A Look at the Charter School Landscape

1. A Look at the Charter School Landscape Julia Martin, Esq. jmartin@bruman.com Brette Kaplan, Esq. bkaplan@bruman.com Steven Spillan, Esq. sspillan@bruman.com Brustein & Manasevit, PLLC www.bruman.com Spring Forum 2013 Brustein & Manasevit, PLLC

2. Agenda • Spotlight on Charter Schools • Charter Schools 101 • National Trends • Recent Legislation • Equity Issues • ESEA Flexibility • Civil Rights • Charter School Program Brustein & Manasevit, PLLC

3. Spotlight on Charter Schools • Charter schools gained prominence during the Bush Administration, following passage of the No Child Left Behind Act • Obama Administration continues to support public charter schools • Conservatives see charters as an avenue for “school choice” • Congress is poised to increase the attention and spotlight on charter schools Brustein & Manasevit, PLLC

4. Charter Schools 101 Brustein & Manasevit, PLLC

5. What is a Charter School? • Independent public school designed and operated by parents, educators, community leaders, education entrepreneurs and others. • Operates under a contract, or charter, from a public agency, such as a local or state education agency, an institution of higher education or a municipality. • Must meet standards set forth in their charters for students and for the school as a whole, or else the chartering agency can close the school. Source: https://www2.ed.gov/nclb/choice/charter/charter-faq.html Brustein & Manasevit, PLLC

6. What is a Charter School? • Nonsectarian, publicly funded school of choice exempt from certain State and local regulations. • In return for reduced governmental regulation, charter schools agree in charter to be held accountable for academic and financial performance. • May operate as its own LEA, or as part of another LEA Source: The Office of Innovation and Improvement’s Oversight and Monitoring of the Charter Schools Program’s Planning and Implementation Grants, ED/OIG Final Audit Report (September 2012) Brustein & Manasevit, PLLC

7. What is a Charter School? • According to ESEA, Section 5210(1), a charter school is a public school that is: • Per State CS authorizing laws, exempt from significant State or local rules inhibiting flexible operation & management of public schools; • Created or adapted by developer, & operated under public supervision & direction; • Operates to pursue specific educational objectives determined by school’s developer & agreed to by authorized public charter agency; • Provides elementary or secondary education, or both; Brustein & Manasevit, PLLC

8. What is a Charter School? • ESEA, Section 5210(1) -- (continued) • Complies with civil rights laws (ADA, Title VI, Title IX, Section 504, IDEA); • Complies with Federal and State audit requirements; • Complies with Federal, State, and local health and safety requirements; • Operates according to State law; • Has written performance contract with authorized public charter agency describing how student performance will be measured for State assessments required by other schools and assessments mutually agreeable to authorizer and charter school; Brustein & Manasevit, PLLC

9. What is a Charter School? • ESEA, Section 5210(1) -- (continued) • Nonsectarian in all operations (programs, admissions, employment, etc.); • Not affiliated with sectarian school or religious institution; • Does not charge tuition; • School parents choose to send child to or admits students based on lottery when necessary. Brustein & Manasevit, PLLC

10. Charter School Authorizers • State charter school laws assign authorizers • National Association of Charter School Authorizers identified 6 types of authorizers: • IHEs • Independent chartering boards • LEAs • Mayors/Municipalities • Not-for-profit organizations • SEAs • Authorizers: • Approve charter applications • Oversee and ensure compliance • Review and renew contracts • Close charter schools Brustein & Manasevit, PLLC

11. Charter School Authorizers • After approving application, authorizer drafts charter contract outlining: • Time period of CS contract; • Requirements for governing board & bylaws; • Exemptions to traditional school legal obligations; • Performance goals; • Number of schools allowed under charter; • Fiscal goals; and • Reporting requirements • Authorizers responsible for monitoring school progress and compliance Brustein & Manasevit, PLLC

12. Charter Schools are Autonomous • Despite detailed contracts, charter schools usually have more freedom and flexibility than traditional public schools • Charter schools can: • Extend school day/week • Extend school year • Increase instructional time in a particular subject • Make independent staffing decisions • Try a new curriculum • Try a new instructional method • Pay for performance • Offer extensive tutoring • Etc. Brustein & Manasevit, PLLC

