Education Commission of the States 700 Broadway, Suite 1200 Den ver, CO Fax:
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1 Charter Schools Education Commission of the States 700 Broadway, Suite 1200 Den ver, CO Fax: Introduction Charter School Laws and Partnerships: Expanding Opportunities and Resources April 2004 For the past 100 years, the public sector has been the primary provider of social services and often is viewed as the most reliable sector for ensuring broad, uniformly provided services across households of different economic levels. Frequently, however, public-sector agencies lack the capacity to provide these services in effective and efficient ways. In response, some public organizations are leveraging resources by developing partnerships with nonprofit, for-profit and other public organizations. The emergence of charter schools across the nation offers one example of the growing trend to enhance the capacity of public institutions with outside resources. With the need to obtain their own resources and expertise, many charter schools have used their autonomy to create partnerships with social service agencies, churches and community groups. These partnerships provide a host of essential goods and services curriculum and instruction, facilities, administrative support and funding as well as intangible benefits such as increased publicity, enhanced reputation, help with getting charter applications approved and expertise. The Center on Educational Governance (CEG) at the University of Southern California s Rossier School of Education investigated the existence of provisions in state charter school laws that facilitate or inhibit the schools ability to partner with organizations across the economic sectors for-profit, nonprofit and public. In addition to reviewing all state charter school laws, the study s research team conducted telephone interviews with administrators from state department of education charter school offices and state charter school resource centers to obtain their perceptions of the laws impact on the formation of charter school partnerships. The U.S. Department of Education s Public Charter Schools Program funded the two-year study. Types of Charter School Partnerships Because charter schools are required in many cases to secure their own facilities, develop codes of governance, devise curricula and obtain funding to pay for educational enhancements or salaries, many charter school leaders seek innovative opportunities to meet their resource needs. The research revealed such opportunities often come in the form of partnerships with complementary nonprofit, for-profit or public organizations. As seen in Table 1, charter schools seek partnerships with a variety of organizations across the economic sectors. The findings also suggest that the extent to which these partnerships form and evolve often is facilitated by provisions in state charter school laws, as described below.
2 Table 1 Charter School Partnerships Sector Types of Organizations (Examples) Nonprofit Community-based organizations (recreational centers, neighborhood outreach agencies) Cultural institutions (museums, local performance groups) Educational institutions (private colleges, universities) Faith-based organizations (churches) Nonprofit educational management organizations (EMOs) Race/ethnic-based organizations Social service providers (child and family welfare agencies) Private foundations For-profit Education management organizations (EMOs) Local businesses Public Cultural institutions (art museums, science museums) Education institutions (school districts, community colleges, universities) Public health providers (hospitals) Government/municipalities (city offices, mayor s offices) Police departments Legislative Provisions Facilitating Charter School Partnerships As of April 2004, nearly 3,000 charter schools were operating throughout the country, and 41 states and the District of Columbia had enacted charter school laws. Past analyses of these laws have focused primarily on the extent to which states encourage or impede the establishment of charter schools termed respectively strong or weak laws. While these analyses have shed light on the prevalence of charter schools in some states compared to others, they have added little knowledge about charter schools operations. This study focused on how provisions affect decisions related to who governs and manages charter schools. The review of charter school legislation revealed that all but four states Arkansas, Kansas, Iowa and Mississippi include provisions related to alliances. For example, New Hampshire s charter school law states: A charter school may be located in part of an existing public school building, in space provided on a private work site, in a public building or any other suitable location. A charter school may own, lease or rent its own space, or utilize space based on other innovative arrangements. Many states approached the concept of partnerships with a set of policy objectives in mind. Some tailored their laws to encourage specific goals, such as increasing community involvement or helping defray construction costs, while others stated an interest in fostering parental involvement. A state s policy objectives were often evident in the charter school application requirements; 10 state charter school laws include provisions that require applicants to describe their intended partnerships. For example, New Jersey s applications require information on the manner in which community groups will be involved in the charter school planning process. Wyoming s law states that applications must include the governance structure of the school, including but not limited to the process to be followed by the school to ensure parental, teacher and community involvement. Page 2
