Charter schools get probation, will stay open
State officials placed four charter schools on probation but decided not to close them after investigating enrollment and financial concerns.
Two new charter schools — Freire Charter School and Delaware Design Lab High School — will open this fall as scheduled. Two already-open charters — Academy of Dover and Prestige Academy — will stay open, assuming they meet the terms of their probation.
Academy of Dover was placed on formal review amid allegations its former school leader misused a school credit card to make personal purchases at Home Depot, Lowes, Staples and Sam’s Club.
The state auditor and Department of Justice are investigating the incident. But the allegations raised concerns that the school didn’t have strong enough safeguards on spending.
The school is also on the hook for a $650,000 in a lawsuit filed by Mosaica, its former charter management organization, which said the school wrongfully terminated its contract. That payout raised concerns about whether the school could pay its bills.
Secretary of Education Mark Muprhy and the State Board of Education on Thursday placed the school on probation, requiring it to prove that it is financially viable, has strengthened its budget oversight and re-trained its school board. If it fails to do so, it could be closed.
In approving the probation for Academy of Dover, state board members referenced an earlier incident in which school leaders at Family Foundations Academy charter school also used school cards for personal purchases.
“We have seen some mismanagement in the charter space, but they seem to be getting caught by auditors,” said board member Pat Heffernan. “It’s not good for anybody for us to be having these problems.”
Concerns about financial oversight of charters spurred state Rep. Kim Williams to propose legislation placing authority over hiring auditors with the State Auditor, rather than with charter schools themselves.
Design Lab, Freire and Prestige were placed on review because they had not enrolled enough students as required by their charters. Low enrollment is a problem because charter schools get funding based on the number of students they serve.
All three will be required to submit continued updates showing they have enough students to remain on solid financial footing and have solid school leadership, transportation and other services established.
Freire is also facing controversy over its new building in the Midtown Brandywine neighborhood in Wilmington. Residents who live in the area say the school will cause traffic woes and doesn’t have enough parking, and have unsuccessfully petitioned both the Department of Education and the city of Wilmington to delay its opening.
Those residents have argued the school needed to get a “major modification” to its charter from the state because it chose a different building to occupy than it had originally planned. Major modifications require approval by both the Department of Education and the State Board.
But department officials said the school’s charter required it to occupy a building in Charter schools get probation, will stay open:
