
Local public school leaders say Pa. cyber charter audit may spark funding reform
JOHNSTOWN, Pa. – A report by Pennsylvania Auditor General Timothy DeFoor on five cyber charter schools' finances has created a stir among area school district leaders, who say the findings may finally result in funding reform for the alternative educational institutions.
'I don't think many people understand (the impact) until you start learning about it,' Westmont Hilltop School District Superintendent Thomas Mitchell said. 'It's harder to ignore the need for reform with these facts in front of you.'
Westmont Hilltop, which operates on a $26 million budget and has its own cyber option, spends $1.2 million annually in tuition to outside cyber schools, according to Mitchell.
With the release of the audit, Westmont Hilltop School Board President Robert Gleason said he thinks the findings will help move the needle on change.
'This happening will now allow the legislature to swing into action,' he said.
Gleason has been an advocate for cyber reform since his appointment as a school director in 2018, and he has served with the Pennsylvania School Board Association's Keystone Center for Charter Change.
PHOTO GALLERY | Westmont Hilltop Junior-Senior High School | Teachers in the Classroom
Gleason, the former chairman of the Pennsylvania Republican Party, said his firsthand experience with cyber schools' impact on in-person institutions made him want to get involved. He said he hopes reform is on the horizon.
'Raise concerns'
DeFoor, a Republican, released the audit report Feb. 20 on Commonwealth Charter Academy, Pennsylvania Leadership Charter School, Insight PA Cyber Charter School, Pennsylvania Cyber Charter School and Reach Cyber Charter School.
The audit investigated the finances of the five schools from July 1, 2020, to June 30, 2023.
DeFoor provided a series of recommendations for addressing potential cyber charter reform based on the findings.
'The overall results of this audit raise concerns over the funding formula for providing tuition payments to the cyber charter schools for regular and special education students with the excessive fund balances being accumulated by these cyber charter schools,' DeFoor said in the report.
He repeatedly stressed that nothing illegal was found during the review. But he said he's the third state auditor general to examine the situation and come to the same conclusion – that change is needed.
The audit revealed that the five schools raised tuition rates and received COVID-19 relief funds, resulting in near-doubling of revenues from 2020 to 2023. The institutions' funding increased from $473 million to $898 million in the three years, the audit states.
The five schools also saw enrollment increases from 27,450 in 2020 to 44,056 in 2023, increased expenditures from an average of $414.1 million to $888.1 million for that time, and reserves spiked by 144% from $254 million as of July 1, 2020, to $619 million by June 30, 2023.
Additionally, it was determined that each of the 500 school districts in Pennsylvania pays a different tuition rate, calculated by the district, for regular and special education students to the five schools. The range varied from $6,975 to $25,150 for regular education and $18,329 to $60,166 for special education, according to the report.
'When revenues and fund balances significantly increase, there is the potential for wasteful and/or discretionary spending of taxpayer dollars that could go beyond the legislative intent of the (Charter School Law),' DeFoor said in the report.
Although the schools alone determine use of these funds, the auditors found 'uncommon expenditures' during the review that raised concerns. An example of those unusual expenses, the report said, is Commonwealth Charter Academy's spending of $196 million during the audit period to purchase and/or renovate 21 buildings.
In another case, Reach Cyber Charter School provided $4.3 million in gift cards to students and their families from 2020 to 2023, as well as $32,000 in rent or utility assistance, the audit found.
Reach management justified the expenses with its Benevolent Giving Fund, which officials said is used for dispersing gift cards and coupons for a variety of reasons to 'needy families and other types of assistance,' the report said.
Responses to findings
Some cyber schools and groups responded to the audit with statements and evaluations on the findings.
Daniel C. Camp III, interim CEO of the Pennsylvania Coalition of Public Charter Schools, didn't disagree with the report.
'Auditor General Tim DeFoor has highlighted the need for charter school reform, a point that educators across the commonwealth of Pennsylvania agree on as long as it's fair and responsible,' he said.
