Seven of the state's 12 charter schools may have been dealt a fatal blow yesterday by the Senate Finance Committee, which rejected a bill that would have extended the cash-strapped schools a $1.5 million lifeline. Without it, charter advocates said, the small schools will likely be forced to close.

"It's very disappointing, to say the least," said Rep. Kim Casey, an East Kingston Democrat whose son attends a charter school. "If we have a public policy that says charter schools are good without backing that up with a reasonable funding mechanism, it's just all talk. It's time to stop talking."

But there may not be much time left, at least for the seven schools most in need. The full Senate will vote on the bill this week. The outlook isn't good; Gov. John Lynch said he won't approve any new spending outside of the current state budget.

Several frustrated charter advocates who gathered in the State House hallway after yesterday's vote said they're cautiously optimistic - mostly because they have no other choice. At the same time, however, they said the finance committee sent a clear message about the future of charter schools.

"This is not an issue about money," said Bill Wilmot, head of the Seacoast Charter School and an outspoken advocate. "This is a concerted effort to end charter schools in New Hampshire."

Sen. Lou D'Allesandro, chairman of the committee, said it is about the money. He said the state shouldn't force local school districts to forward aid to the charter schools, as some versions of the bill required, because none of the schools was approved by local voters. He said that while he's concerned the state-approved schools could close, charter officials should have had backup financial plans.

"They knew this would be problematic," D'Allesandro said.

The House approved the bill in March in a 198-91 vote. The full Senate gave it preliminary support earlier this month, but that was essentially a theoretical vote that showed support for state charter schools. The bill was then sent to the finance committee, which was forced to grapple with the harsh realities of a tight budget.

Support for charter schools in New Hampshire has been rocky. The first schools opened in 2004 as part of a pilot program aided by federal funds. From the start, some local districts resented having to pass along a portion of their state aid for the students who left the local schools for the charters.

Since then, lawmakers have tweaked the charter school funding law to make it more palatable. But with most federal funds gone, they've failed to come up with a long-term state funding mechanism.

Under current law, charter schools would receive $3,800 per student in state aid next year. The bill voted down by the Senate Finance Committee would provide an additional $2,700 per student to seven charter schools that don't get financial help from local districts, an additional $500 per student to four schools that get some help and an additional $250 per student to a new virtual charter school that doesn't have a building.

In all, the bill would provide an extra $1.5 million for charter schools. Most senators on the committee balked at that number. Only Sen. Maggie Hassan, an Exeter Democrat, spoke in favor of the bill. "We're looking at a one-year opportunity to keep some very successful schools open," she said.

The school funding plan approved by the House and Senate for the 2009-10 school year calls to direct an additional $2,000 per student to charter schools, a move advocates said is small but important. But, they added, it might not matter for a majority of the state's charter schools if the bill is defeated.

Three lawmakers not on the committee tried yesterday to make the bill more acceptable by offering five different amendments that lowered the price tag. The cheapest of the five, offered by charter school champion Rep. Ken Weyler, would have cost the state nothing. Instead, it would have asked local districts to pass along about $8,000 in state aid for each student who left to attend a charter school.

The second cheapest would have cost the state about $621,000. Written by Casey, the amendment asked districts to split the cost of the original bill, which she estimated to be about $1.2 million.