New Ed Jobs Bill Prohibits Management Company-Operated Charter Schools From Getting Funds

The new $10 billion Ed Jobs bill passed by Congress earlier this summer won't be going to charter schools operated by a management company. Some states are interpreting the guidance released last week to mean that no employee, not even teachers, are eligible for this new funding aimed at re-hiring teachers laid off due to budget cuts if the management company operates the charter school.

The federal guidance released on Sept. 1st states that a charter school that is an LEA will receive the funds directly. This doesn't affect any of Colorado's charter schools because none of the state's charter schools are their own LEA (Local Education Agency--the label attached to school districts).

The guidance also explains that management company employees are not eligible to receive Ed Jobs funds. Only about nine management companies operate in Colorado and those with varied administrative positions employed by the management company. Most commonly, the lead administrator and possibly another administrative position are employed by the management company and all other employees are employees of the charter school and not the management company.

Colorado's interpretation of the guidance is that teachers, or school-based employees, may be eligible for Ed Jobs funding. Positions paid for by the management company are not eligible.

More on Imagine Schools

The NY Times ran an lengthy and well-researched article on Imagine Schools. Imagine is the largest management company for charter schools in the nation with 71 schools operating. In Colorado, there are two charter schools--in Firestone and the eastern part of Colorado Springs.

Imagine is criticized for extracting so much money from the schools it operates that the school operates on an extremely lean budget. This results in fewer resources and smaller salaries. Imagine is applying for nonprofit status (since 2005), but it also operates a facilities financing company that is for profit.

Pieces of this information has been reported in the past. However, this is the first article that collectively outlines all of the issues that have surfaced.