Initiative 1240: Authorizing Public Charter Schools

1. ESD 101 School Financial Officers Spokane, January 16, 2013 Initiative 1240: Authorizing Public Charter Schools

2. Initiative 1240 Concerning creation of a public charter school system “This measure would authorize up to forty publicly-funded charter schools open to all students, operated through approved, nonreligious, nonprofit organizations, with government oversight; and modify certain lawsapplicable to them as public schools.”

3. Adopted by voters, November 6, 2012 • Yes votes: 1,525,807 – 50.69% • Passed in 18 counties • No votes: 1,484,125 – 49.31% • Failed in 21 counties Certified by Secretary of State on December 6, 2012

4. I-1240 Election Results

5. Timeline • November 6, 2012 – Election • December 6, 2012 – Election certified by Secretary of State • March 6, 2013 –Deadline for: • SBE to adopt process/timelines for approval of authorizers • Members of Washington Charter School Commission to be appointed

6. I-1240 Basics • 40 new charter schools allowed during the next five years; no more than 8 per year • Charters defined as “public” • Charters are independently-managed and operated by approved non-profit organizations • Charters will be authorized and overseen by Charter School Commission or approved school boards

7. I-1240 Basics • Charters must provide basic education and participate in statewide student assessments • Charters are prohibited from engaging in sectarian practices • Charters must employ certificated instructional staff, but allowed to hire non-certs of “unusual competence” • Charters are open to “all” students, but lacking capacity, admission determined by lottery

8. I-1240 Basics • Charters are exempt from most state statutes and rules applicable to school districts, except laws regarding health and safety, parents’ rights, civil rights, and nondiscrimination • Charters are governed by a charter board under the terms of renewable, five-year charter contracts

9. Charter Authorizers (1) Washington Charter School Commission • Established to manage, supervise and enforce charter contracts • Comprised of Nine appointed members—3 each by governor, President of Senate and Speaker of House • Members must have “demonstrated an understanding of and commitment to charter schooling” • Governor’s office must staff Commission until it has sufficient resources to hire or contract staff

10. Charter Authorizers (2) Approved school district board of directors • Subject to approval and oversight by SBE • To be approved, board must submit to SBE: • Strategic vision for chartering; • Plan to support the vision, including budget and personnel capacity; • RFP it would use to solicit charter applications; • Performance framework it would use; and • Proposed renewal, revocation and renewal processes • SBE has 30 days to approve/renew authorizers • Initial authorization is for six years

11. “New” Charter Schools • Application must describe numerous elements of the proposed school plan, including: • Mission and vision of the proposed school, including targeted student population; • Geographic area proposed for the school; • Grades to be served each year; • Minimum/maximum enrollment per grade per year; • Evidence of need and parent/community support; • Information on the proposed governing board members; • Proposed calendar of the school;

12. “New” Charter Schools • Elements of proposed school plan, continued: • Description of the academic program aligned with state standards; • Description of the school’s proposed instructional design; • Description of cocurricular or extracurricular programs; • The school’s discipline policies; • Plans for recruiting school leadership and staff; • The school’s employment policies and evaluation plans; • Plans for providing transportation, food service and other operational services;

13. “New” Charter Schools • Elements of proposed school plan, continued: • Expectations of parental involvement; • A detailed school start-up plan; • Description of the school’s financial plan; • Description of planned insurance coverage; • Start-up and five-year cash flow projections and budget; • Evidence of anticipated fundraising contributions; and • Facilities plan 32 specific elements, found in Section 213

14. “Conversion” Charter Schools • “Conversion” charter schools would be created by converting an existing public school in its entirety to a charter school. • An application to establish a “conversion” charter school must contain each of the elements required of a “new” charter school, PLUS demonstrated “support for the proposed conversion by a petition signed by a majority of teachers assigned to the school or a petition signed by a majority of parents of students in the school”

15. Application Process • SBE must establish an annual statewide timeline for charter application submission and approval or denial. • Authorizers must use “procedures, practices, and criteria consistent with nationally recognized principles and standards for quality charter authorizing” • Process must include in-person interviews and a public forum

16. Application Process • Charters must only be granted to applicants that have “demonstrated competence” in each element of the authorizer’s approval criteria • Authorizers must: • Base decisions on documented evidence; • Follow charter-granting practices that are transparent and based on merit; and • Avoid conflicts of interest • For denied applications, authorizers must clearly state in writing its reasons for denial. Denied applicants can reapply to the same authorizer or to another authorizer.

