The National Education Association defines charter schools as follows: “Charter schools are publicly funded elementary or secondary schools that have been freed from some of the rules, regulations, and statutes that apply to other public schools, in exchange for some type of accountability for producing certain results, which are set forth in each charter school’s charter.” The first charter school was established in Minnesota in 1991 as a part of ongoing educational reform efforts and more specifically, an expansion of market-based school reform. Proponents of charter schools claim that they bring much needed entrepreneurial spirit and a competitive ethos to public education. Opponents claim that to outsource the running of public schools to private entities is to redirect already scarce resources to service fees and profits while creating new layers of administration.

Since the first charter school was established in Minnesota, 40 additional states have passed legislation permitting the formation of charter schools and the number of such schools has grown with each passing year. The formation of Education Management Organizations (EMOs), both nonprofit and for-profit, has been one result of the legislation enabling charter schools. Some EMOs are now quite large, managing dozens of schools while others manage a single school. The diversity of this category of management companies is quite extreme. While not all charter schools are operated by EMOs, in the academic year 2011-12 such EMOs accounted for approximately 39% of all charter schools and 50% of all students enrolled in charter schools. And of the nearly one million students enrolled in EMO-run schools that year, 51% were enrolled in for-profit EMOs.

Today’s market size is the total number of charter schools operating in the United States in the academic years beginning in 2000 and 2010. While charter schools still make up a very small percentage of all public schools in the country (5.3%), it is an area that some people feel holds great promise for further privatization of government services.

Geographic reference: United States
Year: School year starting in the fall of 2000 and 2010
Market size: 1,993 and 5,274 respectively
Sources: (1) “Charter Schools,” a fact sheet on the National Education Association web site from which we quote the definition of these schools, available online here. (2) Gary Miron and Charisse Gulosino, Profiles of For-Profit and Nonprofit Education Management Organizations, November 2013, National Education Policy Center, available online here. (3) Tables 71, 98, and 161 from chapter two of the Digest of Education Statistics: 2012, published by the NCES in 2013 and available online here.
Original source: U.S. Department of Education, National Center for Education Statistics (NCES); National Education Policy Center, Commercialism in Education Research Unit (CERU)
Posted on January 8, 2014