SACRAMENTO (AP) -- California should lift the cap on the number of charter schools, simplify funding and tighten oversight over the alternatives to traditional public schools, a study released Tuesday recommended.

The Legislative Analyst's Office found that the cap of 750 charter schools was no longer necessary now that the schools have been operating for 11 years and are showing academic gains similar or better than other public schools.

Charter schools are public schools run by private organizations.

They don't have to follow many of the rules that govern regular schools, giving them more flexibility on how they spend their money.

Still, charter schools are often overwhelmed by the 34 different funding programs available to them, said Caprice Young, CEO of the California Charter School Association, which represents about 70 percent of the state's 471 charter schools.

"Many times, the staff time required to do the paperwork ends up being more than the grant. It's not just filling out paperwork, it's tracking down the data for the application," Young said.

The LAO recommended rolling two-thirds of those programs into two block grants, which Young said would let more schools, especially smaller schools, apply for and receive that money.

"The deal that charter schools signed up for was give us regulatory freedom and we'll give you student achievement," Young said. "The report says that even with less funding and more political hurdles, charter schools are performing well."

A study last year by the Santa Monica-based Rand Corp. found that most students are doing as well as their peers at regular schools, but those attending home-based or independent-study charter school programs scored lower on standardized tests.

The LAO also recommended giving more organizations the ability to charter schools, including universities. That could help ease the burden on local districts that oversee the charter schools within their districts, said Assemblywoman Sarah Reyes, D-Fresno.

"Local districts are already burdened with doing oversight of their own schools and if they authorize charter schools, they'll be burdened with that too," said Reyes.

Reyes authored legislation to tighten supervision of charter schools after problems with several schools surfaced, usually involving lax oversight of charter schools finances or compliance with state rules.

The Gateway Academy, chartered out of Fresno, had its charter revoked in January 2002 because it charged tuition, hired convicted felons and taught religion. It operated 14 sites with more than 1,000 students.

The California Charter Academy, which is chartered out of Victorville, was also investigated for irregularities, including converting private religious schools to charters and for opening schools far from the school district overseeing them. The organization serves more than 6,000 students at about 60 sites spanning from Butte County to San Diego.

Superintendent of Public Instruction Jack O'Connell said he also supported the LAO's recommendations for allowing additional groups to authorize charter schools and to simplify funding.

The alternative schools "play an important role in our state effort to improve student achievement and family choice," he said.