BY MATTHEW STONE

Staff Writer

States such as Maine that don't allow charter schools are putting themselves at a "competitive disadvantage," the country's top education official said Monday.

The 10 states that do not allow charter schools -- and the 26 that put caps on the number they allow -- endanger their chances for awards from a $4.4 billion education innovation fund that's part of the federal economic stimulus package, U.S. Education Secretary Arne Duncan said.

"They put themselves at a competitive disadvantage for the largest pool of dollars states have ever had access to," Duncan said during a conference call with reporters.

Duncan's statements came the same day the Maine Senate rejected a bill for the second time that would allow charter schools -- essentially killing the legislation. House members had voted in favor of it Friday.

"We want to invest in states that push a reform agenda," Duncan said.

And states that do not allow charter schools, he said, are limiting educational innovations and ignoring the wishes of parents.

"If you're bumping up against caps, that's hindering creativity," Duncan said of some states' limits on the number of charter schools. "I think much of our job is to listen to what our families are asking for."

Charter schools are free from many of the restrictions governing locally funded public schools. Maine's proposal would have allowed local school boards and universities with education programs to authorize the schools. The school boards and universities would have also had the power to revoke a charter school operator's permission to run a school.

Critics of charter schools in the Legislature said a new set of schools would divert too many resources away from local districts at a time when they're struggling to make ends meet.

Sen. Justin Alfond, D-Portland, said during debate that a vote against charter schools was a vote of confidence in Maine public schools.

"It's time for us to put confidence back to the schools that we already have here," he said Thursday.

But what's important, Duncan said, is offering parents and their students more choice.

"Every parent wants what's right for their child," he said. "Parents are very smart and sophisticated about what the right learning environment is for their child."

It's possible for states to innovate educationally outside of charter schools, Duncan said. But charter schools are "the one area that has this artificial cap to it," he said.

Duncan said the U.S. Department of Education will make applications available for the $4.4 billion funds pool over the next few months. Federal officials will make a fresh round of funds available next spring.

Matthew Stone -- 623-3811, ext. 435

mstone@centralmaine.com