The Oklahoma House of Representatives moved to tighten financial oversight of charter schools, and particularly virtual charter schools, with unanimous passage Monday of two major reform bills.
House Bill 3643, by Rep. Sheila Dills, R-Tulsa, would make numerous changes to virtual charter schools’ governance and financial reporting in the wake of revelations concerning the use of state funds by Oklahoma’s largest such enterprise, Epic. It particularly targets third-party administrators, called education management organizations.
HB 3644, also by Dills, would apply more stringent standards and responsibilities on all charter school boards and their sponsoring organizations.
A third related bill passed last week. That bill, HB 3645, would define attendance standards for virtual charter schools.
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“Charter schools play a vital role in providing school choice options for students and parents in Oklahoma,” Dills said in a written statement Monday afternoon. “Still, we must ensure that taxpayer dollars are protected and that we have an accurate and transparent accounting of how they are spent. We also need policies that ensure the academic needs of students are being met.”
State Superintendent Joy Hofmeister, a candidate for governor, conditionally endorsed HB 3644.
“This legislation would mean significant reform for oversight of charter school management,” Hofmeister said, also in a written statement. “While more work remains to be done to ensure there is not a repeat of the problems Oklahoma saw with Epic, House Bill 3644 tightens existing regulations that enable charter schools to be responsible stewards of taxpayer money. I commend Rep. Dills for authoring HB 3644 and thank House members for its passage today.”
Monday was something of a landmark day for Dills, who has been wrestling with charter school — and especially virtual charter school — reform for several years. The House actually passed similar legislation late last session but could not get it heard in the Senate.
It’s unclear whether Senate leadership feels differently this session.
Provisions of HB 3643 include:
• Separation of virtual charter schools and education management organizations, including their governing boards and administration. Epic’s founders were able to direct millions of dollars to themselves through an EMO they controlled.
Epic has since severed ties with those founders.
• Specification that public funds are to remain public funds and subject to state audits and clawbacks of misused money.
• Requirement for training for financial officers.
• Requirement for filing of EMO contracts with the Oklahoma State Department of Education.
Provisions of HB 3644 include:
• Requirement that charter school sponsors be more actively engaged in oversight and spend the 3% fee they collect on oversight and services for the school.
• Requirement that sponsors enforce academic performance metrics.
• Requirement that members of a charter school governing board be subject to the same instruction and continuing education requirements as the members of a local school board.
Inside the newsroom: Staff writer Andrea Eger discusses the latest on the investigation of Epic Charter Schools
randy.krehbiel@tulsaworld.com

