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Yahoo
04-03-2025
- Business
- Yahoo
Calls for cyber charter reform intensify after audit found ballooning revenue, surpluses
Spotlight PA is an independent, nonpartisan, and nonprofit newsroom producing investigative and public-service journalism that holds power to account and drives positive change in Pennsylvania. Sign up for our free newsletters. HARRISBURG — Key Republicans say they are increasingly convinced they must reform Pennsylvania's quickly growing cyber charter schools after an audit identified ballooning revenue and surpluses and 'uncommon' spending. For years, efforts to overhaul the way these schools are funded and overseen have foundered amid Harrisburg's complicated education politics. Republicans, in particular, have been torn between fiscal accountability and ensuring families have considerable alternatives to public schools. But the audit, from Republican Auditor General Tim DeFoor, may have cut through some of the political noise. Echoing past reviews, DeFoor identified big surpluses and schools spending taxpayer dollars in questionable ways, including on gift cards, staff bonuses, and vehicle payments. 'The message to me was, we need to do something,' said state Sen. Lynda Schlegel Culver (R., Snyder), who took over this session as chair of the Senate's Education Committee. Culver said she's aware that the last several chairs of her committee have also tried to work on this issue. 'They would get so close, and it just didn't happen — I had heard at one point, they were walking into the meeting, and it just fell apart as they were walking into the meeting,' Culver said. 'It's my hope with this report, which is very factual … that we have some consensus.' DeFoor is the third auditor general to review cyber charter finances. In an interview with Spotlight PA, he said that while school funding and oversight can be highly political, 'Politics had nothing to do with taking this on. 'We're simply following up with what was done previously by other auditor generals, and also following up with how our schools are spending our tax dollars,' he said. DeFoor's audit, the first since enrollment ballooned during the pandemic, looked at five of the commonwealth's 14 cyber charters. He found the revenue that these charters take in nearly doubled from 2020 to 2023, from $473 million to $898 million. He also found that those schools' financial reserves increased by nearly 150% in that period. As in previous audits, DeFoor also looked at the ways cyber charters were spending their considerable budgets. Along with spending on things like gift cards and bonuses, there were also much bigger outlays. Commonwealth Charter Academy, the state's largest cyber charter operator, also spent $196 million to buy, renovate, or do both to 21 buildings over the period of the audit. In his news conference announcing his findings, DeFoor said the expenditure 'seems a bit out of the ordinary for a public school that is based in online instruction.' All of this is legal under Pennsylvania's charter school law, DeFoor noted. 'These were taxpayer dollars,' DeFoor said. 'And cyber charter schools are able to do this legally because we have an old and outdated formula that really hasn't been changed since 2002.' The law that dictates state funding for charters is the same for both brick-and-mortar and cyber schools. Public districts pay per-student tuition directly to charters, and that tuition is based on the district's per-student spending, with some deductions like facilities expenses. If a student has a disability, their tuition is built on that base rate for the district, plus a standard percentage of its spending for all disability services — regardless of the kind of disability the student has. In recent state House and Senate budget hearings on education policy, this state of affairs came up again and again. Acting Education Secretary Carrie Rowe, who is newly in charge of the department, told lawmakers in the state House that 'to say that I was anything less than exceptionally concerned by the auditor general's report would be an understatement.' In particular, she noted, she sees a real need to reduce the surpluses that cyber charters are allowed to carry, noting that 'when you juxtapose the 41% fund balances that … cyber schools have with the approximately 10% fund balances that [traditional] school districts have, it certainly is concerning.' What has not been forthcoming, so far, is a consensus on a solution. In his most recent budget proposal, Gov. Josh Shapiro, a Democrat, asked lawmakers to overhaul cyber charter funding by instituting a statewide, per-student base rate of $8,000 for all cyber charters, rather than the widely variable district-based spending that currently exists. He also pitched that approach last year, and Republicans have so far been noncommittal on it. The issue is complicated by several other, interconnected education policy debates. State lawmakers are currently operating under a court order to fix the funding system for traditional public schools, after a judge found the previous system unconstitutionally inequitable. That's creating a significant need for revenue. As part of this debate, Republicans have pushed hard for programs aimed at creating more alternatives to public schools, including a taxpayer-funded voucher proposal that would send children to private and parochial schools. Culver noted that's still a priority for her caucus. 'Everything is interconnected to everything else,' she said. A spokesperson for state Senate Republicans did not respond to a request for comment. In his audit, DeFoor stopped short of calling for a particular fix for the cyber charter funding system, saying instead that Shapiro should convene a task force to review the current formula and recommend a new one that is 'equitable, reasonable and sustainable.' Culver said she's open to a task force but noted that assembling one and then waiting for its reports will take months. 'I don't know that anybody wants to wait that long,' she said. She added, 'My concern would be, do we already have enough data, enough studies on this issue? I'm still there, and we're still looking at it, but I think over the next, say, two or three months, you'll see a lot more movement on this issue.' If you learned something from this article, pay it forward and contribute to Spotlight PA at Spotlight PA is funded by foundations and readers like you who are committed to accountability journalism that gets results. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
01-03-2025
- Business
- Yahoo
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.'
Yahoo
01-03-2025
- Business
- Yahoo
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.'
