NC board lost the power to approve charter schools. So now it wants to control funding.
The State Board of Education has lost its power to approve and renew charter schools, so it’s now reserving the right to deny funding to schools that it questions.
Last month, the General Assembly passed a new law — over the veto of Democratic Gov. Roy Cooper — that transfers the state board’s authority to approve and renew charters to a Charter Schools Review Board.
In response, the state board approved a new policy on Thursday that says state and federal funding can’t be given to new and renewed charters unless the state board gives approval. The review board will have to submit its decisions to the state board for review before taxpayer money is disbursed..
The policy was approved in a 8-3 vote with the backing of all of Cooper’s appointees. Board members said they’re exercising their state constitutional authority to “allocate funds to charter schools” and to “ensure accountability from charter schools for school finances and student performance.”
“The reason why I firmly, as a member of this board, believe that the board should continue to focus on our financial accountability stems from the truth that over the last few years, seven charter schools have closed,” state board chair Eric Davis said during Wednesday’s discussion of the policy. “At least five of them with questionable financial situations, which are currently being reviewed by federal officials.”
But the Republican board members complained that the policy was unveiled on short notice. They also objected to the board not following its usual practice of waiting a month to adopt a policy after it’s introduced.
“To do this in one day is unfair,” said Republican Lt. Gov. Mark Robinson. “It’s unprofessional, and it smacks of political pandering and should not be tolerated on an issue this important.”
Robinson, State Treasurer Dale Folwell and Olivia Oxendine voted against the policy. Robinson and Folwell are among the GOP candidates who are running for governor.
It’s unclear whether state lawmakers may step in to pass legislation to overrule the new policy.
Rejected charters get a second chance
Previously, the Charter Schools Advisory Board only made recommendations on charters. The final decision had rested with the state board, which now has a majority made up of appointees of Gov. Cooper.
Under the new law, the advisory board was renamed the review board and its decisions are now final. Eight of the review board’s 11 voting members are appointed by the GOP-controlled General Assembly.
The state board is now relegated to hearing appeals of decisions made by the review board.
Davis said the state board is acting on the policy now because the review board will begin making decisions on charter schools next week.
On Monday, the review board will reconsider American Leadership Academy-Monroe in Union County and Heritage Collegiate Leadership Academy in Wake County. Both schools had been recommended by the advisory board but were rejected by the state board.
The state board had rejected Heritage Collegiate because of the school leader’s ties to a failed charter school in Bertie County.
The state board had rejected American Leadership Academy-Monroe in part because of concerns about giving money to for-profit charter school operators.
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.
Robinson’s wife is a member of the board of directors of American Leadership Academy-Monroe. Robinson has recused himself on all votes on that school. He wasn’t required to recuse himself on the policy though.
Financial issues at charter schools
There are more than 200 charter schools open in North Carolina. Charters are exempt from some of the rules that traditional public schools must follow.
Davis pointed to the financial issues that led to the closure of some charter schools. In particular, Davis cited how Bridges Academy in Wilkes County has been accused falsifying enrollment numbers to get more than $400,000 in state funding it wasn’t entitled to receive.
But Republican State Superintendent Catherine Truitt said school districts also have mismanaged funds.
“I don’t see what a couple of bad actors have done should be a policy that jeopardizes essentially the ability of a charter school to open its doors to the families who’ve chosen to go there,” Truitt said. “The way the policy is written now, because it is so vague, would allow for this board to vote not to open a charter school and not give a reason.”
Truitt questioned the urgency of the policy on Thursday because new charter schools don’t get funding until they get a certificate of occupancy when they’re close to opening. She also said it’s unclear whether the new policy will need to be approved by the state Rules Review Commission.
Davis said the board will make funding decisions based on questions such as whether the allocation is lawful and whether the school meets the need cited.
“What judgment will we use in determining funding?” Davis said. “We’ll use the same judgment that we use in determining funding for any school.”
Opposition to new policy
Charter school supporters have been rallying against the policy.
The N.C. Charter Schools Coalition says separating funding approval from charter school approval violates state law. The group says the policy will jeopardize the ability of some new charter schools to open.
“North Carolina charter schools are enormously popular with families, as evidenced by the 77,000 names on charter school waitlists,” Lindalyn Kakadelis, executive director of the N.C. Coalition for Charter Schools, said in a news release. “The legislature streamlined the approval process for new public charter schools to meet this demand.
“The State Board of Education is wrong to play these bureaucratic power games when parents just want options in their public schooling.”
Former state Senator Deanna Ballard called the policy a “school choice sneak attack.” Ballard, a Watuaga County Republican, is seeking the GOP nomination for lieutenant governor.
“Bureaucrats will resort to anything to block parents from having a choice in which school their children attend,” Ballard said in a news release. “This sneak attack on school choice uses a legal trick to threaten funding for new charter schools even as tens of thousands of children sit on charter school waitlists.
“Parents, not bureaucrats, should have the power in deciding which school is best for their children.”
This story was originally published September 7, 2023 at 12:18 PM with the headline "NC board lost the power to approve charter schools. So now it wants to control funding.."
