Charter school abuses - 2014
This is a summary of 2014 news articles on charter school abuses. In some cases, the legal reforms needed to prevent the abuses are identified. This list is far from comprehensive, and more articles will be added soon.
November 30, 2014
Article title: EXCLUSIVE: New York charter school audits reveal $28 million in questionable expenses
Source: New York Daily News (link)
Summary: A nonprofit organization has reviewed charter school audits and concluded that in New York State, these schools have racked up over 28 million in expenses that may be fraudulent or unethical.
Article title: EXCLUSIVE: New York charter school audits reveal $28 million in questionable expenses
Source: New York Daily News (link)
Summary: A nonprofit organization has reviewed charter school audits and concluded that in New York State, these schools have racked up over 28 million in expenses that may be fraudulent or unethical.
October 17, 2014
School: Cincinnati College Preparatory Academy, Cincinnati OH
Article title: Former charter school leader gets plea deal (link)
Summary: The school's former leader has been convicted on felony charges relating to the abuse of public school money for personal purposes.
Reform needed: Each state must have an office for charter school oversight that is adequately staffed and given adequate legal authority to supervise charter school finances, so that abuses can be identified and stopped before they become major criminal cases.
School: Cincinnati College Preparatory Academy, Cincinnati OH
Article title: Former charter school leader gets plea deal (link)
Summary: The school's former leader has been convicted on felony charges relating to the abuse of public school money for personal purposes.
Reform needed: Each state must have an office for charter school oversight that is adequately staffed and given adequate legal authority to supervise charter school finances, so that abuses can be identified and stopped before they become major criminal cases.
August 1, 2014
School: Southwest Secondary Learning Center Charter School, Albuquerque NM
Article title: FBI raids ABQ charter school
Source: KRQE, Albuquerque NM
Summary: The FBI has raided the school after the state auditor determined that a federal investigation was warranted. Fraud and embezzlement of state and federal education funds are suspected. The school's head has a salary of $210,000, while the total enrollment of all 3 branches of the school is only 800. In addition to his salary, the school head is profiting from his businesses which the school contracts to.
Reform needed: Charter schools should not be allowed to contract to any business in which their administrators or members of their board of directors have a substantial financial interest.
School: Southwest Secondary Learning Center Charter School, Albuquerque NM
Article title: FBI raids ABQ charter school
Source: KRQE, Albuquerque NM
Summary: The FBI has raided the school after the state auditor determined that a federal investigation was warranted. Fraud and embezzlement of state and federal education funds are suspected. The school's head has a salary of $210,000, while the total enrollment of all 3 branches of the school is only 800. In addition to his salary, the school head is profiting from his businesses which the school contracts to.
Reform needed: Charter schools should not be allowed to contract to any business in which their administrators or members of their board of directors have a substantial financial interest.
July 30, 2014
School: Horizon Science Academy Cincinnati
Article Title: FBI raided local charter school
Source: Cincinnati.com (Enquirer Media), Cincinnati, Ohio (link)
Problem: The State Department of Education cannot close a charter school, "except in the case of a serious health violation." Horizon Science Academy Cincinnati was raided by the FBI, yet its authorizer, the Toledo nonprofit Educational Service Center of Lake Erie West, shows no interest in terminating its charter.
Reform needed: State departments of education must be empowered with the authority to shut down a charter school even if its authorizer does not choose to do so.
School: Horizon Science Academy Cincinnati
Article Title: FBI raided local charter school
Source: Cincinnati.com (Enquirer Media), Cincinnati, Ohio (link)
Problem: The State Department of Education cannot close a charter school, "except in the case of a serious health violation." Horizon Science Academy Cincinnati was raided by the FBI, yet its authorizer, the Toledo nonprofit Educational Service Center of Lake Erie West, shows no interest in terminating its charter.
Reform needed: State departments of education must be empowered with the authority to shut down a charter school even if its authorizer does not choose to do so.
_ July 10, 2014
School: (proposed) International Charter School, Tamarac, Florida
Article Title: Commission Recommends Toughening Codes After Denying Charter School Application
Source: Tamarac Talk, Tamarac, Florida (link)
Problem: A proposed charter school "would have been run by Newpoint Education Partners, which operates schools out of Ohio and Florida with a graduation rate of 10 percent.” However, this was apparently not the grounds for rejection of the school's application, which was apparently based on concerns about zoning exceptions. It appears there is nothing in the charter law that allows performance of the operator or management company in other states or locations to be considered when reviewing an application.
Reform needed: A charter operator or charter management company’s record in other states, cities, or counties, or even nations (in the case of multinational operators such as Sabis) must be considered during the charter authorization process. This record must include academic performance, financial management, ethics violations, and parental complaints. Significant deficiencies in any of these areas may be grounds for denying the charter, regardless of whether the charter application meets all legal requirements or not.
