Charter School Expansion Act of 1998

Charter School Expansion Act of 1998 - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to authorize a State educational agency (SEA) to use funds for planning, designing, and initial implementation of public charter schools. Requires local educational agencies (LEAs) to use innovative assistance funds for the same purpose.

Sets forth certain priorities for awarding charter school program grants to SEAs. Bases such priorities on State progress in increasing numbers of high quality and accountable charter schools, and on State provision for: (1) non-LEA public chartering agencies or LEA appeals processes for denials of charters; (2) periodic review and evaluation of charter schools by the chartering agency; and (3) charter schools' participation in State or local assessments of public schools.

Includes among requirements for SEA applications for charter school program grants a description of how the SEA will: (1) inform each charter school of available Federal programs and funds that each such school is eligible to receive; (2) ensure that each such school receives its commensurate share of Federal education funds allocated by formula; and (3) disseminate best or promising practices of charter schools to LEAs.

Includes among criteria for the amount of such a grant award to an SEA the number of charter schools that will be created in the State.

Directs the Secretary of Education to: (1) reserve a specified amount for national activities on behalf of such charter schools; and (2) (along with SEAs) ensure that each public charter school receives its full share of funding for LEAs for helping disadvantaged children meet high standards.

Sets forth requirements for solicitation of input from charter school operators, student records transfer, and paperwork reduction.

Specifies that a public charter school: (1) must have a performance contract with the authorized public chartering agency in the State; and (2) is a school to which parents choose to send their children.

Extends the authorization of appropriations for FY 1999 through 2003.