'He rightly acknowledges the cyber charter schools he audited did nothing wrong and that their increased revenues were a result of parents fleeing traditional public schools, which were not meeting the needs of their children. Instead of focusing on money, let's focus what's the best education for each child in the commonwealth.'
Insight PA CEO Eileen Cannistraci said in a statement that the report 'confirmed what we already knew.'
'Insight PA is a good steward of taxpayer dollars,' she said. 'I commend the auditor general's team for conducting a thorough and professional performance audit and their collaborative approach to this process.'
Meanwhile, Westmont Hilltop's Mitchell said the findings give credibility to rumors that public school officials have heard for years about financial gifts and services provided to cyber charter families, such as the gift cards.
Greater Johnstown School District Superintendent Amy Arcurio said her district has seen a stream of students who return from outside cyber schools and tell about that type of monetary benefit. She said it is 'exasperating and unconscionable that hard-earned dollars – tax dollars that our families make' are being spent that way.
Arcurio stressed that she appreciates alternative educational platforms, stating if 'you learn from it and you are successful, that's wonderful.' Gleason said the same.
'However, we could totally help ourselves as underfunded school districts across the commonwealth with reform of the tuition that leaves our schools every year,' Arcurio said.
Greater Johnstown spends $5 million annually on outside cyber charter tuition, Arcurio said, adding that one serious issue for her is cyber students moving into the district and bringing their tuition bill with them, but never attending the city schools.
She said that reform for her, in addition to a funding change, is having families examine in-person district options and transitioning to Greater Johnstown's Cyber Academy if face-to-face education isn't working before going to an outside cyber charter.
Central Cambria School District Superintendent Jason Moore said 'every taxpayer and public school parent should be outraged' by the audit findings.
His district has been 'forced to reduce staff through attrition and raise local millage rates because of increased energy costs, in addition to the astronomical cyber charter school costs,' he said.
'Many school districts are delaying necessary repairs to roofs, windows, doors and mechanical systems – all while these cyber charters are building up massive reserve funds,' Moore said.
At Central Cambria, the annual tuition payment to cyber schools increased from $270,145 in 2018-19 to a high of $714,472 in 2022-23 and is now $695,000 in 2024-25, school documents show.
Recommendations
The audit report said the best way to address the issues is to have Gov. Josh Shapiro appoint a task force of professional and knowledgeable stakeholders with expertise in public school matters within six months of the audit's release to review Pennsylvania's funding formula for cyber charter schools.
That group would create a report determining an equitable and sustainable new formula based on actual cyber education costs that is fair to all parties within nine months of being established.
The task force chairperson should be empowered to work with Pennsylvania Department of Education staff to help research and review diverse approaches for cyber charter tuition rates for regular and special education, based on formulas from other states, the report said.
The report also said the General Assembly should pass a joint resolution within six months of the task force's report calling for the Legislative Budget and Finance Committee to issue a report within four months to study and facilitate legislation for a fair and equitable charter funding formula based on the aforementioned recommendations.
Cannistraci said she agreed with DeFoor in that any changes to the way public cyber charter schools are funded 'must be evaluated and reviewed in a comprehensive and collaborative fashion.'
'Insight PA would be willing to participate in a task force or legislative commission to look at cyber charter funding holistically and objectively,' she said. 'We strongly oppose the current call for an arbitrary flat tuition rate for cyber charter schools that is not based on real data or input from the cyber charter sector.'
Shapiro's next budget suggests a flat $8,000-per-student tuition rate for cyber charter schools.
Moore said reform of cyber schools is 'common sense' and he supports a task force. However, he said the issue has been studied enough and legislators need to step up and take action toward change.
'The Charter School Law that was passed in 1997 by the General Assembly never intended for this current situation to happen,' he said. 'It's a simple fix. One of the proposed solutions is to cap the rate at $8,000 and, in my opinion, that is a generous amount.'
Richland School District Superintendent Arnold Nadonley shared a similar message.
'There are so many flaws in this law,' he said, adding the current formula is 'outdated.'
