States

Short on Funds, Cyber School Awaits Ruling

By Alan Richard — March 20, 2002 3 min read
  • Save to favorites
  • Print

The fate of what might be the nation’s largest online charter school was scheduled to rest in the hands of a Pennsylvania judge early this week.

Leaders of the 2,000-student Einstein Academy Charter School say a March 19 hearing over the state’s effort to block its funding could yield a judge’s ruling allowing their school to tap $3.5 million in state aid that it needs to stay in business.

“I don’t see any other way to do it,” said John R. Severs, the chief administrative officer of the Morrisville, Pa.-based school.

Pennsylvania’s department of education has withheld millions of dollars from the online charter school since it began investigating parents’ complaints in January. The parents alleged that the school did not provide the adequate Internet access, textbooks, and special education services it had promised, said Beth A. Gaydos, a spokeswoman for the department.

Mr. Severs admitted that the school has its problems, but said the state shares the blame for some of them. Start-up money didn’t arrive from the state until October, he said. As a result, the school wasn’t able to provide all its services and materials to students before then, he added.

The Einstein school was founded last year by two parents who—while caring for their terminally ill child—saw the need for online, easy-access education. The school serves students all across the state, but received its charter from the Morrisville school district, which has an enrollment less than half the size of Einstein’s.

While the Einstein staff had the technology know-how to open the school, it lacked the management experience or political skill to make it thrive, said Jim Hanak, who became the school’s chief executive officer only last week.

The state could have helped the Einstein school find its footing, Mr. Severs said, by providing start-up money earlier and helping the school work through its problems. Instead, the state education department bowed to lobbying from education groups that were critical of Einstein once some of its problems were made public, he said.

The school has received about $3.8 million in state money since last fall, and employs 38 full- and part-time teachers, Mr. Severs said. The school expected to tap another $3.5 million from the state, but funding has been on hold since the end of last year, he added.

In the most recent blow to the school, its Internet service provider, Digital Freedom of Scranton, cut off service on March 8 because Einstein hadn’t paid an $80,000 bill for months of online services, said Brad Stevens, the president of the company. But, thanks to a “deluge” of offers from other providers to step in until the court decides the case, Mr. Severs said Einstein was continuing to deliver courses late last week.

State Oversight

Whether or not the school survives, its financial problems have prompted Pennsylvania Secretary of Education Charles B. Zogby to call for stricter state oversight of so-called cyber schools as the movement continues to grow

“Thousands of Pennsylvania parents already have embraced cyber charter schools as an exciting and viable education alternative,” Mr. Zogby testified last month before the state Senate education committee. “Yet, as with any new initiative, there are ways to strengthen cyber schools to make them better.”

But better oversight of cyber schools is different from regulation of charter schools, Ms. Gaydos said. The state supports charter schools, but it’s the upstart technology-based form of charter school that presents new oversight challenges.

Regardless of what happens to the Einstein school, Mr. Severs said the cyber schools movement will only continue to grow. “They’ve let the genie out of the box,” he said. “They’re not going to be able to put it back in.”

A version of this article appeared in the March 20, 2002 edition of Education Week as Short on Funds, Cyber School Awaits Ruling

Events

Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
Artificial Intelligence Webinar
Making AI Work in Schools: From Experimentation to Purposeful Practice
AI use is expanding in schools. Learn how district leaders can move from experimentation to coordinated, systemwide impact.
Content provided by Frontline Education
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
Student Well-Being & Movement Webinar
Building Resilient Students: Leadership Beyond the Classroom
How can schools build resilient, confident students? Join education leaders to explore new strategies for leadership and well-being.
Content provided by IMG Academy

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

States With Federal Commitment Shaky, States Move to Codify Protections for Homeless Students
Washington and Oregon have taken action, and others states are considering moves of their own.
4 min read
Image of a student sitting on a stoop with a school bus in the distance. Ghosted in the background is the Capitol building.
Illustration by Laura Baker/Education Week + Getty + Canva
States Federal Appeals Court Upholds Texas Ten Commandments Law
The 9-8 decision delivered a boost to backers of similar laws in Arkansas and Louisiana.
3 min read
Students work under Ten Commandments and Bill of Rights posters on display in a classroom at Lehman High School in Kyle, Texas, Thursday, Oct. 16, 2025.
Students work beneath Ten Commandments and Bill of Rights posters displayed in a classroom at Lehman High School in Kyle, Texas, on Oct. 16, 2025. A federal appeals court ruling now allows Texas to require such displays in public school classrooms.
Eric Gay/AP
States 'Not Our Job': Principals Decry a Proposal to Track Student Immigration Status
A principals group has publicly opposed efforts to require schools to track immigration status.
5 min read
Democratic Senator Raumesh Akbari hugs a young demonstrator as people gather to protest an immigration bill outside the Senate chamber at the state Capitol Thursday, in Nashville, Tenn. The bill would allow public school systems in Tennessee to require K-12 students without legal status in the country to pay tuition or face denial of enrollment, which is a challenge to the federal law requiring all children be provided a free public education regardless of legal immigration status.
Democratic state Sen. Raumesh Akbari hugs a young demonstrator as people protest an immigration bill outside the Senate chamber at the state Capitol on April 10, 2025, in Nashville, Tenn. The legislation is part of a broader push in Tennessee to require schools to collect students’ immigration status, raising concerns among educators about trust, access, and compliance with federal law.
John Amis/AP
States A State With a Short School Year Wants to Stop the 'Bleeding' of Classroom Time
A new order aims to discourage districts from reducing instructional hours to fill budget gaps.
4 min read
A teacher and rising kindergarten students at Vose Elementary in Beaverton during story time on April 16, 2026. Gov. Tina Kotek asked the State Board of Education on Thursday to prohibit school districts from using student-contact days as furlough days to balance budgets, in order to preserve instructional time.
Story time in a kindergarten class at Vose Elementary School in Beaverton, Ore., on April 16, 2026. Oregon Gov. Tina Kotek has issued an executive order in hopes of blocking any further erosion of instructional time in a state that has one of the shortest school years in the country.
Mark Graves/The Oregonian via TNS