Authorizer Update: Charter Issues to Watch this Summer and Fall

The COVID-19 pandemic has complicated many charter oversight functions in various ways. When the State Legislature enacted Assembly Bill (AB) 1505, charter authorizers and other observers anticipated significant changes in the oversight of charters when the bill’s provisions went into effect on July 1, 2020. However, what the Legislature could not have anticipated was how dramatically the pandemic would complicate charter accountability.

Pandemic disruptions have necessitated a temporary pause to some aspects of charter oversight. The administration of standardized assessments and the state accountability dashboard were suspended for both 2019-2020 and 2020-2021. In addition, state regulations to assist districts and county offices with implementing the provisions of AB 1505 have yet to be adopted.

As of this writing, the pending Budget Trailer Bill, AB 130 [see Legislative Council’s Digest (28)], reflects this current situation and will impact authorizers’ discretion over charter schools. Two major provisions in the forthcoming trailer bill deserve authorizer attention: a two-year hiatus on charter renewals, and a three-year moratorium on new nonclassroom-based charter schools.

Hiatus on Charter Renewals until 2025

In light of disruptions to school operations and academic performance measures, AB 130 extends, by two years, the terms of all charter schools whose terms expire on or between January 1, 2022 and June 30, 2025, inclusive. This means the renewal process for these schools will be pushed back by two years. This would apply to a significant majority of operating charter schools in the state. Authorizers should be mindful that most operational MOUs are set to expire at the same time as the charter, and they should initiate discussions about extending the term of the current MOU — or negotiate a new MOU altogether.

With this pause in the normal renewal petition review process, authorizers must initiate the revocation process to address the most egregious concerns with a charter school that they otherwise might consider during renewal. The two-year extension for renewal would apply to a school regardless of whether concerns are unrelated to academic performance, such as financial distress or legal violations. Authorizers should track, document, and try to address issues that could support nonrenewal, even if they do not support revocation, for the eventual review of renewal petitions deferred until 2025.

In lieu of accountability standards tied to school dashboard reports, authorizers should consider and communicate with their charter schools to determine appropriate academic expectations for these schools. This would be similar to Dashboard Alternative School Status (DASS) charter schools, which serve high-risk students, and, in general, do not rely upon dashboard metrics for renewal.

Beyond addressing COVID challenges, there is opportunity here for thoughtful consideration of measures that capture a holistic picture of school performance. CCAP will be leading collaborative discussions on this in partnership with the Small School Districts’ Association and the California Charter Schools Association.

Moratorium on NCB Charters Extended until 2025

AB 130, as currently written, also would extend the moratorium on new nonclassroom-based (NCB) charter schools for three more years, until January 2025. Just before all schools pivoted to virtual instruction in response to the pandemic emergency, AB 1505 enacted a prohibition on approval of any new NCBs from January 2020 until January 2022. Research indicates that the academic performance of students at NCB charters and virtual schools is below the state average. Regardless, NCBs and virtual programs are as popular as ever due to the pandemic. In fact, waitlists for existing NCB charters grew over the past year. Amidst the challenge of returning classroom-based programs to in-person instruction, authorizers should also carefully monitor the performance of virtual charters.

The public education system in California, and the charter school landscape of which it is a part, is a different place than when AB 1505 was passed. The impacts of the pandemic and other factors have been far reaching. But with the difficulties also comes a window of opportunity to revisit and strengthen authorizing practices. CCAP will help authorizers address these new challenges with our newly released toolkits, training, and collaborative opportunities. We will continue to keep you apprised of developments and opportunities.

CCAP acknowledges the assistance of Ed Sklar of Lozano Smith in the preparation of this article.