Rep. Castor Amendment to Increase Oversight on Charter School Corporations Passes as Part of Historic Package for Students, Public Schools, College and Universities

Press Release

U.S. Rep. Kathy Castor's (FL14) amendment to increase oversight of for-profit charter school corporations was passed by the House and included in the Labor, Health and Human Services, Education, and Related Agencies funding bill late yesterday. The House will vote on the historic FY22 appropriations package for students, public schools, colleges and universities later this week. Castor spoke on the House floor to highlight the failure of the State of Florida to adequately support public schools and students, and the heavy-handed tactics by state officials when courageous Hillsborough County School Board members questioned the operation of certain for-profit charter schools.

"America's public schools, colleges and universities are the engines of economic opportunity and our funding package provides historic investments in students and schools at a time when they need it.

"Especially in Florida, where the governor and legislature are intentionally undercutting our public school students and local control. Florida, the third largest state in the country, ranks 43rd in per pupil funding and it diverts an enormous amount of public money to for profit charter schools that are not accountable and often fail to provide the full range of educational services required by law like those for special needs and disabled students," said Rep. Castor.

Hillsborough County Public Schools serve all children, including an estimated 98,000 children aided by federal Title I education funding to the tune of approximately $60.7 million in Title I funds.

This appropriations bill provides $36 billion in Title I funds, a 118 percent increase over 2021, which would provide $49.7 million in additional funding for schools in Hillsborough County to support children at risk of failing out of school.

"When my local school board in Hillsborough County recently questioned the quality of education provided by certain for-profit charters, the state commissioner of education threatened to withhold money from students in all schools, the seventh largest district in the entire country.

"Many for-profit charter corporations need oversight by the US Department of Education, especially in Florida, where they skirt civil rights laws, and they weaken our traditional public schools. So I thank my colleagues on the Appropriations Committee for the oversight measures included in this bill that will help ensure that every child has an opportunity to learn and succeed, especially the students in Florida who deserve better," continued Rep. Castor.

The 2022 Labor, Health and Human Services, Education, and Related Agencies funding bill provides $253.8 billion, an increase of $55.2 billion -- 28 percent -- above 2021. With this historic increase, the legislation:

Grows opportunity with transformative investments in education, including record funding for high-poverty schools and students with disabilities, and strong increases for programs that expand access to post-secondary education.
Supports middle class and working families with increased funding for child care and development programs, Head Start, and preschool development grants.
A number of oversight measures on charter schools are also included:

The Committee recommends $400,000,000 for Charter School Program (CSP) Grants, which is $40,000,000 below the FY21 enacted level and the FY22 budget request.
For-profit Entities.--The Committee is concerned by a recent report that identified more than 440 charter schools operated by for profit entities that received CSP grants totaling approximately $158 million between 2006 and 2017. The Committee believes that Federal funding for K--12 education should strengthen and improve our public systems and should not enrich private entities with a profit motive. In response, the Committee includes new bill language preventing Federal funds from being awarded to charter schools run by for-profit entities.
GAO Mandate from House Report 116--450.--The Committee is supportive of GAO's initial work on the mandate included in House Report 116--450 regarding the Department's oversight over CSP and whether the program is being implemented effectively among grantees and subgrantees. The Committee is particularly interested in the issue of CSP-funded schools that eventually closed or received funds but never opened; the relationships between charter schools supported by CSP grants and charter management organizations; and enrollment patterns at these schools, especially for students with disabilities. In addition, the Committee is interested in recommendations on potential legislative changes to the program that would reduce the potential for mismanagement and ineffective operations.
Oversight from the Office of Inspector General.--The Committee supports efforts by the Department's Office of Inspector General (OIG) to examine grantee administration of Replication and Expansion Grants, including charter management organization grantees. The Committee also supports the OIG's efforts to evaluate whether the Department adequately monitored grantees' performance and uses of funds for CSP competitions.
Charter School Effects on School Segregation.--The Committee is concerned by findings from a 2019 Urban Institute report which concluded that growth in charter school enrollment increases the segregation of Black, Latino, and white students. To address this concern, the Committee urges the Department to give priority to applicants that plan to use CSP funds to operate or manage charter schools intentionally designed to be racially and socioeconomically diverse.
National Activities.--The Committee recognizes that one purpose of CSP is to evaluate the impact of charter schools on student achievement, families, and communities, and share best practices between charter schools and other public schools. The Committee encourages the Department to use funding within CSP National Activities to prepare a report summarizing grant recipients responses to reporting requirements in ESEA, regarding the identification or sharing of best practices between charter schools and other public schools, and the extent to which such practices were adopted and implemented by other public schools. The Committee encourages the Department to examine these responses in light of the student populations served.
Students with Disabilities.--The Committee encourages the Department to continue including in their evaluation of State CSP grants the extent to which State entities are utilizing the seven percent of funding received under the program to ensure that charter schools receiving CSP grants are equipped to appropriately serve students with disabilities and, by extension, prepared to become high-quality charter schools.
Department of Education -- The bill provides a total of $102.8 billion in discretionary appropriations for ED, an increase of $29.3 billion above the FY21 enacted level and the same as the President's budget request.

Of this amount, the bill includes:

K-12 Education, including Individuals with Disabilities Education Act initiatives--The bill provides $65.6 billion, an increase of $25 billion over the fiscal year 2021 enacted level and the same as the President's budget request. Within this amount, the bill provides:
$36 billion for Title I Grants to Local Educational Agencies, an increase of $19.5 billion above FY21 enacted level.
$17.2 billion for Special Education, an increase of $3.1 billion above the FY21 enacted level and $7 million above the President's budget request. The amount includes:
$15.5 billion for Part B Grants to States, an increase of $2.6 billion above the FY20 enacted level and the same as the President's budget request, and
$29 million for Special Olympics education initiatives, an increase of $5 million above the FY21 enacted level and the President's budget request.
$1 billion for English Language Acquisition, an increase of $203 million above the FY21 enacted level and $83 million above the President's budget request.
$2.3 billion for Supporting Effective Instruction State Grants (Title II-A), an increase of $150 million above the FY21 enacted level and $145 million above the President's budget request.
$1.3 billion for Student Support and Academic Enrichment State Grants, an increase of $85 million above the FY21 enacted level and the President's budget request.
$1.4 billion for Nita M. Lowey 21st Century Community Learning Centers, an increase of $100 million above the FY21 enacted level and $50 million above the President's budget request.
Continued support for a Social and Emotional Learning (SEL) Initiative to support SEL and "whole child" approaches to education. Within this amount, the bill provides:
$112 million, an increase of $45 million over the FY 2021 enacted level, for grants for evidence-based, field-initiated innovations that address student social, emotional, and cognitive needs within the Education Innovation and Research initiative;
$90 million, an increase of $10 million over the FY21 enacted level, for the Supporting Effective Educator Development (SEED) initiative with a priority for teacher professional development and pathways into teaching that provide a strong foundation in child development and learning, including skills for implementing SEL strategies;
$1 billion within School Safety National Activities for Mental Health Services Professional Demonstration Grants and School-Based Mental Health Services Grants to help LEAs directly increase the number of mental health and child development experts in schools; and
$443 million, an increase of $413 million over the FY21 enacted level, for Full-Service Community Schools to provide comprehensive services and expand evidence-based models that meet the holistic needs of children, families, and communities.

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