How Funding Charter Schools works in PA

Contrary to popular belief, the existence of charter schools within a school district does not contribute to budgetary shortfalls. In fact, when a student chooses a charter school education, not only does the student change schools but also the cost of educating the student changes schools.  

In other words, while the school district “loses” funding when a student makes the choice to receive a charter school education, the school district also loses the cost of educating that student. And significantly, the funding that follows the student is not 100% of the cost of educating that student because of how funding is calculated under the Pennsylvania Charter School Law. 

Historically, as an example, Pennsylvania charter schools have received about 75% of the per-student funding levels that have been available to their school districts. That being the case, the school district actually enjoys a financial windfall when a student leaves.

The Charter School Law guarantees payments to charter schools. This is necessary because, unlike school districts, charter schools cannot levy taxes to support their school. Also, unlike private schools, charters cannot charge tuition. Thus, charter schools rely almost entirely on statutory funding under the Charter School Law to fund their operations.

CCCS, for example, receives 83% of its entire operating budget from CUSD. The remaining 17% comes from payments by other school districts and federal funding.

CCCS is currently owed at least $6,881,849.32 by the Chester-Upland School District.

That amount is only the sum that both PDE and Chester-Upland agree is owed. CCCS also has taken the position, in litigation, that additional sums are owed beyond the agreed-upon amount.

In addition to the $6,881,849.32, CCCS is also by law entitled to at least an additional $15,094,329.60 in funding from CUSD through June of 2012. This totals $21,976,178.92.

Chester-Upland’s latest request for an advance is at least the second request in the last year for an advance. These multiple requests indicate that Chester-Upland is unable to stay within its budget and to control spending.  

The funds owed by the Commonwealth of Pennsylvania to CCCS, according to the Pennsylvania Charter School Law, first flow through the school district, which is then required by law to make 12 equal payments to CCCS, according to a fixed, statutory formula, no later than the fifth day of each month. 

Through January 2012, CCCS has experienced 11 consecutive defaults by CUSD, and the lack of timely payments has placed the charter school, and the continuing education of more than 3000 students, at risk.

On December 29, 2011, Chester Community Charter School announced that it had filed suit, in the Pennsylvania Commonwealth Court against the Commonwealth of Pennsylvania, and Chester-Upland School District. (http://ujsportal.pacourts.us/docketsheets/CommonwealthCourtReport.aspx?docketNumber=632%20MD%202011)

On January 19, 2012, Chester Community Charter School announced that it had filed an emergency motion in the U.S. District Court for the Eastern District of Pennsylvania to reconsider its January 17, 2012 temporary restraining order regarding school funding in Chester Upland. Community Parents of Students at Chester Community Charter School also moved for reconsideration of the court’s order.

About Chester Community Charter School

Chester Community Charter School (“CCCS”) started with 97 students and has steadily increased to more than 3,000 in nine state-of-the-art buildings, in only 13 years. This school is a true community success story that has transformed the lives of thousands of students and their families.

Chester, Pennsylvania is a formerly vibrant manufacturing center in a Philadelphia suburb, with 37,000 residents, a black population of 75.7 percent, and a median household income of $25,703, about $14,000 below the statewide figure. Over 25 percent of Chester residents fall below the poverty line, nearly two-and-a-half times the Pennsylvania rate. Yet, despite drawing from the same pool of students as other schools in the Chester-Upland School District (the “District”), CCCS has been able to produce consistently superior student test results on statewide standardized tests.  

For example, CCCS has achieved its Adequate Yearly Progress (“AYP”) figures, established and measured by the Pennsylvania Department of Education (“PDE”), for three consecutive years and counting.  The District, on the other hand, has been ranked, perennially, as the worst school district in the Commonwealth (501st among 501 Pennsylvania School Districts) and only two of its nine schools reached their AYP targets in 2011.   

Despite CCCS’ clear fiscal and academic advantages, the District, in coordination with the PDE, has unsuccessfully attempted to illegally cap CCCS’ student enrollment and continues to deliberately miscalculate the School’s monthly disbursements.  

Moreover, the District continues to evade its funding obligation to CCCS, altogether. Since March, the District has refused to convey to CCCS the statutorily allocated payments the school depends on for its daily operation and instead, has retained these funds for its own use. Such payments account for approximately 83 percent of CCCS’ entire budget.