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
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
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
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
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
School Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

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 Federal Court Ruling Paves Way for Jewish Charter School in Oklahoma
A federal judge cleared the way for a Florida-based Jewish charter school network to open in the state.
Lenzy Krehbiel-Burton, Tulsa World, Okla.
•
4 min read
WASHINGTON, DC - JANUARY 10: (L to R) Montana Attorney General Austin Knudsen, Oklahoma Attorney General Gentner Drummond, Missouri Attorney General Andrew Bailey and Frank O. Bowman III, professor emeritus of law, University of Missouri School of Law arrive to testify before a House Homeland Security Committee hearing titled "Havoc in the Heartland: How Secretary Mayorkas' Failed Leadership Has Impacted the States," at the U.S. Capitol on January 10, 2024 in Washington, DC. House Republicans have started their hearings into impeaching President Biden's Secretary of Homeland Security, Alejandro Mayorkas.
Oklahoma Attorney General Gentner Drummond, second from left, was a defendant in a lawsuit from the Ben Gamla Jewish Charter School Foundation challenging a decision from the state's charter school authorizing board that denied the group's bid to open a charter school.
Kent Nishimura/Getty Images
Law & Courts Trump Admin. Turns to Student Privacy Laws in Gender Identity Fights With Schools
The feds are increasingly citing student privacy laws in gender-identity battles with school districts.
8 min read
WASHINGTON, DC - AUGUST 17: The U.S. Department of Justice Building on August 17, 2026 in Washington, DC.
The U.S. Department of Justice Building on Aug. 17, 2026 in Washington. The Justice Department has teamed up with the U.S. Department of Education to fight school and state policies concerning transgender students it deems objectionable.
Anna Moneymaker/Getty Images
Law & Courts These Parents Want to Opt Their Kids Out of Ed Tech. Can They Win in Court?
Parents in a Pennsylvania district say ed tech distracts from more meaningful learning.
10 min read
Yair Lev stands by as a screen displaying an itinerary for a Lower Merion Board of School Directors meeting at the Lower Merion School District Administration Building on May 11, 2026, in Ardmore, Pa.
Yair Lev stands by as a screen displaying a document for a school district board of directors meeting at the Lower Merion school district administration building on May 11, 2026, in Ardmore, Pa. Lev is among a group of parents who have sued the Philadelphia-area school district seeking the ability to opt their children out of the required use of school technology.
Joe Lamberti/AP
Law & Courts Title IX Doesn't Require Transgender Athletes' Exclusion, Judge Rules
A federal judge dismissed a lawsuit from the Trump administration alleging California violated Title IX.
Kevin Rector, Los Angeles Times
•
4 min read
CLOVIS, CA MAY 30, 2026: Transgender athlete AB Hernandez, center, competed in three qualifying events at the CIF State Track Championship in Clovis, CA on May 30, 2026. Hernandez placed first in qualifying for the long jump on Friday. Hernandez competes in the finals on Saturday in the high jump, long jump and triple jump.
Transgender athlete AB Hernandez, center, competed in three qualifying events at the CIF State Track Championship in Clovis, Calif., on May 30, 2026. The Trump administration sued California over its policy allowing transgender girls to compete on girls' athletic teams. A judge has dismissed that lawsuit.
Tomas Ovalle / Los Angeles Times via Getty Images