3 Further, charter school laws in three states Florida, New Mexico and Rhode Island specify that part of the purpose of the legislation is to encourage partnerships. For example, Florida s law states an intent to increase business partnerships in education to encourage developers of residential and other projects to provide school infrastructure [and] to promote and encourage local communities to participate in and advance the cause of neighborhood schools. The laws in both New Mexico and Rhode Island state that one aim of allowing charter schools is to encourage parental and community involvement with public schools. Charter school laws also contain provisions describing with whom charter schools can partner. As shown in Table 2, 13 charter school laws include provisions that permit charter schools to contract with any entity for any services or resources. For example, the Colorado law stipulates: A charter school may negotiate and contract with a school district, the governing body of a state college or university, or any third party for the use of a school building and grounds, the operation and maintenance thereof, and the provision of any service, activity or undertaking that the charter school is required to perform in order to carry out the educational program described in its charter. Similarly, the charter school law in Missouri states: The charter school may contract with any other entity for services. Such services may include but are not limited to food service, custodial service, maintenance, management assistance, curriculum assistance, media services and libraries. Table 2 Legislative Provisions Facilitating Partnerships with any entity for any goods or services. for any goods or services without specifying with whom. with any entity for facilities. with any entity for transportation services. Arizona, California, Colorado, Delaware, 1 Illinois, Missouri, New Hampshire, New Mexico, New York, Oregon, Tennessee, Virginia, Wyoming 2 Connecticut, Indiana, Massachusetts, Michigan, 3 New Jersey, Ohio, Oklahoma, Rhode Island, Wisconsin Arkansas, District of Columbia, Idaho, Massachusetts, Minnesota, New Jersey, Pennsylvania, South Carolina, Texas Florida, Utah 1 Can contract with a faith-based organization if resources provided are nonreligious in nature and if prior approval is received from the secretary of state and state board of education. 2 Must have prior consent of district board to enter a contract with an independent management company. 3 Must not enter into contracts with a religious entity. Additionally, as shown in Table 2, nine state laws include language permitting charter schools to contract for any services or resources, but do not specifically indicate with whom they can contract. Indiana s law, for example, states that a charter school is permitted to enter into contracts in its own name, including contracts for services. In addition to those states mentioned above that permit contracts with any entity for any service, other states specify that charter schools may contract for particular services. For example, policymakers in eight states and the District of Columbia provided provisions specifically related to contracts for facilities, such as the District of Columbia s law that grants charter schools the power to acquire real property for use as the public charter school s facilities, from public or private sources. Also, two states Florida and Utah allow for contracts for transportation services. Finally, five states Connecticut, Delaware, Florida, Massachusetts and New Hampshire include provisions explicitly for workplace charter schools. For example, Delaware s law allows for the establishment of an on-site charter school proposed by a business as an extension of an on-site early learning or day care center, and Massachusetts state law states that a charter school may be located in space provided on a private work site. Page 3
4 Legislative Restrictions on Charter School Partnerships In spite of the prevalence of provisions that facilitate partnerships, the study also found evidence of provisions that restrict their formation. As Table 3 shows, restrictions are primarily concentrated around two areas: for-profit and sectarian involvement. More than one-third of the state charter school laws 15 prohibit for-profit organizations from applying to start a charter school. For example, Indiana s state charter school law says, A sponsor may not grant a charter to a for-profit organizer, and Massachusetts law says, No for-profit business or corporate entity shall be eligible to apply for a charter. Also, a number of states further prohibit for-profits from managing or operating charter schools. Rhode Island s law states: The Board of Regents shall not approve a charter to a school whose overall