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The Honolulu Advertiser

Posted on: Thursday, January 13, 2005

Charter schools' troubles audited

By Derrick DePledge
Advertiser Capitol Bureau

Hawai'i's charter school law is poorly written and vague, creating confusion at the state Board of Education that has contributed to a lack of oversight of the state's 27 charter schools, a state audit has found.

The absence of effective oversight hinders the state school board's ability to determine whether the experimental schools are accountable for student performance and sound management of public money. The audit, according to a draft circulated among policy makers, found that the school board uses the "vaguely worded charter school law to justify its passive oversight over charter schools."

Gov. Linda Lingle has wanted the state Legislature to lift the cap on new, start-up charter schools, but the audit raises doubts about whether the school board and the state Department of Education are ready for the added responsibility. Democrats, who control the Legislature, will consider several changes to charter school operations this session and are citing the audit's findings as guidance.

Jim Shon, executive director of the state's charter schools, said he will give the school board suggestions for greater academic and financial accountability within the next few months. He described past oversight by the board as "velvet-gloved," but said the schools probably needed some early leeway.

"They were given a certain childhood. Now they are emerging from adolescence into adulthood," Shon said.

Vague status

Charter schools were created by the Legislature in 1999 to give parents alternatives to traditional public schools. The schools have grown in popularity — enrollment increased nearly 15 percent this school year to about 5,000 — and some have shown signs of academic success. Charter school students are doing about as well or better than students statewide on the state's proficiency tests, although direct comparisons are problematic because some charter schools do not have enough students taking the tests to make the results statistically meaningful.

Many charter schools have had financial trouble or have had to overcome management challenges to stay open. The school board has been aware of the schools that have had deficits and has sought better ways to monitor, sanction and revoke the charters of problem schools. But limited staff at the school board and the DOE to deal specifically with charter schools, along with delays in naming and then working with a charter school executive director, have led to inaction.

The audit, conducted between June and November of last year, centers on Waters of Life, a Big Island charter school the state had attempted to close because of mismanagement in 2002. At that time, the school board was being criticized for not setting up enough financial oversight of charter schools. Katheryn Crayton-Shay, who has since become the principal at Waters of Life, said she could not comment on the audit until it is completed and released.

The audit characterizes the charter school law as too broad and confusing, making it unclear just how much authority the school board has over the schools. The board, the audit found, has been given different advice about whether the law exempts the schools from all but state collective bargaining, employment discrimination and health and safety laws, or whether the schools are only exempt from laws that relate to public schools. Other inconsistencies have left some charter school employees, including administrators, out of the state's benefits package even though they are state employees.

But the audit determined that the school board does have the authority to develop oversight policies but had missed an opportunity to provide leadership. Auditors noted that some board members seemed unprepared for the responsibility even though the law was no surprise.

School squabbles

The audit also found that the school board had not done independent evaluations of charter schools despite approving the first charters four years ago.

Breene Harimoto

Breene Harimoto, the school board's chairman, said he has committed to improving oversight of charter schools this year. "I think we've done the best we could," he said. "I don't think we've been negligent in any way in the past, but I think we need to be a little more forceful."

Charter school administrators have had disputes with the school board and the DOE over whether they get adequate state resources and, occasionally, whether they are being micromanaged. One dispute that dragged on for months involved the selection of a charter school executive director. Charter schools picked attorney Dewey Kim as their only choice and refused to give the school board other candidates, but, after the board hired him, Kim quit after less than six months over the conflict of being an advocate for charter schools while also reporting to the board. Shon replaced Kim as executive director last year.

Seeking solutions

Shawn Bolan, whose son is in the fifth grade at Wai'alae Elementary, which converted to a charter school, said charter schools need autonomy to be innovative but should have some additional oversight as the movement grows. "But I don't know if I'd want it to be the traditional BOE oversight," he said.

Educators and lawmakers envision that Shon's office will provide charter schools with organizational advice and oversight in collaboration with the school board.

The audit recommends that the Legislature and the school board clarify oversight responsibilities of charter schools and address questions about employee benefits, legal exemptions and facilities costs. Democrats will likely review whether the charter-school funding formula should be updated, so the schools could get more money, as well dealing with the issues raised by the audit.

State Rep. Roy Takumi, D-36th (Pearl City, Palisades), chairman of the House Education Committee, said he wants to make sure there is adequate oversight before expanding the number of start-up charter schools. The state has reached the cap of 23 start-up schools and has four charter schools that converted from traditional schools. The law allows for another 21 conversion schools.

"As of today, I think there is some concern about whether they are all on solid footing," Takumi said.