Cyber schools, also known as virtual schools, are noteworthy charter school developments that provide viable options for education. Charter schools in general and cyber charter schools in particular are not "revenue neutral" to local school districts. Nationwide, hundreds of millions of dollars allocated for education are being routed into charter schools. As parents opt for cyber schools to augment home-school resources, the funding burden shifts from the family to the taxpayers without input from local districts or residents. Cyber schools' rapidly increasing popularity demands the creation of new standards for educational funding and institutional governance. The recommendations presented in this paper focus on two areas: (1) funding formulas, and (2) empowering local school authorities to operate as management agents who maintain and control cyber school options to benefit their local clientele.