Report: Charter schools, cyberschools overfunded
FILE PHOTO - School Lane Charter at 2400 Bristol Pike in Bensalem.
Posted: Thursday, June 21, 2012 5:45 am | Updated: 7:00 am, Thu Jun 21, 2012.
Posted on June 21, 2012
Pennsylvania's formula for funding charter schools and cyberschools is "flawed and overly generous," costing taxpayers about $1 million a day more than it should, according to a report released Wednesday by Auditor General Jack Wagner.
The study showed that Pennsylvania pays more than other states because its formula is pegged to educational costs in the sending school district rather than on the actual educational cost to the charter or cybercharter school.
The state spends an average of $12,657 per student enrolled in charter and cyberschools. The national average is about $10,000 for charter schools and $6,500 for cybercharter schools.
The report found that Pennsylvania spends the most money of the five states with the largest student enrollment in independently operated charter and cyberschools. Ohio spent $10,652; Michigan, $9,480; Texas, $8,954; and Arizona, $7,671.
"While I have long supported alternative forms of education," Wagner said, "as the state’s independent fiscal watchdog, I cannot look the other way and ignore a broken system in which charter and cybercharter schools are being funded at significantly higher levels than their actual cost of educating students."
"I'm thrilled to death," said Bensalem business manager Jack Myers, who has advocated for changes to the funding formula. "This past year has seen us going from people not recognizing the issue to being able to understand it, and now to quantify it."
Myers, who is retiring later this month, said Bensalem sends $6 million a year to charter and cyberschools. He contends that's an overpayment of $1 million.
"I have a real good, warm feeling inside with one week left in my career to see this come to fruition not just for students and taxpayers in my district but for students and taxpayers in the entire state."
Not everyone was happy with Wagner's findings. Wendy Ormsby, director of organizational development and founder of the Souderton Charter School Collaborative, and Jennifer Arevalo, the school's director of education, contend Wagner's effort will "undermine" charter schools.
"The question for us is, 'How is it fair to cut only the funding for a child who attends a public charter school and not for a child who attends a public district school in the same area?' This is tantamount to creating a second-class system for students in charter schools. If the average spending for a child who attends a public district school is $13,000, a child who attends a public charter school, in that district, should receive the same amount," they stated in an email.
"We see that Mr. Wagner’s comparison of Pennsylvania charter school funding to these other states serves only to justify his desire to unilaterally cut PA charter school funding. As directors of a highly successful charter school that far exceeds the state average on test scores, we see these efforts as an attempt to undermine the good work that we have done for our community. We have a waiting list of over 300 students. Clearly, families want this option in their community."
Legislation in the General Assembly, House Bill 2364, would address the issue by implementing more regulation of charter and cybercharter schools and spend what it costs to educate a student at the school the pupil attends.
The measure would end the “double dip” charter schools receive for pension reimbursement, which is something Wagner also called for.
Wagner’s report noted that in 2010-11, school districts paid retirement costs that equate to approximately $500 per student, because of a duplication of state reimbursements for school districts costs that charter and cyberschools are eligible to receive in direct state funding.
The Pennsylvania State Education Association and Pennsylvania School Boards Association support the legislation.
State Rep. Paul Clymer, R-145, chairman of the House Education Committee, has called the bill “controversial” and said it would not get a hearing until the state budget is approved.
"We need to vet the bill," he said. "It will be highly debated. We want to do what’s fair and not shortchange anyone."
Last December, Wagner called on the General Assembly to make changes in the funding formula. Wagner cited an audit report that found taxpayers spent $936 million on charter and cybercharter schools during the 2008-09 school year, which included $225 million in questionable reimbursements to school districts because the actual educational costs were unknown.
On Wednesday, Wagner said, "Pennsylvania needs a fair and appropriate public education funding system capable of sustaining both traditional public schools and charter and cyberschools."
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