Report: Charter School Vampires Drain Traditional PA Districts Dry by Steven Singer

Originally posted at: https://gadflyonthewallblog.wordpress.com/2017/05/27/report-charter-school-vampires-drain-traditional-pa-districts-dry/

If you ever needed proof that charter schools harm traditional public school districts, look no further.

A new report by Pennsylvania’s Legislative Budget and Finance Committee concludes that these privately run but publicly financed schools often drain traditional public districts of funding.

The report conducted at the behest of the state House and Senate found that charter schools have attached themselves in some way to almost every district in the Commonwealth, but not equally. Half of the state’s traditional public schools suffer from 80% of the state’s charter parasites.

Moreover, 40% of traditional districts with “significant” charter enrollment are struggling to make ends meet. The reason: unfair state mandates about how traditional districts must pay their charter school hangers-on.

The report is based on interviews with 36 superintendents. A total of 29 of these leaders said charter schools hurt their districts. Only four superintendents mentioned any positive impacts at all.

Much of the damage comes from Pennsylvania’s insistence on funding charter schools out of traditional public school budgets. Instead of charter school money coming directly from the state, much of it comes from the traditional district where it has set up shop.

In effect, it’s like a leach sucking away money that could be going to traditional public school students. We’re one of only 13 states that does this.

It leads to many problems.

Chief among them are the state’s special education laws. Local districts are required to pay their charters extra money for special education students. But this additional funding isn’t based on the number of special needs students actually present in the charter school. It’s based on an arbitrary 16%. Local districts pay charters as if these schools had 16% special education students whether they do or not. This incentivizes charters to enroll less than 16% and pocket the difference.

It’s a system so corrupt that only one other state – Massachusetts – uses it.

We’ve always known the system allows for fraud. We just couldn’t prove it was actually taking place – until now. According to the Pennsylvania Department of Education (PDE), in the 2014-2015 school year alone, local districts gave roughly $294.8 million in special ed supplements to charter schools. However, actual charter expenditures on special ed were only $193.1 million.

That’s $101.7 million in profit for charter operators! Ca-ching!

It’s also more than $100 million set aside to educate children that’s not being used for that purpose!

But that’s not the only way charter schools are sucking out local districts’ finances.
Times are tough. Money is hard to come by. If a district struggles to pay its charter schools, the state steps in and withholds the amount of money due to the charter schools from the state funding it would normally send the district – and sends that money directly to the charters instead.

In effect, the state ensures charters are fully funded, while local districts are left to struggle.

And to make matters worse, when charters file a complaint, the state doesn’t even verify if it’s true. The state doesn’t check to see if the district actually did pay its charters or not. It just withholds whatever money charter operators say they’re owed.

Local districts can appeal overpayments to charters. Right now there are 317 general appeals pending for a total of nearly $30 million in disputed funding – half of which is from Philadelphia, alone!

Nor is this the only area where charters are given preferential treatment. When a charter school attaches itself to a traditional public school, that traditional district must pay to transport kids to the charter school – but it is not required to provide transportation to its own students.

Pennsylvania is one of only 11 states to require transportation to charter schools.

But that’s not the worst of it.

Now we come to cyber charter schools – the Count Draculas of the charter world.

The report estimates an additional $100 million in overpayments to cyber charters because of state law that overestimates their expenses. They are collecting much more money than they need to operate. They don’t have the same costs as brick-and-mortar institutions.

Cyber charter school students are given a computer and internet access. That’s about it. No costly building to run. Students usually do their lessons at home. Even when taking into account cyber charter staff, expenses are much lower than at other kinds of schools yet they are calculated without consideration of these differences.

Once again, state tax dollars that could be used to educate students become pure profit for charter operators. It is businessmen who win and students who lose.

The legislature used to acknowledge the burden charter schools put on local districts. The state budget used to include a line item reimbursing local districts for a percentage of their payments to charters. In 2010-11, that was $225 million. However, this money disappeared during the Gov. Tom Corbett administration when Republicans gained control of the legislature and prioritized tax cuts over charter school relief.

Though Corbett was defeated by Democrat Tom Wolf for the governorship, the legislature is still controlled by Republicans and the charter school reimbursement remains a distant memory.

But perhaps this new report signals a change in policy.

It contains several suggestions to fix Pennsylvania’s broken charter school laws. These include:

• Permitting school districts to negotiate charter per pupil payment rates and methods.
• Eliminating mandates for transportation that are inconsistent with services offered for district-operated schools.
• Requiring the state to check with local districts when charter schools complain of underpayment.
• Requiring greater transparency and fiscal accountability addressing problems like shell ownership, leasing, state payments, and conflict of interest policies.
• Allowing audits of charter school funds.
• Prohibiting the guaranteeing of loans where there is no direct school involvement.
• Requiring charters to submit financial records for the district to review.
• Requiring parents who place students in charters to first register with the local school district and then notify the district of changes in status.
• Eliminating public school districts’ responsibility for charter school compliance with compulsory attendance requirements.

However, perhaps the biggest game changer is how charters set up shop in the first place.

Right now when charter operators want to open a school in a local district, the local school board gets to say yea or nay. However, school directors aren’t allowed to consider how this will financially impact the district. The report suggests this be changed; Districts should be allowed to approve or deny charters based on dollars and cents.

Currently local school directors are forced to approve charters that they know will hurt their students. This change would require charters to be equal partners with traditional districts or else be blocked. In effect, it would transform them from parasites to symbiotic organisms.

And as luck would have it, there are already two separate but similar bills that have been introduced that propose many of these changes.

One (Senate Bill 670) was introduced by Sen. Jim Brewster (D-McKeesport). The other (Senate Bill 198) was introduced by Sen. Vincent Hughes (D-Philadelphia). Brewster’s bill would “realign and redefine how local school districts, charter schools, students and taxpayers interact.” Hughes’ legislation would “provide local school boards with the tools to better oversee charter schools in their school districts.”

Charter school reform is something that members of both parties have expressed interest in. However, until recently Republican efforts at it have been light on reform and heavy on destructive means to further deregulate an already dangerously unregulated industry, thus worsening the problem.

Charter support has been strongly bipartisan. Champions of this new report claim that these suggested reforms aren’t anti-charter. They’re an effort to make both charters and traditional public schools work together instead of against each other.

Time will tell whether lawmakers are willing to do so.

Given the large donations received from the charter industry to lawmakers on both sides of the aisle, true reform may be difficult.

But at least we now have a state-sanctioned report to point to when referencing the multitude of problems associated with the industry.

Charters have been officially recognized by the state as parasites.

Will lawmakers do something to stop that unending sucking sound?