Bruce Baker is an expert on school finance and a professor at the Graduate School of Education at Rutgers University.

In this post, he explains the difference between public schools and charter schools in terms of where public money goes. This is one of the biggest differences between the two sectors. Whether you are a journalist, an auditor, or a taxpayer, you should be informed.

Baker writes:

Following public dollars through a traditional school district is, by comparison, straightforward. District budgets are public record. Board meetings are open. Every dollar of state and local revenue flows into a single governmental entity that files public financial statements, undergoes independent audits, and answers to elected or appointed boards bound by open-meetings and public-records law. You can follow the money because the law requires the money to be followable.

Charter school finance doesn’t work that way — not because it’s illegal, but because it’s structured differently from the ground up. A single public funding stream can pass through a nonprofit school corporation, a for-profit management company, a related real-estate entity, and a tax-exempt bond issuance — and at almost every hop, the entity receiving the money is under no obligation to disclose anything to the public. Some links in that chain file a Form 990. Some don’t file anything at all. The paper trail doesn’t disappear, but it moves from one regulatory regime to another — nonprofit tax filings, corporate registries, county property records, municipal bond disclosures — each with its own rules, its own audience, and its own blind spots. Tracing it means knowing which of several unrelated public filing systems to check at each step, and accepting that at some steps, no public filing exists at all.

Open the link to learn how to follow the charter school money trail.