The libertarian CATO Institute, which supports vouchers and school choice, today published a study of the way that charters are affecting private schools.

Briefly, charters are drawing many students from private schools. In urban districts, about 1/3 of charter elementary students come from private schools (mostly Catholic), causing these schools to be in deep financial distress. CATO writes that charters:

are wreaking havoc on private education. Charter schools take a significant portion of their students from private schools, causing a drop in private enrollment, driving some schools entirely out of business, and thereby raising public costs while potentially diminishing competition and diversity in our education system overall.

It is no accident that inner-city Catholic schools are closing as charters open nearby. The Catholic schools charge tuition, the charters are free.

The study concludes:

The flow of private-school students into charters has important fiscal implications for districts and states. When charters draw students from private schools, demands for tax revenue increase. If governments increase educational spending, tax revenues must be increased or spending in other areas reduced, or else districts may face pressures to reduce educational services. The shift of students from private to public schools represents a significant shift in the financial burdens for education from the private to the public sector.

The advent of online schools is also causing fiscal distress, as public school lose funding to online vendors. Another unanticipated development is that home schooling families can now claim public funding for their children if they enroll in an online charter, whereas in the past these students did not receive public funding.