Traditional Public Schools vs Charter Schools

Different landscapes, same goal: Building bright futures for all students.

Traditional Public Schools vs Charter Schools

Traditional public schools and charter schools are both publicly funded by the state, with slight distinctions between them.

Traditional public schools are institutions that are run by local school districts and are funded by the government. These schools are typically governed by an elected school board and are required to follow state and federal regulations regarding curriculum, teaching standards, and student testing. Traditional public schools are open to all students who live within their designated boundaries and do not charge tuition.

Charter schools, on the other hand, are publicly funded but privately operated schools that are typically run by non-profit organizations. These schools are granted a charter by a government entity that outlines their mission, goals, and educational approach. Charter schools are often allowed to operate with more flexibility in terms of curriculum, teacher certification, and other aspects of education. They also have the ability to admit students from outside their designated geographic boundaries and may have specialized focuses such as art, technology, or language immersion.

Both charter schools and traditional public schools use public funds. As there are similarities in their purchasing practices, there are several distinct differences.

Procurement practices can vary widely between traditional public schools and charter schools in Texas. Understanding the differences between the two types of schools can help vendors and suppliers tailor their offerings to better meet the needs of each.

Charter Schools

Charter schools face fewer governmental regulations than traditional public schools. Purchasing policy and procedures for each charter school system are set by their own Board of Directors.

Centralized/Decentralized Purchases

Charter schools are more flexible in purchasing practices. They have purchasing departments for major purchases. Schools are allowed to do small purchases.

Compliance with local policies

Charter schools are exempt from some of the State purchasing laws. So, charter schools must follow their own purchasing policy and procedures which are adapted by their Board of Directors. So, quote and bid thresholds might be different for each charter school system.

Compliance with Federal laws

Charter schools are not exempt from federal requirements. If they use federal funds, they must comply with EDGAR requirements.

Traditional Public Schools vs Charter Schools

Traditional Public Schools

Purchasing regulations of the traditional public schools are set by Texas Education Code Section 44.031, Texas Government Code Chapter 2269, Chapter 2253, Chapter 2254, and Chapter 2258.

Charter Schools

Charter schools face fewer governmental regulations than traditional public schools. Purchasing policy and procedures for each charter school system are set by their own Board of Directors.

Quote Process

Most school policies require them to get more than one quotes for the purchases above 10K.

Bid Requirement

Schools must use competitive bid process for the purchases above 50K to comply with Texas Education Code Section 44.031.

Construction Projects

Schools must use competitive bid process for the purchases above 50K to comply with Texas Government Code Chapter 2269.

Bond Requirement

For construction projects, schools must require the contractors execute:
– a payment bond if the contract exceeds $25,000.
– a performance bond if the contract exceeds $100,000 to comply with Texas Government Code Chapter 2253.

Quote Process

Most charter school policies require them to get more than one quotes for the purchases above 10K.

Bid Requirement

Charter schools are exempt from Texas Education Code Section 44.031. They use the bid process to comply with their school policy. The bid threshold changes between 50K and 250K based on the funding resource of the project.

Construction Projects

Charter schools are not exempt from the Texas Government Code Chapter 2269. They must use competitive bid process for the construction projects exceeding 50K.

Bond Requirement

Charter schools are exempt from Texas Government Code Chapter 2253. However most charter schools follow the Chapter 2251 and require the contractors execute:
– a payment bond if the contract exceeds $25,000.
– a performance bond if the contract exceeds $100,000.

Why is the quote threshold set at $10,000 for both traditional public schools and charter schools?

According to the Texas Education Code Section 44.031, Texas Government Code Chapter 2269, Chapter 2253, Chapter 2254, and Chapter 2258, there is no quote requirement.

However most school policies require to get more than one quote for the purchase above 10K. There are two reasons for this requirement.

– Price comparison: They want to make sure getting the best price for the selected products/services.
– Federal requirement: EDGAR mandates receiving more than one quote if federal funds are used for the purchase. Schools prefer to stay in safe side and get more than one quote for all purchases exceeding the quote threshold.

In the last years, Texas Education Agency allowed schools to increase the quote threshold up to 50K for the federal funded purchases. So, schools started to increase their quote threshold to 25K or 50K. However they still practice getting more than one quote to get the best price.

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