1. Virtual Schools: Finance and Accountability

2. About NCSL
Instrumentality of all 50 state and territorial legislatures
Bipartisan
Provides research, technical assistance and opportunities to exchange ideas
Advocates on behalf of legislatures before the federal government
NCSL is committed to the success of state legislators and staff. Founded in 1975, we are a respected bipartisan organization providing states support, ideas, connections and a strong voice on Capitol Hill.

3. Agenda What are virtual schools? How are Virtual Schools funded?
50-State Review
Performance-Based Funding
Hybrid Funding Models
Completion-Based Funding Models
Competency-Based Funding Models
Questions

4. At least 32 states and the District of Columbia allow for the operation of multi-district virtual schools. In the school year, 2.24% of Ohio’s student population attended a computer-based community school.
This translates to 39,044 students, the third highest enrollment nationwide.

5. What are virtual schools?
Virtual schools operate differently from state to state.
Single statewide entity
Multiple state-approved providers
Multi-district, or single-district programs
Single statewide—Florida
Multiple—Ohio and Oklahoma
District-Approved– Wisconsin

6. How are virtual schools funded in the states?
6 Policy Buckets to categorize state funding
Performance-Based
Hybrid
Equivalent
Diminished rate
General Allocation
District-determined

7. 50-State Review
Performance-based—6 states—Florida, Minnesota, Missouri, New Hampshire, Texas, Utah

8. Performance-Based
Performance-based—6 states—Florida, Minnesota, Missouri, New Hampshire, Texas, Utah

9. Hybrid

10. Equivalent

11. General Allocation

12. Diminished Rate

13. District-Determined

14. Performance-Based Funding
“Performance-based funding is a catch-all phrase in public budgeting circles that relates to a number of different models that determine funding levels on the basis of one or more measures of an organization’s performance. Completion-based funding is one type of performance-based funding system. The term completion-based funding is more common in K12 systems…” (Miller et al., 2016)

15. Hybrid
A combination of performance-based funding and funding equivalent to charter schools
Idaho, Louisiana, Mississippi, Wyoming

16. Examples of Hybrid Funding Models
Mississippi
Wyoming

17. Completion-Based Funding
Most common form of performance-based funding
Florida, Minnesota, Missouri, Texas, Utah
How is completion determined?
End-of-course exams or credit award

18. Examples of Completion-Based Funding
Florida
Utah

19. Competency-Based Funding
Only one state currently utilizes a degree of competency-based funding for virtual schools
New Hampshire Virtual Learning Academy Charter School
How does it work?

20. Sources and Additional Resources
NCSL
Miller, L., Just, M., & Cho, J. (2016). Low-stakes completion- based funding: What can we learn from the school that invented it? Lexington, KY: University of Kentucky Center for Innovation in Education.
Patrick, S., Myers, J., Silverstein, J., Brown, A., Watson, J. (2015). Performance-based Funding & Online Learning: Maximizing Resources for Student Success, International Association for K–12 Online Learning.
Pazhouh, R., Lake, R., & Miller, L. (2015). The Policy Framework for Online Charter Schools, Center for Reinventing Public Education.
Education Commission of the States, “50-State Comparison: Charter School Policies”.

21. Benjamin Erwin
Research Analyst
Direct line: (303)