Report Roundup

Charter Schools

"The Business of Charter Schooling: Understanding the Policies that Charter Operators Use for Financial Benefit"

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Many of the laws that regulate charter schools do not go far enough to prevent conflicts of interest, according to a report released by Bruce Baker and Gary Miron of the National Education Policy Center.

Board-selection processes can lead to conflicts of interest for both for-profit and nonprofit charter management organizations, the report argues. That's because board members may stand to profit from the acquisition of public resources—such as land, buildings, and equipment—from the boards and districts with which they work.

The higher cost of debt for charters and lax oversight of these often-complex deals, the report says, have previously led to some agreements in which third-party managers bought property, then charged the charter school high rental fees that were indirectly passed on to taxpayers.

Vol. 35, Issue 31, Page 4

Published in Print: May 18, 2016, as Charter Schools
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