13. Charter Schools & Public Funds • How are public charter schools funded? • Money follows student • If a student transfers from a traditional public school to a public charter school, the funding associated with that student follows him or her to the public charter school Brustein & Manasevit, PLLC

14. Charter Schools & Accountability • Are charter schools accountable for state educational standards? • YES! • Required to meet all Federal and State education standards • Charter documents and chartering contracts establish student achievement goals that must be met • Accountable to supervising entity (LEA or SEA) Brustein & Manasevit, PLLC

15. Charter Schools & Financial Accountability • How are charter schools held financially accountable? • Funded with public dollars • Audits • If applicable, conduct single audit • Single Audit Act: expend $500K or more per year in Federal funds • Ongoing reviews from authorizing entities Brustein & Manasevit, PLLC

16. National Trends in Charter Schools Brustein & Manasevit, PLLC

17. State Charter School Laws • Minnesota passed first charter school law in 1992. • As of November 2012, 42 States and DC have laws specifically authorizing and governing charter schools • Two States made changes to charter school law in November 2012 elections: • WA approved charters for the first time • GA changed state constitution to clarify availability of charters • 8 States don’t have charter school laws • AL, KY, MT, NE, ND, SD, VT, WV Brustein & Manasevit, PLLC

18. State Charter School Laws: Differences • Charter school laws differ greatly from State to State • Common differences: • The types of charter schools that can operate in the State; • The limit, if any, on the number of charter schools that can operate in the State; • The type & number of authorizing entities in the State; • The level of legal autonomy & requirements charter schools are exempt from; and • The level of fiscal autonomy & funding a charter school receives Brustein & Manasevit, PLLC

19. Increasing Numbers • Overall, huge growth in number of charters and number of charter students in recent years • In 2009-10: • More than 1.6 million students • In 2011: • More than 5000 charter schools nationwide • Serving 2.3 million students (about 3% of total) • There are 100 cities where charters serve 10% of students or more (25 cities where it’s >20%) Brustein & Manasevit, PLLC

20. Measuring Charter Growth • Development of charter schools began in 1990s to provide expanded educational options within the public school system • Since 2007-08: • 1,700 new public charter schools (almost 50% increase) • Serving additional 1 million students (80% increase) • From 2011-12 to 2012-13, an estimated additional 200,000 to 275,000 students attending public charter schools • In 2012-13 school year alone, over 500 new public charter schools Source: National Alliance for Public Charter Schools, Dashboard Data from 2012-2013, http://www.publiccharters.org/publication/?id=929 Brustein & Manasevit, PLLC

21. By the Numbers • Students enrolled in charter schools nationwide: • 63% = Students of color • 52% = Eligible for free or reduced-price lunch • 16.5% = LEP • 11.9% = Have IEP • Charter school geography: • 54% in large cities • 22% in suburban communities • 9% in towns • 15% in rural areas Source: National Alliance for Public Charter Schools, March 2013 Brustein & Manasevit, PLLC

22. Push to Remove Caps • Currently, 25 States (including DC) have caps on the number of charter schools • Different types of caps: • Number of schools chartered/number of active charters • Number of students in charter schools • Limits to annual growth in number of schools or % of students in charters • Why remove caps? • Allows growth of good models, competition in charter “market” • BUT caps incentivize closure of unsuccessful models/problem schools Brustein & Manasevit, PLLC

23. Push for More Authorizers • According to 2011 survey by National Association of Charter School Authorizers: • 1000 chartering authorities nationwide • 850 are LEAs • LEAs authorize 52% of charters • Why more authorizers? • More charters • Process moves more quickly • Less bias? Brustein & Manasevit, PLLC

24. Increase in State/Local Voucher Programs • Basic idea: “funding portability” • In 2011, 15 States had some kind of voucher/tax credit program • 42 more were considering legislation • Some cities have similar programs • E.g., Los Angeles, Rochester, Newark, Boston • Support from members of Congress • Specifics of programs – and degree of “portability” varies Brustein & Manasevit, PLLC

