Guest Opinion//January 24, 2019//
On January 9, the Grand Canyon Institute released its third policy paper on charter school financial practices in Arizona — Red Flags: Overleveraged Debt.
The title of this policy paper speaks for itself. The key findings in this paper are that:
Therein lies the problem. Charters with stagnating or declining enrollment with debt payments guaranteed by projected enrollment growth are now struggling to meet their financial commitments.
Since June 2017, six schools have closed their doors during the school year leaving families scrambling or gave up their charter voluntarily due to poor financials. Grand Canyon Institute estimates that 27 more charters are in danger of closing in the next year or two. These schools are losing $1,000 or more per student per year. Another 67 are in serious peril, losing between $400 and $1,000 per student per year.
Grand Canyon Institute has shared its data with the Arizona State Board for Charter Schools so that it is aware of those schools that are in serious strife.
As the 2019 Legislature begins its work, Grand Canyon Institute calls on Arizona’s lawmakers to work together in developing a series of charter school reform measures that will improve the sector’s financial sustainability through enhanced transparency and accountability. To this end, based on its three policy papers on charter school financial practices, Grand Canyon Institute puts forward the following recommendations that charters should:
Grand Canyon Institute respects the Arizona State Board for Charter Schools’ efforts to provide oversight of the state’s charter sector. We encourage Governor Ducey and legislators to increase funding to the under-resourced agency so that it can fulfill its oversight obligations.
Grand Canyon Institute representatives have met with legislators from both parties and other stakeholders to discuss proposed legislative and rule changes to improve financial transparency and accountability of the charter sector. We’re confident that working together we can ensure a more financially viable and stronger charter school sector.
If Arizona is going to continue to allocate $1.5 billion per year to charter schools to educate 17 percent of the state’s public school students, then our Legislature should approve legislation and invest the resources to ensure they operate with sufficient financial oversight and transparency.
George Cunningham is Grand Canyon Institute board chairman and a former state legislator. He voted for Arizona’s first charter school legislation in 1994 as a state lawmaker. Curt Cardine is a Grand Canyon Institute research fellow and a retired charter school executive, school superintendent and educator. He is the principal author of Grand Canyon Institute’s policy papers on charter school financial practices in Arizona.