17. Charter Contracts • Within 90 days of approval of a charter application, a charter contract must be executed by the authorizer and the governing board of the charter school • Under the contract, the charter school agrees to provide basic educational services (at a minimum) in return for an allocation of public funds • Contracts must clearly state the academic and operational performance expectations by which the school will be judged

18. Charter Contracts • Charter contracts must be signed by the president of the charter board and the president of the authorizer school district board of directors or the chair of the Charter School Commission • Initial contracts may be granted for five years, beginning on the school’s first day of operation; approved charter schools can delay its opening for one year to prepare

19. Charter Contracts • Charter contracts can be non-renewed or revoked for specific reasons, including a violation of any of the terms of the contract • Charter contracts are prohibited from being renewed if the charter school’s performance falls in the bottom quartile of schools • Charter school boards must be given time to respond to a decision to non-renew or revoke the charter and allow them to provide documents and give testimony challenging the decision

20. Performance Frameworks • Charter contracts must include a performance framework that, at a minimum includes indicators, measures and metrics for: • Student academic proficiency; • Student academic growth; • Achievement gaps between student subgroups; • Attendance; • Graduation rates; • Financial sustainability; and • Board performance and stewardship

21. Charter Oversight • Authorizers must continually monitor performance and legal compliance by their charter schools • If problems are found, the authorizer must inform the charter school and allow an opportunity to correct the problem(s); the school may be required to develop and execute a corrective action plan • Any authorizer oversight activities must not unduly inhibit the autonomy granted to charter schools

22. Funding • Charter schools must follow current enrollment laws • OSPI must allocate funding including general apportionment, special education, categorical and other non-basic education moneys • Allocation must be based on the statewide average staff mix ratio of all non-charter schools from the prior year • Transportation funding must be allocated and/or charter schools can contract with a school district or another entity

23. Funding • Charter schools authorized by school districts must be included in levy planning and must be provided levy funding • Charter schools authorized by the Charter School Commission are not eligible for levy monies approved prior to the start-up date; however, they must be included in levy planning/distribution in the future • Conversion charter schools are eligible for levy funds approved before start-up and the school district must allocate levy moneys

24. Facilities • Charter schools are eligible for funds from the School Construction Assistance Program like current public schools • Charter schools have a right of first refusal to purchase or lease at or below fair market value a closed public school facility, unused portions of a public school facility or property located in a school district if it decides to sell or lease the facility/property

25. Facilities • Conversion charter schools must be allowed to continue to use its existing facility – without paying rent • the charter school is responsible for routine maintenance, BUT • the district remains responsible for repairs/upgrades that may be required

26. Constitutional Considerations • I-1240 establishes a separate state-level Commission to oversee charter schools. Does this violate Article III, Sec. 22 of the Constitution? • Article III, Sec. 22: “The superintendent of public instruction shall have supervision over all matters pertaining to public schools…”. • I-1240 exempts charter schools from most state laws and rules. Does this violate Article IX, Sec. 2 of the Constitution? • Article IX, Sec. 2: “The legislature shall provide for a general and uniform system of public schools…”.

27. Constitutional Considerations • I-1240 amends state law by exempting charter schools from a series of laws/rules, but doesn’t specify each of those laws. Does this violate Article II, Sec. 37 of the Constitution? • Article II, Sec. 37: “No act shall ever be revised or amended by mere reference to its title, but the act revised or the section amended shall be set forth at full length.”

28. Constitutional Considerations • I-1240 requires charter schools to be operated by private nonprofit corporations. Does this violate Article IX, Sec. 2 of the Constitution? • Article IX, Sec. 2: “But the entire revenue derived from the common school fund and the state tax for common schools shall be exclusively applied to the support of the common schools.” (Note: simply declaring a school a “common school” doesn’t make it so)

29. Constitutional Considerations • I-1240 provides charter schools (operated by private nonprofit corporations) the first right of refusal to purchase or rent school district property at or below fair market value. Does this violate Article VIII, Sec. 7 of the Constitution? • Article VIII, Sec. 7 prohibits the gift of public funds: “No county, city, town or other municipal corporation shall hereafter give any money, or property, or loan its money, or credit to or in aid of any individual, association, company or corporation…”.

30. Daniel P. Steele Assistant Executive Director, Government Relations 825 Fifth Avenue SE Olympia, WA 98501 360.489.3642 dsteele@wasa-oly.org ESD 101 School Financial Officers