Upon reviewing the audit, Nadonley said it was a reminder that legislators have not taken action on this issue yet, despite school district officials across the commonwealth calling for change for years.
Rachel Langa, Commonwealth Foundation senior education policy analyst, said in a statement that cyber charter schools 'exist in a delicate financial balance' and that if any funding formulas are reevaluated, 'then we must re-evaluate how the commonwealth funds all education options.'
'Pennsylvania families need a system that prioritizes achievement, choice and fiscal responsibility,' she said. 'Unless lawmakers come through with reforms that allow education funding to follow the student and hold all schools accountable to responsible spending, Pennsylvania students will continue to fall behind.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
17 minutes ago
- CNBC
Elon Musk's favorability among Republicans dropped 16 points since March, Quinnipiac says
Elon Musk's official role in the Trump administration recently came to an end. Many Republicans won't be sad to see less of him, according to the results of Quinnipiac University's latest public opinion survey. While a majority of Republicans still hold a favorable view of Musk, the number fell to 62% in the poll out Wednesday, down from 78% in March, Quinnipiac said. Overall, the Quinnipiac poll found that 30% of self-identified voters surveyed in the U.S. hold a favorable opinion of Musk, according to polling from June 5 to June 9. Republican and Democratic voters remain deeply divided in their views of the world's richest man, who contributed nearly $300 million to propel President Donald Trump back to the White House. Only 3% of Democrats surveyed said they held a favorable of view of the Tesla CEO, who was once seen as an environmental leader appealing to liberal values. Musk didn't respond to a request for comment. Musk and Trump had a very public falling out last week that started with Musk's disapproval of the president's spending bill and escalated into an all-out war of words that played out on social media. Musk said on Wednesday that he regretted some of the posts he made about Trump last week, adding that "they went too far." Even with a slide in his favorability, Musk is still popular among Republicans after his time running the Department of Government Efficiency (DOGE), an effort to dramatically slash the size of the federal government. Among the Republican respondents to the early June poll, 80% rated Musk and DOGE's work as either excellent or good, while 13% said it was either not so good or poor. In the March poll, 82% of Republicans surveyed said they thought Musk and DOGE were helping the country. Read the full survey results here.
Yahoo
25 minutes ago
- Yahoo
Democrats react to Trump's push for Texas redistricting
AUSTIN (Nexstar) — After reports of President Donald Trump convening a meeting Monday with members of the Texas congressional delegation, Texas Democrats say it shows the party is worried about potential losses in 2026. A report in the New York Times detailed a White House meeting in which the president pushed Texas congressmen to pursue a mid-decade redistricting effort. Republicans who spoke to both the Times and the Texas Tribune did not seem keen on the idea, which would require Gov. Greg Abbott to call a special session of the legislature. None of the 25 Republicans who represent Texas in the U.S. House responded to requests for comment, but a source close to the situation confirmed to KXAN that a meeting at the White House will take place Thursday. Changing the congressional map to advantage the GOP would likely require splitting up districts which currently lean heavily toward one party to create more competitive seats, a move that could backfire if Democrats have a good year in 2026. However, changes to the congressional districts in large metro areas like Houston or Dallas could net Republicans some seats without throwing any of their own into jeopardy. And even without redistricting, Republicans have clear pickup opportunities in Texas' 28th and 34th congressional districts — two south Texas districts which swung heavily to Trump in 2024. The current Texas congressional map is already overwhelmingly Republican, with 25 Republicans to 12 Democrats, though one heavily-Democratic seat is vacant. That leaves Republicans with nearly 66% of seats in a state in which Trump received 56% of the vote. Democrats say that the current map is already unfair, and a mid-decade redraw would be a sign of desperation for Republicans ahead of the 2026 midterms. State Rep. Gene Wu, D-Houston, said that Republicans' policies have been unpopular and that the GOP is trying to minimize losses in next year's House races. 'Donald Trump is desperate to cling on to the power that he's had, and he knows just how upset people are about what the Republicans have done in just a few months that they've been in office,' Wu said. 