Differences between charter schools and state schools

Legal structure

State schools are Crown entities with objectives and powers set out in legislation.

A charter school is operated by a body with a contract with the Crown (the sponsor). High-level requirements that apply across all charter schools are laid out in legislation, while specific targets and special characteristics are laid out in the individual contract between the Crown and the sponsor.

Governance

State schools are governed by school boards accountable to their parent community.

Charter schools are governed by sponsors accountable to the Crown under charter school contract and a performance management framework. Sponsors will have flexibility over their governance arrangements and will not be required to have parent or community representation.

Monitoring and intervention

State schools are subject to Education Review Office (ERO) monitoring of a wide range of indicators that contribute to the achievement, engagement and wellbeing of students.

The legislation sets out that the Minister or Secretary of Education can intervene if they have reasonable grounds to believe that there is a risk to the operation of the school or to the welfare or educational performance of its students. The Ministry of Education also identifies schools at risk financially and offers them advice and assistance. Charter schools will also be subject to ERO monitoring. In addition, sponsors must meet performance targets specified in their contracts or they may face intervention. This could be an ERO review, requiring the sponsor to provide specific information or carry out a specific action, replacing the sponsor, or termination of contract.

A statutory Authorisation Board will decide whether to use interventions and which level of interventions it considers proportionate to the problem.

Funding and financial control

State schools receive operational grants from the Minister of Education based mainly on student numbers, year levels, likely level of educational disadvantage and location.

Numbers of teachers centrally funded by the Ministry are set through legislation.

Boards and principals cannot reward staff for high performance. Property funding is directed by the Ministry.

State schools are eligible for separate Ministry-funded services such as school transport, professional development for employees and learner support.

The school board manages the relatively small portion of discretionary funding available to individual schools, after the Crown has allocated funds for salaries and property.

Charter school funding is calculated in a similar way to state schools, but it’s mostly provided as cash on a per-student rate.

Charter schools can be not-for-profit, or for-profit. They can make a profit by meeting their contracted targets at a lower-than-expected cost, for example through efficient property management. Finances are controlled by the sponsor who must produce annual, independently audited financial reports.

Charter schools may not charge tuition fees except for international students. Like State-integrated schools, some charter schools will be permitted to charge property-related fees with amounts set in contracts.

Curriculum

State schools must use the New Zealand Curriculum or Te Marautanga o Aotearoa and national curriculum statements.

Charter schools can use their own curriculum, provided tuition standards are at least equivalent to State schools of the same year levels. The school must meet its contracted performance expectations.