Changing to Charter. Rebecca A. Shore
schools themselves contribute to this confusion as the sector is complicated with differences abounding between charter school types. As charter schools are state regulated based upon individual state laws, adopted regulations, or proffered policies, we cannot generalize to the granular details but must stay focused on the state level. If one were to seek specifics for a particular state, an important first piece of advice would be to research that state’s laws, regulations, policies, and procedures. We can, however, clarify some basic terminology that establishes a frame upon which a true understanding of the charter model can be constructed. The terms “publicly funded” and “charter” are significant in the definition cited above. To have a clear understanding of charter schools both terms must be understood and applied correctly.
Publicly Funded
Charter schools are “publicly funded,” meaning that state funds, and in some cases federal funds, are allotted to the schools for the purpose of educating students. Pending the structure of a charter school in accordance with state law, some charters can receive federal funds such as special education or Title I funds. As a condition upon accepting these monies, charter schools must assure compliance with both the state and federal funding requirements, including all testing requirements, like traditional public schools.
Charter school funding is determined by state laws and regulations, but whether or not a charter school ever opens its doors is totally dependent upon the number of students choosing to attend. Some states call this average daily attendance (ADA) while others refer to it as average daily membership (ADM). Charter schools, as a nonprofit, may also apply for private, competitive grants.
The Charter
“Charter” is another key term in the definition of charter schools. The charter is an agreement or a contract between the governing board of the school and the entity that decided to grant the charter—an authorizing entity. Charter authorizing entities can include state boards of education, institutions of higher learning, school districts, or other nonprofit entities. Again, process details are state-specific; yet, these authorizers are granted authority by law to create an application cycle that includes a call for proposals, application submission, review, awarding a charter, and renewal procedures.
A charter document describes the required components of the school such as mission and vision, instructional program, governance structure, personnel plan, budgetary assumptions, enrollment projections, and academic accountability measures. The charter often incorporates the application to set the stipulations for how the school will perform and be measured over the duration of its lifetime. Any amendments to the charter must be approved, in advance, by the authorizing entity to ensure fidelity to the school’s operational aspects.
Charter schools exist because of a dual exchange—more operational freedom alongside more outcome accountability. Although free from some requirements (e.g., teacher certification), charter schools do face increased accountability measures in that they can be closed for poor performance whether in finances, academics, or operations. Charter schools cannot discriminate in admission policies. Charter schools cannot charge tuition for students. Charter schools cannot pick and choose student enrollments as they are required to utilize a lottery if more students apply than seats are available. Charter schools cannot ignore performance on state-mandated assessments. Charter schools cannot spend public dollars any way they want because they are bound by state and federal mandates.
While charter schools may look very different, they all must adhere to regulations and policies much like traditional public schools. The volunteer governing board is legally responsible for every aspect of school operation, and authorizers are expected to regularly monitor the school’s outcomes. As part of their monitoring responsibilities, authorizers may conduct site visits, hold desk audits, perform document reviews (e.g., board meeting minutes), examine financial records, or host informal conversations. These monitoring protocols vary across authorizing organizations, but their intent is the same—judge the charter school’s outcomes to forge a determination in whether to renew or terminate a charter.
We, as authors, have studied vastly different schools from project-based, arts-based schools to direct-instruction schools to classical schools, and these pedagogical variances highlight their operational freedom. While each school held true to its mission and vision, they did so while successfully meeting their state’s required accountability measures, thus showcasing their outcome focus. Simply put, a failure in either area would compel an authorizer to review programmatic adherence and performance achievement to determine the future status of that charter school.
For-Profit or Nonprofit
One of the most popular questions involving charter schools is whether they are not-for-profit or for-profit entities. Charter schools, in accordance with state laws, operate as a public school, and the volunteer governing board is a nonprofit entity. As such, charter schools are not-for-profit organizations. These governing boards are constituted in accordance with their Articles of Corporation and Bylaws which vary widely but must comply with state mandates. The Articles and Bylaws describe the number and term of board members, procedures for electing new members, committee/meeting structure, and basic parliamentary procedures. These documents, along with the charter, determine how the board will, much like their traditional counterparts, partner with for-profit companies to deliver services for students.
Without question, the majority of charter schools are governed by volunteer charter school boards but all of them partner with other for-profit businesses to assist them in their school operation, just like traditional schools and districts. The discussion of profit in education is often segmented only for the charter school sector; however, the issue is broader than most people will permit the discussion to go. For instance, simply answer this question: do textbook organizations, athletic companies, furniture businesses, construction firms, or insurance corporations make profit by working with traditional schools? The answer is an unequivocal yes.
This question turns, however, in the role of what is called an educational management organization (EMO). These entities provide an array of services and expertise to the governing boards in exchange for a fee. The services, just to name a few, could include marketing, curriculum, financial bookkeeping, professional development, and facility acquisition. How widespread is the presence of EMOs within the charter community? According to the National Alliance of Public Charter Schools (NAPCS), less than 15 percent of charter schools are managed by a for-profit EMO.2 Despite the small footprint, some states are now taking steps to put forward specific regulations surrounding the for-profit status of charter schools.
During the 2017–18 legislative session, California included language in the law that “a charter renewal or material revision application shall not operate as, or be operated by, a for-profit corporation.” The legislation goes further by defining the terms “operate as, or be operated by,” to include the following factors: providing services before the board has approved in a public meeting, making budgetary expenditures not approved by the board, employing/dismissing employees of the school, and controlling membership of the board.3
Charter School Types
While we are focusing on leaders of conversion charter schools, it is only one of many types of charters; and as mentioned above, the different forms often contribute to additional confusion. The most prevalent charter school iterations include the following: Independent, Charter Management Organizations (CMO), Vender Operated Schools (VOS), and Hybrid Charter Schools and Conversion Charter Schools. Each of these public charter schools is bound by their Charter Agreements to follow the same state and federal regulations while offering enrollment to all students. These schools do, however, fluctuate in their form of management.
Independent Charter Schools are the most common making up two-thirds of all charter schools across the country.4 This familiar type of nonprofit charter school is independently overseen by a volunteer governing board. Independent charter schools stand alone and bear total responsibility for operating the charter school. While there may be several schools (K–5, 6–8, and 9–12), the charter school as a whole is led by one governing board through their administrative and staffing hires. This school is not a part of a larger organization but may contract out certain services to entities that have found profitability in a niche market.