25. National Trends: Parent Trigger Laws • Generally, parent trigger laws allow parents to petition to transform a failing public school • Transformations can include conversion to a charter • Requests not always granted • Most States require that school is first designated as low-performing for two to three years • Proponents say triggers give parents a voice • Critics say: • Triggers work to privatize and corporatize public schools (charters can be run by for-profit corporations) • Can allow schools to circumvent union protections for teachers Brustein & Manasevit, PLLC

26. National Trends: Parent Trigger Laws • 20 States have or are currently considering parent trigger bills • First parent trigger law: CA, passed 2010 • Existing parent trigger laws in: LA, MS, CT, TX, IN, OH, CA • CA, IN, TX considering revisions to trigger laws • CA is only State where parent trigger petition has been used (twice) • Both requests blocked by legal challenges Brustein & Manasevit, PLLC

27. Recent Legislation Brustein & Manasevit, PLLC

28. Democrats and Charters • Seen as an option in healthy school ecosystem • Generally supportive • BUT not a solution for all students Brustein & Manasevit, PLLC

29. Republicans and Charters • Charters as part of “school choice” system • “Market”-based approach to e • Charters as viable option that drive competition for other schools • Money should follow the child • Romney: “linked to the student” • Cantor (R-VA): funding portability Brustein & Manasevit, PLLC

30. Empowering Parents through Quality Charter Schools Act • H.R. 2218 (112th Congress) • Sponsored by Rep. Duncan Hunter (R-CA) • Goal is to “streamline and modernize” the Charter School Program • Current program “outdated” and “not meeting the needs of the charter school community” Brustein & Manasevit, PLLC

31. Empowering Parents through Quality Charter Schools Act • Consolidates existing funds into State grant program • With additional flexibility on State level to support new startups and expansion/replication of successful models • States must describe how they will include ELLs, students with disabilities • Expands current Charter School Program grant period from 3 years to 5 years Brustein & Manasevit, PLLC

32. Empowering Parents through Quality Charter Schools Act • Gives priority in funding to States that: • Repeal charter school caps • Allow other entities to be charter authorizers (not just SEA/State board) • Provide charter financing comparable to traditional public schools • Support “full-blended” or “hybrid-online” models • Are using charter transformation as a form of intervention for low-performing schools Brustein & Manasevit, PLLC

33. Empowering Parents through Quality Charter Schools Act • Consolidates Credit Enhancement Grant and Facilities Incentive Grant into CSP, with the option for the Secretary to award funds for facilities • Option for Secretary to provide funding directly to individual charters • In States that don’t get CSP grants • Support TA, dissemination of best practices Brustein & Manasevit, PLLC

34. Empowering Parents through Quality Charter Schools Act • Support • Passed House Committee 6/22/11 • Bipartisan support (34-5) including George Miller (D-CA) and Jared Polis (D-CO) • Passed House of Representatives 9/13/11 • Bipartisan support (365-54) • Included in text of Harkin ESEA bill (marked up October 2011) • Introduced as stand-alone in Senate 9/15/11 • Future • This legislation or something similar is likely to pass in next large education bill Brustein & Manasevit, PLLC

35. Race to the Top Act of 2013 • H.R. 426 • Sponsored by Rep. Jared Polis (D-CO) • Designed to boost “comprehensive reforms” and “innovative strategies” • Would create a competitive grant program for applicants that agree to implement one or more specific innovations, including “creating or maintaining successful conditions for high-performing charter schools” Brustein & Manasevit, PLLC

36. 21st Century Charter School Act • S. 88 • Sponsored by Sen. David Vitter (R-LA) • Would amend ESEA Charter School Program • Would makes public & private nonprofit entities eligible for grants (currently only SEAs) • Would allow grantees to award subgrants to developers or charter support organizations • Prioritizes applicants in States with no cap, high degree of charter autonomy • Creates 2 new grants for: • Charters and operators to disseminate best practices • Developing credit enhancement initiatives that help with costs Brustein & Manasevit, PLLC