operation or education program is managed by a for-profit entity. Table 3 Legislative Provisions Restricting Partnerships For-profit organizations cannot apply for charter schools. For-profit organizations cannot operate or manage charter schools. Charter schools cannot contract with faithbased organizations. Faith-based organizations cannot apply for charter schools. Florida, Georgia, Idaho, Indiana, Louisiana, Massachusetts, Minnesota, New Jersey, Nevada, Oregon, Pennsylvania, Tennessee, Texas, Utah, Wyoming Arkansas, Hawaii, Idaho, New Mexico, Rhode Island, Tennessee Delaware, 1 Idaho, Michigan, Minnesota Arkansas, Delaware, Georgia, Idaho, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New Mexico, Oregon, Tennessee, Utah, Wyoming 1 Can contract with a faith-based organization if resources provided are nonreligious in nature and is prior approval is received from the secretary of state and state board of education. As shown in Table 3, partnerships with faith-based organizations likewise are limited. Restrictions of this nature are generally very specific, with language such as a charter school shall be a public, nonsectarian, nonreligious, non-home based and nonprofit school in Illinois law, and an openenrollment charter school shall not be religious in its operations or programmatic offerings in the Arkansas legislation. Some states, however, such as Delaware make allowances for contracting with faith-based institutions for services and facilities to be used in a non-religious manner. Minnesota s law makes special exceptions for facility scarcity, stating, If the school is unable to lease appropriate space from public or private nonsectarian organizations, the school may lease space from a sectarian organization if the leased space is constructed as a school facility. Conclusion Although research is still in the early stages of evaluating the impacts of charter school legislation, it appears that the diverse state policy contexts described here have a noticeable effect on both the prevalence and types of charter school partnerships that exist. Interviews with state-level administrators suggest that states with permissive partnering guidelines are fostering a wide range of charter school partnerships with nonprofit, for-profit and public entities. Other states are more restrictive when it comes to allowing charter schools to partner with for-profit and faith-based organizations, and the resulting partnerships in those states have been constrained by those limits. On a final note, the study showed that states with established charter school resource centers also tend to have more partnerships. State-level administrators indicated that the prevalence of partnerships in these states is likely due to resource center staff advising schools to develop partnerships as one way to access financial, physical and human resources. Page 4
5 The work in this area suggests that partnerships hold promise for leveraging resources, enhancing the delivery of educational services and, ultimately, for improving student achievement. State policymakers interested in leveraging resources across the nonprofit, for-profit and public sectors may want to consider incorporating incentives for partnering into state charter school laws and offering support to charter school resource centers that can assist charter schools in partnering with other organizations. Questions for Policymakers As state policymakers consider if and how to encourage the development of charter school partnerships, they may want to consider the following questions: What are the needs of charter schools? What are the reasons charter schools fail? Can partnerships help address charter schools needs and reasons for failure? What are the potential advantages/benefits of allowing charter schools to partner with nonprofit, for-profit or public organizations? Are there legal problems involved in allowing charter schools to partner with for-profit or faithbased organizations? Should partnership provisions in charter school laws be crafted to promote a particular policy or social agenda? Should charter school applications require schools to include partners as part of the chartering process? Should charter school legislation offer incentives to schools that partner with nonprofit, for-profit or public organizations? Should states provide financial support to charter school resource centers specifically for the purpose of facilitating partnerships between charter schools and other organizations? The Center on Educational Governance (CEG) wrote this policy brief for the ECS National Center on Governing America s Schools. For more information about charter schools and partnerships, please contact CEG at: Center on Educational Governance Rossier School of Education University of Southern California Waite Phillips Hall 901 Los Angeles, CA by the Education Commission of the States (ECS). All rights reserved. ECS is a nonprofit, nationwide organization that helps state leaders shape education policy. To request permission to excerpt part of this publication, either in print or electronically, please fax a request to the attention of the ECS Communications Department, or ecs@ecs.org. Helping State Leaders Shape Education Policy Page 5
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