1. The Legal and Regulatory Framework for Charter Schools September 9, 2015 Presented by Alan F. Wohlstetter, Esq. The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum 1

2. What Brings Us Together For Philadelphia to be recognized as a World Class City, it needs to have world class public schools, both District schools and charter schools Better and more adequate funding for District schools also means more adequate funding for charter schools More choice and innovation in both District schools and charter schools is good for children, their families and our City We have to learn to coexist, collaborate and learn from each other to help educate all urban children well And today, I expect to learn as much from this audience as you will likely learn from me 2 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

3. The Pop Quiz: Question 1 Is a charter school a public school and who is it run on behalf of? There are two types of public schools: District schools and charter schools They both operate under the Public School Code of 1949, as amended, and applicable Federal law Unlike a District school, a charter school is subject to the Charter School Law and the terms of it charter It is run by the Board of Trustees accountable to: the students; their parents; the faculty; or the community? 3 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

4. The Pop Quiz: Question 1 (cont.) At one level, each of these groups are stakeholders that have a dog in the fight of how a charter school performs But charter school Boards function with public dollars and are therefore accountable to the public writ large It is the role of the Board of Trustees to ensure that accountability to the terms of the Charter School Law, its charter and other applicable law Since charter schools must be 501(c)(3) corporations, compliance with private inurement rules when contracting with private corporations is another responsibility of a charter school Board 4

5. The Pop Quiz: Question 1 (cont.) Board members are “public officials” under Pennsylvania law, subject to the same conflict of interest laws as State legislators 5

6. The Pop Quiz: Question 2 Charter schools outperform District schools academically because they have selective admissions policies, like Central or Masterman It is a violation of the Charter School Law for charter schools to have selective admissions policies Applications must now be in English and Spanish, and parents can apply on-line or in person Under the Charter School Law, applicants to charter schools may not be discriminated against based upon intellectual or academic ability, measures of excellence or aptitude, disability, proficiency in the English language, or any basis that would be illegal if used by a school district 6

7. The Pop Quiz: Question 2 (cont.) The Charter School Law permits a preference for a sibling of a current student, or for children of founders of the school Charter schools are subject to market accountability, a factor not present with most District schools since they are the default choice for parents The fact that a parent or family member took the affirmative step to enroll their student in a charter school rather than their neighborhood District school is just one element of parent involvement that successful charter schools capitalize on, as our panelist Ajoa Abrokwaa will discuss 7

8. The Pop Quiz: Question 2 (cont.) Charter schools teachers receive one-year contracts, which are renewed based upon performance Quite different from the District where a collective bargaining agreement makes it difficult for low- performing teachers to be replaced 8

9. The Pop Quiz: Question 3 How many students are in charter schools in Philadelphia and is there any limit? 20,000 40,000 60,000 with a waiting list Too damn many The Charter School Law prohibits an authorizer such as the District from forcing an enrollment cap on the number of students at any one charter school under its charter 9 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

10. The Pop Quiz: Question 3 (cont.) That said, the District and a charter school can reach a mutual, non-coerced agreement on the number of students that can be enrolled at the charter school Without some limit, there is no ability for the District to annually budget appropriately for the cost of payments to charter schools 10 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

11. The Pop Quiz: Question 4 Charter schools receive more funding than District schools False. The amount a charter school receives per student is calculated based upon what the District spent on its students in the previous year For the 2015-2016 school year, charter schools will receive $7,950.30 per year for each Basic Education student and $24,104 per year for each Special Education student Charter schools actually receive less than District schools under the Charter School Law since the District deducts certain amounts from the per pupil payment 11 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

12. The Pop Quiz: Question 4 (cont.) These per pupil payments form a payment stream of government dollars which can be pledged to lenders, which make charter schools desirable borrowers, as our panelist Sakinah Rahman will discuss 12 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

13. The Pop Quiz: Question 5 The School Reform Commission has the ultimate authority to decide what existing charters to renew or revoke The School Reform Commission’s authority to decide what existing charters to renew or revoke is subject to appeal The Charter Schools Office makes a recommendation to the SRC with respect to what existing charters to renew or revoke 13 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

14. The Pop Quiz: Question 5 (cont.) If a decision is made by the SRC to issue a notice of non- renewal or revocation to a charter school, there is an administrative process where the charter school in question is entitled to a public hearing on the question of whether renewal or revocation is justified A charter school may appeal the SRC decision to the State Charter Appeal Board The CAB must employ a de novo standard by independently reviewing the facts and determining by a preponderance of the evidence whether renewal is justified 14 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

15. The Pop Quiz: Question 5 (cont.) Supplemental information uncovered after the charter non-renewal vote by the SRC or authorizer may be included as evidence before the CAB The academic performance of the charter school up for renewal will be compared to the neighboring public schools in its catchment area 15 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

16. The Pop Quiz: Question 6 An academically successful charter school is one that demonstrates Adequate Yearly Progress under the No Child Left Behind Act, a Federal requirement The Annual Yearly Progress Standard or “AYP Standard” was done away with in 2013 when the Pennsylvania Department of Education received a waiver from the United States Department of Education from the No Child Left Behind Act and its AYP standard 16 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

17. The Pop Quiz: Question 6 (cont.) At that time, PDE created the School Performance Profile, or “SPP”, with grades ranging from 1 to 100, with 100 being the highest possible score, looking at everything from PSSA test results, academic growth through PVAAS scores, graduation rates, attendance rates and college attendance after graduation, among other factors The District has institutionalized a new metric - the School Progress Report - as our panelist Lauren Iannuccilli will discuss The challenge of an over-reliance on test results was demonstrated with the PSSA test results from 2014- 2015 17 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

18. The Answer For Philadelphia to have a growth in successful charter- run public schools, five things are required Better and more adequate funding for traditional public schools also means more adequate funding for charter schools Replicating promising practices, whether in charter or District schools Greater parent involvement and community engagement Accountability by the Board of Trustees to taxpayers and fidelity to their charter and applicable law More charter school Board members like you who bring needed expertise and compassion to successful charter schools 18 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum

19. Contact Information Alan F. Wohlstetter, Esq. (215) 569-2800 afwohlstetter@zarwin.com 1818 Market Street 13 th Floor Philadelphia, PA 19103-3638 19 The Legal and Regulatory Framework for Charter Schools © 2015 Zarwin Baum