The explosive growth of educational alternatives with online learning and virtual schools is fraught with numerous issues of funding, licensure, credits, publicity and accountability. The Keeping Pace with K-12 Online Learning: A Review of State-level Policy and Practice (Oct., 2006) report found at North American Council for Online Learning explores these factors and the impact of “learning time, anywhere.” The largest program, Florida Virtual School with 31,000 students is funded for Florida students by the state based on credits completed. That program serves students in Florida and throughout the nation. Almost all states now have programs housed in their borders.
Education Week has an informative article regarding state efforts at regulation of online learning.