for example, the statement of revenues and expenditures for Cincinnati City Schools in the figure below.
You’ll notice that the presentation doesn’t clearly display the $57 million received to educate Cincinnati...