This study assesses funding differences, and the sources of those differences, between charter schools and traditional districts in Texas. The need for this research stems from conflicting reports on charter school revenues and growing concern over the quality of charter school financial data reported through Texas' Public Education Information Management System (PEIMS). Charter school operators and advocates have also called for more research on possible funding gaps, reporting that charter schools receive less revenue per student than traditional districts. Because state funding for districts and charters is based on average daily attendance, or ADA, revenue per-student ADA is the most appropriate measure to use when comparing revenue differences between the two types of schools. After adjusting for potential inaccuracies in charter school PEIMS data, this study compares differences in the per-student ADA revenues of charter and traditional districts for the 2002-03 and 2003-04 school years. It finds that on average charter schools received $8,324 in per-student ADA compared with $8,637 for traditional districts in 2002-03, a gap of $313. In 2003-04, charters received $8,098 in per-student ADA compared with $8,712 for traditional districts, a gap of $614. The primary source of these funding gaps is the difference in facilities funding for the two types of schools. In addition, charters typically have lower attendance rates, which reduce ADA funds, and because charters do not have taxing authority, they do not benefit from property wealth in the same manner as traditional districts. And while charters are generally small urban districts, they do not receive the state funding adjustments granted to Texas' small traditional districts and due to their urbanicity, frequently confront higher costs for educational inputs. Each of these sources of the revenue difference between charters and traditional districts is discussed. Appended are: (1) 2002-03 Revenue vs. Expenditures Charter Schools in Bounds; (2) 2002-03 Revenue vs. Expenditures Charter Schools out of Bounds; (3) 2003-04 Revenue vs. Expenditures Charter Schools in Bounds; and (4) 2003-04 Revenue vs. Expenditure Charters out of Bounds. A glossary of terms is included. (Contains 12 tables and 8 figures.) [This paper was co-prepared with Moak, Casey & Associates, LLP.]