pennsylvania Cyber Charters Amass Meaningful Fund Balances, Raising Questions About Funding Model
HARRISBURG, PA – A new report highlights ample fund balances held by pennsylvania’s cyber charter schools, sparking renewed debate over the state’s charter school funding formula. While traditional school districts averaged $4,869 per pupil in general fund balance for the 2023-24 fiscal year, cyber charters averaged $10,132 per pupil, according to research from Research for Action.The data reveals a breakdown of these balances: school districts held an average of $1,263 in committed funds, $1,535 in assigned funds, and $2,071 in unassigned funds. Cyber charters, in contrast, averaged $3,929 in committed funds, $2,599 in assigned funds, and $3,603 in unassigned funds.
Of the thirteen cyber charters operating in Pennsylvania, only Commonwealth Charter Academy (CCA) had a total fund balance lower than the average for school districts. CCA has recently come under scrutiny for its financial practices, including significant investment in real estate. The school moved $354.3 million into its Capital Projects Fund, with $196 million used to purchase or renovate 21 buildings, as reported by the state auditor general. This figure dwarfs the $100 million allocated statewide for all school construction projects.
The discrepancies in fund balances are fueling calls for reform of cyber charter funding. Critics question why cyber charters, often citing narrow operating margins, are able to accumulate such large reserves and invest in areas beyond core educational functions, like marketing. The funds originate from taxpayer dollars, leading to debate over the appropriate level of public support for these schools.
“What truly needs to happen is for the governor, lawmakers, and school district advocates to listen to families about why they are choosing cyber charters over their local schools,” stated Eller, though the question of taxpayer funding remains central to the discussion.The debate centers on balancing parental choice with responsible stewardship of public funds.
