HARRISBURG, PA — State Representative Paul Friel has introduced a new bill aimed at tackling the significant overpayment of taxpayer funds to Pennsylvania’s cyber charter schools, spurred by findings in a recent report from Auditor General Timothy DeFoor.
The report, which audited five Pennsylvania cyber charter schools, revealed a staggering $618 million in accumulated fund balances. Among the findings, it was noted that some of these taxpayer dollars were diverted into non-educational expenditures, including real estate investments by the state’s largest cyber school. Friel characterized the system as failing both taxpayers and school districts.
“The findings confirm what many of us have known,” said Friel, D-Chester. “Pennsylvania’s cyber charter funding system is broken. Public education dollars should be used to educate students, not to build financial reserves for cyber charter schools.”
Friel’s proposed legislation outlines two principal objectives:
- Recovery of Excess Funds: Allow taxpayers and school districts to reclaim overpaid funds that exceed operational needs for cyber charter schools.
- Clarified Financial Guidelines: Introduce explicit definitions for allowable expenses and fund balance calculations, ensuring financial transparency and accountability.
Auditor General DeFoor’s report spotlighted these issues, finding that cyber charter school revenues had nearly doubled from $473 million in 2019-2020 to $898 million in 2022-2023. This growth was partly attributed to higher enrollment during the COVID-19 pandemic under an outdated 2002 funding formula. DeFoor emphasized the need for systemic reform, stating, “The excessive fund balances being accumulated by these cyber charter schools raise concerns over the funding formula for providing tuition payments.”
Friel stressed that the bill complements other charter school funding reforms and urged the legislature to act swiftly. He emphasized that correcting the flawed system is not only about ensuring public education gets the resources it needs but also about protecting taxpayers from financial misuse.
“Reforming charter school law is essential to safeguarding the integrity of our public education system and ensuring that every tax dollar is used responsibly,” Friel stated.
The legislation aims to reshape how Pennsylvania allocates funds to cyber charter schools, ensuring access to quality education without compromising fiscal responsibility. With growing momentum, the proposal could mark a pivotal step toward rebuilding trust in the state’s education funding framework.
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