Clarity needed on fees

Acharter school group is challenging the reasoning behind the Oklahoma City school district's decision to increase the administrative fees it collects from charter schools. It's worth pursuing.

Entities that authorize charter schools in Oklahoma may withhold up to 5% from the schools' state appropriation, for administrative costs. In April, Superintendent Sean McDaniel informed local charter school leaders that the district's fee would be going to 5% from 3% effective in the 2022-23 school year.

In a letter, McDaniel said the increase would cover costs for the time spent on charter school accounting, conducting oversight and administering the charter program, and would compensate the district for reduced student enrollment.

The group Families for Excellence in Education Inc., which founded Harding Charter Preparatory High School and Independence Charter Middle School, filed a lawsuit recently in Oklahoma County District Court to block the district's plan.

The bump to 5%, the group says, would have cost Harding Charter Prep about $52,000 if it had been in effect this year (Harding paid the district $77,000 in fees). Independence, which paid the district $52,460 in fees, would have paid about $35,000 more.

The lawsuit says the district's rationale isn't specific enough, and seeks a listing that details the services and costs that would justify the increase.

“To me, it's just like any other bill you pay,” said Louis Falsetti, attorney for the charter group. “You want to know how much is in your bill and what it's being used for.”

This issue has bothered Chris Brewster, superintendent of Santa Fe South Charter Schools and president of the Oklahoma Public Charter Schools Association, for years. In an interview last month with The Oklahoman about a range of topics, Brewster said he receives almost nothing from the district in return for the $700,000-plus that Santa Fe pays in fees.

“We've asked for 18 years for them to justify the amount,” Brewster said. “How many hours has your accounting person spent on this, or your legal team spent on this, or your charter school liaison, what is their salary? We have received zero response for what it really costs to have us in the district.”

He said the district does have costs associated with contract oversight, “but it's nominal.” Brewster would like to see administrative fees set at 1%, with an “a la carte” option for schools that need more services.

“Other charters might want something the district has,” Brewster said. “They might want help with food services or federal programs or special ed. Our scale is such that I have personnel that are highly competent and systems in place that I don't need the district to assist. And there wasn't any assistance when I was smaller.”

Santa Fe South opened in 2001 with 120 ninth-graders. Today it serves 3,600 students in pre-K through 12th grade. The fee increase to 5%, Brewster said, would leave him writing an annual check for about $1.2 million. That's real money.

The district doesn't need a legal fight. But some clear justification for this move seems in order.