Cyber Charter Schools Spend More on Education, Face Funding Debate

Cyber charter schools in Pennsylvania have been found to allocate greater funds per student for education than traditional public schools, once expenses for building maintenance and student transportation are excluded. This insight emerged from an analysis by PennLive, highlighting the distinctive financial challenges faced by these online educational institutions. Cyber school leaders have emphasized the unique costs they incur, such as internet provision and specialized software, which are often overlooked by local educational authorities.

The funding landscape is currently under scrutiny, particularly as state legislators consider reforms that could alter how cyber charter schools receive financial support. Proponents of these reforms argue that they could save local school districts up to $250 million annually, while opponents warn that such changes might jeopardize the existence of cyber schools, affecting nearly 70,000 students enrolled in these programs.

Financial Practices of Cyber Charter Schools

Different cyber charter schools operate with varied financial strategies. For instance, the Commonwealth Charter Academy, the largest in Pennsylvania, has invested hundreds of millions in constructing and acquiring facilities for staff and families throughout the state. Consequently, it reports lower per-student expenditures in other areas. This approach has contributed to a significant increase in student enrollment, raising concerns among local school districts about their financial stability.

Local educational leaders argue that cyber charter schools should not receive the same level of funding as traditional schools since they do not bear costs for physical infrastructure and transportation. Cyber charter leaders counter that their expenses for curriculum and advanced technology are substantial. The financial data reveals that both types of schools primarily allocate funds to direct instructional costs, most notably teacher salaries and benefits. However, traditional districts incur additional personnel expenses, such as salaries for bus drivers and maintenance staff.

Some local districts assert that their own cyber charter schools can educate students at lower costs compared to statewide counterparts. Nonetheless, even members of the Pennsylvania House Education Committee voiced concerns about the lack of transparent financial breakdowns supporting these claims. Representative Peter Schweyer, the Democratic chair of the committee, commented on the hidden costs that school districts incur, emphasizing the need for accurate financial assessments.

In June 2023, Schweyer and other House Democrats voted in favor of a proposal to limit cyber charter tuition to $8,000 per student. This measure was justified by pointing to the significant savings accumulated by cyber charter schools during the pandemic. According to Pennsylvania Auditor General Tim DeFoor, an audit of five major cyber charter institutions revealed a rapid increase in their savings, raising questions about the appropriate level of funding for these entities.

The Impact of Enrollment Growth

The financial landscape of cyber charter schools shifted dramatically during the pandemic, with many experiencing substantial enrollment growth. This rapid increase contributed to higher savings, which may not accurately reflect ongoing financial practices. Michael Whisman, a financial expert specializing in charter schools, noted that larger fund balances are necessary for charter schools due to their inability to levy taxes or produce independent revenue.

Critics argue that the funding formulas for cyber charter schools are overly generous, particularly given their reported lower test scores compared to traditional public schools. Schweyer stated that the accumulation of surplus funds should be redirected to support struggling students. He expressed frustration over the perceived excessive financial reserves, suggesting that such funds should instead contribute to resources for public school districts.

The end of additional federal COVID funding is expected to stabilize the fund balances of cyber charter schools, according to various education finance experts. Jonathon Shiota, from the 21st Century Cyber Charter, pointed out that the pandemic-induced enrollment surge led to temporary surpluses that have since normalized.

The legal director of the Education Law Center, Maura McKinnery, testified that the costs associated with operating physical school buildings significantly surpass the unique expenses faced by cyber schools. Nonetheless, some legislators, including Republican Marc Anderson, challenged the assertion that cyber schools do not incur physical costs, citing instances of facilities that include classrooms and laboratories.

The Commonwealth Charter Academy stands out for its extensive investments in infrastructure, owning twelve buildings, leasing five, and planning for additional construction. School leaders argue that these facilities are essential for providing support services to students and staff, contradicting the perception that cyber schools should minimize their physical presence.

The debate surrounding funding reform for cyber charter schools continues to unfold, with a coalition of twelve education advocacy organizations urging state leaders to reconsider the current funding system. They assert that the existing model requires school districts to pay cyber charter tuition that far exceeds what is necessary for educating students effectively.

As the number of students attending cyber charter schools nearly doubled during the pandemic, the challenges faced by traditional school districts have increased. The uneven distribution of enrollment growth has placed additional strain on specific districts, such as the Greater Johnstown School District, which experienced a more than 115% increase in students moving to cyber education options since the pandemic began.

Legislators are currently deliberating a proposal that would place caps on enrollment for cyber charter schools deemed to be underperforming. This proposal aims to require schools to improve testing and graduation rates before admitting additional students. The potential cap could affect twelve out of fourteen cyber schools, including the Commonwealth Charter Academy.

As the debate continues, advocates for cyber schools emphasize the need to understand the underlying reasons why families are opting for these educational alternatives. Concerns surrounding safety, bullying, and the failure to meet individual student needs in traditional districts remain at the forefront of parents’ decisions to pursue cyber education.