Judge orders stronger proof of oversight in A3 charter schools ruling

California school districts can only collect fees for overseeing charter commensurate with the actual costs of the oversight provided by the district, San Diego Superior Court Judge Frederick Link has ruled.

Judge Link’s ruling came in the case of The People of the State of California v. Sean Joseph McManus, et al., which involved individuals who operated the A3 affiliated charter schools. A group of individuals associated with the schools were indicted in May of conspiracy to misappropriate public funds, and guilty pleas by the culprits are leading to the return of over $210 million in assets.

In addition, the court ordered six school districts that authorized most of the A3 affiliated charter schools to return more than $1 million in fees charged to the state for charter “oversight that was not occurring,” according to the San Diego District Attorney’s Office.

Under California Education Code section 47613, school districts can collect as an oversight fee the lesser of the actual costs of the oversight provided by the school district or an amount equivalent to 1% – 3% of the charter schools public revenue (depending on whether the district provides rent-free facilities to the charter school).

“These school districts collected significant fees for oversight work they did not perform,” District Attorney Summer Stephan said in a press release.  “While the recovery of stolen funds is certainly important, the clarification of California’s oversight fee law by Judge Link brings much needed change for our public education system and will serve to improve oversight and integrity for years to come.”