Process begins to end Epic charter contract
Fears of an immediate shutdown of the state's largest virtual school were alleviated Tuesday, but a termination of Epic Oneon-One's charter contract remains a possibility.
A state audit of Epic Charter Schools reported widespread financial misconduct. A small state agency that oversees Oklahoma's six virtual charter schools now is considering whether violations reported in the audit warrant a termination of its contract with Epic.
The Oklahoma Statewide Virtual Charter School Board voted 3-1 on Tuesday to approve an intent to terminate its charter contract with Epic One-on-One, the largest branch of Epic Charter Schools.
The vote effectively set a hearing at l east 90 days away to hear testimony and review evidence of potential breaches of contract. Epic would have the opportunity to present its own case and call witnesses before the board.
After the hearing, the board could vote on whether to end its charter sponsorship of Epic One-on-One, a
free virtual school available in all Oklahoma counties. No virtual charter school can operate in Oklahoma without having a contract with the Statewide Virtual Charter School Board.
The board also could reach a settlement agreement with Epic.
"Fairness did not prevail today, but it' s important to understand what did happen,” Epic Superintendent Bart Banfield said in a statement. “The SVCSB (Statewide Virtual Charter School Board) voted to initiate the process to terminate, but it is a process that provides EPIC due process with that Board, as well as other legal options. So far, only one side of the story has been allowed to be told.”
The board can terminate a charter contract if a school fails to meet standards of fiscal management, breaches the contract or violates state law.
The board's attorney, Marie Schuble, said she found a litany of contract violations in the audit of Epic. She recommended the termination process begin.
The Oklahoma State Auditor and Inspector's Office reported Epic dodged penalties and falsely reported millions of dollars in financial reports to the state. On Monday, the Oklahoma State Board of Education demanded Epic repay $11.2 million of these misidentified funds.
Auditors said Epic wrongfully commingled money between Epic One- on- One and Epic Blended. These are separate school districts and are not allowed to share funds with each other, auditors said.
The company managing Epic, run by Epic's co-founders, reportedly transferred $203,000 in taxpayer dollars to a charter school in California, as well. Epic employees in Oklahoma did administrative work for the California school and other in-state school districts, but invoices for that work long went unpaid, according to the audit.
“I have to prove every single one of these facts at a hearing,” Schuble said during the meeting. “They have a chance to refute every single one of these facts at a hearing. The way the board is able to hear both sides is to enter into this process to allow that to happen, and it won't be immediate.”
The hearing must take place at least 90 days away to give Epic and Schuble enough time to prepare arguments, evidence and witness lists. The earliest it could begin is Jan. 11.
Board member Phyllis Shepherd cast the only vote against starting the termination process. Alt hough Schuble assured her Epic could argue its case in a hearing, Shepherd said she didn't want to start down the path toward ending the contract until the school could defend itself.
“I just think until Epic has a chance to go back and get a chance to prove whatever it is that they need to prove — just because it showed up on the audit doesn't necessarily mean that it's Gospel,” Shepherd said after the meeting. “I just feel like it's way too early to start even talking about that until all the facts are out in the open.”
Some feared the board might end Epic One-on-One's contract on Tuesday and close the school immediately.
Banfield pleaded with the board to think of the thousands of students and employees who rely on the virtual school. Epic grew its enrollment dramatically over the summer and now has more students than any school district in Oklahoma.
“An emotional rush to judgment creates more uncertainty for families at the very time they need security and stability from their government,” Banfield said while giving public comment to the board. “It would hurt more than 61,000 students and their families who have chosen Epic Charter Schools this year. In addition, 2,100 employees who depend on Epic for their livelihoods would be negatively affected.”
One mother said Epic parents were afraid the board would send their children's education into limbo.
“If you pull the charter on Epic, what are we going t o do with our kids?” she said in public comment.
Board members attempted to soothe worries by assuring the termination, if it happens at all, wouldn't occur on Tuesday. Education at Epic won't be interrupted for the time being.
Should the board cancel its contract with Epic One-on-One, Epic's Blended Centers could continue to operate.
The Blended Centers operate in Tulsa County and Oklahoma County. They have a separate charter sponsor, Rose State College, and fuse i n- person education and virtual learning at their physical sites.
When reached for comment Monday, Rose State did not commit to considering a termination of its contract with Epic Blended.
"Any statement at this time would be premature before all of the facts are laid out and as entities are still meeting around the issue,” the college said in a statement.