37. Charter Schools & Equity Issues Brustein & Manasevit, PLLC

38. Geography • More than half of all charter schools are located in major cities • Not an option for many students, especially those from rural areas Brustein & Manasevit, PLLC

39. Segregation? • 2012 University of Wisconsin study • 43% of black charter school students attended schools that were 99% minority • Compared with 15% of black student population in traditional public schools • Minneapolis: 44% of charter schools were 80% or more non-white • 2012 Civil Rights Project at UCLA study: • Higher percentage of charter schools than traditional public schools are “racially isolated” Brustein & Manasevit, PLLC

40. Segregation? • What are causes? • Self-selection? • Intentional segregation? • Geography? • Schools prioritizing growth over equity? • Charter advocates say schools comply with all applicable civil rights requirements Brustein & Manasevit, PLLC

41. Students with Disabilities • Attend charter schools at much lower rates • 2012 GAO Report to Congress found that in 2009-10, student with disabilities made up: • 11.1% of total school-age population • 11.2% of traditional public school population • 8.2% of charter school population • (up from 7.7% in 2008-9) • Varies by State • In NH, students with disabilities make up 6% of charter school population; 13% overall • In IA, MN, NV, NM, OH, PA, VA, WY, about the same as % of total population Brustein & Manasevit, PLLC

42. Students with Disabilities • Why? • GAO doesn’t know • Possible explanations: • Placement by charter/LEA • Location of schools • Parent preference/student need • School capacity/resources • Funding Brustein & Manasevit, PLLC

43. Recommendations to States on Equity • ED’s Equity and Excellence Commission: • Ensure funding equity • Ensure access to publicly reported data for all public schools including charters • Work with Congress to promote research and evaluation of the effect of charter schools on equity and access to public education • University of Colorado National Education Policy Center: • Explicitly require that charter schools "enhance equitable educational outcomes for all students, particularly those who have historically struggled." • Ensure that charter schools are in compliance with all federal laws, including civil rights laws • Employ increased federal-level data collection and accountability measures. Brustein & Manasevit, PLLC

44. ESEA Flexibility Brustein & Manasevit, PLLC

45. Charters & ESEA Flexibility • From ED’s ESEA Flexibility FAQs • ESEA flexibility principles apply to charter schools • SEA must include charters in its plan for transitioning to CCR standards and assessments; differentiated accountability system; teacher and principal evaluation & support systems; all AMOs must apply to charters • Title I-participating public charters can be labeled “reward,” “priority,” or “focus” schools • Charter school authorizer’s decision to close a charter overrides SEAs labeling of a charter http://www2.ed.gov/policy/eseaflex/esea-flexibility-faqs.doc Brustein & Manasevit, PLLC

46. Charters & ESEA Flexibility • Which State entity is responsible for ensuring CS-LEA or charter school complies with State’s accountability system? • ESEA requires State charter school law governs • Generally means authorizer is responsible for accountability • BUT under ESEA flexibility, SEA establishes AMOs and accountability system, authorizer (or entity under State CS law responsible for accountability) should maintain close contact with SEA to ensure receiving current and accurate information Brustein & Manasevit, PLLC

47. Charters & ESEA Flexibility • Is a CS-LEA included in SEA’s differentiated recognition, accountability, and support system as an LEA or school? • CS-LEA is subject to recognition, accountability, and support provisions applicable to schools. • For flexibility purposes, SEA treats ALL charter schools, regardless of LEA status, as schools • SEA includes CS-LEAs when identifying reward, priority, and focus schools Brustein & Manasevit, PLLC

48. Charters & ESEA Flexibility • Can authorizer impose more rigorous accountability requirements on CS than SEA’s differentiated system requires? • YES • ESEA flexibility does not prohibit charter contracts exceeding SEA’s minimum requirements Brustein & Manasevit, PLLC

49. Charters & ESEA Flexibility • Caution: Each State’s approved waiver varies, so be sure to consult the waiver/appropriate staff regarding any new or modified requirements! Brustein & Manasevit, PLLC

50. Civil Rights Brustein & Manasevit, PLLC