CTU report faults charter school oversight, cites abrupt closures and financial mismanagement

Chicago Tribune

22-05-2025

A new Chicago Teachers Union report released Thursday criticizes the lack of oversight of the district's over 100 charter schools.
Charter schools make up about a sixth of all schools in the district and receive public funding from Chicago Public Schools based on student enrollment, similar to district-run schools. Though charters are authorized and overseen by CPS, they operate as separate and private nonprofit organizations that manage their own day-to-day operations.
The report argues that the unregulated nature of that model has caused abrupt school closures, financial mismanagement, worse student outcomes and labor violations. It cites high staff turnover, inadequate student support and wrongful and retaliatory firings.
The union has historically opposed charter operations, which emerged as a form of 'educational choice' in the late '90s. In the report, CTU points to 'Renaissance 2010' under former mayor Rahm Emanuel, leading to the largest mass school closure of public schools in United States history, as charter models were prioritized.
'The District's oversight of charter schools follows State law as well as all related Charter District policies and procedures,' CPS said in a statement.
Though debate over the benefits of charter versus neighborhood schools is always prominent, the announcement of the closures of over half of the schools in the Acero charter network last October created a new wave of controversy that went up against the school board. The closures would have affected 2,000 majority-Latino students and over 200 staff.
As pressure built on CPS chief Pedro Martinez to assume financial responsibility for those schools, the district put out repeated messaging that it had not offered financial support to charter operators closing schools for financial reasons in the past.
According to the report, the fact that 'charters have no obligation to give notice' before a school closure has caused 'disruption, uncertainty, and the erosion of CPS's credibility with impacted families over time.'
Under a mayor that has historically adamantly opposed school closures, in an unusual move, the Chicago Board of Education eventually voted to keep some of the Acero schools open, a financial commitment for a district under serious financial strain — and a statement against the rash decision-making of charter leadership.
According to the report, the Acero closures were announced despite having '$49 million in cash reserves' and meeting financial health indicators. At the time, charter administrators said the decision to close the schools was made partly because the buildings did not meet safety standards.
Financial mismanagement lies at the root of closures like Acero and other charter operators that have shuttered in recent years, the report states. Hope Learning Academy, Foundations College Prep and Little Black Pearl also closed schools recently.
The report cites evidence that charter operators have stockpiled hundreds of millions in reserves while the district has accrued debt, some using public funds to finance private deals. It describes charter operators as capitalizing on the opportunity to 'triple dip' on pandemic money and loans, on top of CPS funds.
Charter schools, the union-written report argues, have 'failed to live up to the promises they made to families,' falling behind in standards for special education and English Language Learners. Students are disproportionately disciplined, it states. The report also describes what it calls 'anti-union practices' such as retaliatory firings, intimidation and school closures timed to disrupt union efforts.
Ultimately, the report recommends stricter oversight of charters and stronger protections for students and educators.
'Charter operators are able to continue to benefit from public funding while evading the public standards and responsibilities that district schools are held to,' the report concludes.
'The lack of oversight, support, and accountability has produced repeated and real harms.'