Millions of dollars in fraud, waste found in charter school sector

by Valerie Strauss A new report released on Tuesday details fraud and waste totaling more than $200 million of uncovered fraud and waste of taxpayer funds in the charter school sector, but says the total is  impossible to know because there is not sufficient oversight over these schools. It calls on Congress to include safeguards in legislation being considered to succeed the federal No Child Left Behind law.

[Did No Child Left Behind's test-based reforms fail? Or not?]

The report, titled "The Tip of the Iceberg: Charter School Vulnerabilities To Waste, Fraud, And Abuse," was released jointly by the nonprofit organizations  Alliance to Reclaim Our Schools and the Center for Popular Democracy. It follows a similar report released a year ago by the same groups that detailed $136 million in fraud and waste and mismanagement in 15 of the 42 states that operate charter schools. The 2015 report cites $203 million, including the 2014 total plus $23 million in new cases, and $44 million in earlier cases not included in last year's report.
It notes that these figures only represent fraud and waste in the charter sector uncovered so far, and that the total that federal, state and local governments "stand to lose" in 2015 is probably more than $1.4 billion. It says, "The vast majority of the fraud perpetrated by charter officials will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud."

[New York City charters leave thousands of seats unfilled despite exploding demand, study finds]

The report makes these policy recommendations:

    ¦ Mandate audits that are specifically designed to detect and prevent fraud, and increase the transparency and accountability of charter school operators and managers.
    ¦ Clear planning-based public investments to ensure that any expansions of charter school investments ensure equity, transparency, and accountability.
    ¦ Increase transparency and accountability to ensure that charter schools provide the information necessary for state agencies to detect and prevent fraud.

It also says:

    State and federal lawmakers should act now to put systems in place to prevent fraud, waste, abuse and mismanagement. While the majority of state legislative sessions are coming to an end, there is an opportunity to address the charter school fraud problem on a federal level by including strong oversight requirements in the Elementary and Secondary Education Act (ESEA), which is currently being debated in Congress. Unfortunately, some ESEA proposals do very little [to] reduce the vulnerabilities that exist in the current law. If the Act is passed without the inclusion of the reforms outlined in this report, taxpayers stand to lose millions more dollars to charter school fraud, waste, abuse, and mismanagement.

The charter school sector has expanded significantly in the last decade and now educates about 5 percent of the students enrolled in public schools.  The Obama administration has supported the spread of charter schools; President Obama's proposed budget for fiscal year 2016 includes $375 million specifically for charters, a 48 percent increase over last year's actual budget.
Proponents say charters offer choices for parents and competition for traditional public schools. Critics say that most charters don't perform any better - and some of them worse - than traditional public schools, take resources away from school districts, and are part of an effort to privatize public education.

More