The purpose of this study was to explore traditional public school administrators' perceptions of competition in North Carolina public education after the implementation of charter school legislation. Surveys of traditional public school administrators at both the district and school levels are analyzed. Interviews of a purposeful sample of traditional public school administrators are used to further explain survey responses.Based on survey and interview responses, North Carolina charter schools have a limited effect on allocative and productive efficiency in NC public K-12 education. Survey respondents' most frequent description of charter schools was "schools that serve a particular population." Interviewed administrators also note that charter schools draw families and students who are seeking a specialized pedagogy or curriculum that may be targeted for a specific student population. Study findings show that traditional public school administrators are not using charter schools as a factor in strategic planning thus limiting the effect on productive efficiency and of creating competition in public education. The effect of charter schools varies across school districts in North Carolina. In some districts, they are a safety valve to partially alleviate overcrowded schools and in others they create a niche for families interested in educational alternatives to the traditional public schools system.