Epic will still get state funds
Education Department will still provide money to virtual charter school under investigation
Epic Charter Schools will receive public funds as usual this school year, despite state investigators alleging the virtual charter school embezzled millions of taxpayer dollars.
State schools Superintendent Joy Hofmeister confirmed Thursday that the Oklahoma State Bureau of Investigation recommended that Epic receive its yearly allocation of state aid, which the state will begin distributing next month.
OSBI investigators advised the Oklahoma State Department of Education to “keep moving as normal” and not disrupt education services being provided to Epic students, Hofmeister said while speaking with reporters after an Oklahoma State Board of Education meeting.
“The indication ( from the OSBI) was that we keep moving forward as we are doing unless we are directed otherwise,” Hofmeister said. “… I can clearly tell you at this moment, there is no anticipation of a displacement of 20,000 students in Epic statewide virtual school.”
The OSBI alleged the virtual charter school illegally inflated its enrollment with “ghost students” and dual enrolled children who were home-schooled or attended private and sectarian schools, according to a search warrant filed last week in Oklahoma County District Court.
Epic is a public charter school that receives funds for each student enrolled. As the state's largest virtual charter school, it was allocated $112.9 million in state aid last school year.
The state Board of Education maintained Epic's status as an accredited public school when it renewed accreditations Thursday. All Epic schools were accredited with no deficiencies.
Epic denied any wrongdoing following an OSBI search of an Epic teacher's home. Co-founders David Chaney and Ben Harris stated they are “confident the facts will once again vindicate our team.”
“While the state accreditation does not have any bearing on the OSBI's ongoing investigation into Epic, it does indicate that reviews conducted by the State Department of Education have found the school to be in compliance with state requirements,” Epic spokeswoman Emily Lang wrote in a news release. “Accreditation means Epic will receive state funding and remain operational for the foreseeable future.”
The state department still hasn't determined how much funding Epic will receive this school year. Virtual schools won't report their enrollment counts until Aug. 1, though brick- and- mortar public schools had an earlier deadline.
The state will announce Epic's allocation for the upcoming school year later in August, said department Communications Director Steffie Corcoran. At that point, the virtual charter school will immediately start receiving public funds.
Hofmeister was critical of Epic's heavy spending on advertising and even hinted at support for changing laws regarding advertising expenditures.
Epic has become known across the state for frequent advertisements on TV, radio and in print.
Lang informed The Oklahoman that Epic is nearing the end of a $2.48 million media buy that includes 12 weeks of advertising spots across the state. This amount accounts for fewer than 1% of the schools' total budget in each fiscal year and will be spread across two fiscal years.
Hofmeister acknowledged Oklahoma school districts are allowed to have an advertising budget, but she indicated Epic exceeded an “appropriate use” of those dollars. The superintendent chided Epic's focus on recruiting new families while the students already enrolled have not scored well in academic evaluations.
“I find it a clash with the for- profit model and the public- service model in this instance,” Hofmeister said. “I don't like seeing dollars used in advertising to recruit new students and grow exponentially when school performance isn't as successful for all kids that are attending that school. But, is that unlawful? Does that need to change? Perhaps.”
The highest overall grade for Epic by the Education Department was a “C” for the online middle school, which also earned a “C” in academic achievement, a category tied to state test scores.
The department graded the elementary school as a “D” overall, in academic achievement and in academic growth. The Epic One-on-One high school had an overall “F” grade, with a “D” for academic achievement and postsecondary opportunities. It received a failing grade for graduation rates.