School: (proposed) International Charter School, Tamarac, Florida
Article Title: Commission Recommends Toughening Codes After Denying Charter School Application
Source: Tamarac Talk, Tamarac, Florida (link)
Problem: A proposed charter school "would have been run by Newpoint Education Partners, which operates schools out of Ohio and Florida with a graduation rate of 10 percent.” However, this was apparently not the grounds for rejection of the school's application, which was apparently based on concerns about zoning exceptions. It appears there is nothing in the charter law that allows performance of the operator or management company in other states or locations to be considered when reviewing an application.
Reform needed: A charter operator or charter management company’s record in other states, cities, or counties, or even nations (in the case of multinational operators such as Sabis) must be considered during the charter authorization process. This record must include academic performance, financial management, ethics violations, and parental complaints. Significant deficiencies in any of these areas may be grounds for denying the charter, regardless of whether the charter application meets all legal requirements or not.
June 2, 2014
Article Title: SEC hits Chicago charter school operator with fraud charges
Source: Fortune Magazine (link)
Summary: The Securities and Exchange Commission has filed charges against the United Neighborhood Organization (UNO), a which operates a chain of charter schools in the Chicago area. UNO is charged with failure to disclose essential information, including an insider contract, in a $37.5 million bond deal (the article says "billion" but this is surely an error).
Article Title: SEC hits Chicago charter school operator with fraud charges
Source: Fortune Magazine (link)
Summary: The Securities and Exchange Commission has filed charges against the United Neighborhood Organization (UNO), a which operates a chain of charter schools in the Chicago area. UNO is charged with failure to disclose essential information, including an insider contract, in a $37.5 million bond deal (the article says "billion" but this is surely an error).
June 1, 2014
Article Title: New Charter School Report Recommends Reform in PA
Source: Centre County Gazette, State College PA (link)
Problem: "SCASD school board member David Hutchinson says that some charter schools 'have figured out how to game the system' to receive the special education tuition rate by identifying new special education students who may not have required an Individualized Education Program in their home school districts."
Reform needed: Classification of students as special education by charter schools must follow the exact same criteria used by district schools in the same county where the school is located. The State Charter School Oversight Board must periodically review case files to ensure compliance with this law. If a charter attempts to reclassify any student that is transferring from a district school as special education, it must require approval by the State Charter School Oversight Board to ensure that there has either been a genuine change in the student’s situation, or that the district overlooked the student’s needs.
Article Title: New Charter School Report Recommends Reform in PA
Source: Centre County Gazette, State College PA (link)
Problem: "SCASD school board member David Hutchinson says that some charter schools 'have figured out how to game the system' to receive the special education tuition rate by identifying new special education students who may not have required an Individualized Education Program in their home school districts."
Reform needed: Classification of students as special education by charter schools must follow the exact same criteria used by district schools in the same county where the school is located. The State Charter School Oversight Board must periodically review case files to ensure compliance with this law. If a charter attempts to reclassify any student that is transferring from a district school as special education, it must require approval by the State Charter School Oversight Board to ensure that there has either been a genuine change in the student’s situation, or that the district overlooked the student’s needs.
May 6, 2014
Article title: New report cites $100 million-plus in waste, fraud in charter school industry
Source: Washington Post, Washington DC (link)
Summary: Two nonprofit organizations have released a report entitled “Charter School Vulnerabilities to Waste, Fraud, & Abuse” that estimates charter schools have defrauded or wasted over $100 million in public money in 15 states. Insufficient oversight is identified as a key problem.
Article title: New report cites $100 million-plus in waste, fraud in charter school industry
Source: Washington Post, Washington DC (link)
Summary: Two nonprofit organizations have released a report entitled “Charter School Vulnerabilities to Waste, Fraud, & Abuse” that estimates charter schools have defrauded or wasted over $100 million in public money in 15 states. Insufficient oversight is identified as a key problem.
April 4, 2014
School: Memphis Academy of Health Sciences
Article Title: Board member says Memphis charter school held illegal meetings
Source: Commercial Appeal, Memphis TN (link)
Problem: A board member alleges that the school held two illegal board meetings, without notifying the public in advance as required by Tennessee state law. In one of these meetings, an interim executive director was appointed for the school, after its longtime director resigned.
Reform needed: Charter schools must be fined for violating public meeting and sunshine laws.
School: Memphis Academy of Health Sciences
Article Title: Board member says Memphis charter school held illegal meetings
Source: Commercial Appeal, Memphis TN (link)
Problem: A board member alleges that the school held two illegal board meetings, without notifying the public in advance as required by Tennessee state law. In one of these meetings, an interim executive director was appointed for the school, after its longtime director resigned.
Reform needed: Charter schools must be fined for violating public meeting and sunshine laws.