'People are pissed, and they know what's coming.' Wu cited policies passed out of the legislature in Texas, including a ban on all hemp-derived THC products as well as the school voucher program, championed by Abbott, as ways lawmakers have ignored voters. He attributed this to the safe districts which exist under the current maps. The congressional districts drawn in Texas currently do not favor competition — just two House races were decided by fewer than 14 points in the 2024 elections. The current maps — including for the state legislature — are undergoing litigation in El Paso over allegations that the maps were drawn to disadvantage Black and Latino voters. The Supreme Court has shown opposition to racial gerrymandering in recent years, striking down maps in Alabama and Louisiana for disadvantaging Black voters in those states. Wu described the current map as a 'racial gerrymander' and said that if Republicans want to draw an even more favorable map, they will likely succeed in doing so. This would not be the first time Republicans have attempted mid-decade redistricting in Texas. Back in 2003, as Texas was quickly changing from Democratic to Republican, the legislature redrew the maps to heavily advantage the GOP. Democrats lost five seats in the 2004 elections as a result. Democrats then walked out to try and prevent Republicans from meeting quorum and being able to vote on the maps. When asked what should be done about it in the event Republicans try it again, Wu did not give a clear answer, but accused Republicans of playing politics. 'Anytime you hear them talk about redistricting, especially if it's in the middle of the cycle, all this is about political games and trying to destroy our democracy,' Wu said. Congressman Lloyd Doggett, D-Austin, also did not give a clear strategy, but said he has faith in the Austin-area Democrats. 'I hope they will do everything they can to protect the interest of our neighbors in Central Texas and not let some radical gerrymandering occur just because President Trump is desperate to be protected,' Doggett said. Any attempt by Republicans to redraw the maps would need to happen soon, with the filing deadline for the 2026 primary elections coming up at the end of the year. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
25 minutes ago
- Yahoo
Iowa governor vetoes bill restricting private pipelines' use of eminent domain
Gov. Kim Reynolds vetoed a bill Wednesday aimed at CO2 pipelines and eminent domain. She's pictured at her 2025 Condition of the State Address Jan. 14, 2025. (Photo by Robin Opsahl/Iowa Capital Dispatch) Gov. Kim Reynolds Wednesday vetoed a controversial bill pertaining to eminent domain and carbon sequestration pipelines in Iowa. House Republican leaders initiated an effort to reconvene the Legislature to override the veto, but Senate GOP leaders indicated that was unlikely. House File 639 would have increased insurance requirements for hazardous liquid pipelines, limited carbon pipeline permits to one 25-year term and changed the definition of a common carrier for pipelines, making it more difficult for the projects to use eminent domain. Reynolds, in a statement, said she shared the bill's goal of 'protecting landowners' but the bill lacked the 'clear, careful lines' drawn in good policy. 'It combines valid concerns with vague legal standards and sweeping mandates that reach far beyond their intended targets,' Reynolds said in a letter announcing her decision to veto. Reynolds followed her critique of the bill by noting that Iowa could lose its 'leadership position' as a top biofuel production state if legislation stopped the infrastructure necessary to enter ultra-low carbon markets. Central to the bill is a carbon sequestration pipeline project led by Summit Carbon Solutions that would transport liquid carbon dioxide, captured from biorefineries across Iowa, to underground storage in North Dakota. Farmers and the biofuels industry have been supportive of the Summit pipeline, and therefore opposed to the bill, because it would give Iowa access to the carbon capture and sequestration technologies necessary to make products like sustainable aviation fuels. In a statement following the governor's veto, Iowa Renewable Fuels Association Executive Director Monte Shaw said without carbon capture projects, and entry to ultra-low carbon fuel industry, Iowa could face 'very real, very severe economic consequences.' 'This is a classic example of why our system of government has checks and balances,' Shaw said. 