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Pennsylvania Enacts Cyber Charter Overhaul, Redirecting $175 Million to Districts

State leaders say the new formula corrects overpayments to online charters.

Overview

  • Gov. Josh Shapiro signed a long-delayed $50.1 billion budget that lowers cyber charter tuition rates, with state estimates showing $175–$178 million flowing back to school districts this year.
  • The law replaces a prior $100 million reimbursement and revises the tuition calculation to exclude cyber students and allow deductions for costs cybers do not bear, such as transportation and buildings.
  • New accountability rules require students to be visible on camera during live classes, set weekly benchmarks for asynchronous work, mandate twice-yearly residency checks, order wellness checks, and require a judge to approve transfers for habitually truant students.
  • Cyber charter operators dispute the fiscal impact, projecting losses as high as $275–$300 million, warning of two school closures within a year, five more within two years, and about 2,000 layoffs.
  • District impacts include a projected $50 million savings for Philadelphia this school year along with statewide literacy mandates and other education investments taking effect immediately.