The Maryland State Department of Education (MSDE) and the State Board of Education shared a draft regulation Wednesday that would create guidelines on how districts should fund public charter schools. 

According to state education officials, local school systems are currently required to fund charter schools proportionally to other public schools. However, current laws do not provide a funding formula. 

If approved, the regulation would be the first implemented since charter schools were established in Maryland by a 2003 law. Maryland's 50 public charter schools serve nearly 25,000 students, according to officials. 

The proposed regulation would align charter school funding with the legislation for the Blueprint for Maryland's Future, a plan developed to increase spending for schools in underfunded areas. The regulation would also establish an administrative fee for shared services. 

"For too long, ambiguity has stood in place of policy — creating uncertainty in funding calculations for charter schools in Maryland," said Dr. Joshua Michael, the president of the State Board of Education. "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."

Community members have 30 days to share their thoughts on the regulation. The proposal will then go to the Maryland General Assembly's Administrative, Executive and Legislative Review Committee before being sent back to MSDE and the Board of Education for further consideration. 

The proposal comes after December 2024 and August 2025 State Board of Education rulings that directed local school boards to use all revenue streams to calculate funding for their charter schools and negotiate the terms for services like transportation, student meals and employee healthcare, officials said. 

The State Board of Education passed a resolution in May that affirmed the guidance given to local school systems on the formula to calculate charter school funding. 

The board ultimately ruled that local school boards have discretion in the use of up to 25% of funding from Maryland's Blueprint plan. However, they have to provide a proportionate amount to their local charter schools. The ruling also allowed for additional special education funds to be subtracted from the annual operating budget when calculating funding for charter schools. 

"Transparency and good-faith negotiations between local school systems and charter schools are critical to achieving shared goals for student success," said State Superintendent Dr. Carey M. Wright. "We want to ensure a more equitable playing field for all schools."