'Any thoughtful review of this bill would determine that it would lead to higher energy prices for Iowans, hamper future economic development, hold back job creation, and stifle new markets for Iowa farmers. IRFA thanks Gov. Reynolds for listening to Iowans, studying the actual legislation, and ignoring the rhetoric that was as inaccurate as it was loud.' A press release from Iowa Corn Growers Association said entrance to the aviation fuel industry alone could result in nearly 6.5 million bushels of new corn demand, which it said is necessary for farmers dealing with high input costs and decreased profit margins. Farmers 'need expanded market growth and access to continue raising corn profitably; allowing them to continue growing Iowa's agricultural industry and economy,' the statement said. Opponents of the bill, including several lawmakers, argued the bill was aimed solely at carbon sequestration projects, rather than protecting landowners from eminent domain as supporters claimed. 'Eminent domain' allows the government to force private landowners to allow use of their property, for a fee set by the courts, for infrastructure projects deemed in the public interest. Eminent domain has long been used projects such as public roads and utilities. Leadership from Southwest Iowa Renewable Energy, or SIRE, said its CO2 pipeline project connecting to Nebraska's Tallgrass Trailblazer pipeline would be impacted by the bill's insurance and permit limit clauses, even though the SIRE project secured voluntary easements for 100% of its path in Iowa. Reynolds cited this example in her explanation, and said the 'arbitrary' term limits and insurance requirements would make it 'difficult for companies like SIRE to justify the additional investment' in Iowa. 'Those who crafted the bill said they don't want to stop CO2 pipelines that rely entirely on voluntary easements,' Reynolds said. 'But that is exactly what the bill does.' Summit Carbon Solutions thanked the governor for her 'thoughtful and thorough review' of the bill. In a statement, the company said the pipeline project 'opens the door to new markets and helps strengthen America's energy dominance for the long term.' 'Summit remains committed to working with landowners through voluntary agreements—just as we have with more than 1,300 Iowa landowners to date, resulting in $175 million in payments,' a spokesperson said in the statement. 'We look forward to continued discussions with state leaders as we advance this important project.' Opponents to the pipeline project, who were supportive of HF 639, argue the pipeline would negatively impact their properties and health, and that sequestering CO2 does not constitute a 'public use' deserving of eminent domain rights. Landowners opposed to the project lobbied state lawmakers for four years before a bill was debated, and ultimately passed, in the Senate and sent to the governor. Since the bill landed on the governor's desk, landowners have encouraged Reynolds to support Iowa GOP values on protecting property rights. Reynolds said the debate of when the government, or companies with government approval, can take private property is a 'debate as old as the Republic.' 'I've consistently said that if eminent domain is used, it must be rare, fair and a last resort,' Reynolds said. 'But HF 639 isn't just about eminent domain.' Reynolds said the bill sets a precedent that 'threatens' the state's 'energy reliability, economy and reputation as a place where businesses can invest with confidence.' Mary Powell, a Shelby County landowner opposed to the pipeline, said the veto shows that the state motto of, 'Our liberties we prize, and our rights we will maintain' are 'just empty words' to the governor. 'Governor Reynolds chose to support the millionaires and billionaires at the expense of Iowans and their property rights,' Powell said in a statement. Another landowner, Don Johanssen from Cherokee County, said the governor's decision was 'beyond words,' especially as the bill would have given landowners 'some liability coverage' from hazardous pipelines. The bill would have required pipeline operator to carry insurance that covered any loss or injury from accidental, negligent or intentional discharges from the pipeline, and to cover insurance increases that landowners face due to the pipeline. 'This is a sad day for Iowa that will be long remembered,' Johanssen said. Reynolds said the bill would impact 'more than just CO2 infrastructure' and would change permitting rules 'across the board,' giving 'uncertainty into critical energy projects.' Opponents of the bill called the insurance requirements 'untenable.' The American Petroleum Institute's Midwest Regional Director Mike Karbo said the bill had 'unprecedented and unfeasible requirements' that would have hindered future projects in the state. 'Since there are no refineries in the state, critical energy infrastructure, such as pipelines, are crucial in ensuring Iowans have a reliable source of energy, and certainty is needed to develop the infrastructure network,' Karbo said. 