COVER STORY EDUCATION: Cash-strapped charter schools struggle

As bad as the economy is for Georgia’s traditional public schools, it’s even worse for charter schools.

Tech High in Atlanta has laid off two teachers. Officials at Hapeville Charter Middle and Hapeville Charter Career Academy in Fulton County have drafted budget reductions of 10 percent to 15 percent. The International Community School in DeKalb County plans to cut spending on training, technology and supplies.

“Academically, charter schools have the best of the public- and private-school worlds,” said Laurent Ditmann, principal of International Community School. “Financially, we have the worst. We have the limited funds of public schools and we have to raise money like the private schools. In today’s economy, we’re struggling.”

Relief is coming. Georgia is expected to get about $2.2 billion over three years in federal stimulus and other funds, and state officials said charters will benefit when the money is doled out.

Also, President Barack Obama and U.S. Education Secretary Arne Duncan have championed charter schools, referring to them as “laboratories of innovation.”

Charter schools receive public money, but operate independently of local school districts. They’re generally free from many regulations traditional public schools must follow with the expectation they use innovative methods and programs.

About 43,000 students attend 113 charter schools in Georgia, according to the Georgia Department of Education.

The state agency is getting about twice as many calls from the schools’ chief financial officers worried about money, said Andrew Broy, an associate superintendent who oversees charter schools. Two charter school applicants withdrew petitions to the State Board of Education because of financial concerns, Broy said.

“If any of our charter schools close, it’s because they had financial problems before the recession,” Broy said. “But all our charters, even those with the best finances, will have to tighten their belts to make it through. We’re going to see bigger class sizes. We’re going to see them doing more with less.”

Unlike public school districts, few charters have reserve funds to tap into during lean times. Charters turn to others for additional money, but schools say it’s harder to get loans as credit markets dry up and philanthropic groups can’t afford to be as giving.

On average, charters receive about $7,000 a year per student to pay for facilities, salaries, materials, food and other items. Charter schools set their own salaries for teachers and some pay about 20 percent less than other public schools.

Obama has lauded charter schools and during a speech last week he urged states to lift limits on charter schools.

Money for additional charters could be found in the $5 billion discretionary fund the U.S. Education Department has for innovation.

During a news conference with education writers last week, Duncan said the government wants to expand programs that work, including successful charters.

Still, Georgia’s charters face the same cuts in state funding as other public schools and then some. School districts can withhold 3 percent of the money allocated to local charter schools —- a provision included in the state law to encourage school boards to approve charter applicants.

Many charters also struggle with facilities. Public school districts can raise money for construction through a special purpose local option sales tax (SPLOST) but charters are not entitled to that money.

Charters must build or rent their own space. Gov. Sonny Perdue’s proposed budget for 2010 includes $1.9 million for charters to offset the costs of purchasing, renting and improving buildings. That’s about $300,000 less than what charter schools received this fiscal year, and Broy said the money covers just a fraction of what charters spend.

The Georgia House approved a bill requiring school districts to let local charter schools use vacant classroom buildings for free, but it’s too soon to know if the bill will pass the Senate.

Ivy Preparatory Academy, an all-girls charter that opened in August, spends about $25,000 a month to lease a 46,000-square-foot building in Norcross.

Nina Gilbert, who heads the school, assumed it would have a $1.5 million budget. She said the budget got leaner as the economy slumped and the state cut funding.

“We are at a fragile point right now,” she said.

The school scrapped soccer for its nearly 140 students and hiring more staff for extended day programs because of an estimated $241,400 shortfall. The school is auctioning off naming rights to rooms to raise money.

Tight budgets have forced long-running charter leaders to get creative.

Tech High saved about $30,000 by asking someone on staff to take over security duties rather than hiring an outside agency, said Elisa Falco, the school’s principal and CEO.

She’s also working with the PTA to raise money for student activities and encouraged teachers to apply for grants for classroom supplies.

“Educators don’t like to talk about business, but let’s face it, what we do is a business,” Falco said. “We’re entrepreneurs looking for capital to keep our schools going.”

—- Staff writer D. Aileen Dodd contributed to this report.

WHAT IS A CHARTER SCHOOL?

It’s a nonsectarian public school that has greater freedom to innovate than other public schools but also is accountable for the results. The “charter” typically is issued by the local school board (or sometimes the state school board). It’s “a performance contract detailing the school’s mission, program, goals, students served, methods of assessment and ways to measure success,” says the Georgia Charter School Association (gacharters.org). Schools that don’t meet goals may have their charters revoked.

A shout-out from Obama

In his wide-ranging speech on education last week, President Barack Obama said:

“One of the places where much innovation occurs is in our most effective charter schools. These are public schools founded by parents, teachers and civic or community organizations with broad leeway to innovate… . Right now, there are caps on how many charter schools are allowed in some states, no matter how well they are preparing our students. That isn’t good for our children, our economy or our country.”

Report on charter schools

State Schools Superintendent Kathy Cox sent the Legislature a 634-page annual report on charter schools on Dec. 31. It includes a detailed report, with test scores, on every charter school in the state. Download it at doe.k12.ga.us/pea_charter.aspx.

Sampling of charter schools in metro Atlanta

> Sedalia Park Elementary, Marietta. Grades k-5, 748. Asks students, parents and teachers to enter into a “Contract for Learning.” > Amana Academy, Alpharetta. Grades k-8, 425 pupils. Specializes in Arabic language instruction. > Destiny Academy of Excellence, Ellenwood. Grades 9-11, 100 pupils. Specializes in dropout prevention. > DeKalb PATH Academy, Atlanta. Grades 5-8, 273 pupils. Specializes in teaching “refugee, immigrant and local children from the Chamblee/Doraville area.”