NC rejects new charter school that would be run by for-profit company
Updated with response from Charter One
The State Board of Education approved one new charter school on Thursday but rejected another in a pair of sharply divided votes.
The state board voted 6-5 to let Legacy Classical Academy open in Rockingham County later this fall. But the board also voted 6-4 to reject the application for American Leadership Academy-Monroe to open this fall in Union County.
The votes took place amid a debate about approving new charter schools run by for-profit companies. Appointees of Democratic Gov. Roy Cooper rejected the Union County school.
The denial comes despite Charter One dropping its request to open a new charter school in Garner in 2024 in hopes of getting the Union County school approved.
Charter One thanked the more than 1,000 area families who had expressed interest in the Monroe school while also expressing disappointment in the state board’s decision.
“Like you, we are deeply disappointed and disheartened by this decision, especially after receiving approval twice through the Charter School Advisory Board,” Charter One said to families in a Facebook post Thursday. “We understand that this outcome directly attacks your school choice and all parents’ school choice in the Monroe community. However, we are still exploring alternative options.
“Rest assured that we will continue to support North Carolina families and provide the best educational experience to as many students as possible in a moral and wholesome environment by fighting for your school choice. Thank you again for your support, and keep an eye out for future exciting new school announcements!”
For-profit management companies
Charter schools are taxpayer-funded schools that are exempt from some of the rules that traditional public schools must follow. There are more than 200 charter schools across the state.
Groups applying for charter schools in North Carolina have to be non-profit entities. But they can contract with a for-profit organization to manage the school.
Management organizations are allowed to collect fee payment of up to 15% of revenues that charters receive. The for-profit management companies make money not just through fees, but often by providing school buildings that the local board uses.
Legacy Classical in Rockingham County will be managed by American Traditional Academies, a new company hoping to establish charter schools in the state.
American Leadership Academy-Monroe would have been the latest charter school in North Carolina managed by Charter One. American Leadership Academy and Charter One were founded by Glenn Way, who has made millions of dollars building, selling and leasing properties to the charter schools he runs in Arizona, The Arizona Republic has reported.
Way said at a state advisory board meeting last month that the Arizona Republic story was wrong and had overstated how much money was made by his companies.
Wake charter school dropped
The state board had rejected both schools in December. But because both were recommended by a state advisory board, they had to get a second vote under state law.
State board members didn’t talk this month about why they were still opposed to the Union County school.
But during December’s meeting, some Democratic board members raised concerns about giving funding to for-profit charter school operators. They also raised concerns about the extensive control both management organizations would have over the charter schools.
Another concern that was raised is how Charter One would be expanding without having academic data on many of their North Carolina schools.
This school year, Charter One opened Wake Preparatory Academy in Franklin County and American Leadership Academy-Johnston in Clayton. Both were the largest charter school openings in state history, according to the state Office of Charter Schools.
As a concession, Charter One dropped its application for a 2,000-student charter school it wanted to open in Wake County in 2024. The Wake County school system had opposed the Garner school.
On Thursday, Cooper appointees John Blackburn, Jill Camnitz, Eric Davis, Alan Duncan, James Ford and Reginald Keenan voted against the Monroe school. State Treasurer Dale Folwell, J. Wendell Hall, Olivia Oxendine and Amy White voted yes.
Lt. Gov. Mark Robinson recused himself because his wife is on the Monroe school’s board of directors.
Legacy Classical Academy passed because Donna Tipton-Rogers, who had voted against it last month, was not present for Thursday’s vote.
This story was originally published January 5, 2023 at 1:33 PM with the headline "NC rejects new charter school that would be run by for-profit company."
