Did the FLBOE Bend the Rules for Academica?

One of the most controversial portions of 2017’s HB 7069 was the creation of “Schools of Hope” operators. The Schools of Hope plan was a priority of House Speaker Richard Corcoran and was designed to entice (with $140 million) out of state charter chains to expand into Florida, presumably to “turnaround” struggling schools. So-called “Hope Operators” would also be allowed to open new schools within 5 miles of, and in direct competition with, struggling schools. Critics argued that such actions would ultimately drain the resources from the struggling school, hastening its demise. At the time the bill was passed, despite big dollars, few out of state charter chains seemed interested.

In January, the Florida Board of Education (FLBOE) approved preliminary rules for Schools of Hope Operators (more here):

“Aiming to jump start the a controversial new charter school system for the fall, the Florida Department of Education has unveiled proposed rules for potential Schools of Hope operators to follow.

The recommended rule, which is slated for Jan. 17 State Board of Education consideration, closely adheres to criteria from the legislation enacting the program to set up charter schools in areas with district schools that consistently perform poorly on state tests.

Lawmakers required that the groups selected to run these charter schools must have strong past performances. The specifics included:

1. The achievement of enrolled students exceeds the district and state averages of the states in which the operator’s schools operate;
2. The average college attendance rate at all schools currently operated by the operator exceeds 80 percent, if such data is available;
3. The percentage of students eligible for a free or reduced price lunch under the National School Lunch Act enrolled at all schools currently operated by the operator exceeds 70 percent;
4. The operator is in good standing with the authorizer in each state in which it operates;
5. The audited financial statements of the operator are free of material misstatements and going concern issues; and
6. Other outcome measures as determined by the State Board of Education.

But until the department can adopt “measurable criteria” for those six standards, the law states, operators can be selected by meeting one of three other benchmarks. As defined in the proposed rule , those are:

1. The entity was awarded a United States Department of Education Charter School Program grant for the Replication and Expansion of High-Quality Charter Schools pursuant to Title IV, Part C of the Elementary and Secondary Education Act of 1965 as amended by the Every Student Succeeds Act (20 U.S.C. 7221-7221j) within the preceding three (3) years from the date the entity submits an application to the Department.
2. The entity has a current and active grant award for funding through the National Fund of the Charter School Growth Fund.
3. The entity is a non-profit charter school that is selected by a district school board to turnaround the performance of a low-performing public school pursuant to s. 1008.33, Florida Statutes.”

At the time, it seemed odd that the FLBOE did not see “the achievement of enrolled students exceeds the district and state averages of the states in which the operator’s schools operate; the average college attendance rate at all schools currently operated by the operator exceeds 80 percent; and the percentage of students eligible for a free or reduced price lunch under the National School Lunch Act enrolled at all schools currently operated by the operator exceeds 70 percent”, as “measurable criterion.” Being “in good standing” with its authorizer and having a clear audit, also, seemed fairly straightforward.

Why did the FLBOE feel the need to postpone these statutory requirements for new Hope Operators?

Could it be that Florida’s largest charter chain (the one that Schools of Hope champion, Rep. Manny Diaz, works for) would only qualify if such requirements were postponed?

Last week it was announced that two chains had applied for Hope Operator status. Not surprising, one of the two applicants is Somerset, the Academica subsidiary which qualifies because it was selected by Jefferson County School Board when the State demanded the district turn its schools over to a charter operator in 2017. (In case you missed it, Rep Diaz was actively involved in the Jefferson takeover, and continues to closely monitor current finances). It is also noteworthy that Somerset/Academica was the ONLY applicant at the time that Jefferson County’s School Board was forced to become the state’s first all charter school district.

Did the FLBOE bend the rules, eliminating the performance requirements, so that Academica could qualify based on its involvement in Jefferson County? As a Hope Operator, Somerset/Academica now has access to millions of dollars of Schools of Hope funding, is free to open one or more competing charter schools near struggling schools and receives priority in the department’s Public Charter School Grant Program competition. Sounds like a windfall for Academica. Was this what Rep. Diaz was hoping for all along?

Today (3/27/18), the Florida Board of Education met to consider Somerset/Academica’s application for Hope Operator Designation. After a brief series of questions, the Board unanimously approved their application.