How Conn. charter schools double dip
Charter schools like to straddle the line between public and private. When it comes to obtaining taxpayer dollars, they portray themselves as public schools. However, when it suits their purposes, such as when they want to avoid federal labor law or freedom of information requests, they contend they are private organizations beyond the reach of those laws that apply to public entities.
When it comes to pandemic aid, Connecticut charter schools have used their hazy public/ private status to their advantage, obtaining millions in federal dollars as public schools and private small businesses.
With the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, Congress provided federal aid to public schools, and specifically directed that charter schools receive aid as public schools. Connecticut public school districts and charter schools are receive comparable aid under the CARES Act’s Elementary and Secondary School Emergency Relief Fund (“ESSERF”). For example, New Haven will receive about $ 8 million, so a little more than $ 400 per student, and Amistad and Elm City charters, part of the Achievement First chain, will get similar perpupil amounts. Bridgeport will receive about $ 9 million, or about $ 450 per student and Achievement First Bridgeport will be allocated a similar perpupil amount. Hartford will get a little more than $ 10 million, or about $ 547 per student, and Achievement First Hartford will receive about the same per pupil. The per pupil amounts in Stamford’s public schools and charter school are similar as well. Stamford will receive $ 2.74 million for its approximately 16,600 students and Stamford Charter School for Excellence will receive a little more than $ 100 per pupil for its approximately 395 students — about the same as Stamford’s perpupil allocation.
These charter schools, however, decided that when it comes to going after more federal dollars, it pays to be private entities as well. So each of these charters applied for and received significant forgivable Paycheck Protection Program loans offered to small businesses in dire need as a result of the crisis.
Amistad Academy was approved for a loan of $ 2.7 million. So Amistad, a charter with a little more than 1,000 students, will receive a forgivable loan for more than the entire ESSERF allocation for Stamford Public Schools’ more than 16,000 students. Elm City’s loan is for $ 1.24 million; Achievement First Bridgeport’s loan totals $ 1.4 million, Achievement First Hartford’s loan is for $ 2.36 million and Stamford Charter School for Excellence’s loan is for $ 520,648. All these loans are forgivable, thus unlikely to be repaid.
In total, these loans total more than $ 8.2 million, covering 4,544 students. To compare, New Haven’s $ 8.5 million in ESSERF aid has to spread over 20,6675 students.
It is unclear whether other Connecticut charters have also applied for these private business loans. Several charter schools have not posted updated board meeting minutes.
Are these charter schools really private small businesses in dire need? Last year, claiming charter schools were schools, Dacia Toll, CEO of the Achievement First charter chain, complained that her schools were “starving” without more state funding. Looking at the most recent publicly available federal tax documents, Amistad has more than $ 30 million in net assets and reserves. Elm City, another Achievement First school, has more than $ 34 million in net assets and reserves, Achievement First Bridgeport has more than $ 6 million and Achievement First Hartford has almost
$ 2 million. Stamford Charter School for Excellence has more than $ 2 million in net assets and reserves.
Meanwhile, public school districts across the state are facing massive funding cuts — some predicting cuts as high as 30 percent of their budgets. They also face steep increases in costs associated with reopening — from ensuring a clean and safe environment, to addressing the increased academic, social and health needs of their students. And now, with Gov. Ned. Lamont’s order that public schools reopen fully, in person, in the fall — without any promises to increase state aid — public school districts are in an even more precarious financial position. Public school districts are funded by local, state and, to a small extent, federal dollars. They have no options to tap into money intended for private businesses. Because public schools are public.
When charter schools are allowed to act as both private businesses and public schools, taxpayers end up paying twice. In these dire financial times, there are surely better uses for public funds than to double pay to pad the reserve funds of well- resourced charter schools.