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PCSD warns of $135 million charter funding gap as military preference law passes; voucher and funding-formula changes debated
Summary
Superintendent Chris Neely told trustees the district faces a $135 million funding shortfall for charter students and urged legislators not to reduce charter funding; the board also was briefed on a new 10% military child enrollment preference and a carry-forward ESA (voucher) program that district staff expect could face legal challenges.
Superintendent Chris Neely told the South Carolina Public Charter School District board on May 15 that charter students in the district remain underfunded relative to traditional districts and urged legislators not to cut charter funding. The board also heard that the General Assembly approved a military child enrollment preference for certain schools and that the ESA (voucher) program and a proposed change to virtual-school funding remain points of concern.
"Public charter school students will receive just $12,891 per student," Neely said, citing Revenue and Fiscal Affairs figures, and contrasted that with $19,376 per pupil in traditional districts. He said the $6,485 gap amounts to a total shortfall of more than $135 million for students currently enrolled in charter schools in the district.
Brad Henry, the district's external affairs director, briefed trustees on the close of the 2025 legislative session. He said the House changed the funding formula in House H2 by reducing the funding weight for virtual schools from 0.65 to 0.35 — a change the district opposes — and that the House added a proviso to create a study committee on school funding led by the Revenue and Fiscal Affairs Office.
Henry also told trustees the legislature enacted a military child preference bill that will allow a 10% enrollment preference for children of active-duty military at qualifying schools; PCSD had advocated for a 20% preference but accepted a 10% preference in negotiations. Henry said the measure, which he described as the product of a two-year effort, aims to encourage charter schools to locate near military installations to serve military families.
On the ESA (educational savings account) bill sometimes described as a voucher program, Henry said the legislation cleared the legislature and, in full implementation, would authorize 15,000 scholarships of up to $7,500 each — a program he estimated would carry an annual price tag of a little over $112 million. He said the district expects the ESA program could be challenged in court before full implementation.
Board members asked questions about how parents perceive improvements tied to charter expansion in rural and corridor communities; staff described school-level marketing efforts, social-media outreach and community engagement intended to boost enrollment in targeted areas. Superintendent Neely and staff also described the district's growth: enrollment rose from about 15,500 students in 2020–21 to more than 21,000 students in 2024–25, with especially pronounced increases along the I‑95 corridor.
Neely urged the Senate, during the conference committee, not to reduce the funding weight for charter students. "This isn't a charter school issue. It's a student funding issue," he said. "If we're serious about putting kids first, we shouldn't be making rash decisions about education funding based on obscure accounting arguments. We should be asking why are charter schools still receiving so much less in state funding."
