The Free Press, Mankato, MN

Local News

May 7, 2009

Charter schools are flexible

Budget constraints less likely to drag schools down

Shawn Lee is matter-of-fact when he compares traditional public school budgets to that of RBA Public Charter School.

Lee started teaching at the Mankato charter, formerly called Riverbend Academy, eight years ago. In that time, he’s watched traditional school districts slash millions from their budgets, lay off dozens of teachers and discontinue student programs. He knows a handful of area schools are set to close their doors at the end of the school year while four-day weeks and cuts to electives have become standard fare for discussion in school board rooms.

But Lee said it’s a different story for charter schools.

“We don’t really (cut) anything student related,” Lee said.

Charter schools are funded essentially the same way as traditional schools. Funding is based on enrollment, with each student accounting for roughly $5,200 in state aid (in reality, students are weighted on several academic and economic factors to determine state aid).

And like traditional districts, charters are subject to the same set of ever-increasing fixed costs — lease payments, transportation and insurance costs — and draw from the same pool of state aid.

The difference is, charter schools are excluded by law from holding referendums and levying for more tax support.

“We have to live off our budget,” said Don Johannsen, RBA’s program adviser. “It is what it is.”

Charter schools generally eschew traditional administrative positions, usually in favor of a collaborative system where teachers make decisions together. Charter teachers are not unionized ( “That helps,” Lee said) and staffing is based purely on enrollment (“If we have a waiting list, we hire a new adviser,” Lee said.)

Nearly all traditional public schools spend well upward of 75 percent of their general fund budget on staff costs. Doug Thomas, director of the charter-school oversight organization EdVisions Schools, said most charter budgets allocate about 65 percent to staff costs.

Thomas, whose organization lends support to more than 50 charters nationwide, adds that none of the 10 charters he oversees in Minnesota — including Minnesota New Country and RBA — are struggling financially.

“They don’t have that bureaucracy surrounding them,” Thomas said. “Charter schools are so directly managed.”

At RBA, the entire staff works on the budget together. Johannsen said the process starts by allocating all fixed costs and program expenditures and then “seeing what’s leftover for salaries.” A couple of years ago, teachers accepted a pay cut. Last year, wages were frozen and this year, raises are highly doubtful.

But the fiscal diligence paid dividends last fall when RBA received a School Finance Award, which is given to districts that comply with state accounting regulations and preserve recommended fund reserves.

“We take the budget, sit down and make it work,” said Johannsen, who added that the percentage of charters receiving finance awards last year (33) was nearly double that of traditional districts. “Charter schools know they’re being scrutinized. They have to be accountable.”

Lafayette Charter School, which also received a recent Finance Award and is near New Ulm, held its budget meeting April 14.

Sandra Stugelmeyer, business manager for the charter that serves preschool through eighth grade, said the district reduced about $40,000 and no one lost their jobs. Stugelmeyer said a simple energy efficiency plan — turning lights off and shutting off appliances — as well as reducing some staff workloads and supply budgets should balance the books.

Minnesota New Country in Henderson does without custodians. The students take care of the building and grounds. Like RBA, New Country promotes a “project-based” curriculum where students work on yearlong, multi-discipline research projects. That means there are no electives and no need to staff extra teachers.

With a budget of about $1.4 million, New Country lead adviser Dee Thomas said staff will be meeting to balance the budget in the coming weeks. She said salaries have been frozen in the past and that seems a likely option once again. She also said some purchases could be delayed.

But Thomas also said the school will not deviate from the program that was called one of the top eight in the nation by the U.S. Department of Education in 2006.

“We have 19 employees,” she said, adding the school has hosted recent visitors from Singapore and New Jersey. “But all 19 will sit around the table, look at the budget and say, ‘This is what we have.’”

Text Only | Photo Reprints
Local News