Can Florida stop bad charter schools while encouraging good ones?

Another Florida newspaper has taken a deep dive, looking at the state’s shuttered charter schools.

The good news: The four-day series by the Naples Daily News (which it wrapped up Sunday) is more thorough and balanced than other recent investigations into the dozens of charter schools that have closed in recent years.

It’s important not to lose sight of the big picture. The steady growth of enrollment in charter schools suggests demand remains strong among parents. A recent study found that, overall, Florida’s charter schools are getting comparable results for students despite receiving considerably less overall funding.

Still, the Daily News investigation zeros in on some real problems. While the closing of poorly performing charter schools can be a sign the system is working, the paper finds nearly two-thirds of the charter schools that shut down since 2008 suffered some kind of financial problems.

The schools plagued by money problems tended to be small. The paper estimates the closures of 75 schools affected more than 7,000 students, or less than 100 per school on average. It also found financial problems are less likely to sink schools run by the big, well-known charter networks.

The Daily News, along with recent events elsewhere in the state, show sudden school failures can uproot students, creating headaches for parents and school districts. Charter school advocates have warned about the problem, too. The question is what a solution should look like.

The Daily News capped its series with an editorial that builds on a suggestion offered by a task force of district and charter representatives. It says the state should create stronger financial requirements on the front end, to prevent shaky charters from opening in the first place.

The state requires no upfront financial commitment from applicants to open a charter. They can make enrollment projections and get taxpayer money from the district based on that guesstimated number of students. That’s not a good business practice. The answer is to require the applicant to also have financial backing from a line of credit, surety bond or private resources, such as from a foundation.

The task force proposed a $250,000 surety bond or credit line before a school opens. The general idea is good, but can be refined so it’s not one-size-fits-all. An alternative would be to tie the amount of private backing required to the applicant’s projected enrollment. As more enrollment is projected, thus putting more taxpayer dollars at risk if the school closes, the amount of private financing required could escalate. That also would encourage applicants to be realistic about first-year enrollment.

An idea along these lines came up during this year’s legislative session. It ultimately died, in part because it became mired in a debate over contentious charter legislation that didn’t pass, and in part because, while charter school supporters backed some forms of the proposal, lawmakers were concerned about unintended consequences. There was a fear creating strict up-front financial requirements would prevent legitimate schools from opening.

In different parts of the state, groups of parents and educators have scrounged up grants, donations and lines to credit to start successful charter schools, both established and new. But it’s not easy to do, and they’re doing it with less funding than their district-run schools, another issue highlighted by the Daily News.

Adam Miller, the top school choice director for the Florida Department of Education, said charter schools typically receive relatively equal funding for operations when compared to traditional schools. It’s facilities funding, Miller said, where there’s the greatest discrepancy — an issue as more charter schools enter the market each year.

“The number of schools that are eligible (for state money) is increasing, so that pot just gets diluted when new schools come on board,” Miller said. “Last year’s increase in the capital outlay was appreciated by schools and will help schools that were eligible. It doesn’t erase that gap on the facilities/revenue side.”

Perhaps this points to a grand bargain of sorts, in which charter schools could start to receive a dedicated stream of funding for facilities that helps close the funding gap with traditional public schools, but also face stricter requirements to ensure their operations are financially sound.

Overall, the Daily News ‘ series points to a need to continue improving the overall quality of Florida’s charter schools, both by keeping bad schools from opening and encouraging more high-quality schools. The key will be finding ways to advance the former goal without jeopardizing the latter.


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BY Travis Pillow

Travis Pillow is senior director of thought leadership and growth at Step Up For Students. He lives in Sanford, Florida, with his wife and two children. A former Tallahassee statehouse reporter, he most recently worked at the Center on Reinventing Public Education, a research organization at Arizona State University, where he studied community-led learning innovation and school systems' responses to the Covid-19 pandemic. He can be reached at tpillow (at) sufs.org.

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