Analysis by Class Size Matters reveals that in FY 2020, over $11.6 million was spent on lease subsidies for charter schools owned by their Charter Management Organization or affiliated organization, and $9.6 million in state reimbursements for lease subsidies were sacrificed
New York, NY (March 25, 2021) – Today, Class Size Matters released a new report, posted here, showing that the DOE has overspent on rental subsidies to charter schools by many millions, and underspent by many millions on the legally required matching funds for public schools co-located with charters.
The new report, DOE Overspending on Charter School Facility Costs and Underspending on Matching Funds to Public Schools, includes updated information provided by the DOE in response to a letter sent by the New York City Comptroller’s Office about the findings of an earlier report produced by the nonprofit organization.
“We were surprised to find that the DOE confirmed many of the findings of our earlier report to the Comptroller, either directly or indirectly, and did not dispute any part of the report’s analysis, which showed that the DOE overspent by many millions on charter leases and underspent by many millions on matching funds to public schools,” said Leonie Haimson, the Executive Director of Class Size Matters.
The new report finds that in FY 2020, the DOE paid approximately $108 million for charter school rental subsidies with the state reimbursing about $65 million, amounts that are likely to increase rapidly each year, as enrollment and rental costs increase. Despite this, Governor Cuomo has proposed eliminating all state reimbursements for charter school rental assistance in his Executive budget, which is estimated to cost the city $100 million in FY 2022 and significantly increase in cost over future years.
“As this report makes clear, New York City is the only district in the state and the nation obligated to help pay for charter school rent and the costs are rising sharply every year,” said New York City Council Finance Chair Daniel Dromm. “Now Governor Cuomo is threatening to eliminate any state CONTINUE READING: New Report finds DOE overspent by many millions on charter school rental subsidies for charter schools and owed millions to co-located public schools for facility upgrades | Class Size Matters