Title: 8.  CAPITAL OUTLAY FOR CHARTER SCHOOLS - WAYMAN ACADEMY OF THE ARTS

Requested Action:

THAT THE DUVAL COUNTY SCHOOL BOARD APPROVE CONTINUED DISTRIBUTION OF CAPITAL OUTLAY FUNDS TO WAYMAN ACADEMY OF THE ARTS.

Summary Explanation and Background:

Section 1013.62 F.S. provides capital outlay funding for charter schools and defines requirements that a charter school must meet in order to be eligible to receive funds.  If the District is unable to provide capital outlay funding to a charter school, then the District cannot retain the capital outlay funding.  Instead, the District must return to capital outlay funding to DOE for further distribution to other eligible charter schools.  Since 2003, one of the requirements for a charter school’s eligibility to receive capital outlay funding is that the charter school must “have satisfactory student achievement based on state accountability standards applicable to the charter school.” 

Wayman Academy of the Arts Charter School met the eligibility requirements for capital outlay funding during the 2006-2007 school year and the School received $294,506 [@$24,895 per month].  Past capital outlay funding was distributed in 2006 [$124,945], in 2005 [$144,897], 2004 [$230,484], 2003 [$127,692], 2002 [$144,721], and 2001 [$132,765].  

Because Wayman Academy of the Arts received a state grade designation of “F” in 2007, District staff determined that the School was not eligible for capital outlay funding for 2007-2008.  The basis for the District staff’s determination was information previously provided by DOE in its Technical Assistance Paper (TAP) 2005-11 (June 2006): Charter Schools Capital Outlay Funding.  This TAP defined satisfactory student achievement as “a school that receives a grade of ‘D’ or better under the state A+ plan” or “a charter school not receiving an ‘F’ grade under the state A+ plan.” The Office of Educational Facilities at DOE confirmed by email to the District on July 25, 2007, that “[the charter schools] are no longer eligible for FCO funds because of their school grades.”

Accordingly, District staff notified the School by a letter dated July 26, 2007, stating that the charter school would not be eligible for capital outlay funds for the 2007-2008 school year because it did not meet the criterion for satisfactory student achievement.  The charter school objected to the District’s withholding of funds, and District staff investigated the matter further with DOE.  As a result, the State’s Office of Independent Education and Parental Choice sent subsequent correspondence to the District on August 17, 2007, stating that satisfactory student achievement includes “FCAT, School Grades, and the accountability measures included in the charter contract. The district determines if this standard has been met by the charter school.”  In other words, the latest correspondence from DOE seems to indicate this is a local, rather than a DOE, decision. 

Since this last correspondence from DOE, District staff has contacted other large Florida districts that sponsor charter schools that received an "F" in 2007 to determine how they are handling this issue.  The school in Palm Beach County will not receive capital outlay funding because, in addition to receiving an "F", it does not meet the criteria of having been in operaton for 3 or more years.  Orange County does not authorize capital outlay funding for 2 charter schools that have received "F" grades.  Miami-Dade and Broward both have charter schools with state grades of "F" but have not yet determined whether to withhold capital outlay funding.

Wayman Academy of the Arts has been in operation since the 2000-2001 school year.  On June 6, 2006 the School Board approved a one-year contract with the School (effective July 1, 2006 through June 30, 2007) which was renewable for two additional years contingent upon the School making a D in 2007. However, during the process to negotiate the first renewal of the contract, the School requested that the Duval County School Board consider a longer contract term for the School so that it could access long-term financing for its facility. Because the School had earned a grade of “C” in 2006, a ten-year contract was ultimately approved on June 5, 2007.  Upon release of the state grades in late June, the District then learned that the School’s state grade designation dropped from a “C” to an “F” and, as a result, on July 3, 2007, the School Board approved modification of the School’s contract term from ten years to five years and removal of the contingency of a “D” grade designation for 2007.    

The District’s current five-year contract (effective July 1, 2007 through June 30, 2012) with Wayman Academy of the Arts requires that “the School shall target a School Performance Grade designation of “C” or better for each year of the contract term.” Although the School did not meet the target grade of “C” or better for 2007, the School did improve in 5 of the 6 categories common to both the 2006 and 2007 FCAT test administrations (reading achievement, mathematics achievement, reading gains, mathematics gains, and bottom quartile reading gains). A chart outlining Wayman Academy’s student achievement in the 6 categories is attached for your reference. 

The District’s contract with Wayman Academy of the Arts also states that: “If the School is found by the Florida Department of Education to be failing for 2 years in a four-year period, then a recommendation for termination of this Contract would be brought before the Sponsor’s Board.” Notwithstanding the School’s obtaining an “F” in 2 of the prior 4 school years (i.e., 2005 and 2007), no recommendation was brought to the School Board to terminate the School’s contract. The reason for this is twofold:  (1) the School earned a “C” in 2006 and the District was operating in good faith during the aforementioned contract negotiation process that the School would continue its upward progress with regard to student achievement; and (2) the District’s previous attempts to close double “F” charter schools has demonstrated that the State is more supportive of such attempts when the “F” grades are consecutive “F’s” rather than sporadic. 

Because DOE has indicated to the District that the provision of capital outlay funding be a local District decision based on the charter school's obtaining satisfactory student achievement (including FCAT, School Grades, and the accountability measures included in the charter contract), and because the District has just renewed, rather than terminated. its contract with Wayman Academy of the Arts, District staff recommends the continuation of distributing capital outlay funds for 2007-2008 to Wayman Academy of the Arts so that the District does not interfere with the charter school's operations during its "turnaround" period this school year.

New Century Commission Recommendation/OPPAGA Recommendation/Council of Great City Schools Recommendation:
None

Attachments (list):
Wayman-Performance-Categories.doc

Financial Impact (Including HR/headcount/Source of Funds):
There is no financial impact to the district.  These are State funds.

For Additional Information, contact:

Dr. Sally Hague, Director, School Choice/Pupil Assignment, Operations Division, 390-2082

Mr. Doug Ayars, Jr., P.E., Chief Operating Officer, 390-2007