'We thank the Governor for doing what is right for the future of energy development in the state.' Reynolds said HF 639 included 'a few helpful provisions' and the surrounding debate 'highlighted' areas for progress. 'I agree we can do more to limit the use of eminent domain, promote transparency, and ensure responsible land restoration,' Reynolds said. 'We can do better.' Reynolds, who is not running for reelection in 2026, said she is 'committed' to working with legislation to 'strengthen landowner protections, modernize permitting and respect private property.' Taking one element from HF 639, Reynolds will ask the IUC to require all commissioners to be present for live testimony and ensure at least one commissioner is present at every informational meeting. In a statement from Iowa House Republicans, Speaker Pat Grassley said he has requested members sign a petition to reconvene the Legislature in a special session. 'This veto is a major setback for Iowa,' Grassley said in the statement. 'It is a setback not only for landowners who have been fighting across Iowa, but for the work the House of Representatives has put in for four years to get legislation like HF 639 passed. We will not stop fighting and stand firm on our commitment until landowners' in Iowa are protected against Eminent Domain for private gain.' Rep. Charley Thomson, R-Charles City, said he was 'very disappointed' in the governor's decision and that he was supportive of a special session to override the veto. Two-thirds of the Legislature must sign a petition to request a special session, and to override a veto, two-thirds of the members from each chamber must vote to pass the bill again. Sen. Jack Whitver, R-Grimes, the majority leader for the chamber, said he expects most of his caucus will 'not be interested in any attempt' to override the governor's veto. The bill likely would not have advanced in the Senate had it not been for a dozen Republican senators who vowed to block necessary budget legislation until the chamber debated eminent domain. The 12 were also joined by Senate Democrats in pushing for amendments, which were ultimately defeated, and approval of the bill. Senate Democrats said the fight for property rights will continue. 'I'm disappointed by the governor's veto of HF639, but, unfortunately, I cannot say I'm surprised,' Sen. Janice Weiner, D-Iowa City, said. 'There is simply no amount of political posturing or legislative stonewalling that can deny the fact that Iowans' right to private property should never be infringed upon for private gain.' One of the 12 to disagree with the Senate majority, Sen. Kevin Alons, R-Salix, said signing the bill was 'the single option available' to protect the rights of impacted landowners. Alons pledged to 'never quit working' on the issue, but said that means 'very little' to landowners who have been impacted by the 'unprecedented, and unconstitutional land grab.' 'To be clear: the Iowa government has given this private company the right to take people's land for one reason: corporate earnings,' Alons said in a statement. 'This has nothing to do with public use. It's absolutely not necessary for the ethanol industry in our state … And it certainly is not what the founders had in mind.' Alons said when the Legislature returns in January, he and other lawmakers 'will use every tool at our disposal' to 'return property rights back to the people.' Rep. Steven Holt, R-Denison, who sponsored the legislation, wrote in a social media post he was 'profoundly disappointed' by the veto. Holt said the state constitution and the Republican platform are clear in their message that eminent domain is for public use projects. 'Today the Governor has chosen to ignore landowners, the vast majority of the Legislature, the Republican Party Platform and the Iowa Constitution by choosing the economic development argument of special interests,' Holt wrote. Holt said Reynolds, and the Senate had opportunities of the past several years to offer their own suggestions to the eminent domain issue instead of opposing House legislation. 'On behalf of the people of Iowa and their fundamental property rights, the Governor's veto should be overridden,' he wrote. 'This fight for who we are as Republicans is far from over.' House Democratic Leader Rep. Brian Meyer said parties in the House collaborated to 'protect property rights.' 'At the end of the day, there is only one group to blame for the failure of the eminent domain bill: Iowa Republican lawmakers,' Meyer said in a statement. The first phase of the Summit Carbon Solutions project was approved by IUC nearly a year ago, which granted Summit the right to condemn easements from landowners who do not want to voluntarily sign agreements to put the pipeline on their land. Per the Iowa permit, Summit still needs a permit from South Dakota, which it has been denied twice, to begin construction. SUPPORT: YOU MAKE OUR WORK POSSIBLE