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Some charter school operators make profits by leasing space to themselves at unusually high rates. By Ilya Andriyanov from www.shutterstock.com

Derek W. Black, University of South Carolina; Bruce Baker, Rutgers University, and Preston Green III, University of Connecticut

While critics charge that charter schools are siphoning money away from public schools, a more fundamental issue frequently flies under the radar: the questionable business practices that allow people who own and run charter schools to make large profits.

Charter school supporters are reluctant to acknowledge, much less stop, these practices.

Given that charter schools are growing rapidly – from 1 million students in 2006 to more than 3.1 million students attending approximately 7,000 charter schools now – shining a light on these practices can’t come too soon. The first challenge, however, is simply understanding the complex space in which charters operate – somewhere between public and private.