Yahoo
21-02-2025
- Business
- Yahoo
Audit finds Pennsylvania cyber charter schools amassed excessive reserves
Pa. Auditor General Tim DeFoor (Commonwealth Media Services). A three-year audit shows five of Pennsylvania's cyber charter schools amassed excessive reserves following rapid enrollment growth during the COVID-19 pandemic, demonstrating the need to change the way tuition is paid for online students. State Auditor General Timothy DeFoor's office released the findings Thursday. Online charter schools receive taxpayer funding from the school districts where their students live. The audit makes recommendations to the governor's office, General Assembly and the Department of Education to review and reform the cyber charter school tuition formula. While it found the cyber charter schools acted within the law, it highlighted 'uncommon' spending practices such as purchasing gift cards, paying bonuses to teachers and the acquisition of 21 physical properties by the state's largest cyber school. The audit calls for scrutiny of Commonwealth Charter Academy's acquisition and renovation of buildings throughout the state to determine whether it followed the education department's guidelines on building usage and the Charter School Law. 'We get concerned whenever revenues and fund balances significantly increase, because it opens the door for questionable and discretionary spending of our tax dollars,' DeFoor said Thursday. 'In each case, cyber charter schools were legally accruing millions of dollars in reserve to excessive amounts.' Charter schools and traditional public schools may accumulate reserves to cover unexpected expenses or interruptions in revenue. DeFoor said the five schools' aggregate fund balances increased 144% between July 2020 and June 2023. 'Reserves are meant to cover unanticipated bills so there's no interruption in a child's education, DeFoor said. 'It isn't money meant to sit in the bank of a cyber charter school growing year after year. These are your tax dollars.' The audit noted transactions by Commonwealth Charter Academy that, 'while permissible and with CCA's autonomy in financial management, may be considered uncommon or unique for a cyber charter school.' They included $22 million in employee bonuses, $2.4 million in fuel stipends, $1.3 million for a vehicle fleet and $70,280 for a 'Family Funfest Event.' It found other schools paid employee bonuses, but that expenditures in other categories such as outside contractors and field trips were generally reasonable. Recommendations in the report include calling on Gov. Josh Shapiro's office to establish a task force of representatives from the state Department of Education, cyber charter schools, school districts, parents, education-related associations and lawmakers within six months. Members should produce an evaluation of the existing funding formula and recommendations for a new approach that considers the actual costs of providing a quality education in a cyber environment. The task force should have assistance from the education department to review approaches for establishing a tuition rate for regular education and special education cyber charter students. The audit also found the department has not renewed some cyber schools' charters and recommends the agency carry out the renewal process in a timely manner to coincide with the end of schools charter agreements. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The audit's findings reflect concerns raised by those of public school advocacy groups about cyber charter tuition and spending in recent years. Gov. Josh Shapiro's proposal for the next budget calls for a statewide base cyber charter annual tuition rate of $8,000 per student, which would save school districts an estimated $378 million a year. 'Gov. Shapiro shares the auditor general's commitment to ensuring taxpayer dollars are spent effectively and efficiently. The governor agrees that significant reform to cyber charter tuition is needed to better align the cost of providing an online education with the tuition cyber charter schools receive,' a Department of Education spokesperson said in a statement to the Capital-Star. Cyber charter schools responded by highlighting the audit found no financial mismanagement, waste, fraud, or abuse of taxpayer dollars. Jeff Piccola is a former Dauphin County Republican state senator who serves as chairperson of the Commonwealth Charter Academy board of trustees. He said in a statement the audit confirms the school manages taxpayer funds properly. 'CCA's comprehensive internal controls, combined with its student- and family-focused mission, ensure that students and families receive the academic enrichment, social support, and attention they deserve,' Piccola said. CCA noted its enrollment more than doubled during the audit period and while DeFoor pointed to cyber charter schools' reserves as evidence supporting tuition reform, it did not acknowledge the state's traditional school districts maintain fund balances of more than $6.7 billion. More than 88% of the state's 1.7 million public school students attended traditional schools in 2023, according to the Pennsylvania State Education Association, the state's largest teachers union. Eileen Cannistraci, CEO of Insight PA Cyber Charter school, commended the auditor general for a thorough and professional audit but noted DeFoor's office had denied a request that each school's audit be presented separately. 'Insight PA encourages readers of the audit report to look at each audit separately and avoid generalizing any findings to the entire cyber charter sector,' Cannistraci said, adding she agrees that changes to the way cyber charter schools are funded should be evaluated in a 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. 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,' Cannistraci said. The nonprofit group Education Voters advocates for the adoption of a pro-public education agenda by elected leaders. Just last month, the organization released a report criticizing CCA for lacking transparency in its spending of hundreds of thousands of dollars. Advocacy group's report contained 'significant errors,' charter academy says Susan Spicka, who serves as its executive director, said the audit is a 'clarion call' for the legislature to act on Shapiro's proposal. 'Pennsylvanians cannot afford to wait any longer for state lawmakers to take action to protect their constituents' tax dollars from being removed from their local schools and packed into cyber charter asset hoards,' Spicka said. But, Spicka said her group disagreed with the auditor general's recommendation to create a task force to study cyber charter tuition formulas. 'A task force would simply kick the can down the road and ensure that tens or even hundreds of millions of additional property tax dollars will be hoarded or wasted by cyber charter schools while Harrisburg wrings its hands,' Spicka said, noting that the state House last year passed a bipartisan bill to set a statewide tuition rate and limit cyber charter school reserve balances. Pennsylvania's law allowing publicly-funded charter schools was passed in 1997. The law was amended in 2002 to authorize cyber-charter schools. Since then, the education department has granted permission for 14 cyber charter schools that accept students from throughout Pennsylvania. They serve about one-tenth of the state's 1.7 million public school students. Because every school district in Pennsylvania establishes its own budget and per-pupil spending rate, a single charter school can receive a broad range of tuition payments from each district where it draws students. According to the auditor general's office report, the tuition rates paid to the five schools in the audit ranged from $6,975 to $25,150 for regular education students and $18,329 to $60,166 for special education students. SUPPORT: YOU MAKE OUR WORK POSSIBLE
