Law sharply restricts expansion of charter schools

Analysts also will evaluate a school district's role and responsibility in funding students who attend charter schools.

When charter schools first appeared in Utah in the late 1990s, school districts were responsible for giving them part of the money they collected from local property taxes.

"There was difficulty and hard feelings about districts sending a check to a charter school for the component of half of the property tax for that student," Stephenson said. "So to end the adversarial relationship, the Legislature let the district keep 100 percent of the property tax and the state kicked in the equivalent of that."

Since then, charter leaders say the relationship between districts and charters has improved. But, Stephenson said, as the number of students in charter schools increases, whether or not districts will continue to be held harmless is a concern.

This year the state has around 40 charter schools with more than 10,000 students. Next fall there will be more than 50 charters with an estimated 15,000 students.

"As charter school numbers grow — if we were to get to 20,000 or 30,000 students — the question is should local districts continue to be held harmless?" Stephenson said. "How long should the districts be held harmless for loss of hundreds of students?"

The study is scheduled for completion by Oct. 31.

Along with the study, the state will be conducting a charter school audit to look at the financial viability of charters and their business plans.

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