The Delaware Charter School Tranportation Slush Fund Fully Revealed In State Code & Epilogue Language

Delaware State Code allows for charter schools in the state to keep any excess transportation costs for “educational purposes”.  No clarification is given for what those educational purposes are or what sections of the school budget they need to be allocated to.  As a result, Delaware charters have “kept” an estimated $1.35 million dollars, a luxury traditional public school districts do not have.  Certain commenters over on Kilroy’s Delaware claim this isn’t true, and even went so far as to post the full Title 14 Delaware code § 508 of the state code, which doesn’t indicate the slush fund.

“ § 508 Responsibility for student transportation.

The charter school may request to have the school district where the charter school is located transport students residing in that district to and from the charter school on the same basis offered to other students attending schools operated by the district, or to receive from the State a payment equal to 70% of the average cost per student of transportation within the vocational district in which the charter school is located and become responsible for the transportation of those students to and from the charter school. In the case of students not residing in the district where the charter school is located, the parents of such students shall be responsible for transporting the child without reimbursement to and from a point on a regular bus route of the charter school. In lieu of the payment from the State specified above, if a charter school utilizes a contractor for student transportation the charter school shall publicly bid the routes, and the State shall reimburse the charter school for the actual bid costs only if lower than the payment specified above. Notwithstanding the foregoing, a student at a charter school shall receive such transportation assistance as is made available to students pursuant to a public school choice program established by this Code provided that such student otherwise meets the eligibility requirements for such assistance. In the event a charter school chooses to transport students itself, it shall do so in accordance with all public school transportation safety regulations. Local school districts and charter schools shall cooperate to ensure that the implementation of this chapter does not result in inefficient use of state appropriations for public school transportation and the State Board shall exercise its authority to approve bus routes so as to avoid such waste.”

However, what the rocket scientist over on Kilroy’s Delaware failed to do, most likely deliberately as to show people he is right and everyone else arguing against him is wrong, is put in the part from the Fiscal budget which clearly indicates, in Section 347 of House Bill 225.  Even more hysterical, this commenter damn well knows about this, but blogger honor demands I not out the clown.

Section 347. (a) Notwithstanding 14 Del. C. § 508 or any regulation to the contrary, a charter school may negotiate a contract (multi-year, if desired) for contractor payment for school transportation up to the maximum rate specified which is currently 70 percent of the average cost per student of transportation within the vocational district in which the charter school is located or the charter school may publicly bid the transportation routes.  If the actual negotiated or bid costs are lower then the maximum rate specified above, the charter school may keep the difference for educational purposes.  If the charter school includes a fuel adjustment contract provision, the charter school shall be responsible for increased payments to the contractor or it may keep funds taken back from the contractor.

I wrote an article on this back in January, which clearly showed exactly how much each of the following charter schools were able to keep in FY14 based on this transportation slush fund buried at the near end of the state budget:

Academy of Dover: $56,788

Campus Community: $148,578

Charter School of Wilmington: $63,755

DE Academy of Public Safety & Security: $13,894

DE College Prep Academy: $17,750

DE Military Academy: $21,877

East Side Charter: $31,451

Family Foundations: $384,769

Kuumba Academy: $64,352

Las Americas Aspiras: $103,958

MOT Charter School: $23,126

Moyer Academy: $22,596

Newark Charter: $227,827

Odyssey: $150,607

Reach Academy: $25,647

Providence Creek Academy and Sussex Academy use their own buses, Thomas Edison broke even, Positive Outcomes uses Caesar Rodney School District buses, and Gateway and Prestige Academy each lost over $20,000 on this deal.

So collectively these 15 charters made $1,357,002.00, for average of $90,466.80 a school.  The amounts for Odyssey, Newark Charter School, Family Foundations, Campus Community and Las Americas Aspiras are all well over $100,000.  With no mandated allocation of funds except for the very vague “educational purposes” and no oversight of how they use these funds, who knows where they are going.  In the case of Family Foundations Academy, where the two school leaders embezzled over $90,000 in personal spending, and Academy of Dover where one principal spent over $127,000 in personal purchases, how is it even possible to trust how the schools are spending these funds.  Where is the accountability for these funds?

One Delaware legislator has said enough is enough, and he is requesting lawmakers to make an amendment to get rid of this:

Dear all,

Note HB225—- page 231, Section 347 lines 25-26. This is the language that is consistently inserted over the last 6-7 budgets that conflicts with the Title 14 section 508 mandate to return unused (for transportation) taxpayer money by Charter Schools. The amendment I am filing removes this onerous disregard for taxpayer money from the budget and I hope each and every one of you will support it to restore accountability and specificity of allocation to our spending of those taxpayer dollars. It is our responsibility to ensure that this practice ceases.

Respectfully

John Kowalko

I’m sure the rowdy bunch over at Kilroy’s will say I am doing my master’s bidding since they seem to think Kowalko owns me, which is so far removed from the truth it’s not even funny.  There are numerous issues I disagree with Kowalko on, but when it comes to education we align.

As Rep. Kim Williams House Bill 186 (charter school post-audit with the State Auditor) is supposed to get a vote on Tuesday  June 30th, and hopefully Rep. Debbie Hudson’s House Bill 61 (mandatory school board recordings) is put to a vote, and rules are suspended for each, along with Kowalko’s proposed amendment to the budget, we can start to see some legislative oversight and transparency over Delaware charter schools.  It all depends on how quick the Delaware Charter Schools Network and Kendall Massett can get their people down to Legislative Hall on Tuesday…