See, it can be done. Yesterday, state representative James Roebuck, a Democrat from Philadelphia and Democratic chair of the House Education Committee, announced a new bill that would represent a big step forward in really reforming the rules governing charter and cyber charter schools. [For an explanation of Gov. Corbett’s current attempt to impose anti-reforms, overriding local elected officials, and hiding the actions of his friends operating some of the state’s largest charter schools, see “Real Charter Reform.”]
House Bill 2661 would subject charter school fund balances to the same regulations that traditional public schools must follow (so they can’t keep huge sums of public taxpayer dollars essentially as profit). It would also tighten up pension funding rules that are allowing charters to “double dip” right now and limit special-education payments to charter schools to the actual amounts spent by the school district on special ed (currently, special-ed can be a cash cow for some charters). Significantly, this bill would not exempt charter operators from our Right to Know Laws. (H.B. 2661)
What’s more, Rep. Roebuck wants to see results this school year. Speaking at a news conference Tuesday, he explained, “If we are overfunding some charter and cyber charter schools, as appears to be the case, that money needs to be returned to the school districts this school year, not held until 2013-14 or later.” [PA House.com 10-2-12] In a press, release, Roebuck laid out some of the details, explaining that the bipartisan bill would:
- Limit unassigned fund balances for charter and cyber charter schools, consistent with the limits already in effect for traditional public schools. In 2010, the auditor general reported that charter schools had $108 million in reserve funds. Nearly half of charter schools had a cumulative reserve fund balance above traditional public schools’ limit of 12 percent of their annual spending. The charter school balances ranged as high as 95 percent.
- Remove the “double dip” for pension costs by charter and cyber charter schools. Presently, a school district’s cost for retirement expenditure is not subtracted from expenditures in the tuition calculation that determines funding for charters. This sets up a “double dip” since state law guarantees charter schools reimbursement for their retirement costs. The Pennsylvania Association of School Business Officials estimates that between 2011-12 and 2016-17, eliminating the “double dip” would save school districts $510 million, including $45.8 million in savings for 2012-13.
- Limit the amount of special education funding that a charter or cyber charter school receives per student to the school district’s total per-pupil spending for special education services. The state funding formula’s 16 percent cap on school district special education population does not apply to charter schools. An official of Bensalem Township High School in Bucks County testified last year that this results in paying $3,425 more per charter school special education student than Bensalem is paying for its own special education students.
- Require year-end audits by the state Department of Education to determine the actual costs of education services of charter and cyber charter schools, followed by an annual year-end final reconciliation process of tuition payments from school districts against those actual costs. Any overpayments would be returned to the school districts. In the 2010-11 school year, non-special education tuition rates per student ranged from $4,478 to $16,915.
- Increase transparency for contractors that provide management, educational or administrative services to charter and cyber charter schools by requiring disclosure of a financial relationship with for-profit providers. [PA House.com 10-2-12]
This is exactly the kind of bill that our grassroots movement should get behind. Five of the bill’s 39 sponsors are from Southwest PA: we applaud Rep. Dan Frankel (Allegheny County), Rep. Frank Dermody (Allegheny County), Rep. R. Ted Harhai (Fayette and Westmoreland Counties), Rep. Tim Mahoney (Fayette County), and Rep. Harry Readshaw (Allegheny County).
However, we need to see more legislators from the ten counties here in the heart of Yinzer Nation standing up for public education. If your legislator is one of these five, by all means, please let them know you support their stand on charter reform. But if your legislator is missing from this list, your voice is all the more important! Please contact your state Representatives and Senators to let them know that H.B. 2661 is the kind of real reform we need in Pennsylvania, moving us closer to adequate and equitable funding for all our public schools. [Look here to Find Your State Legislator]