Law & Courts

Legislation Tightens Fiscal Oversight of California Charters

By Caroline Hendrie — October 11, 2005 3 min read
  • Save to favorites
  • Print

A bill giving county-level education officials the power to investigate suspected fiscal malfeasance by charter school operators is among several charter-related measures that Gov. Arnold Schwarzenegger of California has signed into law.

The measure grew out of the collapse of the network of schools run by the California Charter Academy, which enrolled some 4,500 K-12 students and 7,000 adult students at more than 50 campuses and online before abruptly closing in August 2004. A state audit released last spring concluded that the Victorville, Calif.-based chain had misused state and federal funds. The audit prompted the state to file a $23 million claim in bankruptcy court against its for-profit management company. (“Calif. Charter Network Misused Millions in Aid, Audit Finds,” April 20, 2005)

The new law gives county superintendents of schools the authority to review the fiscal records of any charter schools in their counties that they suspect of illegal practices. It also authorizes county superintendents to call in the state’s Fiscal Crisis and Management Assistance Team to scrutinize charter schools and school districts within their jurisdictions.

County superintendents and the fiscal-crisis team played major roles in the state’s audit of the California Charter Academy. But their authority to act came from the California Department of Education.

Supporters say the law will improve oversight of wayward California charter schools when their authorizers—usually school districts—aren’t keeping a close eye on the schools they charter.

“It’s an extra layer of accountability,” said Adonai Mack, a lobbyist in the state education department.

Finance Bills Signed

Another new measure, also signed by the Republican governor late last month, will phase in an increase in the state money that charter schools receive in lieu of applying directly for 28 sources of categorical funding, which is aid for specific purposes such as transportation, gifted education, or school safety.

Under the change, the state’s charter school block grant will climb from less than $300 per pupil this school year to $500 per pupil in the 2007-08 school year. The California Charter Schools Association hailed the measure as a big win for the state’s roughly 570 charter schools, public but largely independent schools that together enroll more than 200,000 students.

“It gets phased in over three years, which is somewhat disappointing,” Caprice Young, the association’s chief executive officer, said last week. “But we’re just pleased that the governor and the legislature supported this huge step toward equalizing funding for charter schools.”

A second new funding-related law was designed to address complaints from California’s unified school districts—systems that serve students at the elementary, middle, and high school levels—that they were taking a financial hit because charter high schools got more money per pupil than the districts received for them.

Under the new law, existing charter schools and any new start-ups in unified districts will receive their funding independently from their districts at state-determined rates that vary with the grades the schools serve. Schools converting to charter status after July 1 of this year will receive funding based on the amount that the district spent on them in the year before they made the change.

The bill was primarily conceived to address concerns about start-up charters raised by the 55,000-student San Francisco public school system and the 7,700-student Novato school district in nearby Marin County. Along the way, the bill’s focus was expanded to tackle concerns that some high schools might have a financial incentive to convert to charters. Those issues came to the fore after Granada Hills High School in Los Angeles converted to charter status in 2003 amid intense political controversy. (“With Little Debate, L.A. High School Gets New Charter,” May 19, 2004, “Romer Raises Stakes In L.A. Charter Fight,” May 21, 2003)

“This legislation will go a long way in maintaining funding equity between charter schools and existing schools within unified school districts,” Arlene Ackerman, the superintendent of schools in San Francisco, said in an e-mail last week.

Related Tags:

A version of this article appeared in the October 12, 2005 edition of Education Week as Legislation Tightens Fiscal Oversight of California Charters

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
The Future of the Science of Reading
Join us for a discussion on the future of the Science of Reading and how to support every student’s path to literacy.
Content provided by HMH
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
From Classrooms to Careers: How Schools and Districts Can Prepare Students for a Changing Workforce
Real careers start in school. Learn how Alton High built student-centered, job-aligned pathways.
Content provided by TNTP
Student Well-Being Live Online Discussion A Seat at the Table: The Power of Emotion Regulation to Drive K-12 Academic Performance and Wellbeing
Wish you could handle emotions better? Learn practical strategies with researcher Marc Brackett and host Peter DeWitt.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts Trump Admin. Can Proceed With Ed. Dept. Layoffs, Supreme Court Rules
The Trump administration asked the justices to set aside an injunction blocking its layoffs of 1,400 Education Department employees.
6 min read
Department of Education Secretary Linda McMahon outside of the West Wing following a Cabinet meeting at the White House on April 11, 2025 in Washington.
U.S. Secretary of Education Linda McMahon outside of the West Wing following a Cabinet meeting at the White House on April 11, 2025, in Washington. McMahon is carrying out a Trump administration plan to lay off roughly 1,400 Education Department employees, a move critics say is aimed at dismantling the agency.
Lenin Nolly/NurPhoto via AP
Law & Courts Opinion How the Supreme Court Is Making Public Education Itself Unconstitutional
In a recent ruling, the high court took a step toward effectively outlawing public schools.
Johann Neem
5 min read
Photo illustration of Supreme Court building and U.S. Constitution.
Education Week + Getty
Law & Courts Supreme Court to Weigh State Laws Barring Transgender Athletes in Girls' Sports
The U.S. Supreme Court agreed to take up transgender sports laws from Idaho and West Virginia, among the 27 states that have such laws.
5 min read
This artist sketch depicts Justice Amy Coney Barrett, from left, Justice Sonia Sotomayor, Justice Clarence Thomas, Chief Justice John Roberts, Justice Samuel Alito, Justice Elena Kagan, Justice Brett Kavanaugh and Justice Ketanji Brown Jackson as the Justices announce opinions at the Supreme Court in Washington, on June 27, 2025.
An artist sketch depicting Justice Amy Coney Barrett, from left, Justice Sonia Sotomayor, Justice Clarence Thomas, Chief Justice John G. Roberts Jr., Justice Samuel A. Alito Jr., Justice Elena Kagan, Justice Brett M. Kavanaugh and Justice Ketanji Brown Jackson as the Justices announce opinions at the Supreme Court in Washington, on June 27, 2025. The Supreme Court on July 3, 2025, announced it will hear cases challenging Idaho and West Virginia laws that bar transgender students from participating in girls’ or women’s school sports, stepping into a high-profile legal battle over transgender rights in schools.
Dana Verkouteren via AP
Law & Courts Appeals Court Backs Fla. Law Barring Transgender Teacher's Use of Her Pronouns
A federal court upheld Florida’s ban on K-12 teachers using pronouns that differ from their sex assigned at birth when speaking to students.
4 min read
A new billboard welcoming visitors to "Florida: The Sunshine 'Don't Say Gay or Trans' State," is seen on April 21, 2022, in Orlando, Fla. Florida's state government and LGBTQ+ advocates have settled a lawsuit challenging a law that bars teaching about sexual orientation and gender identity in public schools.
A billboard welcoming visitors to "Florida: The Sunshine 'Don't Say Gay or Trans' State," is seen on April 21, 2022, in Orlando. The billboard was a commentary by an LGBTQ+ rights group on a controversial law backed by Gov. Ron DeSantis regarding the teaching of certain topics. A federal appeals court on July 2 refused to block a related law, one barring teachers from using pronouns or titles that don't match their sex assigned at birth.
John Raoux/AP