In some states, the charter and contract concepts are combined. This underscores the charter school's unique ability not only to design its own program but to bring in a proven program. At the moment, charter schools are the principal sites of school-based financing. Over the years, state policymakers have been enormously frustrated by their inability to provide better schools and better student performance, even though public education usually represents the state's largest expenditure. The problem has been that states do not deal directly with schools.
States deal with districts.
In order to get better schools, a state must get its districts to act, and this can be difficult. Until recently, governors and legislators had no alternative outside of using vouchers, which most prefer to avoid. Suddenly, they do see an alternative. By unbundling the districts, they can open the door for charter schools, which in turn give districts both an incentive and an opportunity to improve their schools. Any strategy that emphasizes schools has the potential to benefit principals, whose roles are enlarged where districts delegate authority.