The Cost of Charter Schools

New independent report reveals a fiscal crisis that could have deep negative implications for both district schools and existing charter schools.

For detailed information about the report, visit website.

A report by MGT of America, an independent research firm, reveals that LAUSD has lost an astonishing $591 million to unmitigated charter school growth this year alone. If costs associated with charter school expansion are not mitigated with common sense solutions, the district will face financial insolvency, according to an analysis of the report.

As the number of independent charter schools continues to grow, it becomes increasingly important for LAUSD to quantify, forecast, and manage the costs associated with independent charter expansion. LAUSD oversees more charter schools than any other district in the country. Charters are privately managed despite relying heavily on district and taxpayer funding.

Taken together, the findings in the report paint a picture of a system that prioritizes the growth opportunities for charter school operators over the educational opportunities for all students.

UTLA Commissioned Economic Impact Report (EIR)
MGT 2016
Released May 2016

About Us


UTLA, the nation’s second-largest teachers’ union local, represents more than 35,000 teachers and health & human services professionals who work in the Los Angeles Unified School District and in charter schools.


In the Public Interest is a comprehensive research and policy center committed to promoting the values, vision, and agenda for the common good and democratic control of public goods and services.

ITPI is committed to equipping citizens, public officials, advocacy groups, and researchers with information, ideas, and resources on best practices in government contracting and other types of public-private agreements. We help others better understand the impacts of privatization of public services and assets on democratic decision-making, public budgets, and quality public services.

Our goal is to ensure that government contracts and agreements and related public policies increase transparency, accountability, efficiency, and shared prosperity and opportunity through the provision of quality public goods, services, and assets.


MGT of America is a nationwide professional services firm that delivers a diverse range of services to a variety of public sector organizations and nonprofit groups. With a national reputation and impressive track record of business from repeat clients, we provide customized solutions, objective research, creative recommendations, and quality products that respond to each client’s unique needs and time requirements. Our mission is to provide high quality, value-added consulting solutions that exceed the expectations of our clients and provides a meaningful return on investment. MGT goes far beyond the ordinary by affirming our organization’s commitment to improving the quality of life for the people served by our clients.

MGT has assisted our clients to operate more efficiently and effectively by offering common-sense and implementable recommendations, through a careful balance of addressing their immediate needs, while maintaining the vision and direction towards their long-term goals. We approach each opportunity with an understanding of what it is like to stand in our clients’ shoes and understand each engagement demands a commitment to providing professional, accurate, and skilled advice, because in the end, our clients’ decisions depend on it.