For Pa. cyber charter schools, there’s little accountability but plenty of profit | Editorial

Cyber charter school operators tout the benefits of online learning, such as accelerated instruction, flexible scheduling, or providing a haven for children who are being bullied or have special needs.

But left out of the pitch is how Pennsylvania’s cyber charter schools have poor graduation rates and rank near the bottom in test scores for reading and math. More troubling is the lack of oversight by the Pennsylvania Department of Education.

Most cyber schools operate with expired charters and have never been audited by the state or were audited years ago, according to Education Voters PA, a pro-public education advocacy group. Another report found Pennsylvania’s cyber charters have the highest costs in the country but some of the worst results.

With no one minding the store, the four largest cyber charters — which enroll nearly 75% of online students statewide — have amassed hundreds of millions of dollars in assets as they take in more money than they spend.

The state’s largest cyber charter, Commonwealth Charter Academy, has built a real estate portfolio buying up 29 properties since 2018, according to a report by Education Voters PA. Commonwealth Charter CEO Thomas Longenecker received a total compensation of $372,989 in 2022.

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Overall, the four charters reported net assets totaling $486 million in 2022, up from roughly $600,000 in 2018. Cyber charter advocates said the growth in assets reflects an investment in educational infrastructure and resources. Tim Eller, an executive at Commonwealth Charter Academy, said it spends “every penny” on the education and support services for its students.

Really? The Education Voters PA report found cyber charters spent $21 million in 2022-23 on advertising, promotions, catering, branded giveaways, and gift cards.

Even if a case can be made for spending millions on advertising, food, and other tchotchkes, it makes little sense for cyber charters to be buying up real estate when most instruction is done online. To be sure, some brick-and-mortar space is needed for staff or in-person meetings with students or parents.

The bigger concern is that real estate holdings can also lead to dubious financial arrangements and other shenanigans. In 2018, the founder of the Pennsylvania Cyber Charter School pleaded guilty to tax conspiracy after admitting to siphoning off $8 million from the school to pay for a condo in Florida, a corporate jet, and other lavish expenses.

Then there is the question of who gets the money when the real estate is sold. Consider the recent case of Mathematics, Civics and Sciences Charter School, a brick-and-mortar charter with an enrollment of roughly 900 students located across from the Philadelphia School District headquarters on North Broad Street.

The school was founded in 1999 by Veronica Joyner. Her charter school leased the building from a nonprofit controlled by Joyner, essentially making her the landlord and the tenant.

In 2021, the school paid Joyner’s nonprofit $515,000 in rent. Meanwhile, Joyner’s salary and other compensation to run the school in 2022 amounted to $334,492.

Then in October, Joyner announced she planned to retire and close the school at the end of the academic year. Her nonprofit plans to sell the building, which is assessed at $8.8 million.

Although charters are privately owned and operated, they are funded by taxpayers. But nothing requires the proceeds from real estate sales to be returned to taxpayers.

In Pennsylvania, there are 15 cyber charter schools serving students in nearly every district. About 7,500 students in Philadelphia attend cyber charters.

Theoretically, cyber charters should cost less to operate because they do not need brick-and-mortar facilities. Yet, cyber charters receive the same funding per student as traditional public schools. The amount ranges from $8,639 to $26,564 per student, depending on the funding levels of individual school districts.

In all, Pennsylvania taxpayers spend $1 billion a year on cyber charters. Beyond the questionable real estate transactions and exorbitant salaries, it makes little sense to even operate a separate online education system given that nearly all school districts offer students the option to learn virtually.

Clearly, reforms are needed.

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Former state Auditor General Eugene DePasquale called Pennsylvania’s charter law the worst in the country. Watchdogs have been flagging wasteful spending and poor oversight for more than a decade.

State Sen. Lindsey Williams (D., Allegheny) proposed a bill in February that would prohibit opening any new cyber charter schools. That makes sense until reforms focused on improving oversight are in place. Increased accountability starts with mandating the state auditor general conduct annual audits of all cyber charters.

Gov. Josh Shapiro’s budget proposed capping the funding for cyber charters at $8,000 per pupil. That’s a start, but others estimate the cost of educating students online is lower. Why not pay the actual cost instead of an arbitrary number?

Or better yet, follow the lead of five other states — Florida, Minnesota, New Hampshire, Texas, and Utah — and base the cyber school funding on student performance and participation.

Cyber charter schools can serve a niche. But instead, Pennsylvania lawmakers have used taxpayer money to fund a $1 billion-a-year business with a sprawling real estate portfolio, poor education outcomes, little oversight, and dubious spending.